UKEMA supports UK Government’s proposals for overhaul of the UK prospectus regime

UKEMA welcomes vision of prospectus reform proposals

The UK Equity Markets Association (UKEMA) has welcomed proposed changes put forward in the Treasury’s Prospectus Regime Review.

In its response to the review, UKEMA identified significant long-term advantages that would result from enshrining flexibility into the rules governing prospectuses, noting that existing rules all too often limit the amount of new capital that an existing listed company can raise and regularly locks out existing shareholders from being able to participate in further equity offerings.

While agreeing that a prospectus should always be required for an IPO, UKEMA supported a separate exemption limit for secondary offerings. UKMEA’s response added that consideration should be given to allowing the use of prospectuses vetted in other jurisdictions.

Sunil Dhall, Chair of the UKEMA said: “There is a significant opportunity to deliver greater flexibility with the UK’s prospectus regime, particularly when it comes to encouraging more retail participation. UKMEA is pleased and encouraged by both the vision and direction of the reforms put forward by the Treasury and will continue to engage constructively on how they can be implemented.”

The UKEMA’s response to the Prospectus Regime Review can be viewed here.

About UKEMA

The UKEMA represents those investment banks and equity brokerage firms that focus on raising capital for SMEs, particularly listed firms.

Its members trade in shares of over 2,000 quoted companies, accounting for 57% of London Stock Exchange turnover by volume in 2021, and produce research on over 1,700 companies, representing 87% of listed issuers.

UKEMA member firms facilitated investment of more than raised £6.7bn in funds for companies in 2021, supporting growth in the real economy, employment, innovation, entrepreneurship and wealth creation.