The FCA’s Push for Growth: Lowering Costs for Businesses Raising Capital

On 15 July 2025, the FCA introduced a set of reforms with the aim of reducing costs and cutting administrative tasks for UK businesses that are seeking to raise capital. These changes have been designed to make it easier and cheaper for firms to access funding whilst improving opportunities for investor participation.

Key Changes Introduced by the FCA

1. Prospectus reform for listed companies
2. Faster IPO process
3. Improved access to corporate bonds
4. Launch of new public offer platforms (POPs)

Each of these measures are explored in more detail below.

1. Prospectus Reform for Listed Companies

   Firms that have already listed will in most cases no longer need to publish a lengthy prospectus when issuing additional shares. The threshold for when a prospectus is required has increased from 20% to 75% of a company’s existing share capital. This change is intended to significantly reduce costs for companies seeking to raise new funds.
   
   

2. Faster IPO Process

   The required waiting period between a prospectus being published and an IPO has been halved, moving from six working days to three. This aims to allow firms to list more quickly, particularly when offers include participation from the wider public.
   
   

3. Improved Access to Corporate Bonds

   A single disclosure standard has been introduced for corporate bond prospectuses, applying to both large and small issues. This is expected to make it easier for companies to issue bonds in smaller sizes and support increased retail investor access.
   
   The FCA notes that corporate bonds can provide valuable later-life income and help individuals better manage their financial futures.
   
   

4. New Public Offer Platforms (POPs)

   A new public offer platform has been established to make it easier for growth companies to raise investment. Through this model, companies can make offers above £5 million without needing a full prospectus, provided they do so through an FCA-authorised firm.
   
   The platform is designed to function similarly to crowdfunding, but for larger deals, and will be available to a broader investor base outside traditional public markets.

A Shift in Regulatory Approach from the FCA

These changes represent a clear shift in the FCA’s regulatory approach in a move toward more proportionate, growth-oriented regulation. Rather than focusing solely on risk mitigation, the FCA is actively seeking to create an environment that encourages innovation, reduces unnecessary costs, and supports economic growth. 

What This Means for Firms

For listed companies, these changes mean reduced administrative and cost burdens when raising further capital. For smaller and growing businesses, the new platform creates alternative pathways to raise funds without navigating the traditional prospectus process. For retail investors, the reforms aim to expand access to a wider range of investment opportunities, particularly through simplified corporate bond offerings.

How Thistle Initiatives Can Help

Thistle supports firms across the financial services sector in navigating regulatory change, including capital raising under the FCA’s evolving framework. We help assess your obligations, review your approach, and ensure compliance with prospectus, bond issuance and disclosure requirements.

If you’d like to speak to one of our regulatory specialists about how these changes may affect your business or capital-raising plans, please get in touch.

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