The Financial Services Authority (FSA) has published a report for HM Treasury that outlines what it has done to implement the November 2008 recommendations for reforming rights issues from the Right Issues Review Group (RIRG).
The report notes that the two key recommendations from the RIRG – shortening the offer period and increasing the allotment ceiling – have been implemented and have helped to create a better environment for rights issues in the UK.
RIRG also made a number of other recommendations around the duration of rights issues (e.g. implementing an accelerated rights issue model similar to the Australian one, RAPIDS), underwriting and short-selling. However, the report explains that the FSA, after discussions with industry, has decided that a further consultation on these issues is not necessary, as a result of the key recommendations’ implementation.
To read the report in full, click here to visit the FSA's website.