The QCA claimed a large victory for publicly quoted businesses after the long and complex review process of the Prospectus Directive which reached a fundamental point on 3 November, when the government committed to implementing two key measures early.
The QCA urged the Government in its response to the Treasury’s Business Finance Green Paper, Financing a Private Sector Recovery to take immediate action to stimulate the UK’s small and mid cap quoted companies. The key changes to the Prospectus Directive that will be brought in early as opposed to waiting the full 18 months the UK has to transpose the changes into the law are:
- Raising the threshold for which a prospectus is required from £2.5m to £5m; and
- Increasing the minimum number of investors for which a prospectus us required from 100 to 150 investors.
The Government announced the measures as part of a package of actions it intends to help companies raise capital more cost effectively.
To read more about the Government’s response to the Business Finance Green Paper Financing a Private Sector Recovery, click here.