THE Quoted Companies Alliance (QCA) has welcomed the coalition’s decision to introduce key changes to the Prospectus Directive, which it says will help companies raise capital more cost effectively.
The representative body for the UK’s small and mid-cap quoted company sector had petitioned the government to raise the threshold for which a prospectus is required from £2.2m to £4.4m, meaning smaller firms can save on expensive administration fees.
It also persuaded the government to increase the minimum number of investors for which a prospectus is required from 100 to 150.
Tim Ward, QCA chief executive, said: “We are pleased to see that the government has taken on board our suggestion to implement the changes to the Prospectus Directive quickly.
“These two key changes will benefit those companies that are considering raising finance by providing them with a cost-effective and efficient means of raising capital from the public.”
The government announced the measures as part of a package of actions it intends to take in order to develop strong and sustainable economic growth in the UK.