UK’s Push to Ease Share-Sale Rules Poses Conundrum for Banks

UK regulators are cutting red tape to make it easier for companies to tap equity markets, but investment banks say the new rules could create more uncertainty in the near term.

The UK’s Financial Conduct Authority this week finalized plans that will require listed companies to produce a prospectus only if they are raising 75% or more of existing share capital, up from 20%. London-listed companies have raised nearly $3 billion so far this year via capital increases.