Increase in number of investors and size of offer thresholds should help small businesses access equity finance more easily
HM Treasury has confirmed that the Prospectus Regulations 2011 (the Regulations) will come into force on 31 July 2011. The Regulations can be read here and the Treasury’s explanatory memorandum can be read here.
The Regulations bring into force in the UK two de-regulatory changes to the EU Prospectus Directive (the PD). The Regulations amend the Financial Services and Markets Act 2000 by increasing:
- the number of investors to whom an offer of securities may be made before a prospectus is required, from 100 to 150 investors; and
- the total size of the offer that may be made before a prospectus is required, from €2.5 million to €5 million.
For an explanation of the background to, and discussion of the effect of, these changes on smaller company fundraisings, see this post.
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