The FCA has acted on unifying the disclosure standard and removed follow-on listing hurdles to promote smaller, retail-friendly bond issuances.
Without clearer definitions and smaller issue sizes, Barclays had cautioned in February that retail participation would remain limited.
Read more: Barclays study challenges FCA proposals on retail access to corporate bonds
The FCA’s policy update introduces a single prospectus disclosure regime for all corporate bonds – , large or small – designed to simplify issuance and reduce costs. At the same time, it scraps the separate listing application process for follow-on bond offerings.
Stacey Parsons, head of fixed income at RetailBook and chair and founder of the investor access to regulated bonds (IARB) working group, told The DESK:
“A lower-denominated bond regime is a game-changer for UK investors and listed issuers. It opens the door for individuals and a broader range of fund managers to directly access retirement income through bonds. After over three years of dedicated work by IARB, we are delighted and exceptionally proud to see these revolutionary reforms now embedded in the UK framework, alongside the broader enablement of retail participation in IPOs and reforms to the advice-guidance boundary. These reforms firmly position the UK as a global leader in retail capital markets.”
It looks to cut the red tape and lower the hurdles for issuers wanting to raise debt in public markets. The FCA expects this will encourage companies to issue bonds in smaller denominations, making them more accessible to wealth managers and retail investors.
If issuers do start issuing in smaller denomination because of the unified prospectus rule, that would alleviate one of the concerns raised by Barclays’ when reviewing the changes that were proposed – so long as size denominations come down to allow the greater public to take part.
©Markets Media Europe 2025
