Equity gap to receive a boost from FSMA 2000 amendments

17 January 2005

Tweet
Facebook
LinkedIn
Google plus
Send to

HM Treasury is laying amendments to FSMA 2000 (Financial Promotion Order) 2001 before parliament, re-igniting the informal private equity market that was snuffed out by the 1986 'big bang' act. The Treasury anticipates that the amendments will become law by the end of January. Since 1986, for those growing enterprises caught in the equity gap seeking funds between Â£10,000 to Â£5m, the traditional means of getting their funding requirements out into the market place, informally as business plans through their professional advisors, became subject to financial promotion regulations designed for prospectus-led investment with no specific exemptions provided for by the previously unregulated informal market. Enterprises seeking funds and those wishing to invest in them were separated by a wall of regulation, costs and potential litigation, closing off the entire market. DCX was designed from the outset to overcome the fragmentation issue. However, with the FSMA amendments going through parliament and DCX's proven methods and systems, UK-based growing enterprises seeking informal private equity funding, and those who wish to fulfil the need, now have a genuine market place through which to initiate their business. The amendments enable the informal private equity opportunities currently listed on the DCX private equity market to be presented to the wider market.