Reeves opens corporate bond market to small investors in bid to unlock UK savings

"The chancellor will on Monday launch a government-backed initiative designed to make corporate bonds accessible to retail investors for the first time in years, scrapping barriers that had effectively restricted the market to institutions and wealthy individuals. Under the new rules, individuals will be able to invest in corporate bonds from as little as £1, compared with the previous £100,000 minimum that had become standard after EU-era regulations."

"At the heart of the plan is a new kitemark system aimed at reassuring novice investors. The London Stock Exchange will introduce so-called "Access Bonds", a designation that allows qualifying corporate bonds to be clearly identified on retail investment platforms. Alongside this, the Financial Conduct Authority will oversee a more stringent classification known as Plain Vanilla Listed Bonds, or PVLBs, reserved for straightforward bond structures with standardised terms."

Rachel Reeves will open Britain’s corporate bond market to retail investors by reducing minimum investments from £100,000 to £1. The London Stock Exchange will introduce an "Access Bonds" kitemark to identify qualifying corporate bonds on retail platforms. The Financial Conduct Authority will implement Plain Vanilla Listed Bonds (PVLBs) for straightforward, standardised bond structures. Ministers aim to channel more household savings into UK businesses, revive London’s capital markets, and boost productive investment and economic growth. Officials say corporate bonds typically offer cautious investors predictable income with yields at least a percentage point above government bonds.

Read at Business Matters