In late 2020, HM Treasury (HMT), the Bank of England and the FCA convened an industry-led working group (the Working Group) to facilitate investment in productive finance (i.e., investment that expands productive capacity, furthers sustainable growth and makes an important contribution to the real economy).
The Working Group was charged with developing practical solutions to the barriers which face those investing in less liquid assets and to build on existing work, including HMT's Patient Capital Review in 2016 and the FCA's recent proposals for a Long-Term Asset Fund (LTAF).
We were delighted to be asked to participate (and are the only law firm represented on the Working Group).
The Working Group has today published its report, "A Roadmap for Increasing Productive Finance Investment" (the Report).
The Report, which sets out 4 recommendations to remove the barriers that the Working Group has identified, is a significant piece in the jigsaw of developing a culture in the UK whereby investment in productive finance is facilitated through the removal of existing barriers - in time, it may well lead to greater access to less liquid assets by a wider investor base including (where appropriate) retail investors.
Our comments on its key messages can be found here.
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