The Association of Investment Companies has doubled the threshold at which investment companies must issue a prospectus for new share issues.
The new rules, which will apply from summer, now only apply when issues represent more than 20 per cent of existing shares compared to the 10 per cent threshold currently in place.
The AIC says the change could come into effect as early as May or June.
Chief executive Ian Sayers says: “This should give investment companies more scope to grow cost-effectively, helping to increase liquidity and to spread costs.
“We also welcome the swift introduction of this change, which will allow investment companies to make the most of this opportunity from this summer.
“It’s important to emphasise that, as before, shareholder approval will still be required.”