The change, which is set for as early as May or June, will grant trusts greater flexibility to issue more shares without incurring the cost of preparing a prospectus.
Currently, listed companies are required to prepare a prospectus when issuing shares representing more than 10% of the number of existing shares measured over the past 12 months.
“This should give investment companies more scope to grow cost-effectively, helping to increase liquidity and to spread costs,” said AIC chief executive Ian Sayers.
“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.”
