The UK government is moving to revive direct investment in corporate bonds by individuals, unveiling a kitemark system designed to make the market more accessible after years of decline.
The exchange will introduce “Access Bonds”, a label intended to signal suitable corporate bond issues on retail platforms, while the Financial Conduct Authority will oversee a stricter designation for so-called Plain Vanilla Listed Bonds, aimed at simpler, standardised products.
Following the removal of EU-era rules that effectively barred retail participation by setting a £100,000 minimum investment, a much smaller entry point is now targeted in the new initiative, according to The Times.
At an event hosted by the London Stock Exchange, chancellor Rachel Reeves is expected to frame the reforms as part of a broader revival of the City of London, arguing that UK savings should play a bigger role in funding businesses.
Officials argue that the reforms could unlock a large pool of idle cash. Barclays estimates that millions of people hold hundreds of billions of pounds in cash that could, in theory, be deployed into corporate bonds, which typically offer higher yields than government debt.
Household names such as banks, oil majors and retailers are expected to feature among issuers.