The Financial Services Authority is to start an informal consultation to consider introducing an Australian-style rights issue process to the UK, following industry-wide demands for reforms.

The Australian process, known as Rapids, or Renounceable Accelerated Pro-rata Issue with Dual-bookbuild Structure, is split into institutional and retail tranches, and was welcomed as an option for the UK at a conference in London last week to discuss recommendations made by the Rights Issue Review Group.