Companies in the UK will be able to hold big rights issues more easily after the Association of British Insurers changed its guidelines on the processes for raising money by issuing more shares.

The ABI, which represents some of the UK's biggest investors, will now advise shareholders that companies would not breach its own good governance guidelines if they were to hold a rights issue of up to two-thirds of the company's market capitalisation without asking existing shareholders for approval. The previous limit wasone-third.