LONDON, July 26 (Reuters) -

Britain set out on Friday the next leg of its post-Brexit

shake up of the City in a bid to attract more investment to a

cash-strapped economy by making it cheaper and easier for

companies to tap shareholder funds.

Britain has already begun easing its financial rules

under the "Edinburgh Reforms" to compete better with New York,

and with European Union financial centres.

The new Labour government elected this month has pledged

to

build on the reforms

.

The Financial Conduct Authority on Friday proposed setting

up a new Public Offers and Admissions to Trading Regime (POATRs)

to replace the existing system of companies publishing a

prospectus when they want to sell more shares on the stock

exchange.

Under the proposals, companies will still be required to

publish a prospectus when first admitting securities to public

markets. However, a prospectus would not be required when a

company raises further capital except in limited circumstances.

"Putting the right information in the hands of investors and

removing unnecessary costs will help further bolster the

market," Sarah Pritchard, the FCA's executive director for

markets, said in a statement.

It complements an easing of rules for companies planning an

initial listing on the London Stock Exchange ( LDNXF ) that come into

effect on Monday.

"The FCA's reforms build on the positive momentum

created by its shake-up of the UK's listing regime," said Julie

Shacklady, director of primary markets at UK Finance, a banking

industry body.

INVESTMENT RESEARCH

The FCA also opened a consultation on proposals for a new

activity of operating a public offer platform or POP.

"These platforms will offer an alternative route for

companies to raise capital outside public markets including from

retail investors," it said.

"The introduction of the platforms should promote scale-up

capital raising for smaller companies while ensuring that

investors get the right disclosures on the key terms and risks

of an investment."

The proposals also draw lessons from the collapse of London

Capital & Finance, leaving investors nursing losses from the

unregulated "mini bonds" they had bought from the company.

The watchdog also confirmed new rules it proposed in April,

that give asset managers more flexibility in how they pay for

research on stock picks.

There is now an option for fees for investment research

from banks and brokers to be "bundled" or combined with the cost

of executing trades.

An EU rule had insisted on separate itemisation to make

it easier to assess value for money from research, though the

bloc has also eased this requirement in a bid to promote more

research on smaller companies.

"Introducing greater freedom for firms in how they pay

for investment research will also help to support a thriving

market in the UK and further strengthen our international

competitiveness," UK Finance's Shacklady said.