A Chartered Financial Planner spearheading moves to boost the EIS sector has appealed to Theresa May to axe a number of restrictions imposed by the EU.

Mark Brownridge CFPTM Chartered MCSI, who became director of the Enterprise Investment Scheme Association last month, has written to the new Prime Minister outlining how EIS and SEIS could be improved to help SMEs get the economy growing post-Brexit.

He told Mrs May that currently, the schemes are “not perfect”.

Last year a series of new regulations were imposed, under EU direction, which placed greater and complex restrictions on businesses’ eligibility for EIS and SEIS funding and on the amounts they are able to raise under EIS, he explained.

Mr Brownridge, who is a Fellow of the Personal Finance Society, wrote: “Much of the complexity imposed on these schemes by Brussels needs to be removed to enable these growing companies to make their full contribution to a vibrant UK economy.

“Lifting most or all of these restrictions would be a quick, simple and decisive step in the right direction to getting the UK economy performing, post-Brexit.

“Such a move would be welcomed by SMEs across the UK and would also serve as a positive demonstration that Brexit can bring benefits, by unshackling business from EU-imposed regulation that hinders their growth.”

The outlined improvements would improve SMEs’ access to funding via these schemes and perhaps increase total investment levels – benefiting businesses, EIS and SEIS investors and the entire UK economy, Mr Brownridge said.

He called for greater awareness of EIS among politicians and businesses, saying research by the Entrepreneurs Network found less than a quarter of MPs have heard of EIS.

Mr Brownridge suggested a joint Government and EISA campaign promoting the benefits of EIS and SEIS would “present a powerful message” to SMEs that Mrs May’s new regime wants to help them.

Mr Brownridge, who previously worked for Mazars, told Mrs May: “The vibrancy and dynamism of SMEs is one of the UK’s strongest economic assets and the importance of EIS and SEIS in incentivising the provision of equity investment for SMEs is likely to be even more important as we go forward.

"EIS is about empowering entrepreneurial companies by providing the investment for them to prosper and grow.”