Activity

The Financial Conduct Authority (FCA) has recently announced its final rules for the Private Intermittent Securities and Capital Exchange System (PISCES), paving the way for the launch of this new type of private stock market later in 2025. This initiative aims to bridge the gap between private and public markets in the UK, offering significant opportunities for both companies and investors.
Key features and benefits of PISCES:
* Expanded investor access: PISCES will create more opportunities for investors to access shares in private, growth-oriented companies. This will broaden the pool of potential investors beyond traditional private equity or venture capital.
* Broader capital for private companies: Private companies will be able to tap into a wider range of investors and asset managers, providing them with more flexible and accessible capital for growth and development.
* Exit opportunities for shareholders: PISCES will facilitate exits for existing shareholders in private companies, allowing them to sell their holdings without the need for a full public listing or a large, complex private transaction.
* Intermittent trading: Unlike continuously traded public markets, PISCES will allow for intermittent trading of shares during pre-defined “trading windows.” This provides companies with more control over when their shares are traded and helps manage market dynamics.
* Regulatory sandbox: PISCES will initially operate within a regulatory “sandbox” environment for five years. This allows the FCA and the government to monitor its effectiveness, test the regulatory framework, and make adjustments before considering a permanent regime in 2030.
* Tailored disclosures: PISCES will not impose the full prospectus-level disclosures required for public markets. Instead, companies will provide a “core information” package, striking a balance between transparency and the lighter regulatory burden of private markets.
* Targeted investor participation: Access to PISCES will be restricted to professional investors, institutional investors, and certain retail investors who meet specific criteria, ensuring that participants are aware of the inherent risks of investing in private companies.
* Tax advantages: Transactions on PISCES are expected to be exempt from Stamp Duty and Stamp Duty Reserve Tax, further incentivizing participation.
The launch of PISCES is a significant step by the UK to enhance its capital markets and support the growth of private companies. By providing a regulated platform for private share trading, it aims to foster greater liquidity, innovation, and investment in the UK economy.

Video courtesy of KDPW

Video courtesy of KDPW