The FCA has unveiled plans for the Private Intermittent Securities and Capital Exchange System (PISCES), an initiative aimed at transforming the private securities marketplace.
Slated for launch next year, PISCES promises to open up new avenues for investors to acquire stakes in private companies, enhancing their ability to grow and scale. This initiative addresses the growing trend of companies opting to remain private longer and the increasing investor demand for accessible trading in private company shares.
PISCES is positioned as a world-leading innovation that could significantly diversify returns for investors while introducing new risks. In light of this, the FCA is launching consultations to implement robust risk warnings, ensuring investors are well-informed about potential risks associated with these investments.
Simon Walls, interim executive director of markets at the FCA, emphasized the transformative potential of the new market: “Next year we will ring the bell on a new private stock market that could transform how private companies access funds and grow. It will offer investors more access and a greater confidence to invest in private companies and could act as a stepping stone to public markets for those firms.”
Tulip Siddiq, Economic Secretary to the Treasury, also highlighted the strategic importance of PISCES in the broader context of UK financial market reforms: “PISCES will be an innovative new type of stock market for trading for private company shares and is a significant step forward in our reforms to capital markets. It will give investors the chance to get in on the ground floor of some of the most exciting companies and support the growth of those businesses.”
The introduction of PISCES follows a series of extensive reforms by the FCA aimed at boosting the competitiveness of the UK’s financial markets. These include overhauling the prospectus regime to reduce costs for companies raising funds, granting asset managers more flexibility in paying for investment research, launching the Digital Securities Sandbox for testing new trading technologies, and laying out a roadmap for crypto regulation.
This new platform is a central component of the Chancellor’s recent Mansion House speech and represents a collaborative effort between the FCA and the Treasury to establish a conducive environment for the growth and innovation of private companies.
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