UK sets sights on late 2025 to launch new market for private companies selling shares

The UK’s financial regulators will forward the new private market platform known as PISCES, alongside a proposal to eliminate public value assessment reporting requirements for fund managers. 

According to a press release published Tuesday, the Financial Conduct Authority (FCA) has confirmed plans to debut the Private Intermittent Securities and Capital Exchange System, or PISCES, later this year. 

Under PISCES, private companies can sell shares in the absence of a full stock market listing. Regulators say the model will improve the capital access for growing businesses without affecting investor protection laws.

The equities market will serve institutional investors, eligible high-net-worth individuals, and company employees. It will not be open to retail investors, as it involves higher-risk investments. Importantly, companies using the platform will not be subject to the continuous disclosure obligations required on public exchanges, like publishing quarterly earnings.

Secondary shares market to launch after demand spike

Startups’ delay in going public has led investors and employees, often locked into shares with no clear path to liquidity, to push for other routes to sell equity. Per the FCA, PISCES could answer that call by creating time-limited trading windows without burdening firms with the requirements of a full public listing.

“Companies can set the floor and ceiling of share prices, and have a say over who can buy their shares,” the release read.

The FCA also mentioned that it would ease sustainability-related disclosure requirements, pending more feedback from the industry. Companies will now have to disclose less on environmental and social matters compared to what public listings mandate. 

Moreover, the rules on identifying major shareholders have been adjusted so that only those holding 25% or more of a company’s shares will be publicly disclosed.

PISCES will be developed under a regulatory sandbox model over the next five years, for operators to experiment with the system under the supervision and support of the FCA. Applications to join the sandbox are now open.

“PISCES is the latest step in the FCA’s reforms to the UK’s markets to boost growth and competitiveness,” said Simon Walls, executive director of markets at the FCA.

Emma Reynolds, Economic Secretary to the Treasury, coined the platform as a “collaborative success between government, regulators, and industry.”

“PISCES is a great example of industry, regulators, and the government working together to strengthen UK capital markets,” Reynolds said in a statement. “This also builds on our announcements on a stamp tax on shares exemption for PISCES transactions, and on employees retaining the tax advantages on eligible shares traded.”

FCA proposes ending public value reporting for funds

On Monday, the FCA proposed to eliminate mandatory public Assessment of Value (AoV) reporting for fund managers. The reform would affect nearly 150 firms managing over 3,900 funds, reducing costs and paperwork across the sector.

According to the FCA’s latest Quarterly Consultation Paper (CP25/16), the agency is responding directly to industry feedback gathered in 2024 through its Call for Input on the Consumer Duty framework.

Many firms insisted that the existing AoV requirements were duplicates of laws already required under Consumer Duty obligations, and added insignificant benefits to investors.

“These changes will have a real impact, reducing costs and saving time for asset managers to deliver on what’s important to their investors,” said Nike Trost, interim director of buy-side at the FCA.

Under current rules, firms are required to publish AoV statements annually to demonstrate they are delivering fair value to investors. However, the Consumer Duty already mandates board-level scrutiny of value delivery and documentation. The FCA now believes these internal requirements will fulfill the intent of AoV rules and make public reporting redundant.

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