The Financial Conduct Authority (FCA) is launching a new market mechanism - PISCES (Private Intermittent Securities and Capital Exchange System) - designed to allow private companies to offer limited share trading opportunities without becoming publicly listed. This development could provide significant advantages to growth-focused businesses.
PISCES offers controlled, periodic trading windows for existing shares, enabling early investors, founders, or employees to realise some value without triggering the complexity or disclosure demands of a full IPO. Unlike the public markets, PISCES allows companies to decide who can buy shares, set price parameters, and limit the size or frequency of trades.
Key Legal and Strategic Benefits
· Reduced Regulatory Burden: No continuous disclosure or market abuse rules. Instead, companies share core information through secure data rooms.
· Liquidity Without Listing: Ideal for companies not ready to float but needing a route to manage shareholder exits or reward staff.
· Tax Efficiency: Stamp duty exemptions apply, and employee share schemes (e.g., EMI, CSOP) remain valid—supporting staff retention.
· Customisable Access: You can control who trades and under what conditions, preserving privacy and governance control.
PISCES will operate in a sandbox environment until 2030, meaning rules may evolve. It’s essential to review your articles of association, shareholder agreements, and employee incentive plans to ensure they align with PISCES participation. While this system offers flexibility, it may not be suitable for every company—especially where investor protections or disclosure are key concerns.
Next Steps
If you’re exploring liquidity options or strategic alternatives to listing, PISCES may offer a valuable middle ground. We can advise on the legal implications, readiness, and governance considerations for your business.
Contact our Business Desk today to discuss whether PISCES is the right fit for your growth plans.
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