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Yahoo
2 days ago
- Business
- Yahoo
What you need to know about UK's private stock market Pisces
The Financial Conduct Authority (FCA) confirmed on Tuesday in a joint statement with economic secretary to the Treasury, Emma Reynolds, that its Private Intermittent Securities and Capital Exchange System (Pisces) will launch later this year. Pisces is a new trading platform where shares in private companies can be traded. The FCA said will "open the door to more opportunities for investors, facilitating their access to growth companies." Private companies will be able tap into a broader range of investors and asset managers with exits offered for shareholders to sell up. Companies can set the floor and ceiling of share prices, and have a say over who can buy their shares. Simon Walls, executive director of markets at the FCA, said: "This bold design rebalances risk, but it is bold risk-taking that made the UK the leading financial centre it is today. The new platforms will give investors greater access and confidence to invest in exciting new companies, while early backers and employees can sell up and invest again." Read more: Pound dips following weak UK jobs report The government is currently looking to encourage more people to buy UK shares and attract more investment from overseas. Pisces is the latest step in the FCA's wide-ranging reforms to boost growth and competitiveness, and unlock capital investment and liquidity. It comes as a number of companies have recently moved their main listing to the US or been taken over. The platform could also act as a stepping stone for private companies towards an initial public offering (IPO). Dan Coatsworth, investment analyst at AJ Bell, said: "It might act as a stepping stone towards a public stock listing, getting them used to regular financial reporting, transparency as a business, and understanding that a company is run for the best interests of shareholders, not the board of directors." As companies choose to stay private for longer, there is demand for investors to trade private company shares easily and efficiently in an organised marketplace. Pisces meets this demand by allowing secondary trading of these shares. Emma Reynolds, economic secretary to the Treasury, said: "Pisces is a great example of industry, regulators and the government working together to go further and faster on innovative reforms to strengthen UK capital markets, supporting economic growth and putting more money in people's pockets as part of our Plan for Change. "I welcome the FCA's announcement, which follows our legislation and opens Pisces to industry. This also builds on our announcements on a stamp taxes on shares exemption for Pisces transactions, and on employees retaining the tax advantages on eligible shares traded." Read more: Stocks: Create your watchlist and portfolio Pisces will not be open to retail investors, unless they are employees of the company issuing the shares. Access will be limited to institutional investors, high-net-worth individuals, sophisticated investors and employees of participating companies. Investors will be provided with information about the risks involved to help them make informed decisions. Coatsworth added: 'It could also encourage their staff to develop a saving and investing habit. One of the biggest stumbling blocks for private company share ownership is that staff are often put off by the general inability to sell those shares at regular intervals. "A lot of private companies won't offer the ability for staff to trade shares, meaning some people are stuck owning the equity until the business either lists on a public market or there is an internal event where they can sell down." Read more: UK jobs data increase chances of more Bank of England interest rate cuts Pisces is not set to replace established stock markets like AIM as it will not support capital raising and it will not be open to the public — it is purely a secondary trading market with restrictions on who can buy and sell. Apart from employees of the private company, only institutional investors, high net worth individuals or those deemed to be "sophisticated" investors will be able to buy and sell via Pisces. Share buybacks will not be permitted, at least in the initial stages of the market's life. These factors mean the platform will not be a direct rival to the AIM market. AIM is already seen as a stepping stone for London's main stock market — and the government are hoping this journey can start earlier, with Pisces as a pathway for AIM. The proposal outlines plans to make Pisces share transactions exempt from stamp duty, and stamp duty reserve tax, which puts it in line with similar exemptions for AIM and the Aquis growth market. "Removing stamp duty on all UK shares would be a major step forward as the current rules make the UK less competitive than many other locations such as the US and some European markets. Stamp duty is a cost for investors and can add up for those who place a lot of trades," Coatsworth said. He added: 'Pisces is not going to change the world, but it should be a welcome addition to the UK's investment ecosystem.'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
2 days ago
- Business
- CNA
Britain's regulator says trading to start on private share platform this year
LONDON :Trading on Britain's new share platform for private companies can begin later this year, the financial watchdog said on Tuesday, after finalising rules for a market that regulators and the government hope will bolster the country's capital markets. The Private Intermittent Securities and Capital Exchange System (PISCES) will enable trading of shares in private companies. The first shares should be traded on the platform this year through a "sandbox", which allows regulators to test how it works before they finalise a permanent regime in 2030, the Financial Conduct Authority said. PISCES is designed to connect owners of fledgling unlisted companies who want to sell shares in their businesses with new investors keen to help those firms grow and scale up. "The new platforms will give investors greater access and confidence to invest in exciting new companies, while early backers and employees can sell up and invest again," Simon Walls, the FCA's executive director of markets, said in a statement. Emma Reynolds, the government's economic secretary to the Treasury, welcomed the announcement and said PISCES would boost UK capital markets and support economic growth. Operators such as the London Stock Exchange wishing to run a PISCES platform will have to apply to the FCA. Once approved, they will be able to run intermittent trading events, at which company owners can offer stock for sale at regular intervals, at prices they set, to new shareholders. PISCES could help small companies with limited experience of capital markets get on the radar of cash-rich and supportive investors, without undertaking a full-scale initial public offering. The concept of PISCES, however, has proven a tough sell in some parts of the UK industry. Bankers told Reuters this year that they fear hits to revenues and ultimately being bypassed in a booming market for private capital. Jack Shepherd, a partner with law firm CMS, said PISCES was an innovative attempt to revive the UK's capital markets. "But the question remains whether PISCES addresses a genuine problem in the market, without cannibalising companies that might otherwise have sought a listing on the Main Market or AIM," Shepherd said, referring to Britain's small-cap market. In response to feedback, the FCA said that, under its finalised rules it would, among other things, apply a 25 per cent threshold for identifying major shareholders, reduce the disclosure requirements for PISCES operators and companies, and give companies greater say over who can invest in them.
Daily Mail
2 days ago
- Business
- Daily Mail
Shares in private UK companies to start trading this year with 'Pisces' platform
Shares in private companies could begin trading on a new UK platform later this year under plans to boost investment in smaller companies and investor access to the lucrative growth market. Many firms are now staying private for longer, which has contributed to shrinking UK public markets but also resulted in bumper returns for the few investors with access to successful companies. The Private Intermittent Securities and Capital Exchange System – or Pisces – will allow private firms to periodically raise capital via auction and access a wider pool of investors, while providing existing shareholders the opportunity to sell their shares. First announced in the Chancellor's Mansion House speech last year, Pisces is intended to help businesses grow without shouldering the costs and volatility associated with listing on London's public markets. Announcing further details of its plans on Tuesday, the Financial Conduct Authority's executive director of markets Simon Walls said Pisces forms part of efforts 'to boost growth and competitiveness' in the UK market. The FCA added: 'There is demand for investors to trade private company shares easily and efficiently in an organised marketplace. 'Pisces meets this demand by allowing secondary trading of these shares. Companies can set the floor and ceiling of share prices, and have a say over who can buy their shares.' However, retail investors will be excluded from buying shares on the Pisces platform, with access restricted to institutional investors, high-net-worth individuals, 'sophisticated' investors and employees of participating companies. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said there is 'potential' for Pisces to support greater retail access 'in the longer term', but this could take 'five years or more'. 'It could provide an opportunity to level the playing field between retail investors and institutional investors,' she added. 'Knock-on impact' for shrinking AIM market? Takeovers and delistings have been a common feature of the UK market in recent years, but the impact has been most severe on the junior market. London's AIM market of smaller listed companies is set to shrink by a fifth this year alone, with 61 companies, worth a combined £12.3billion, announcing plans to delist. Companies are also not being replaced, with just 18 new AIM companies listing last year compared to 89 exits. HL's Streeter said: 'Pices could help create a more free-flowing pipeline for IPOs in the City and it could also help with price discovery for valuations. 'The City is struggling to attract and retain listed companies, so the hope will be that this will offer greater support for home-grown start-ups and scale ups.' But managing director of wealth manager Evelyn Partners Jason Hollands said Pices 'may well have a knock-on impact for AIM'. He added: 'Some private businesses who might have previously contemplated joining AIM as the next step, may conclude this is a much better option for the next stage in their evolution. 'It is no secret that AIM has been struggling in recent years, with a dearth of new admissions, private equity buyouts, and other companies moving to overseas exchanges or the main market. 'The Chancellor's decision in her Budget last October to halve the amount of inheritance tax relief of AIM companies will provide a further headwind for the market as investors seeking to mitigate IHT by investing in AIM companies has previously proven a meaningful group of owners for a market of relative illiquid companies. 'Some fund managers expect to see a sizeable exodus of companies from AIM over the next couple of years as a result.'
Yahoo
2 days ago
- Business
- Yahoo
What you need to know about UK's private stock market Pisces
The Financial Conduct Authority (FCA) confirmed on Tuesday in a joint statement with economic secretary to the Treasury, Emma Reynolds, that its Private Intermittent Securities and Capital Exchange System (Pisces) will launch later this year. Pisces is a new trading platform where shares in private companies can be traded. The FCA said will "open the door to more opportunities for investors, facilitating their access to growth companies." Private companies will be able tap into a broader range of investors and asset managers with exits offered for shareholders to sell up. Companies can set the floor and ceiling of share prices, and have a say over who can buy their shares. Simon Walls, executive director of markets at the FCA, said: "This bold design rebalances risk, but it is bold risk-taking that made the UK the leading financial centre it is today. The new platforms will give investors greater access and confidence to invest in exciting new companies, while early backers and employees can sell up and invest again." Read more: Pound dips following weak UK jobs report The government is currently looking to encourage more people to buy UK shares and attract more investment from overseas. Pisces is the latest step in the FCA's wide-ranging reforms to boost growth and competitiveness, and unlock capital investment and liquidity. It comes as a number of companies have recently moved their main listing to the US or been taken over. The platform could also act as a stepping stone for private companies towards an initial public offering (IPO). Dan Coatsworth, investment analyst at AJ Bell, said: "It might act as a stepping stone towards a public stock listing, getting them used to regular financial reporting, transparency as a business, and understanding that a company is run for the best interests of shareholders, not the board of directors." As companies choose to stay private for longer, there is demand for investors to trade private company shares easily and efficiently in an organised marketplace. Pisces meets this demand by allowing secondary trading of these shares. Emma Reynolds, economic secretary to the Treasury, said: "Pisces is a great example of industry, regulators and the government working together to go further and faster on innovative reforms to strengthen UK capital markets, supporting economic growth and putting more money in people's pockets as part of our Plan for Change. "I welcome the FCA's announcement, which follows our legislation and opens Pisces to industry. This also builds on our announcements on a stamp taxes on shares exemption for Pisces transactions, and on employees retaining the tax advantages on eligible shares traded." Read more: Stocks: Create your watchlist and portfolio Pisces will not be open to retail investors, unless they are employees of the company issuing the shares. Access will be limited to institutional investors, high-net-worth individuals, sophisticated investors and employees of participating companies. Investors will be provided with information about the risks involved to help them make informed decisions. Coatsworth added: 'It could also encourage their staff to develop a saving and investing habit. One of the biggest stumbling blocks for private company share ownership is that staff are often put off by the general inability to sell those shares at regular intervals. "A lot of private companies won't offer the ability for staff to trade shares, meaning some people are stuck owning the equity until the business either lists on a public market or there is an internal event where they can sell down." Read more: UK jobs data increase chances of more Bank of England interest rate cuts Pisces is not set to replace established stock markets like AIM as it will not support capital raising and it will not be open to the public — it is purely a secondary trading market with restrictions on who can buy and sell. Apart from employees of the private company, only institutional investors, high net worth individuals or those deemed to be "sophisticated" investors will be able to buy and sell via Pisces. Share buybacks will not be permitted, at least in the initial stages of the market's life. These factors mean the platform will not be a direct rival to the AIM market. AIM is already seen as a stepping stone for London's main stock market — and the government are hoping this journey can start earlier, with Pisces as a pathway for AIM. The proposal outlines plans to make Pisces share transactions exempt from stamp duty, and stamp duty reserve tax, which puts it in line with similar exemptions for AIM and the Aquis growth market. "Removing stamp duty on all UK shares would be a major step forward as the current rules make the UK less competitive than many other locations such as the US and some European markets. Stamp duty is a cost for investors and can add up for those who place a lot of trades," Coatsworth said. He added: 'Pisces is not going to change the world, but it should be a welcome addition to the UK's investment ecosystem.'Sign in to access your portfolio
Finextra
2 days ago
- Business
- Finextra
FCA rings bell on new private stock market Pisces
A new type of private stock market will be launched later in 2025 after the FCA announced the final rules for its Private Intermittent Securities and Capital Exchange System (PISCES). 0 PISCES is a new type of platform where shares in private companies can be traded. It will open the door to more opportunities for investors, facilitating their access to growth companies. Private companies can tap into a broader range of investors and asset managers and PISCES offers exits for shareholders to sell up. As companies choose to stay private for longer, there is demand for investors to trade private company shares easily and efficiently in an organised marketplace. PISCES meets this demand by allowing secondary trading of these shares. Companies can set the floor and ceiling of share prices, and have a say over who can buy their shares. Access to PISCES will be limited to institutional investors, high-net-worth individuals, sophisticated investors and employees of participating companies. Investors will be provided with information about the risks involved to help them make informed decisions. As set out in the FCA's letter to the PM outlining the regulator's approach to support growth, PISCES can unlock capital investment and liquidity. Simon Walls, executive director of markets at the FCA, said: 'This bold design rebalances risk, but it is bold risk-taking that made the UK the leading financial centre it is today. The new platforms will give investors greater access and confidence to invest in exciting new companies, while early backers and employees can sell up and invest again. 'PISCES is the latest step in the FCA's wide-ranging reforms to the UK's markets to boost growth and competitiveness.' Emma Reynolds, Economic Secretary to the Treasury, said: 'PISCES is a great example of industry, regulators and the government working together to go further and faster on innovative reforms to strengthen UK capital markets, supporting economic growth and putting more money in people's pockets as part of our Plan for Change. 'I welcome the FCA's announcement, which follows our legislation and opens PISCES to industry. This also builds on our announcements on a stamp taxes on shares exemption for PISCES transactions, and on employees retaining the tax advantages on eligible shares traded.'
