Revolutionary Private Stock Market on the Horizon: FCA Launches Consultation on PISCES

Written By Jonathan Greenstein

In a bold move that could reshape private markets and unlock new funding sources for growing businesses, the UK Financial Conduct Authority (FCA) has announced proposals for a new private stock market dubbed the Private Intermittent Securities and Capital Exchange System (PISCES).

Set to launch next year, the innovative platform will allow investors to buy and sell shares in private companies in periodic trading events, offering what regulators and government officials are calling “a stepping stone” for businesses on the path to a public listing.

More Capital, Less Pressure

Under the current climate, many companies hesitate to go public too soon due to the high costs of an Initial Public Offering (IPO) and stringent disclosure obligations. PISCES aims to fill the gap by enabling a broader base of investors to access fast-growing private firms, while simultaneously giving those businesses a measure of flexibility and control. By remaining private for longer, companies can delay the full glare of public market scrutiny and still tap significant investor interest.

This middle ground could be game-changing. The FCA’s interim executive director of markets, Simon Walls, hailed the plan as a “transformative” avenue for private companies to access fresh capital.

“Next year we will ring the bell on a new private stock market that could transform how private companies access funds and grow,” Walls said. “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.”

Balancing Risk and Reward

PISCES also promises to bring much-needed liquidity to private share transactions. Currently, employees, founders, and early-stage investors in private firms can find themselves stuck with illiquid stakes until a major exit event. With PISCES, they will have periodic “trading windows” or events to sell shares. This offers an attractive proposition for talent retention, as employees can unlock some portion of their equity investments earlier.

However, this expanded investor access goes hand-in-hand with higher risk profiles common to private ventures. Acknowledging this, the FCA is consulting on rigorous risk warnings to ensure participants have full awareness of the potential downsides of investing in less-established firms. In addition, the FCA is seeking to build the regulatory framework in a “sandbox,” allowing close monitoring of trading and market behaviour before fully enacting permanent rules.

A Stepping Stone to IPO

Many in the business community believe that PISCES will serve as a springboard toward public listings, providing a crucial intermediate phase for firms. At present, bridging the gap between a late-stage fundraising round and a full IPO can be both capital-intensive and fraught with uncertainty. Having an official, FCA-regulated venue to trade private equity could make these interim steps more transparent and cost-effective.

Tulip Siddiq, Economic Secretary to the Treasury, underscored the wider context of UK capital markets reform, noting that the new private market is part of an ambitious overhaul aimed at bolstering the country’s global financial standing.

“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… giving investors the chance to get in on the ground floor of some of the most exciting companies and support the growth of those businesses.”

Growth Potential for Businesses

From the perspective of seasoned growth strategists, PISCES offers compelling benefits:

  • Easier Access to Capital: Private firms often rely on venture capital or private equity to fund expansions. PISCES provides a new avenue to secure capital from a diversified pool of investors, potentially at better valuations than traditional sources.

  • Enhanced Liquidity: By enabling periodic trading events, the platform offers liquidity to employees and early backers, retaining top talent and fostering employee loyalty.

  • Controlled Path to Going Public: With fewer of the demands associated with a public listing, PISCES allows companies to experiment with regulatory compliance and investor relations under the guidance of the FCA.

  • Global Attraction: Positioned as a world-leading innovation, PISCES could draw international investors seeking promising UK-based opportunities without incurring the overhead of a full IPO.

Regulatory Roadmap

In the months ahead, the Treasury will lay down the statutory instrument for PISCES by May 2025. The FCA then expects to finalize and publish its rules, allowing the new platform to begin hosting trading events shortly thereafter. During this sandbox phase, government and regulators will assess how well PISCES functions in practice. Lessons learned are likely to inform future iterations of the framework, ultimately shaping a permanent regime.

Companies eager to take advantage of PISCES will be able to apply for authorization as platform operators. The FCA will publish further details in early 2025 for those interested. Once approved, these operators will oversee the intermittent trading events that characterize PISCES.

Looking Ahead

Beyond PISCES, the UK regulatory landscape is undergoing notable changes, including reforms to the prospectus regime, rules for investment research, and new frameworks for digital assets and crypto trading. Taken together, these measures paint a picture of an evolving capital market designed to be more competitive, more accessible, and more adaptive to modern investment trends.

As for PISCES itself, industry observers and businesses alike will watch keenly as this “private stock market” gets off the ground. If successful, it could serve as a model for other global financial centres looking to strike the balance between innovation, regulation, and growth — ushering in a new era of opportunity for both investors and the companies that drive economic progress.

Your Growth Strategy Starts Here with Lagom Consulting

As the UK cements its reputation as a global hub for business innovation, the opportunities for growth have never been greater. The FCA’s new Private Intermittent Securities and Capital Exchange System (PISCES) offers a structured pathway for businesses to align with one of the most respected financial markets worldwide—ensuring compliance while fostering innovation.

However, navigating this evolving framework requires deep expertise and strategic insight. That’s where Lagom Consulting comes in.

We specialise in helping innovative firms and entrepreneurs unlock their full potential in the UK market. By leveraging our in-depth understanding of the FCA’s regulatory approach, we provide:

  • Tailored market entry strategies that position your business for success in a competitive environment.

  • Compliance solutions that meet the highest standards, ensuring your firm gains credibility in this trusted jurisdiction.

  • Strategic guidance to help you adapt to regulatory changes while capitalizing on innovation-friendly policies such as the Digital Securities Sandbox and now PISCES.

Whether you’re a global firm exploring expansion or a UK entrepreneur building the next big venture, Lagom Consulting is your partner for navigating challenges and seizing opportunities.

Let’s turn regulation into a growth catalyst. Contact us today to shape your future in the UK’s fast-evolving financial markets—where innovation, compliance, and opportunity converge.

Further reading:

Jonathan Greenstein
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