FCA set to launch private trading platform PISCES

The Financial Conduct Authority (FCA) has launched a new platform that enables the trading of private company shares. PISCES (Private Intermittent Securities and Capital Exchange System) is designed to transform the way private company shares are traded by making it easier and quicker for buyers, businesses and sellers to connect. As companies choose to stay private for longer, PISCES aims to meet the growing need for an effective and organised private marketplace.

PISCES Operators

Firms that want to operate a PISCES platform must apply to the FCA for a PISCES approval notice (PAN). Potential operators must already have the relevant permission to carry out a regulated activity or they will need to apply for a Variation of Permission to do so. The FCA’s final rules detail how PISCES operators must organise and run trading events. For example, operators must include a PISCES Market Risk Warning to ensure investors are aware of the risks involved so they can make informed decisions.

Operators will also allow companies whose shares are traded on the platforms to set share price parameters, control who can buy shares, who can access company information and when shares are traded. This is welcome news for private companies as they can access a broader range of investors whilst maintaining control over key aspects of share trading.

When can we expect PISCES to go live?

The FCA is currently running a PISCES Sandbox until 2030 to test the regulatory environment. Platform operators can use the sandbox to test their business model live in the market with real investors and private businesses.

PISCES represents a pivotal moment in the evolution of private capital markets and is another step in the FCA’s 5 year strategy to boost growth and competitiveness.

How can Adempi help PISCES Operators?

Adempi helps firms prepare for FCA authorisation, offering support and advice with applications, training and the wider regulatory environment. If you’re thinking about applying to be a PISCES operator, we’d be delighted to have an initial discussion with you. If you’d like to speak to one of the team, you can reach us at contact@adempi.co.uk or on 0203 925 4761. Adempi - FCA Compliance Consultants.