FCA lays out Pisces rules with trading to begin later this year

The UK’s financial regulator has published its rulebook for the new Pisces market framework, laying the ground for trading to commence later this year.
The new type of platform, which facilitates the trading of shares in private companies, promises to address a long-standing liquidity gap for growth companies and early investors, offering a potential bridge for companies seeking a later flotation on a public exchange.
The Financial Conduct Authority (FCA) has said access to Pisces will be limited to institutional investors, high-net-worth individuals, sophisticated investors and employees of participating companies, while disclosure requirements will be considerably lighter than on public exchanges in a bid to cut red tape.
The rules also introduce a higher risk profile to investing – particularly as some public market protections, such as key parts of the market abuse regime, will not apply.
Officials said the regulator had already been in talks with a number of potential operators, who will participate in a five-year “sandbox” scheme during which the rules will be fine-tuned to allow operators greater flexibility.
It follows months of consultations over the framework in which a number of rules were tweaked, particularly in relation to the disclosure requirements for firms who choose to trade using the framework.
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.”
Tax breaks for Pisces
Fresh tax exemptions will be added to Pisces shares, as City AM revealed last month.
The new legislation will ensure employees with share options will be able to exercise them on Pisces and retain tax advantages, with the existing Enterprise Management Incentives and Company Share Option Plan contracts extended to include the platform.
In last year’s Autumn Budget, Reeves also announced that Pisces transactions would be exempt from stamp duty taxes on share trading.
Hannah Meakin, partner at law firm Norton Rose Fulbright, said: “This initiative reflects a broader regulatory trend – balancing innovation and investor protection to support UK economic growth.
“It is a unique model incorporating aspects of both private and public markets, but its success will depend on how well the regime manages the risks while delivering on its promise of greater access and liquidity.”