FCA launches consultation on new private stock market PISCES

(Sharecast News) - The Financial Conduct Authority has launched a consultation on proposals for a new stock market for private companies - the Private Intermittent Securities and Capital Exchange System or PISCES. PISCES will "open the door to more opportunities" for investors to take stakes in private companies, while helping companies scale and grow through increased confidence in funding, the FCA said on Tuesday.

The new market was first proposed in July 2023, withe the HM Treasury publishing a consultation paper in March.

The FCA said that the new market comes in response to many companies choosing to stay private for longer - as opposed to initial public offerings.

"Such opportunities come with risk, which is why the FCA is consulting on risk warnings for investors to help them make informed investment decisions," the FCA said.

Simon Walls, interim executive director of markets at the FCA, said PISCES could "transform" how private companies access funding.

"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. We want to work with industry and ensure we have the right building blocks in place to support investment in growing companies," he said.