Uk Based Pisces Launches private stockmarket to boost startups

It aims to support the growth of future businesses and strengthen the UK’s IPO pipeline.

As more companies choose to stay private for longer, there’s growing demand for easier share trading by investors, including angel investors and employees.

PISCES will give investors a chance to invest early in promising startups and help these companies scale faster.

Read Also - Uk Based Huma Expands US Presence With Aluna Acquisition

The government also plans to pass laws allowing employees with share options to use PISCES while keeping their tax benefits, making the platform more appealing for both companies and investors.

To make sure employees keep their tax benefits when trading shares, the government will update the law to include PISCES under existing schemes like EMI (Enterprise Management Incentives) and CSOP (Company Share Option Plan).

This follows the Autumn Budget announcement that PISCES transactions will be exempt from Stamp Taxes on Shares.

With these changes in place, stock markets can launch their PISCES platforms soon, with share trading expected to begin this Autumn.

"This is a great example of UK financial innovation and the willingness to experiment with new ideas. Today, if you own shares in a startup it's hard to sell them unless the company IPOs or gets acquired.

That means early employees and investors can be waiting for up to a decade to see a return. But PISCES creates a vital additional option; enabling companies to reward founders, employees and backers without waiting for an IPO or M&A event.

This is an important, much needed step forward and the Government should be applauded for their innovative thinking."

Emma Reynolds, Economic Secretary to the Treasury, said: "Getting PISCES up and running will support UK growth companies. This will boost our capital markets and help to grow our economy, putting more money in working people’s pockets as part of our Plan for Change.

We are also ensuring that employees will retain the tax advantages of shares traded on PISCES to boost the attractiveness of the product to high growth companies looking to expand."

Simon Walls, Executive Director of Markets at the FCA, said: “We are laying the groundwork for a new private stock market that will give investors more opportunities to invest in growing companies.

Today’s legislation is a big step forward and we will set out the final rules for PISCES soon. Together, this will support an organised marketplace to buy and sell private shares.”

The platform will serve as a stepping stone for companies planning to go public, helping them prepare and making the path to an IPO smoother and easier.

Once the new law is in place, the Financial Conduct Authority (FCA) will publish the rules for running PISCES. After that, companies can apply to the FCA to host PISCES trading events. The first trading events are expected to happen later this year.