The UK Financial Conduct Authority (FCA) has announced the launch of the new PISCES platform, allowing private companies to offer shares without a full market listing.
Launch of the New PISCES Platform
The PISCES platform allows private companies to sell shares without needing to go public on a stock exchange. Regulators state that this model will enhance capital access for growing businesses without compromising investor protection. The platform will be available only to institutional investors, certain high-net-worth individuals, and company employees, and it will exempt these companies from continuous disclosure obligations required on public exchanges.
Simplification of Reporting Requirements
The FCA has also proposed to eliminate mandatory public Assessment of Value (AoV) reporting for fund managers. This decision will affect nearly 150 firms managing over 3,900 funds and is intended to reduce costs and paperwork. The FCA highlights that the current AoV requirements duplicate other obligations already in place and do not provide significant benefits to investors, thus making public reporting unnecessary.
Comments from Regulators and Initiative Authors
Simon Walls, the FCA's Executive Director, noted, 'PISCES is an important step in reforming the UK's markets to enhance growth and competitiveness.' Emma Reynolds, Economic Secretary to the Treasury, described the platform as 'a success of collaboration between government, regulators, and industry,' emphasizing its importance in strengthening the UK's capital markets.
The launch of the PISCES platform and the simplification of fund reporting could significantly affect capital access for private companies and streamline the fund management process in the UK.
