The United Kingdom’s financial regulators are actively shaping a more dynamic capital market, introducing innovative platforms and streamlining reporting requirements for investment professionals. These strategic reforms aim to bolster market efficiency and foster economic expansion.
Enhancing Private Market Access with PISCES
The Financial Conduct Authority (FCA) plans to introduce the Private Intermittent Securities and Capital Exchange System (PISCES) later this year. This platform offers private companies a new avenue for selling shares without the extensive obligations of a public offering. Access will be restricted to institutional investors, high-net-worth individuals, and company employees, given the associated risks for retail investors.
Companies using PISCES will be exempt from continuous public disclosure, such as quarterly earnings reports. This addresses the liquidity challenge for early investors and employees in startups that delay public offerings. PISCES will provide time-limited trading windows, allowing stakeholders to sell shares while companies maintain control over pricing and buyers. Additionally, the FCA is easing sustainability disclosure requirements, identifying only shareholders with 25% or more ownership.
Launching as a five-year regulatory ‘sandbox,’ PISCES will enable supervised innovation. This initiative is part of a broader strategy to boost UK market growth and competitiveness.
Streamlining Fund Management Reporting
The FCA also proposes removing the mandatory public “Assessment of Value” (AoV) reporting for fund managers. This change, affecting around 150 companies and thousands of funds, aims to cut costs and administrative load. The FCA believes existing consumer protection duties already cover AoV’s purpose, making separate public reports unnecessary and allowing managers to focus on delivering value to investors.
Michael Zhang is a seasoned finance journalist with a background in macroeconomic analysis and stock market reporting. He breaks down economic data into easy-to-understand insights that help you navigate today’s financial landscape.