Government Launches PISCES to Boost UK Capital Markets and Unlock Growth for Startups
Capital markets in the UK are poised for a major boost following the government’s latest economic initiative, part of its broader Plan for Change. Legislation has been introduced to enable the launch of PISCES, a new kind of stock market designed to support high-growth companies and provide new investment opportunities.
PISCES (Private Intermittent Securities and Capital Exchange System) will allow investors to buy shares in private companies at an earlier stage, offering greater access to some of the country’s most promising businesses. In turn, this platform will allow founders and early-stage investors to realise gains and reinvest in other productive assets, driving further economic activity and innovation.
With stock exchanges expected to begin offering PISCES platforms in the coming months, trading is anticipated to commence this autumn. The reform is designed to open up capital markets to more participants while supporting scale-ups and startups in their expansion efforts.
To further increase the appeal of PISCES, the government has confirmed it will legislate to retain tax advantages on employee share options under existing schemes like the Enterprise Management Incentives (EMI) and Company Share Option Plan (CSOP). This means employees will continue to benefit from tax-efficient equity participation, even when trading through the PISCES platform.
Emma Reynolds, Economic Secretary to the Treasury, commented:
“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 retain the tax advantages of shares traded on PISCES, further enhancing its appeal to high-growth companies.”
Simon Walls, Executive Director of Markets at the Financial Conduct Authority (FCA), added:
“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 government has also reaffirmed that, as announced in the Autumn Budget, PISCES transactions will be exempt from Stamp Taxes on Shares, further incentivising participation from both companies and investors.
Once launched, PISCES will serve as a bridge between private and public markets, giving companies more control over when and to whom they trade shares, with disclosure requirements limited to the pre-trading phase. For firms planning a future IPO, the platform will also act as a preparatory step, easing their transition to public markets.
With the UK seeing more companies opting to stay private for longer, the demand for flexible share-trading mechanisms is growing. PISCES addresses this gap by enabling employees, angel investors, and founders to trade equity more freely — without waiting for a full listing.
The FCA is expected to publish its final rules shortly after the legislation takes effect, with PISCES trading events likely to commence later in 2025.
