PISCES (Private Intermittent Securities and Capital Exchange System) is a new UK-regulated trading platform designed to provide liquidity for private company shares and serve as a stepping stone toward public markets. It allows FCA-approved platforms to host limited-time “trading events,” where only approved investors—such as institutions, sophisticated retail investors, and certain employees—can buy or sell existing shares, with company disclosures kept within a secure “private perimeter.” While not permitting capital raising or share buybacks initially, PISCES offers tax advantages by exempting trades from Stamp Duty and SDRT. The platform has significant implications for employee share schemes, offering a new potential exit route for employees holding share options, including EMI and CSOP, although specific conditions must be met in option agreements. The platform also raises new considerations around the valuation and tax treatment of employee shares, potentially impacting how HMRC assesses market value and applicable discounts. Overall, PISCES introduces both opportunities and complexities in private equity trading and employee equity planning.
Originally Published by Crowe UK, on 09 April 2025
Originally Published by Crowe UK, on 09 April 2025
