The UK government is set to unveil plans for a groundbreaking private stock market tomorrow to revitalise the country's dwindling IPO pipeline. In her inaugural Mansion House speech, UK Chancellor Rachel Reeves will disclose proposals to legislate for a regulated stock exchange system named Pisces by next May. According to Treasury sources, this platform will allow investors to trade shares in private companies.
Commenting on the Government’s introduction of private stock market, PISCES, presenting a threat to AIM, Douglas Grant, Group CEO of Manx Financial Group, said: “Any mechanism that enables entrepreneurs to unlock equity is a welcome innovation. However, it's unclear why this approach would necessarily lead to an increase in IPO activity. Given that PISCES serves as an alternative to more heavily regulated stock exchanges, there is a reasonable concern that platforms like AIM might perceive it as a competitive threat, potentially affecting their market position. Additionally, a vital factor that requires consideration is the alignment of tax strategies to incentivise entrepreneur participation. Without a supportive tax framework, uptake may be limited.
“One of the most promising aspects highlighted in the introduction of PISCES is the potential to enhance liquidity within capital markets by de-regulating fragmented local pension schemes. This approach has proven to be a highly effective tool in other jurisdictions, driving growth and providing more robust market dynamics. Encouraging a similar transformation could yield significant economic benefits.”
