The Financial Conduct Authority (FCA) has approved the country’s second-ever PISCES platform as it attempts to drive investment and economic growth.
The Private Intermittent Securities and Capital Exchange System (PISCES) is a recently approved format for investment that allows private firms to auction off shares to professional and institutional investors without the need for a public launch.
The framework for the system came into effect in June and the FCA approved the UK’s first PISCES operator, the London Stock Exchange, in August.
A second operator, JP Jenkins, has now been approved, with the FCA hoping additional options will boost competition and attract a greater variety of businesses to participate.
JP Jenkins is itself a platform for private businesses to sell shares to investors and helped serve as a model with which to base the PISCES framework on.
“Today’s news is the result of months of commitment and dedication by the entire team at JP Jenkins,” said the group’s chief executive Mike McCudden.
“We have worked at pace to get this project over the line and being granted the license formally recognises not only our recent achievements but also our extensive knowledge of supporting unlisted companies, their investors and indeed the wider UK economy.”
The FCA said it will continue to provide pre-application and application support to other potential PISCES operators to encourage the recently approved investment system to grow rapidly.
“We are delighted to authorise our second PISCES operator, another step towards delivering our vision of a competitive and innovative marketplace,” said Simon Walls, executive director of markets at the FCA.
“We finalised the rulebook in the summer and have already approved two platforms. It goes to show how we are pulling together with industry to unlock new opportunities for investors and growth companies.”
Economic Secretary to the Treasury Lucy Rigby added: “This government is unlocking new opportunities for UK growth companies and investors by boosting our capital markets. I’m delighted to see PISCES move one step closer to trading today.”
