U.K. FCA establishes framework for unlisted companies to trade shares on a ‘buyer-beware’ basis

Private companies that are keen to trade their shares but do not wish to become listed have gained another way to trade their shares via the new U.K. regulatory framework, the Private Intermittent Securities and Capital Exchange System (PISCES). The U.K. government completed its initial review and published rules for the system in June. 

Compliance managers in companies that are not listed, but are growing and wish to test the market for their shares, may be asked to advise management on the process and will need to know the regulatory requirements. The U.K. government is hoping that the scheme will encourage more companies to list publicly in the future, so compliance officers who become familiar with the requirements for PISCES trades and set up processes to support these will be in a stronger position if they are later asked to support a full listing regime