The FCA’s proposed Private Intermittent Securities and Capital Exchange System (PISCES) seeks to provide private companies with a platform to raise capital and create a secondary market for shares. However, the platform lacks traditional safeguards, such as market abuse regulations and insider dealing laws, potentially exposing investors to risks like fraud and unfair trading practices.

The FCA’s focus on disclosure requirements and self-certification for investor participation doesn’t ensure full protection, especially for less financially sophisticated individuals. Investors are advised to carefully scrutinize issuer disclosures and remain cautious of the risks associated with insider trading.

As James Tyler highlights in a new article published today in Professional Advisor, the integrity and success of PISCES will largely depend on how well its operators enforce disclosure rules and monitor market activities.

Read more here.