What would PISCES mean for Fintechs?

Find out more at our next event

Alex Speedie

December 31, 2024

As 2024 draws to a close, the Fintech sector has emerged as a top-performing industry, marked by increased venture capital funding and robust hiring activity. However, challenges persist for the UK. Klarna's decision to pursue an IPO in New York instead of London highlights the competitive pressures on the UK market. Similarly, Revolut has indicated that it is unlikely to pursue a primary listing in London under the current circumstances.

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Nevertheless, the UK remains a premier destination for companies seeking funding. The extension of the SEIS and EIS schemes through 2035, coupled with a government committed to deregulation, underscores the sector's growth potential.

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In a recent Mansion House address, Rachel Reeves emphasised the need to revisit post-financial crisis regulations, which she argued have become overly restrictive. Of particular interest from an HR perspective is the proposed reform of the certification regime for staff below senior management. The suggested shift to a more cost-effective and streamlined approach could significantly impact hiring and compliance processes.

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Emerging Opportunities: PISCES Market

Another notable development is the planned introduction of PISCES (Private Intermittent Securities and Capital Exchange System), a new regulated market for trading shares in private companies. The system aims to facilitate quick and efficient shareholder exits while exempting transactions from stamp duty. Fintech companies, with their strong focus on venture capital, are poised to benefit significantly. For instance, a private equity firm seeking to buy out minority shareholders could use the PISCES framework to expedite due diligence and lower transaction costs.

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Regulatory Stability and Growth Prospects

The Labour Party’s substantial parliamentary majority provides businesses with a stable policy environment, even when they disagree with specific measures. This stability contrasts with the political uncertainty seen in other G7 countries, including France, Germany, and the USA. With final consultations underway on various regulatory reforms, including changes affecting pension funds, the Fintech sector is well-positioned for sustained growth in 2025.

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Unlike many other UK industries, Fintech continues to outperform, and the anticipated reforms are expected to enhance regulatory stability and attract further investment.

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Upcoming Industry Analysis

To better understand the Fintech sector’s trajectory, we have commissioned a new study analysing the key drivers of change in 2024 compared to previous years. The study will explore how these dynamics have influenced hiring and job creation while identifying trends and opportunities for 2025.

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Key questions to be addressed include:

What is the practical impact of the pension reforms likely to be for Fintech specifically?
Which Fintech segments are poised for the most significant growth?
Will 2025 mark a breakthrough year for crypto in the UK?
How could the launch of PISCES change investment into Fintechs?

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Invitation to an Exclusive Event

We invite you to join us for an exclusive breakfast event, limited to 20 participants, where we will present and discuss the findings of our study. This highly interactive format encourages open dialogue, providing attendees with the opportunity to challenge insights and engage with industry peers.

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If you are seeking a deeper understanding of the trends and developments shaping Fintech in the coming year, this event is a must-attend.

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Register now to secure your place. We look forward to seeing you there.

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What would PISCES mean for Fintechs?

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