British Finance Minister Jeremy Hunt is devising a plan to enable UK private companies to list their shares on exchanges, according to a report by the Financial Times on Saturday.

The proposed Private Intermittent Securities and Capital Exchange System (Pisces) would serve as a bridge between public and private markets, providing some level of liquidity for shares of private firms without the regulatory complexities associated with a public listing, the FT disclosed.

Under the proposed scheme, investors would have the opportunity to sell their stakes on designated days, a provision expected to be outlined in next week's budget.

"This groundbreaking proposal for a new market aims to facilitate the growth of private companies and enhance the pipeline for future IPOs in the UK," a source from the Treasury informed Reuters.

The establishment of Pisces would necessitate approval from the Financial Conduct Authority (FCA) and could commence later this year, as per the FT.

Initially introduced in 2022 as part of Hunt's initiatives to bolster London's appeal to investors amid competition from New York for listings, Pisces would not permit companies to raise fresh capital. Additionally, retail investors are unlikely to be allowed to purchase shares through the system, according to an unnamed official cited by the FT.

In a separate development, Hunt revealed on Saturday the next phase of measures aimed at partially reversing the longstanding trend of pension funds favoring safe government bonds over riskier startup ventures.

By 2027, pension schemes in Britain will be required to disclose their investments in UK assets, as announced by the finance ministry. Photo by Richard Townshend, Wikimedia commons.