Channel Islands Stock Exchange Listing Services

IFG through its membership of the Channel Islands Stock Exchange ("CISX") is able to offer listing services for:-

• Investment funds;
• Debt instruments;
• Equities; and
• Channel Islands Depository Receipts.

The CISX commenced operations in October 1998 and has grown rapidly with over 1,000 securities having been approved by the Market Authority since inception, for a total market capitalisation of US$ 17 billion. Investment funds make up the majority of listings. However, debt securities and equities have also been listed.

Importantly for clients, the CISX attracts international recognition, in particular:-

• The UK Financial Services Authority has approved the CISX as a Designated Investment Exchange within the meaning of the Financial Services and Markets Act 2000.
• The UK Inland Revenue designated the CISX as a Recognised Stock Exchange under Section 841 of the Income and Corporation Taxes Act, 1988 (“ICTA”).
• The US Securities and Exchange Commission have designated the CISX as a Designated Offshore Securities Market, within the meaning of Rule 902(b) under Regulation S of the Securities Act of 1933.

Investment Funds

IFG can sponsor the listing of Channel Islands registered open-ended and closed-ended investment funds and the listing of investment funds registered in other recognised jurisdictions.

Funds admitted to the Official list by asset type include, traditional Fixed Income and Equity Funds, Alternative Investment Funds (such as Property Funds, Hedge Funds, Private Equity Funds and Fund of Funds), Structured Funds and Multi-Manager Funds.

A full range of legal structures are accepted by the Market Authority including:-

• Open-ended Companies;
• Closed-ended Companies;
• Open or Closed-ended Unit Trusts;
• Master/Feeder Funds;
• Protected Cell Companies;
• Limited Partnerships.

Professional Investor Funds are welcome and these may be structured as an Expert Fund, Qualifying Investor fund or other similar type fund.

Debt Securities

The international recognition achieved by the CISX is part of the reason why Lead Managers and Originators within the Capital Markets have been attracted to the CISX for the listing of Specialist Debt Securities.

The Market Authority approaches the listing of such securities in a very pragmatic way. Disclosure of information is kept to a minimum, focusing on the key features of the debt issuance programme or debenture, the terms and conditions of the issue and, in the case of Asset-Backed securities, the underlying assets.

The types of specialist debt securities listed include:-

• Eurobonds;
• Tier One Capital;
• Corporate Debt;
• Special Purpose Vehicles;
• Asset-Backed Securities;
• CDOs/CLOs;
• Synthetic Securities;
• Credit/Equity/Index Linked Notes;
• Multi-Issuer Programmes;
• Derivative Warrants.

Benefits of a CISX Listing

Although outside the European Union, the Bailiwicks of Jersey and Guernsey are within OECD jurisdictions and OECD conventions apply. The Channel Islands are in the premier league of international finance centres and continue to demonstrate their commitment to the highest of regulatory standards.

In addition to increasing an issuer’s potential investor base and the visibility, marketability and prestige of the issuer, the CISX offers added value in marketing the securities listed on the Exchange through its web-site www.cisx.com and the market data and prices distributed world wide through the CISX’s Reuters pages .

The key advantages of a CISX listing are:-

• Speedy turnaround time and consistency of response;
• Cost effectiveness;
• International standards of issuer regulation;
• Pragmatic approach to disclosure requirements;
• Responsive and approachable Market Authority.

How can IFG help?

As a Category 1 sponsor IFG can assist its client’s access to the CISX, through the following services:-

• The handling of initial and final listing applications, including acting as sponsor for listings and providing liaison with the CISX and the local regulator; and
• Assistance with meeting the ongoing obligations of being listed.

IFG does not provide taxation or legal advice. The information and expression of opinion expressed in this briefing note are not intended to be a comprehensive study or to provide taxation or legal advice. Specific advice concerning individual situations should be taken and IFG can provide introductions to advisers who specialise in this area.