Executive summary
The key advantages to listing on the Official List of the Channel Islands Securities Exchange Authority Limited (the "CISEA") are:
- the CISEA is licensed, regulated and supervised by the Guernsey Financial Services Commission;
- highly streamlined listing process with a responsive Listing and Membership Committee;
- competitive pricing and cost effectiveness;
- debt securities, investment vehicles including funds and UK REITs, general equities, trading companies, special purpose acquisition companies and extracture industries can be listed;
- primary and secondary listings permitted;
- a pragmatic approach to disclosure requirements while maintaining international standards of issuer regulation;
- the CISEA is a non-EU exchange where EU directives do not apply;
- Internationally recognised by:
- HM Revenue & Customs;
- International Organisation of Securities Commission (IOSCO) - CISEA is an affiliated member;
- World Federation of Exchanges - CISEA is an affiliate member; and
- the Australian Securities Exchange;
- located in a European time zone and an OECD (Organisation for Economic Development and Co-operation) compliant jurisdiction; and
- as at the end of June 2016, there were over 2,200 current listings on the Official List.
Vehicles and securities which may be listed
A broad range of vehicles and securities are currently listed on the CISEA, ranging from primary or secondary listings of collective investment funds (including UK Real Estate Investment Trusts (REITs), units in unit trusts and limited partnership interests, as well as corporate vehicles), structured notes, eurobonds, convertible bonds, PIK notes and warrants (including high yield bonds). A variety of legal structures and innovative products, including Jersey or Guernsey protected cell companies, are available for listing on the CISEA.
Specialist debt securities
The CISEA lists large numbers of debt securities issued by a wide range of corporations and special purpose vehicles.
Due to the designation by the HM Revenue & Customs of the CISEA as a "recognised stock exchange" for the purpose of investment by self-invested personal pensions and individual savings accounts, qualifying debt securities are eligible for the quoted eurobond exemption. This designation allows an issuer to make payments of interest on the CISEA listed notes without withholding for UK tax. Equivalent exemptions are available in a number of other jurisdictions such as Ireland. The CISEA is flexible in its requirements for a paying agent. Unlike other stock exchanges, the CISEA does not insist on the appointment of a local paying agent and, in fact, many listings are achieved without any paying agent being appointed. In comparison with other European securities the ongoing disclosure requirement to the CISEA on an annual basis is not onerous.
Investment Vehicles including funds and UK REITs
The procedure for a CISEA listing depends upon the type of vehicle or security to be listed and whether the listing is primary or secondary or for an open or closed-ended fund and the procedures and listing requirements are set out in Chapter 7 of the CISEA's Listing Rules which are available on the CISEAs website - www.thecise.com. The CISEA has adopted a pragmatic approach to regulation of such listings and the disclosure of information.
The relaxation of the UK REIT regime has encouraged new REITs wishing to enjoy the benefits of REIT status but not necessarily requiring the level of liquidity or wishing to incur the costs associated with a London main market listing to use the CISEA to satisfy the listing requirements. Given the CISEA's "recognised stock exchange" status this makes it suitable for listing REITS.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
