Guernsey: Considerations For Listings

Last Updated: 26 August 2011
Article by Tamara Menteshvili

Most Read Contributor in Guernsey, September 2018

Originally published in Business Brief, 2011

There are many considerations to explore before deciding whether a listing is the best route to market, says Tamara Menteshvili, Founding Director and Chief Executive of the Channel Islands Stock Exchange (CISX).

The post financial crisis environment has created a change in market expectations. Not only is there an increasing focus on transparency, but also a flight to quality in which Issuers seek to secure a listing on a recognised market in order to gain a competitive edge and attract the appropriate investors. More than ever, particularly within the retail sector, consideration is being given to listing a product in addition to or rather than competing through the financial intermediary markets or by some other method.

This article, the first in a series of three, examines the factors that financial institutions and other intermediaries should consider when making decisions about whether listing is the right course of action and, if so, the implications of choosing one exchange over another and the regulatory obligations that will arise for the issuer.

Why List?

First, we should consider why the Issuer wants to list and the advantages of doing so.

Most often, the main reasons financial institutions wish to list is to create a market value, to provide investors with an exit route, to extend their product's visibility, to secure a kite mark which demonstrates they have met rigorous disclosure requirements or to attract certain types of investors. A listing is sometimes an essential aspect. A UK REIT, for example, cannot be eligible for that status unless it is listed on a recognised stock exchange.

At this pre-listing stage consideration should be given as to the types of investors an Issuer is aiming to attract and the geographic location of those investors.

We advise an Issuer considering a listing to endeavour to understand local company laws and to ensure those who will be involved with the listing are fully aware of the obligations they will be expected to fulfil. Generally and in particular within the UK and the Channel Islands, Directors of a listed company must have knowledge of the listing rules of the Exchange in which the security they are a Director of is listed and must understand their initial and ongoing obligations.

Which Exchange?

When it has been decided that listing is desirable, the next consideration is ensuring the right exchange is chosen for that particular listing. Questions to consider include the identity of the target market, type of investors and where they are located, advantages of the jurisdiction and its regulatory requirements and whether it is intended to trade the security. Also worth researching are the differentiating features of exchanges, particularly their fee structure and facilities.

Not all exchanges accept all structures. For example some may not list limited partnership interests or they may not accept trading of partly paid shares. There may be certain accounting standards to be met which differ from the preferred option of the Issuer. Some will have a listing facility but not a trading capacity; the variations will make some exchanges more attractive to certain Issuers.

No two markets operate the same way. For example, if you are listing a commercial trading vehicle, the CISX stipulates that you must demonstrate a minimum three-year track record while other exchanges might have a lesser standard. There are stipulations on the number of directors and their expertise, and restraints put upon them in respect of meeting their corporate governance obligations. Some markets will have listing rules which are less onerous for their domestic funds and different rules for non domiciled funds.

The time zone in which the exchange is based is an important issue. Naturally if the Asian market is being targeted, a listing in that region may be more appropriate. Similarly, if the intention is to encourage investors from the EU or UK, an exchange in this time zone is likely to fulfil that objective more easily.

Exchanges though are by no means exclusive to the jurisdictions in which they operate and the CISX attracts around 50% of its listings from outside the Channel Islands due to the range of benefits that makes it attractive to overseas issuers.

There will be other pressures on choosing where to list simply based on costs and value for money. Most investment funds launch their product and bring their shares to market through a private placement. In many cases, investors of closed-ended investment funds are institutional and buy to hold. An examination of the costs of an inter-dealer market (where the shares are admitted to trading only, meaning that the shares are not admitted to the Official List of a recognised stock exchange) may show it to be more expensive. This is owing to the upfront costs of the inter-dealer market, required in order to establish a market in the shares post launch, when in reality there may be little post launch liquidity in the shares.


One of the roles of any stock exchange is to ensure public confidence in the securities admitted to listing by maintaining high standards for the conditions of listing and public disclosure of information. The professional investment community needs to be aware of the issues of transparency and the commitments involved when they consider the benefits of listing and the Market Authority at the CISX will assist in all possible ways during the process.

Listing on an exchange is a commitment with ongoing rules and regulations and this is something that we stress heavily to potential listed Issuers, particularly in the current financial climate where transparency is a fundamental consideration. The Market Authority at the CISX has to ensure that members and directors of CISX listed issuers understand the requirements and expectations of listing on the CISX and these will be explored in greater detail in the next article in the series.

For more information about Guernsey's finance industry please visit

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions