Guernsey: Channel Islands’ Stock Exchange Update

Last Updated: 15 March 2012
Article by Appleby  

Originally appeared in Finance, Offshore – Winter 2012

The Channel Islands' Stock Exchange (the "CISX") was launched in 1998. Appleby Securities (Channel Islands) Limited is one of the founder members and continues to act as sponsor to many companies and investment funds listed on the exchange.

The CISX continues to flourish with 498 new admissions for the year ending 2011. Notwithstanding the challenging economic climate, additional capital raised through further issues by listed issuers during the year highlighted one of the potential benefits of being on the CISX Official List. Listed closed-ended funds raised additional capital of £88.5 million, whilst special purpose vehicles raised a further £204.8 million of additional capital in 2011 according to the CISX Executive Factfile.

Unregulated Closed-Ended Funds

The Market Authority of the CISX has recently announced that it would need to develop its policy in respect of unregulated funds given increased level of interest expressed by the CISX's members throughout 2011.

The CISX Listing Rules (the "Listing Rules") within Chapter VII were originally designed primarily with regulated funds in mind, the definitions of which are set out within the Listing Rules. However, it was clear (following consultation with CISX members) that these definitions needed to be updated in light of the regulatory changes that have come into effect in recent times, particularly the introduction of the registered funds regime in Guernsey.

Understandably, the CISX does not wish to be placed in a position where it needs to become the arbiter of quality or to have the exchange perceived as the regulator of an unregulated listed fund by virtue of its listing, and so the Market Authority has issued a carefully worded guidance note to its members with a view to introducing revised Listing Rules in due course (which will focus on Listing Rule 7.3.2 and the definitions of authorised and approved funds).

Guidance Note

The guidance note sets out the Market Authority's policy for applications in connection with unregulated closed-ended investment funds. It should be noted, that unregulated open-ended funds are still not acceptable to the Market Authority.

The Market Authority proposes to introduce changes to Listing Rule 7.3.2 which will help to clarify what conditions an investment fund comply with to be eligible for listing on the CISX. A fund must:

"i) be an authorised fund; or ["approved fund" has been deleted]

ii) be duly incorporated or otherwise validly established and regulated in a jurisdiction recognised for the purpose by the Exchange; or

iii) be otherwise acceptable to the Exchange."

The revised definition of an "authorised fund" within Chapter I of the Listing Rules will be an investment fund authorised or registered by the GFSC under The Protection of Investors (Bailiwick of Guernsey) Law 1987 (as amended); or recognised or certified by the JFSC under the Collective Investment Funds (Jersey) Law 1988 (as amended).

The guidance note discusses which types of investment funds fall under category (iii) above. The fund (not being an authorised fund or regulated in a recognised jurisdiction) would be "otherwise acceptable to the Exchange" where:

"1) the fund is unregulated, closed-ended (unregulated open-ended collective investment schemes are not acceptable) and;

2) the fund is incorporated in a jurisdiction recognised by the Exchange and;

3) the fund has a separate Investment Manager which is regulated in a jurisdiction recognised by the Exchange with a minimum of two years track record achieved whilst being regulated; and

4) reviews carried out as part of the application process on the Principals of the Fund (including the Investment Manager) are satisfactory."

Self Managed Funds without a Regulated Investment Manager

The Market Authority will review unregulated, closed ended, self-managed funds that have no regulated investment manager on a case by case basis and will take a number of factors into consideration.

These factors include considering the relevant expertise of the directors of the fund in relation to managing assets of the underlying investment type (within the context of fund management experience). Where it is deemed appropriate (i.e. the directors do not possess the relevant fund management experience in the relevant asset class), there must be a separate, independent investment advisor appointed that has suitable expertise and experience (to the satisfaction of the CISX utilising the two year track record principle noted above)

In addition to evaluating the experience of the directors, the application process may also require reviews to be undertaken on the principals of the fund (including all parties to the issuer and their principals (i.e. property manager, investment advisors and directors of the fund)) which must be satisfactory to the Market Authority.

The fund must also be incorporated in a jurisdiction recognised by the CISX.

Existing Listed Funds

The guidance note also draws attention to the fact that if an existing listed fund (whether regulated or otherwise) is suspended (or has pending regulatory or investor protection issues under advisement by the CISX), then further issues by the issuer or new applications for listing from the same source will not be considered appropriate by the Market Authority until the suspension is lifted or the investor protection issues are resolved to the satisfaction of the CISX.

Please note that the guidance note has been issued to its members "for information only" and may be amended by the CISX. For this reason, we would recommend seeking early consultation with the CISX on all aspects of suitability and eligibility of an application for the listing of an unregulated fund. The guidance note is however a clear and positive step taken by the exchange in response to its members' requests. These measures will hopefully lead to an increased number of funds listed on the CISX in 2012.

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
Bedell Cristin
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Bedell Cristin
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