The Channel Islands Securities Exchange (CISE) has updated its
listing rules to ensure that it is able to cater for the widest
range of investment business.
Chapter 7 of the Exchange's listing rules has until now been
dedicated to investment funds but going forward it will be titled
'investment vehicles'. This reflects an expansion of the
rules to encompass all types of investment vehicles, including open
and closed ended funds but also real estate investment trusts
(REITs) and unregulated investment companies, along with the
associated legal entities.
The other main change in the listing rules includes the adoption
of a principles and guidance based approach, where there are a
number of overarching principles that must be adhered to, with
accompanying guidance on how compliance with them is to be
CISE Chief Executive Fiona Le Poidevin said: "The previous
listing rules had served the Exchange well and now there are nearly
500 investment securities on the Official List but the rules needed
to be overhauled to ensure that they were fit for purpose in
"This includes expanding the applicable types of investment
vehicles to reflect the changing nature of the sector where we are
now seeing not just open and closed ended funds but a much wider
range of vehicles including REITs and unregulated investment
companies being used by multi-family offices or for investing into
a single asset class.
"At the same time, we have moved to a principles and
guidance based approach to ensure that there is a sharp focus on
governance but also so that we have the flexibility to make future
changes in response to developments in market practices and to
remain at the forefront of product innovation."
The changes follow last year's update of the listing rules
for specialist debt securities and the introduction of new listing
rules for listing special purpose acquisition companies
Other changes to Chapter 7 of the listing rules coming into
effect from 1 September 2016 include: the harmonisation of
disclosure requirements across all investment vehicle types (where
possible); simplification of conditions for listing, such as those
in respect of management and investment managers, and spread of
risk; flexibility in connection with valuation reports for property
investment vehicles; and streamlining of continuing obligations,
particularly in relation to transactions.
Also effective as at 1 September 2016 are changes to the
Exchange's Model Code for Securities Transactions by Persons
Discharging Managerial Responsibilities (PDMRs). The most
significant development is the change in the definition of the
'closed period' of securities transactions from 60 days to
30 days, which ensures that the Exchange remains competitive at a
time of changing market practices.
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