Jersey: Guide To Listing On The CISE

This client guide explains the wide international recognition enjoyed by the Channel Islands Securities Exchange, the process for listing on the CISE and the advantages of listing on the CISE.

It is recognised that this Guide will not completely answer detailed questions which clients and their advisers may have; it is not intended to be comprehensive.


The Channel Islands Securities Exchange (CISE) provides recognised facilities for the listing and trading of debt instruments and securities issued by companies and other forms of investment vehicles. Operating since 1998, the CISE was developed to complement the corporate services provided by local finance businesses, allowing these businesses to diversify by creating a market for local and international trading companies, investment funds and debt securities. The intention is to broaden the scope of financial services available in order to provide a one-stop-shop for all financial products and services, thereby increasing the Channel Islands' overall competitiveness as an international finance centre.

The CISE is authorised to operate as an investment exchange under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 and is regulated and supervised by the Guernsey Financial Services Commission.

The structure of the CISE has been designed to differentiate it from other Exchanges. The CISE is formed as a hybrid company (a company limited by guarantee, with shares) and enjoys the support of a growing number of prestigious local and international organisations. In addition to the traditional type of stock exchange member the CISE's membership includes banks, insurance companies, investment fund managers, fund administrators, as well as law firms and accountancy firms.

Appleby Securities (Channel Islands) Limited is a full listing member of the CISE, wholly owned by the Appleby Group, and can act as a sponsor for listing purposes. Appleby Securities (Channel Islands) Limited working together with Appleby law firm are able to provide high quality cost effective professional services in all aspects of structuring and documenting debt and equity issues, from initial inception to public offerings and listings.

The CISE's structure and approach are unique within the Euro zone. As such there is a clear differentiation between it and other regulated and non-regulated Exchanges in Europe. Its efficient and personalised approach continues to attract new issuers and promoters. The CISE Market Authority meets every day to consider listing applications. Special listing procedures have been put into place to address the needs of fund promoters and participants in the international debt market for a speedy and efficient listing service. It is often the case that the Market Authority can turn around documents on the day of receipt.

The CISE listing fees are very competitive (full details can be found at Appendix 1). Specialist debt securities, for example, pay a modest one off fee with no recurring annual fee. Further cost savings may arise as, under the Listing Rules of the CISE, existing documentation may be utilised to form part of the Listing Document.

The Listing Rules are easy to understand and, in keeping with the existing high standards that have been imposed by the CISE's regulatory authority, comply with international standards. Market data and prices are distributed worldwide through the CISE's Reuters pages.


The CISE continues to attract international recognition.

The CISE has been approved by the UK's Financial Services Authority (FSA) as a designated investment exchange within the meantime of the Financial Services and Markets Act 2000. Many potential investors recognise this as a seal of approval from the FSA as to the effectiveness of the CISE's rules and its internal regulatory environment as well as the operation of the CISE, supervision, membership, price information, clearing and compliance arrangements.

As a designated investment exchange, FSA authorised firms are allowed to treat transactions on the CISE in much the same way as if they were trading on the UK's recognised investment exchanges. As a consequence, investment by an FSA firm in a CISE listed security will now incur a significantly lower position risk requirement, which in turn reduces overall transaction costs.

On 10 December 2002, the UK Inland Revenue (now HM Revenue and Customs) designated the CISE as a Recognised Stock Exchange under Section 841 of the Income and Corporation Taxes Act (1988) (ICTA). Shares listed on the CISE are therefore "qualifying investments" within an ISA, PEP or SIPP and, as a result, an increasing number of closed-ended funds are listed on the CISE.

The tax treatment of Eurobonds is also positively enhanced by the CISE's status as a Recognised Stock Exchange under ICTA. Interest paid on a qualifying quoted Eurobond does not have to be withheld for tax purposes if it is listed on the CISE.

The US Securities and Exchange Commission has designated the CISE as a Designated Offshore Securities Market within the meaning of Rule 902(b) under Regulation S of the Securities Act of 1933 (which governs the offer and sale of securities outside of the United States without registration under the 1933 Act).

The CISE is a corresponding Exchange with the Federation of Stock Exchanges (FIBV). Membership of the FIBV confirms a securities market as having world class business standards, recognised by regulators and supervisory bodies as well as by the owners, members and users of the market. The FIBV represents the interest of the Stock Exchange industry at meetings and international bodies and serves as resource organisation for the World Bank in the development of capital and emerging markets. The CISE is also a member of the International Capital Market Association (ICMA) (formerly known as the International Securities Market Association). ICMA is the self-regulatory industry organisation and trade association for the international securities market. Its principal role is to oversee the efficient functioning of the international securities market through the implementation of a self-regulatory code covering trading, settlement and good market practice.

The CISE is an affiliate member of the International Organisation of Securities Commissions. In addition, in July 2000, the CISE was recognised by the Australian Exchange. The CISE will also participate in tri-party agreements with other regulatory bodies as appropriate to further the Exchange's marketing efforts.

The CISE is also a member of the Association for Financial Markets in Europe.


The key strengths of the CISE may be summarised as follows: personalised approach with speedy turnaround time and consistency of response; competitive pricing and cost effectiveness; responsive and approachable Market Authority; international standards of issuer regulations; enhanced marketability and added value service; premier location; pragmatic approach to disclosure requirements.


The instruments which can be listed include: shares, units or other interests in investment funds; debt instruments; equities; warrants; depository receipts.

The CISE envisages that it will eventually expand its products and services to include the listing and trading of other products such as derivatives (other than warrants) and insurance related instruments.


The first stage in the making of any application for admission to the Official List is the appointment of a sponsor. The applicant must have a sponsor at all times while making the application. Once listed, the sponsor ensures compliance with ongoing obligations. Appleby Securities (Channel Islands) Limited is a full listing member able to sponsor the listing of securities.

The listing procedure consists of four steps:

5.1 Satisfying Listing Conditions

Before a security is considered for admission to the Official List certain conditions must be met. These conditions are vetted by the sponsor.

The standards for trading companies, open-ended funds, closed-ended funds and Special Purpose Vehicles (SPV) debt issues are very different.

5.2 The Application for Listing

The applicant must submit certain documents to the CISE as required by the CISE Listing Rules. The documentation consists of a Listing Document which can take the form of an existing published prospectus, offering memorandum, scheme particulars and the like, together with supporting documentation such as accounts when necessary and various standard application forms which the CISE provides within its Listing Rules. Normally, updating information is included within a "wrapper" that forms part of the Listing Document.

The CISE Listing Rules are available on the CISE website. There are eight Chapters of which Chapters I to V are generic and applicable to all listings on the CISE. Chapters VI to VIII (sometimes known as the Product Chapters) only apply to specific types of products or securities as follows:

Chapter VI: Equities and Corporate Debt Securities issued by Trading Companies; Chapter VII: Investment Funds; and Chapter VIII: Special Categories of Securities (other than Equity Securities).

The nine Appendices to the CISE Listing Rules which follow the above chapters relate to the various standard forms and listing document disclosure requirements, which are product specific. The listing document disclosure requirements for Chapter VIII Specialist Securities are set out in Appendix IX, Part D of the CISE Listing Rules. There are 22 disclosure items and the majority of these are fundamental items such as the details of the terms and the conditions of the issue in question.

5.3 Approval

All applications for listing will be processed by the staff of the CISE Listing Department. Once the Listing Department are satisfied with an application it will prepare a response to the CISE's Market Authority, together with a recommendation as to the suitability of the proposal. The Market Authority will then formally consider the application.

5.4 Listing

If the Market Authority approves the application, the Listing Document is then filed and the securities are admitted to the Official List.

As discussed above, the CISE offers a personalised and speedy service. The CISE will be able to review draft documents within 48 hours and often on the same day if required.

The CISE also provides a facility for the secondary listing of a company's securities and funds which are already listed on one or more other recognised stock exchanges.

The listing process is generally the same for a secondary listing as for a primary listing. The CISE will, however, permit an issuer to use the previous listing document approved by the issuer's primary exchange to obtain a listing on the CISE and certain information necessary for a primary listing may not be required to be submitted to the CISE. The CISE may, however, ask that additional documentation be prepared if the documents supplied prove to be inadequate.


Specialist debt securities are securities targeted at sophisticated investors. The CISE approaches the listing of such securities in a very pragmatic way. Examples of securities listed under Chapter VIII of the CISE Listing Rules include asset backed securities, loan notes and PIK notes associated with private equity financing and inter-company debt. Although ordinary shares cannot be listed, certificates representing shares can be, as well as equity linked products such as convertible bonds and preference shares which are substantially debt-like in character. With the exception of securities issued by SPVs, issuers must normally have produced two years of audited accounts to be eligible for listing. As there is no such requirement for SPVs, the Market Authority of the CISE must be satisfied that applicants fall within the relevant definition.

The Market Authority's approach has consistently been that a company should fall within the definition if it is issuing solely or principally debt and using the proceeds of such issue to purchase financial instruments, receivables, assets or underlying businesses (but not using the proceeds for its own working capital). The proviso is that the issuing company must remain passive i.e. not trade, operate or take an active part in the underlying businesses which are acquired.

In addition to satisfying the Market Authority that the relevant securities constitute specialist securities, there are other minimum conditions to be met, including that the securities being listed must be freely transferable and tradeable.

The CISE is not prescriptive with respect to the Listing Document apart from expecting certain items of information to be included, such as:

the structure of the transaction and flow of funds; details of the originator of the assets backing the issue; the issuer's rights over the underlying assets; bank credit and swap counterparties; and details of the administrator.

The CISE has developed a fast track "equivalence approach" into the processing of applications for specialist securities. This means an application may be processed on the understanding that the security to be listed has the associated documentation prepared under the relevant guidelines of a jurisdiction of a stock exchange recognised by the CISE and that there have been no material changes in the information originally contained within the documents to be submitted.

As with all core products, the Market Authority has developed detailed checklists and procedures for the CISE's own use and for use by sponsoring members.

To read the full article, please click here.

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.

Jeremy Berchem
In association with
Mondaq Advice Centre (MACs)
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
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.