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Channel Islands Stock Exchange Enhances Listing Rules

by Jason Gorringe, Lowtax.net, London
05 September, 2016

The Channel Islands Securities Exchange has updated its listing rules for investment business to boost its appeal.

The Exchange said 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."

It said: "This reflects an expansion of the rules to encompass all types of investment vehicles, including open- and closed-ended funds, Real Estate Investment Trusts (REITs), and unregulated investment companies, along with the associated legal entities."

The other main change in the listing rules is the adoption of a principles- and guidance-based approach, it said, under which there will now be overarching principles that must be adhered to, together with accompanying guidance on how to comply with the principles.

Commenting on the changes Fiona Le Poidevin, CEO of the Exchange, 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 today's environment."

"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 exchange noted that the announcement is a follow-up to last year's update to the listing rules for specialist debt securities and the introduction of new listing rules for listing Special Purpose Acquisition Companies (SPACs).

Other changes to Chapter 7 of the listing rules, which became effective from September 1, 2016, include: the harmonization 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 from September 1, 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 the Exchange said is to ensure that the Exchange remains competitive at a time of changing market practices.


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