CISX Closes To New Business

By Editorial 18 October, 2013

The Channel Islands Stock Exchange (CISX) has for the last 20 months been under investigation by the Guernsey Financial Services Commission (GFSC) regarding certain "historic activities," CISX Chairman Jon Moulton announced on October 15, 2013.

A press release from GFSC confirmed the news, but said "due to the confidential nature of its investigation the Commission is unable to provide any further public comment." It said the investigations don't relate to current matters.

The stock exchange has stopped accepting new listings due to "defects in the complex and unusual structure of the CISX," which were discovered in the investigations. A plan to restructure the exchange is being worked out.

Mr Moulton said that the board of CISX cannot estimate when the investigations will be concluded or what impact they will have.

Offshore law firm Carey Olsen issued a press release following the announcement from GFSC. It said of the restructuring plan: "We have been told by the CISX that there is no suggestion that the proposals will have any effect on the status of the existing exchange as a recognized stock exchange for UK tax purposes. We have also been told that the existing exchange will be maintained, although it may be that issuers are given the opportunity to migrate to a new exchange in due course. It is anticipated that the only impact will be the temporary hold on dealing with entirely new listing applications for a one month period whilst resources are reassigned at the CISX in order to put in place the new structure."

Carey Olsen went on to say that listing applications currently being processed should be completed and that existing listings and programs will not be affected.

Tags: Offshore | Tax | Investment | Law | Guernsey | Stock Exchanges | Expats |


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