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| CHANNEL ISLANDS STOCK EXCHANGE
The Channel Islands Stock Exchange opened in Guernsey in October, 1998. The Exchange is currently operated by way of a company limited by guarantee. As such, the Exchange has a Board of Directors responsible for the running of the Exchange. The Board has appointed a Chief Executive, Tamara Menteshvili. There are four separate departments, being the Finance, Membership, Market Regulation and Compliance and the Listing Departments. There is furthermore a Market Authority considering applications to the Exchange. The Authority comprises the Chief Executive, the heads of the Listing, Membership, Market Regulation and Compliance Departments. The Exchange is itself regulated in Guernsey by the Guernsey Financial Services Commission. As at 31 December 2004, the Exchange had 581 listed securities and a market capitalisation of over £14,000 million. In September 2005, the Exchange had 33 listing members. Advantages of Listing Whilst there are many Stock Exchanges throughout the world, companies wishing to list frequently consider the use of what is called an offshore jurisdiction. The advantages of listing in Guernsey include:
All of these points combined with the regulation of the Exchange by the Guernsey Financial Services Commission to a high standard ensure that the Channel Islands Stock Exchange is one of the best for listing. Types of listing As with all exchanges, the Exchange accepts primary and secondary listings. Listings may be made by or for a vast array of different entities. These include, general listings by companies, open-ended funds, closed-ended funds, special purpose vehicles and debt securities. Listing An integral function of the Exchange is to provide facilities for the listing of securities of issuers and to provide its users with a market place for the trading of securities. As a general principle, the listing rules of the Exchange are designed to ensure that investors have and maintain confidence in the market. Thus, the rules seek to ensure that securities, for which application for listing has been made, are suitable; the issue and marketing of securities is conducted in a fair manner; sufficient information is available to potential investors to enable them to make properly informed assessments of the securities; and holders of securities are treated fairly and equally. It is the function of the Market Authority to determine the suitability of applications made to the Exchange for listing. The most important issue affecting a listing application is that an applicant for a listing must have a sponsor (being a listing member of the Exchange) appointed at all times whilst it is an applicant for listing or is listed. The sponsors are required to give certain undertakings in respect of a listing. Procedure The listing rules are designed to ensure that the procedure for listing different types of vehicle is suitably adapted to the needs of each particular vehicle. It should be understood that in each case, a listing document and formal notice is required. The documents constituting the vehicle should be provided to the Exchange and documents relating to title or affecting the ownership of the securities to be listed are to be provided. With regard to the content of the listing document, this does depend upon the type of vehicle. It is to be noted that where a prospectus or separate scheme particulars exist then the listing document might comprise that prospectus together with a notice containing such additional information as is required under the listing rules in order to provide a complete listing document. The purpose of this is to avoid unnecessary duplication. The listing application proceeds through two phases. In the initial phase, documents are lodged in draft for approval by the Exchange. Once approved the final application is submitted which is then considered by the Market Authority. The Exchange will notify an applicant that the application has been granted. The requirements with regards to the publication of the notice and listing documents must then be followed. A short but helpful guide to the listing procedure may be obtained online from the Exchange’s web site, the details of which appear below. Legal advice F. Haskins & Co. have been responsible for the drafting of documentation and the submission of the necessary forms in respect of listing applications. Further information may be obtained directly from the Channel Island Stock Exchange either by contacting it direct at: 1 Lefebvre Street St. Peter Port Guernsey GY1 4PJ Tel. No. (01481) 713831 Fax. No. (01481) 714856 or by accessing at its web site at www.cisx.com. Updated 13 September 2005.
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