TISE & Listing a Fund

The International Stock Exchange (TISE), formerly known as The Channel Islands Securities Exchange, provides a responsive and innovative listing and trading facility for companies to raise capital from investors based around the world.

TISE offers a regulated marketplace from within the European time zone but outside the EU.

The Exchange provides a convenient and cost-effective service for listing a wide range of securities, including more than 400 investment vehicles such as open and closed ended funds as well as a quarter of all UK REITs.

In total, there are more than 2,000 listed securities with a market capitalisation of more than £300 billion.

In addition, rules to provide a highly regarded regime for listing Special Purpose Acquisition Companies (SPACs) have been introduced. TISE also has an advantage over some competitors in that it is able to provide a venue for listing Limited Partnership (LP) interests.

Many investment houses, especially those in the private equity sector, utilise the Exchange for listing specialist debt – including through the use of Special Purpose Vehicles (SPVs) and the Quoted Eurobond Exemption – as a mechanism for financing acquisitions.

International Recognition

TISE offers a regulated marketplace for companies to raise capital from investors based globally. Some investor groups are mandated to only invest, or invest a certain proportion of assets, in listed products or those listed on particular exchanges and so the TISE’s number of international recognitions is particularly advantageous.

For example, the UK tax authority, HMRC, has designated the CISE as a recognised stock exchange under Section 1005 of the Income Tax Act 2007. This means that TISE is attractive to investor groups, such as pension funds, whose own clients require investment in products listed on a recognised stock exchange as part of UK tax relief schemes for personal pensions and savings e.g. Self-Invested Personal Pensions (SIPPs) and Individual Savings Accounts (ISAs).

The Exchange also has the following recognitions:

  • Officially recognised by the Australian Securities Exchange (ASX)
  • An Affiliate Member of the International Organisation of Securities Commissions (IOSCO)
  • An Affiliate Member of the World Federation of Exchange (WFE)

In addition, the TISE is seeking to grow this number of international recognitions to ensure that its listed products are available to the widest professional investor base.

The Exchange’s approach to listing

The Exchange recognises that securities issued by investment funds may be purchased and traded by a limited number of sophisticated institutional investors or may be exposed to a wider market. The Exchange endeavours to adopt a pragmatic and proportionate approach to regulation.

Disclosure requirements have been set at a level which is intended to provide investors with sufficient information to enable them to make an informed investment decision regarding the listed securities but without imposing unnecessarily onerous demands on an issuer.

Derogation may also be permitted if disclosure would be seriously detrimental to the issuer or contrary to the public interest. As a general approach, however, the Exchange would normally expect a Listing Document to disclose all such information as may be necessary to enable an investor to make an informed assessment of the securities for which a listing is sought.

General principles for listing on the Exchange

The Listing Rules are designed to ensure that investors have and maintain confidence in the securities market. In particular, in relation to the issuer and the securities for which application for listing has been made, that:

  • investors are given sufficient information to enable them to make an informed assessment of the issuer and the securities;
  • the issue and trading (if any) of the securities is conducted in a fair and orderly manner;
  • all holders of listed securities of the same class are treated fairly and equally; and
  • following a listing, there is sufficient disclosure of information to investors to ensure that they are kept fully informed of all factors which might affect their interests. In particular, immediate disclosure should be made of any information which might reasonably be expected to have a material effect on market activity and prices of the listed securities.

The Exchange encourages prospective issuers and their sponsors to contact the Exchange at an early stage to seek informal and confidential guidance as to the eligibility of a proposed listing application.

Appointment of Sponsor and Representatives

In order to proceed with a listing, a proposed issuer must appoint a member of the Exchange to act as Sponsor to assist in relation to the listing procedure. The Sponsor will be responsible for all communications and dealings with the Exchange. In particular, a Sponsor should be able to assist in making an application to the Exchange for any appropriate relaxations in the formal disclosure requirements regarding the contents of the Listing Document.

The issuer must appoint two authorised representatives to act as the issuer’s principal channel of communication with the Exchange on an ongoing basis. The authorised representatives may be directors of the issuer or other persons acceptable to the Exchange (such as a Sponsor).

The Listing Process

Two-stage listing process

There are two stages along the path to listing:

  1. The issuer, via the sponsor, files an initial submission with documents in draft.
  • Once this has been submitted then an analyst is assigned to the application
  • The application is reviewed and a recommendation is made on the issuer’s suitability for listing, which is considered by the LMC
  • A comments letter is then released, subject to payment of the initial listing fee
  1. Taking into account the comments letter and any subsequent discussion between the analyst and the sponsor, the issuer then submits final, signed documents.
  • These must be received in electronic format no later than midday on the intended day of listing for consideration by the LMC
  • Once approved, a grant of listing letter is released, subject to payment of the first annual listing fee

Debt issues and open ended funds can elect to list either at 18.00 the same day or 08.00 the following morning. Listing takes place at 08.00 the next day for trading companies and closed ended funds.

Continuing Obligations

Once a listing has occurred an issuer must comply with the continuing obligations specified in the Listing Rules. The continuing obligations are intended to ensure that all market users have simultaneous access to the same information and to maintain an orderly market in the listed securities.

Listing Fees

TISE is known for being cost-competitive. The initial application fee for the listing of securities issued by investment funds varies based upon whether the applicant is open-ended or closed-ended and single or multi-class. Annual fees are charged in respect of listing such securities. Fees are subject to review so it is advisable to visit the Exchange’s website for the latest information.

More Information

For more information, including a list of Sponsors, the listing rules and the latest fee schedule please visit www.tisegroup.com.