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British expat investors spooked by Channel Islands Stock Exchange closure
| Published: | 1 Nov at 6 PM |
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Tagged: USA
The temporary closure of the Guernsey-based Channel Islands Stock Exchange is causing concern amongst expat investors and members of the financial community on the island.
News of the temporary closure broke on 14 October after a statement from the CISX chairman Jon Moulton revealed that the exchange had been under investigation by the island’s regulatory body for 20 months. At the same time, Moulton announced there would be a moratorium on new listings.
The chairman’s statement stressed the financial watchdog’s investigation was into certain of the exchange’s historical activities and did not concern current matters. He went on to explain that defects in the unusual exchange structure had been identified and would result in efforts to establish a less complex and better regulated corporate vehicle.
To the relief of Guernsey’s tens of thousands-strong financial services community, a partial reopening followed swiftly, but concerns in expat investment communities across the world may not be so easily dispelled. In spite of requests for more information, neither Moulton nor the investigating Channel Islands Financial Security Commission were prepared to elaborate on which issues were involved.
Financial professionals on the island fear that a prolonged closure or even a partial shutdown will affect new issues, resulting in business lost to other offshore financial centres such as the Cayman Islands. A good number of offshore funds aimed at expats are listed on the exchange, along with investment trusts being traded on other exchanges.
News of the temporary closure broke on 14 October after a statement from the CISX chairman Jon Moulton revealed that the exchange had been under investigation by the island’s regulatory body for 20 months. At the same time, Moulton announced there would be a moratorium on new listings.
The chairman’s statement stressed the financial watchdog’s investigation was into certain of the exchange’s historical activities and did not concern current matters. He went on to explain that defects in the unusual exchange structure had been identified and would result in efforts to establish a less complex and better regulated corporate vehicle.
To the relief of Guernsey’s tens of thousands-strong financial services community, a partial reopening followed swiftly, but concerns in expat investment communities across the world may not be so easily dispelled. In spite of requests for more information, neither Moulton nor the investigating Channel Islands Financial Security Commission were prepared to elaborate on which issues were involved.
Financial professionals on the island fear that a prolonged closure or even a partial shutdown will affect new issues, resulting in business lost to other offshore financial centres such as the Cayman Islands. A good number of offshore funds aimed at expats are listed on the exchange, along with investment trusts being traded on other exchanges.
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