Offshore Stock Exchanges – Why And How

Joe Truelove, head of fund services at Carey Group in Guernsey, was on the panel for the Offshore Alert debate. He explains here how offshore stock exchanges, and particularly the Channel Islands Securities Exchange, carries on its business.

Why use offshore exchanges?

The key reasons for listing a company on an offshore stock exchange are in principle the same as those of listing a company on an onshore exchange – to raise capital or to give existing shareholders an opportunity to sell their shares to unknown third parties in a transparent manner.

Both the CISE and the Cayman Stock Exchange (CSX) are exchanges recognised by HMRC. Under the Individual Savings Account (ISA) rules, investors are permitted to invest in securities listed on a recognised exchange and therefore both CISE and CSX listings of securities make them eligible investments for those investors.