Channel Islands Stock Exchange Recognised Under s841 ICTA By The UK Inland Revenue

The Board of the Channel Islands Stock Exchange (CISX/Exchange) is pleased to announce that the UK Inland Revenue has designated the Channel Islands Stock Exchange as recognised under Section 841 of the Income and Corporation Taxes Act 1988 (ICTA).

On 27 November 2002 the UK Inland Revenue published its new approach to the recognition of stock exchanges for tax law purposes. In considering the request by the CISX for such designation as a recognised stock exchange under s841 ICTA, the UK Inland Revenue reviewed the following:

• whether the stock exchange is undertaking the normal business of a stock exchange and regulated as an investment exchange in a major economy or a significant international financial centre;
• whether the jurisdiction concerned has proper and effective arrangements for financial regulation which meet internationally accepted modern standards in this area; and
• whether there is any objection on wider public policy grounds to the recognition for tax purposes of the exchange, or of exchanges in that jurisdiction.

Mr Harry Taylor CBE, Chairman of the CISX says, "This designation by the UK Inland Revenue is a significant milestone for the Exchange. It enhances the CISX overall competitive position and lays a strong foundation for our future growth. It is also a further endorsement of Guernsey's reputation as a significant international finance centre which operates within a regulatory structure of internationally accepted modern standards."

Tamara Menteshvili, Chief Executive of the CISX says, "This is most welcome news and important for our future business development. The designation will certainly increase the Exchange's ability to attract a wider range of high quality securities from international issuers who require such designation."