The Channel Islands Stock Exchange (2014-10-01)

Summary

This is a public statement from the Guernsey Financial Services Commission (GFSC) reporting the outcome of its investigation into the Channel Islands Stock Exchange, LBG (CISX), a licensed investment exchange, concerning irregular trading in the listed securities of Arch Guernsey ICC Limited. It is a historical enforcement notice, not a document imposing new ongoing rules or requirements.

• Background: The Commission investigated CISX from February 2012 over transactions in Arch Guernsey ICC Limited securities implicated in possible market manipulation.
• Independent decision maker: Because a former CISX director had also chaired the Commission, an independent Queen's Counsel was appointed via the Royal Court to decide on any sanctions.
• Settlement: On 31 January 2014 CISX admitted serious fault and paid a financial penalty of £190,000 under section 11D of the Financial Services Commission (Bailiwick of Guernsey) Law, 1987, in exchange for no further action on the Enforcement Recommendation.
• Findings on individuals: The Commission found no basis for action against the former Chief Executive or any present or former Non-Executive Directors or officers of CISX, confirming they remain fit and proper persons.
• Investigation closed: The notice confirms the Investigation is now complete, with the Commission reserving rights to pursue other parties if appropriate.

As a public statement summarising a concluded enforcement matter, it does not create any new continuing compliance obligations for CISX or other entities beyond the penalty already paid.

Applies to

investment exchanges, Channel Islands Stock Exchange, LBG