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THE COMMISSION

POLICY STATEMENTS AND GUIDANCE NOTES

Securities issues under the control of borrowing legislation

Background

An increasing number of institutions around the world are using Jersey as a jurisdiction through which to undertake securities issues.

Such securities issues will often involve securitisation structures, debt repackagings, capital raising arrangements and other capital market transactions.

The Policy

The general policy of the Commission in relation to securities issues is to strengthen further the Island’s reputation as a high quality and well regulated financial centre.

The Commission will normally give consent under the Control of Borrowing (Jersey) Order 1958 to a securities issue provided it is satisfied that the issue is in accord with the need to protect the integrity of the Island in commercial and financial matters and is in the best economic interests of the Island.

When considering an application for a Jersey company to issue securities pursuant to the Control of Borrowing (Jersey) Order 1958, the Commission will have regard to:-

1) The Type of Investor to Whom the Securities will be Offered

The Commission would not normally expect structured, complex or limited recourse securities issues to be targeted at unsophisticated investors.

The Commission would normally expect securities issues targeted at the general public to be made only by substantial publicly listed companies or subsidiaries thereof and not require specialist knowledge to evaluate.

2) The Parties Involved

The Commission will wish to be satisfied that the parties involved have a level of stature, experience and competence commensurate with the significance of their role in the structure.

The Commission will also wish to be satisfied that the parties involved are reputable organisations that will contribute to the Island’s good name.

3) The Issuing Company

The Commission will wish to be satisfied that the proposed activity of the securities issuing company will be in keeping with the reputation of Jersey as a financial centre.


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