CISE offers ‘port in a storm’ following Brexit vote

Monday, 18 Jul 2016

The Channel Islands Securities Exchange (CISE) can provide a ‘port in a storm’ to clients facing up to the uncertainty created by the UK referendum result to leave the EU.

Fiona Le Poidevin, CEO of the CISE, believes that being based in the Channel Islands means the Exchange is uniquely positioned to provide a stable offering from outside the EU which can benefit the wider British economy.

She said: “There is no doubt that Brexit has created a significant amount of uncertainty in the UK and beyond but it is not all doom and gloom. There have been some immediate negative effects but the circumstances also present opportunities and the Exchange is able to play a part in enabling these to be realised.

“For example, there has been significant volatility in the markets but this is proving both negative and positive, with the weak pound providing opportunities for foreign investors to acquire UK assets relatively cheaply. Also, interest rates remain at historically low levels and will do for some time yet, which provides a flow of cheap debt for investors to allocate into investments.

the Exchange is uniquely positioned to provide a stable offering from outside the EU which can benefit the wider British economy

“This is helping to stimulate the economy and over the long term, there is no doubt that London will remain a major financial hub. It is the largest business introducer centre for the Channel Islands where we are also becoming increasingly diverse in terms of exporting our financial services globally. In terms of EU market access for financial services, the Channel Islands remain third countries and as such, we will continue to negotiate directly with the EU through the Channel Islands Brussels Office (CIBO).

“Being based in the Channel Islands, it means that the Exchange is well placed to build on our strong start to the year – which was achieved despite the uncertainty that the referendum created – by capitalising on emerging opportunities from the current situation.

“For instance, a significant proportion of our business relates to the investment funds industry and we have seen before that, in times of turmoil, the sector remains robust due to the diversification into different alternative asset classes, including debt funds and private equity. Some of this funding will assist the Small and Medium-sized Enterprises (SMEs) which are the engine of the UK economy but may also benefit from the ability to raise capital via an exchange with a fee regime and admissions criteria suited to the needs of a growing business.

“These are just a few examples of how the stability and certainty which we can provide from the Channel Islands means that we are able to assist in supporting the growth of the wider British economy.”

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