MERJ granted Recognised Stock Exchange Status by UK HMRC.
The UK tax authority, Her Majesty’s Revenue & Customs (HMRC) has designated MERJ as a Recognised Stock Exchange under Section 1005 of the Income Tax Act 2007. MERJ Exchange has now been added to the published list of Recognised Stock Exchanges.
This designation is a reflection of the high international standards in place at MERJ, and adds important credibility on the world stage. However it also has vital tangible benefits in widening the appeal of MERJ listings.
Recognised status carries particular importance under UK tax legislation, for the purposes of investments by Self-Invested Personal Pensions (SIPPS) and Individual Savings Accounts (ISAs). Products listed on the exchange may also avail of the Quoted EuroBond Exemption from UK withholding tax. Quoted Eurobonds have traditionally tended to list in Guernsey or Cayman but MERJ’s innovative model could reduce the typical cost to issuers by more than 40% and remove unnecessary layers of advisers.
MERJ was founded in 2011 to provide a national securities market for the Republic of Seychelles. It has grown quickly to become one of the most dynamic technology led exchange operators in the world. In 2019 it became the first exchange globally to list digitized version of shares, or tokenized equity, and the first exchange globally to conduct an IPO of tokenized securities. This recognition from HMRC means that UK investors will now be able to access some of MERJ’s listed products from within their ISA or SIPP portfolios.
An affiliate of the World Federation of Exchanges, MERJ was identified in 2019 and 2020 as the world’s fastest growing stock market. Recognition by HMRC follows a year in which the exchange attained Qualified Foreign Exchange status in the USA and was upgraded to full membership of global ISIN issuing body, ANNA (Association of National Numbering Agencies)
CEO of MERJ Exchange, Edmond Tuohy, commented:
“We have worked hard to secure this official recognition from HMRC and it comes at a time when we have tremendous momentum. These are key building blocks for our global marketplace. We provide a modern listing venue for exciting issuers from around the world, and can now provide highly efficient access for UK investors.”
MERJ set out to build a borderless capital market which maintained the highest governance standards whilst leveraging technology to reduce unnecessary cost and red tape. One of the exchange’s key innovations is the select use of distributed ledger technology, which is used as a tool to simplify a number of the complexities of operating a cross-border multi-currency platform. The efficiencies created mean that companies from the world’s fastest growing economies can list securities at a much earlier stage than would be economic on traditional markets, taking advantage of the benefits of a full exchange listing and a diverse global investor pool. Investors can access the exchange directly via web or mobile app or through more traditional broker and member channels.
These recognitions are vital and there are no shortcuts. They have required dedication and hard work from the team at MERJ over a long period of time. Each one is an important step on the road to building a global marketplace that truly combines the best of the old world and the new.
MERJ Exchange is a multi-market global financial exchange, clearing house and securities depository. Our group is regulated to the highest global standards and operates the entire exchange and post-trade infrastructure from end to end. We are pioneering a shift in the global capital markets by combining the best of blockchain technology with regulated infrastructure.
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