Isle of Man Finance

Brian Donegan, Director, Foreign Direct Investment, Isle of Man Finance. Isle of Man Finance 2nd Floor, Illiam Dhone House Circular Road Douglas Isle of Man IM1 1PG e-mail:brian.donegan@isleofmanfinance.com Direct dial: +44 1624 687063 Mobile: +44 7624 433075

Isle of Man Finance is very pleased to report that the funds under administration business in the Isle of Man now stands at just over US $60 Billion up from US $9.8 Billion in 2003. The Island is now well on its way to achieving our industry's target of US $150 Billion of funds business by 2010 comprising US$100 billion assets under administration and US$50 billion assets under management.

We have achieved this excellent performance (see chart) due to several factors. These include the comprehensive reform of the Island's fiscal, regulatory and legislative structures and the introduction of several innovative Government incentives e.g. inward investment grant aid programme designed to encourage continued growth of high quality finance entities wishing to migrate to the Island or establish a new presence here. Our reputation for quality makes for a compelling business case to operate from here. The Isle of Man has a Triple 'A' sovereign rating from Standard & Poor and Moody's and has recently been affirmed by the I.M.F as an offshore Finance Centre of excellence.

The principal benefits for Fund Managers and Administrators to set up on the Island are:

1. Zero tax on the corporate profits of all managers and administrators
2. No VAT charges on management or administration services for most categories of fund
3. No dual regulation on overseas funds
4. Low operating costs
5. Fast set up time for new funds

Two of the top four global administrators now present in the Isle of Man are HSBC and Fortis. Their reasons for selecting the Island were:

1. Reputation
2. Proactive & collaborative regulatory regime
3. Capacity
4. Low operating cost environment

In 2007 the Island shifted its focus to attract more Institutional business. A strategic review of the Islands fund industry resulted in the streamlining of the licensing regime for Fund Managers establishing operations and the updating of fund structures to make the Isle of Man more attractive for the domiciliation of funds. Consequently, two major new hedge fund groups were established on the Island, namely Pelham Capital and Bridge Global Asset Management bringing hedge fund managers on the Island to a total number of 6.

With its strong regulatory environment and entrepreneurial spirit the Island now has the critical mass to achieve its next major milestone and industry target of US $150 billion assets under administration by 2010.

The Isle of Man is an investment grade viable alternative to the traditional administration centres of the Caribbean and Western Europe. We look forward to another year of dynamic growth in the Isle of Man – and welcome you to come and share in our success where you will find 'freedom to flourish'. Please contact me if you require any further information.

• Mind and Management Proposition (38 kb)

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  An article based upon the Island's Mind and Management Proposition

• Fund Administration A World Class Opportunity for IOM (43 kb)

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  Article of Fund Administration - A World Class Opportunity for IOM