IoM Presents New Funds Regime To London Professionals

by Robert Lee

25 June 2003

Officials representing the Isle of Man's financial sector haved recently been staging a series of promotional seminars in London to educate UK-based fund specialists on the package of measures contained in the last budget which were aimed at boosting the local fund industry.

The delegation was comprised of members of the Treasury's International Services Division and the Fund Managers' Association (FMA). One of the speakers at the event was Steven Beevers, who told Isle of Man Online that the talks were generally well received.

"While there was a degree of scepticism at first in some quarters," Beevers noted, "the fact is that the Isle of Man's combination of its experienced investor fund together with the strategic changes to the tax and regulatory environment for funds means we are now seen as offering a product which is every bit as good as our competitors."

He continued "The challenge now is to continue the marketing effort until we break the mould in terms of changing the mindset of those who typically set up funds in Cayman — because they've always done it that way." Therefore, observed Beevers, the IoM needs to "establish additional credibility as a player to be taken seriously in the specialist areas of private equity and hedge funds and that doesn't happen overnight."

Describing his package of measures for the funds industry, Mr Bell said in his February budget statement: "I am determined to ensure that we continue to provide our finance industry with a sound platform from which to compete for business in international markets. Notwithstanding the current downturn in equity markets, the global funds industry continues to experience significant and sustained growth. I wish to see the Isle of Man competing for business in this vital sector of the global finance industry."

A summary of the measures announced earlier in the year include:

• Zero Rate Tax for all Third Party Fund Administrators, and for Managers of EIFs and PIFs - representing an extension of the existing zero rate tax regime on fund managers' profits to both fund administrators and to managers of Experienced and Professional Investor Funds;
• VAT Exemption for Experienced and Professional Investor Funds - representing an extension of the VAT exemption on management fees.
• Overseas Funds Exemption in the context of Isle of Man regulation - such that an overseas fund may be administered in the Isle of Man without "dual regulation" where it is incorporated in a jurisdiction having an appropriate regulatory framework.

Recommended