Isle Of Man Finance Needs More Resources, Say Fund Managers

by Jason Gorringe, Tax-News.com, London

02 April 2004

The Fund Management Association is urging the Isle of Man’s government to allocate more funds towards the promotion of the island’s financial sector in order to ensure that it continues to attract new business.

Describing the amount spent on promoting the jurisdiction’s financial sector as “paltry” compared to the amount the government spends on promoting tourism, the association’s chairman Mike Simpson told attendees of the FMA’s annual dinner that “given the outlook currently facing the Island, and the potential opportunities for the fund industry, we would like to see that balance redressed.”

Although he acknowledged the role that Isle of Man Finance has played in helping the island’s fund management industry, Simpson noted that the root of the problem was a lack of funding from the Treasury Department.

“We need more - and in order to get more, we would like a bit more from the government,” argued Mr Simpson. “We now enjoy a level playing field from a tax and regulatory perspective. However, that in itself does not tip the balance in our favour, and we would like the field to slope to our advantage a bit.”

He added that whilst the FMA, in conjunction with Isle of Man Finance, has been successful in raising the profile of the jurisdiction in places such as the United Kingdom, more needs to be done to ensure that new business is won in the future.

“While we continue trying to persuade lawyers and fund managers to give the Isle of Man a try, we must realise that if we fail to impress they will never come back to us, and they will tell their friends. It would be a tragedy if, after all our efforts to attract new business, we were to fall at the final fence. The major challenge is quality,” said Mr Simpson.

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