Isle of Man Delays Corporate Service Providers Bill

Andrew Mair, Tax-news.com

04 April 2000

Isle of Man Corporate Service Providers are unhappy with aspects of the Corporate Service Providers (CSP) bill which received its second reading last week.

The main source of concern by the CSPs is that the bill would indemnify the Financial Supervision Commission against legal actions by CSPs who have been harmed by the actions of the Commission, leaving CSPs with no form of redress.

The Isle of Man Association of Corporate Service Providers (ACSP) is on the whole supportive of the bill, but is puzzled by the FSC's desire to indemnify itself. "I hope a compromise can be reached. It has never been properly explained to us why the FSC believes it needs to build an indemnity clause into the bill," ACSP spokesman Chris Eaton said last week. Mr Eaton also warned the Manx Government that passing the bill in its present state, could result in up to half of the current 39,000 Manx registered companies leaving the island.

In response to the CSPs concerns the Chairman of the FSC, Phil Braidwood, agreed to delay the clause stage of the bill until April 18 to allow for further consultation.

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