London a Target After IoM Fund Review

Nick Parmee

21 March 2007

The Isle of Man has announced the completion of a major review of its funds sector. It identified “huge potential for growth” and will be followed by similar high level reviews of its banking and captive insurance sectors. The aim is to position itself as a premier location for the domiciliation of specialist institutional funds in the alternative and closed ended fund sectors and as a preferred location for the establishment of front and middle office operations for global fund managers. Key recommendations include: • introduction of a new specialist fund category, including a $100,000 initial subscription, ability to base management and/or administration in other acceptable jurisdictions, no restrictions on investment strategies, and a “light touch” regulatory approach; • a focus on the target market of front and middle office functions of London-based alternative fund managers, as well as managers in other key fund centres; • a revised offering to fund managers to include a tailored business proposition for location to the Island, and a set-up assistance package. IoM funds under management rose from £15 billion ($29 billion) in 2005 to around £21 billion in 2006; the treasury minister said: “I look forward to working with the industry to help secure its vision of having $100 billion of funds under administration and $50 billion of funds under management on the island by 2010.”