So, we have tax-efficiencies, and a committed Government but what about security for investors?
Firstly the financial strength and commitment of a provider will give comfort and these are two areas for an adviser when recommending a suitable provider. Although the Solvency II requirements for UK-based providers do not extend to the Isle of Man statute books (remember it is not part of the UK or the EU) it does have similar legislation. June last year saw the introduction of an updated risk-based capital and solvency regime.
The ability to have its own legislation allows the Isle of Man to keep legislation relevant to the companies based there and the customer base on which they focus. However the Government recognises the importance of policyholder protection for investors and the policyholder protection scheme in place protects 90% of the policy value. Not all international jurisdictions have a scheme in place.
Over thirty years ago Canada Life established itself on the Isle of Man under the then name, Albany International. The company’s commitment to the Isle of Man and the UK adviser marketplace has enabled the company to become one of the key providers based on the Island. Over the years it has developed products and continually seeks to improve these to make sure they remain relevant to the markets in which it operates.
Overall, the combination of effective compliant products, forward thinking providers, effective risk-based regulation and a proactive Government provides a very strong story for the Isle of Man.
Neil Jones, Market Development Manager. Neil is an investment specialist with over 20 years’ financial services experience with life and pensions providers, an investment company and as a professional adviser specialising in pensions, investments and estate planning. Neil has been involved in product development, investment research and training. There is more information Canada Life International’s solutions on its website.