Offshore bond providers shift to EU as DFM use grows, says adviser

In February, Scottish Widows announced it will close offshore bond provider Clerical Medical International (CMI) to new business. Markas Gilmartin, partner at Epoch, said the closure of CMI is part of a wider move by providers to utilise the more favourable tax treatment of DFM services in places other than the Isle of Man. This, he said, is because in order to provide a more transparent service, more advisers than ever are using outsourced DFM services for their clients. VAT is due on DFM fees where DFMs are used to invest in Isle of Man offshore bonds. However, VAT does not app...