deposit and fund sectors see big increases; FSC plans revamp of financial services legislation
The Isle of Man Financial Supervision Commission (FSC) has reported strong growth in its deposit and fund sectors.
Figures from its annual report showed total banking deposits increased by 19% to £39bn. Sterling deposits rose by 13% to £37bn, while non-sterling deposits rose by 35% to £8bn.
Funds under administration also increased by 76% to £13bn, with the total number of registered funds rising by 27% from 262 schemes to 334.
John Aspden, chief executive of the FSC, said the expansion in funds was due to the growth in the overseas fund sector.
He said: "This type of fund has seen the most marked increase, doubling in number over the period from 44 to 88. The total net asset of overseas funds grew by £3.66bn."
Aspden said further growth in the sector was likely to continue throughout 2006 as offshore centres continued to thrive.
He added: "The offshore sector continues to be highly competitive as quality business increasingly centres on the well-regulated jurisdictions such as the Isle of Man. In the past, there have been fears that offshore centres could not match up to the level of scrutiny and probity required to assure their economic future.
"Even the indirect effects of the EU Savings Tax Directive were forecast to be terminally damaging. So far, this has proved not to be the case and within the commission's remit clear opportunities continue to exist in the areas of personal asset and wealth management, corporate finance, offshore financial planning for expatriates, fund administration and fiduciaries activities. The offshore markets continue to thrive in these sectors."
He also said the FSC would continue to consult on its policy initiatives: "The commission has commenced a major project to consolidate and modernise its financial services legislation. As part of this work, proposals have been put forward to enhance our accountability and transparency as well as promote industry involvement when setting regulatory strategy."
Aspden said the project would also embrace proposals for the regulation of e-money.
‘Promising lead’ or ‘Back to the lab’?
Have economic cycles fundamentally changed?
Our weekly heads-up for advisers
Two global vehicles
'Further plug advice gap'