Offshore centres must improve consumer protection-Foot Review

The recommendations come as part of Michael Foot’s Review of British offshore financial centres, commissioned against a backdrop of worldwide economic and financial melt-down and the collapse of Icelandic banks which impacted on Guernsey and the Isle of Man. Foot says a key lesson learnt from the failure of Kaupthing Singer and Friedlander (Isle of Man) was compensation schemes for retail depositors need to be able to pay out quickly in the event of bank failure. Offshore centres also need to assess the effects of any liability cap on protection schemes, as there could be a varying im...