Contact: Nick Kelly; Peregrine Corporate Services (Isle of Man)
Regulation
In an increasingly inter-connected world with 24-hour access to information online, and a post-credit crisis suspicion of financial institutions, it has become essential that financial service businesses are properly regulated and also perceived by the public to be well regulated. Technological developments do not just allow us to do business anywhere; they also allow anyone to use our business.
This new era of regulation has already seen huge changes for the Isle of Man and other financial centres. Whereas ten to fifteen years ago, a high risk threat may have been someone seeking to use the Isle of Man financial system to disguise the criminal source of large quantities of cash, we now work in a far more complex financial environment where it might be possible for a UK Crown Dependency to be innocently used in a structure set up to move funds to international terrorist groups. The risks are now much bigger for all involved in the financial services industry and it has been necessary for the regulators to adapt to remain fit for purpose.
Effective regulation, which at times can cause frustration, is a central pillar in preventing the misuse of professional firms for any form of illegal activity, and is something that must be held in the highest regard by everyone in the financial services industry, especially those at the top of companies who have the most power to engender strong, compliant cultures within their organisations.
The Island’s position
The Isle of Man has, for some time now, marketed itself as a highly regulated jurisdiction, bidding to attract new business based on the skill-sets of its local population, innovative industries, business focussed government and access to global markets.
Such access has been made possible, largely as a result of the adoption of effective new procedures by those working in the finance sector. The Island has steadily developed its reputation internationally and is now very rarely found on international “blacklists”.
The Government of the Isle of Man has increased regulation and transparency by the signing of TIEAs with many different nations, agreeing to US and UK FATCA and most recently the Common Reporting Standard. This has successfully removed the Island from the “blacklists”, opening up markets and removing the tax haven stigma.
It has not been a simple journey and it is likely there will be more obstacles thrown in the path of the Island’s financial services businesses, but the result is a finance sector, understanding and appreciative of regulation in their industry that provides consumers with confidence that their assets are secure and demonstrates to international bodies that the Island is not open to those wanting to use the system for illegal means.
Peregrine Corporate Services Limited is licensed by the Isle of Man Financial Services Authority.
