Isle of Man: Isle Of Man Introduces New Inter-Company Loans Regulations
Changes Relating To Inter-Company Loans For Solvency Purposes
Last Updated: 2 October 2012

The Isle of Man has introduced new regulations relating to the admissibility of inter-company loans for solvency purposes which came into effect on the 30th June 2012.

The new regulations allow 100% of loans to be deemed automatically admissible for solvency purposes, subject to certain criteria being met, and no longer requires approval by the Isle of Man Insurance and Pensions Authority. Under previous rules, only loans of 25% of shareholders funds were approved automatically for admissibility purposes, with any larger amounts subject to review by the Regulator.

The automatic approval of loans for solvency purposes is subject to all insured being related companies of the insurer.

Gaynor Brough, Chair of the Isle of Man Captive Association, said: "This change in regulation is welcomed by the captive sector as it provides certainty around the admissibility of assets and this opportunity for existing and prospective captive clients will certainly add to the Isle of Man's already compelling value proposition in terms of captive solutions. With these changes in place captive owners will benefit from the accessibility to loans in a challenging economic environment where cash is "king" and it is anticipated that there will be a strong take-up".

Alan Crowe MLC, the Department of Economic Development's Political Member for Financial Services, said: "This new change in regulations represents a greater degree of certainty for the industry concerning the treatment of inter-company loans and thus will further assist the competitive edge which the Isle of Man has established in this area."

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
In association with
Press Releases from this Firm
Recent Content from this Firm
By John Spellman
By Malcolm Couch
By Richard Slee
Tools
Print
Font Size:
Translation
Channels