The British Government through the Home Office announced recently they would carry out a wide-ranging review of the financial legislation and regulatory systems in Jersey, Guernsey and the Isle of Man. The review will be conducted by a former official of the British Treasury, Andrew Edwards, and is expected to take six months. Mr Edwards will be working alongside the authorities of each of the Islands in carrying out his review. The terms of reference are

"To review with the Island authorities their laws, systems and practices for:-

  • Regulating banking, insurance and financial services business and collaborating with overseas regulators.
  • Deterring, investigating and punishing financial crime, including money laundering and fiscal offences, particularly cases with an international dimension.
  • Registering companies."

Following the announcement by the Home Office, the Isle of Man Government has broadly welcomed the review which they believe will show that regulations within the Isle of Man are equal to or better than any other similar jurisdiction. Jack Straw, the British Home Secretary, said "it is in the Islands' best long-term economic interests to have a strong reputation for effective is vital for the financial services industry in the United Kingdom as well as that in the Islands that systems are seen to be effectively policed, since any regulatory deficiencies in the Crown Dependencies could be seen - however inaccurately - as reflecting poorly on the standard of regulation in the UK itself. Although this is an internal review we intend to publish a summary of its main conclusions."'

It has always been our view that the Isle of Man has been a very well-regulated jurisdiction which is keen to encourage only good quality business. We would expect the review to confirm this position. We do not consider that there is any action that our clients should be taking at the present time. We will monitor any further announcements made about the review during the process itself and report to our clients on the conclusions reached at the end of the review.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To receive further information please contact June Cannell at:

Deloitte & Touche
PO Box 250
Grosvenor House
66-67 Athol Street
Isle of Man IM99 IXJ

Tel: +44 (0) 1624 672332
Fax: +44 (0) 1624 672334
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