fact file isle of man 2005

FACTFILE

Isle of Man

2005/6

1Fact File Isle of Man

Fact File Publications Limitedwww.countryfactfiles.com

FACTFILE

Isle of Man2005/6

2 Fact File Isle of Man

Fact File Isle of Man > Acknowledgements

Fact File Publications LimitedPO Box 32CastletownIsle of ManIM99 5XU

Tel: + 44 (0)1624 838440Fax: + 44 (0)1624 838441Email: [email protected]

Web site: www.countryfactfiles.com

First published in the Isle of Man 2004Copyright Fact File Publications Limited

Published in association with ADNP Ltd

ISBN 0-9548142-0-7

All rights reserved; No part of this publication may be reproduced, stored in a retrieval system or transmitted in any formor by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the Publisher. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding

or cover other than that in which it is published without the prior written consent of the Publisher.

The Publisher cannot accept any responsibility for any loss, injury or inconvenience resulting from the use of the contents of this book.The Publisher has made every effort to ensure the accuracy of the information in this book at the time of going to press.

AcknowledgementsMain photography provided by Andrew Barton LBIPP.

Photographic contributions: ADNP Limited, Conister Trust, Miles Cowsill of Lily Publications Limited, Emma Cundy-Cooper, CV Jewellery, Dandara Holdings Ltd, DeanWood Agencies, Isle of Man Department of Health and Social Security,

Isle of Man Department of Tourism and Leisure, Isle of Man International Business School, IHMES – International Hotel School, King William’s College, Louis Group International Trustees, MannBenham Limited, Manx Telecom, MasterCraft, Limited, Jenny Melling,

Pelagos Yachts, Sefton Hotel, Steam Packet Company, Michael Thompson.

Main design provided by Neil Price Reprographic Services.Initial contents page design: Fusion Graphics.

Printed and bound in Sweden by Kristianstads Boktryckeri AB

Research and editorial contribution: Ann Clayton, Marcus Cooper, Joanne Green and Sylvia Melling

Reference material: DCA Crown Copyright, Fitch Ratings, Isle of Man Government, Isle of Man Treasury Economics Affairs Division, Moody’s,OECD, Standard and Poor’s, Tynwald Parliament


Fact File Isle of Man > Foreword

The introduction of this new Fact File series of books giving independent, factual and accurate profiles ofinternational financial centres is timely and it is welcomed.

At a time when individual financial centres are offering a myriad of similar products and benefits it has becomenecessary for the international businessmen to dig below the surface in order to identify significant jurisdictionaldifferences. Most international financial centres claim to have ‘solid economies, first class telecommunications andsupport services, established legal systems and cutting edge legislation,’ and conduct business with integrity and in accordance with the highest international standards. Consequently, how is the businessman to select an‘appropriate’ jurisdiction?

From the evidence of the first Isle of Man Fact File this series will give the reader the ability to analyse in detail thequality of a jurisdiction, its characteristics and overall effectiveness as a centre of excellence. The depth of original,independent research that has gone into the text provides an insight which is not generally available when profilingjurisdictions in the usual ways.

In the present climate of enhanced regulation and compliance this publication gives a thorough, up-to-dateanalysis of key regulatory developments and provides the professional with a significant tool in the constant battle to remain compliant, internationally aware and industry competent.

The Isle of Man Fact File demonstrates that the much maligned ‘off-shore’ can be sensibly regulated to a highstandard and indeed to a standard better than many of their ‘on-shore counterparts.’

The Isle of Man comes across as a well supervised, sensibly regulated, jurisdiction that complies with the highestinternational standards and is at the forefront of international best practice. There does not appear to be over-regulation. Achieving the necessary balance between required regulation and business freedom is a difficult one but the Isle of Man has gone some way towards achieving it.

I anticipate with some eagerness the Fact Files on other centres.

William B Howarth, Chief Executive, International Compliance Association


> Foreword from William B Howarth, Chief Executive, International Compliance Association 3

Global Status 6

> Rating Agency Report – Standard & Poor’s 7

> Country Credit Ratings 11

> Country Comparison Chart 15

> Financial Regulators’ Reports 16

> Organisations and Regulatory Bodies 17

Country Fact File 18

> Key points of the Isle of Man 19

> Country Statistics 20

> A British Crown Dependency 24

> British and overseas contacts 27

> Business overview 28

> Social and political history 37

> Tynwald Parliament and Government 41

> Government Departments 47

> Statutory Boards and Government Offices 74

Finance Sectors and Professional Services 76

> Banking 77

> Corporate Service Providers 87

> Insurance Services 93

> Investment Services 97

> Legal Services 101

> Wealth Management 105

Fact File Isle of Man > Contents

Contents


Fact File Isle of Man > Contents

Other Sectors 108

> Construction and Property Services 109

> Education 113

> Information Technology and Computer Services 121

> Manufacturing and Retail 125

> Media and Advertising 135

> Shipping and Yacht Management 137

> Tourism and Travel 141

> Telecommunications 147

Company Profiles 150

Diary 2005/2006 161

> Isle of Man dates 161

> Calendar 2005 162

> Calendar 2006 163

> One page per month 164

Index 191

Useful Numbers 192

Fact File Isle of ManFact File Isle of Man

Standard & Poor’s Report 7

Country Credit Ratings 11

> Ratings explained

> Standard and Poor’s Rating definitions

> Moody’s Rating definitions

> Fitch Rating definitions

Country Comparison Chart 15

Financial Regulators’ Reports 16

> Financial Stability Forum ‘The Edwards Report’

> OECD Tax Haven Criteria

Organisations and Regulatory Bodies 17

Global Status > Contents

Global Status

66


Standard & Poor’s Report

Global Status > Standard & Poor’s Report

Publication date: 16-Jul-2004 Rating history: Long- and short-term foreign and local currencyratings of 'AAA/A-1+' assigned February 2000Default history since 1975: NoneYear. 2003/2004 (year ended March 31, 2004)Population: 77,600Per capita GDP: $26,669Current government: The majority of members in the Isle of Man parliament sit asindependents. Chief Minister Richard Corkill is head of government.Election schedule.General electionsLast: November 2001Next: November 2006

Major Rating Factors

Strengths:

Substantial fiscal flexibility and a strong government balance sheet.A high degree of economic integration with the United Kingdom.

Weaknesses:

The vulnerabilities faced by a small open economy.

Rationale

The ratings on the Isle of Man reflect its prudent policies, which areexpected to continue to sustain a high general government netasset position.

Reflecting a peak in capital investment, the Isle's estimated generalgovernment balance-which consolidates the current account,income from invested funds, and capital spending by revenue-funded entities, but excludes internal financing-has been in deficitsince 2002. The deficit narrowed in 2003, however, and the generalgovernment balance is expected to return to a surplus by 2005. Inaddition, the government's balance sheet remains exceptionallystrong, underpinned by net assets equivalent to about 50% of GDP.

The ratings are also supported by the Isle's open, export-oriented,and increasingly flexible economy. Substantial inward investment, astable business environment, and net immigration have supportedrobust economic growth over the past decade. Real growth,averaging 6.8% annually over the past five years, has increased percapita income to an estimated $26,669. Unemployment remainsnegligible.

Furthermore, the Isle of Man's creditworthiness is underpinned by ahigh degree of economic integration with the United Kingdom (UK;AAA/Stable/A-1+). This enables the Isle to mitigate many of the risksstemming from its small, highly open economy. As part of the UKmonetary zone, the Isle benefits from low inflation and minimalexternal risk. Moreover, its customs union with the UK Exchequerunderpins political and fiscal flexibility.

Outlook

The stable outlook reflects Standard & Poor's expectation that, overthe medium term, the Isle of Man's very strong credit standing willremain secure against almost all foreseeable downside economic,political, and financial risks.

Although the EU Savings Tax Directive-which is expected to comeinto effect in 2005--will have some negative impact on the Isle's

financial sector, policy-makers are well placed to manage anypolitical, fiscal, or economic repercussions.

The government's robust financial position, coupled with closeeconomic and financial ties with the U.K., should enable the Isle toweather external shocks or significant changes in its economicenvironment without major strain on its factor markets or overalleconomic stability.

Comparative Analysis

a) The Isle of Man's GDP growth has tended to exceed the 'AAA'average, although this gap is narrowing. Income levels on the Isleare high, albeit lower than the 'AAA' median.b) Fiscal flexibility remains substantial in the Isle, as in most of itspeers.c) The EU Savings Tax Directive is like to have an impact on thefinancial industry of the Isle of Man, as well as its peers. That said,no immediate pressure is expected on the ratings.

Like its 'AAA' rated peers, the Isle of Man has a stable,democratically elected government that pursues predictable andtransparent economic policies. As a small, open economy with asignificant financial centre, the Isle's closest peers include thePrincipality of Liechtenstein, the Grand Duchy of Luxembourg, theRepublic of Singapore, and the Swiss Confederation (all with foreigncurrency ratings of AAA/Stable/A-1+; all references to ratingshereafter are to foreign currency sovereign credit ratings), as well asthe Principality of Andorra (AA-/Stable/A-1+).

Income levels are high, albeit lower than the 'AAA' median.

The Isle of Man's per capita income is high, estimated at $26,669in 2004, although this is dwarfed by Liechtenstein's exceptionalincome figure, estimated at $107,169 (unadjusted for cross-borderinward commuting of nonnationals), and is also below the 'AAA'median of $36,506 (see Chart 1). GDP per capita in Singapore andAndorra is at a similar level to the Isle, while the figure inSwitzerland is estimated at $44,902 in 2003.

GDP growth exceeds 'AAA' median, but the gap is narrowing.

Real per capita income growth in the Isle of Man has averaged6.8% over the past five years, compared with 2.3% per year inSingapore and the UK, 1.8% in Liechtenstein, 5.0% in Andorra, and1.1% in Switzerland. The growth gap is narrowing, however. In1998, real GDP per capita growth in the Isle of Man, at 14.0%, wasmore than 10 percentage points higher than the 'AAA' median. By2004, this differential will have diminished to less than twopercentage points (see Chart 2).

Fiscal flexibility remains substantial, as in most peersSustained general government surpluses over recent years, togetherwith very low taxes, a modest public debt burden, and substantialreserves, place the Isle of Man-alongside Liechtenstein,Luxembourg, and Singapore-in a strong fiscal position comparedwith many 'AAA' rated sovereigns with larger economies anddeeper domestic markets. With its small population and territory, theIsle of Man is not confronted by the same public service demands,complexities, and costs as those faced by larger governmentstackling regional or income disparities or heavy social welfarerequirements.

At an estimated 22.6% of GDP in 2004 (year ending March 31,2005) compared with 45.2% for the 'AAA' median, the Isle of Man's


general government debt burden remains modest, although higherthan that of Liechtenstein (8.8%) and Luxembourg (5.2%).Substantial budget surpluses have allowed the Isle to accumulatesignificant reserves. The market value of central government assets,which are distributed across a range of funds (see section headed

‘Fiscal Flexibility’ on page 10), reached 56% of GDP by March 31,2004. Net of such assets, the Isle's general government sector is ina substantial net creditor position equivalent to 50.1% of GDP,higher than Luxembourg (41.5%) and Singapore (31.4%), but lowerthan Liechtenstein (69.9%) (see Chart 3). The Isle of Man's revenue,

expenditure, and balance performances, however, have weakenedrelative to those of peers over the past two years. At 1.6% of GDP,the general government deficit for 2003 is moderate among theIsle's deficit-running peers (Switzerland, Luxembourg, Andorra andthe UK). Nevertheless, the Isle's general government budget isexpected to return to a surplus in excess of the 'AAA' median by2005 as capital expenditures level off.

Economic and fiscal strengths are similar to Singapore's

Both the Isle of Man and Singapore boast investor-friendlygovernments with a solid macroeconomic policy record. Singapore'sfiscal policy is focused on prudent spending, modest structural

surpluses, and a competitive tax regime. The Isle of Man's strategyis very similar, but whereas none of these objectives is enshrined inlegislation in the case of Singapore, the Isle's government isrequired by law to budget for a central government current surplus.Both sovereigns are also small, highly open economies lacking innatural resources. Moreover, the Singaporean economy's highdegree of dependence on the US economy and on its ownelectronics sector mirrors the Isle's heavy reliance on the UKeconomy and its own financial services industry. The twosovereigns differ markedly in the political sphere, however. Whereasa dominant single party underpins Singapore's policy environment,the Isle of Man adopts a heavily consensus-based approach.



Meanwhile, Singapore enjoys greater policy flexibility given the UKgovernment's ability to influence the Manx political agenda.

Impact of the EU Savings Tax Directive

The ultimate objective of the EU's Savings Tax Directive is anautomatic exchange of information concerning interest income fromthe savings of residents of other member states and the preventionof harmful tax practices. For a transitional period lasting until 2011,member states have been given the option either to exchangeinformation directly or to apply a withholding tax on domesticsavings held by residents of other member states. Luxembourg,together with the Republic of Austria (AAA/Stable/A-1+), and theKingdom of Belgium (AA+/Stable/A-1+), have opted for thewithholding tax, at a rate starting at 15% in 2005 and rising to 20%in 2007 and 35% in 2010. Of the revenues generated, 75% will bereturned to the country of residence, while the country levying thetax will retain the remainder.

The EU has requested non-member third countries such asSwitzerland, Liechtenstein, Andorra, and the Isle of Man to giveassurances that they are ready to apply measures equivalent tothose due to be agreed by member states. The Isle of Man, as wellas Switzerland, Liechtenstein, and Andorra have indicated that theywill follow the withholding tax route. The directive is supposed tocome into force in January 2005, but delays are likely. It is expectedto have a negative effect on the offshore retail banking depositbase, but the magnitude is difficult to foresee. Its impact on otherfinancial services sub sectors such as insurance and fundmanagement is expected to be limited. Therefore, the directive isnot expected to put any immediate downside pressure on theratings on the Isle of Man or those of its peers.

Currency union less exposed than Liechtenstein's

Although Liechtenstein is also a small offshore financial centre, it ismuch less reliant on financial services than the Isle of Man, as itboasts a large, competitive, and export-oriented manufacturingindustry. Both economies have attracted sizable inflows of foreignworkers over recent years, which have supported GDP growth. Inthe Isle's case, workers mainly originate from the UK, whereaspeople tend to commute from nearby Switzerland, Austria, andGermany into Liechtenstein. Furthermore, Liechtenstein's economicand monetary union with Switzerland is similar to the Isle'seconomic relationship with the UK in that both arrangements helpto underpin macroeconomic stability. In political and constitutionalterms, however, the relationships differ. Liechtenstein is entirelyautonomous (Switzerland holds no governing authority over thePrincipality), whereas the Isle of Man is a Crown dependency of theUK Moreover, Liechtenstein faces currency risk, as its exports to theUS and the Eurozone exceed those to Switzerland. By contrast,currency risk in the Isle of Man is negligible, since 95% of itsexports are destined for the UK

Political Environment

The Isle of Man's political environment faces few appreciable risks.The government continues to enjoy a high degree of autonomyfrom the UK authorities, but full independence remains off theagenda.Active involvement in tax-related negotiations with the EU andOECD preserves the Isle's healthy external relations.

The political environment is stable

The Isle has a long-standing track record of disciplined,conservative, and predictable policies, giving it the flexibility toadjust quickly to any changes in economic and politicalcircumstances without major disruption. As a Crown dependency of

the UK, the Isle of Man is constitutionally distinct from the Kingdombut closely tied to it by centuries of custom and practice. Althoughthe Isle is governed by its own parliament (the Tynwald), theCrown-and thereby the UK parliament--remains responsible for thegood governance of the Isle. The Crown's responsibilities arereflected by the legislative supremacy of the UK parliament atWestminster and its ability to withhold royal assent to legislation. Inpractice, however, there have been few disputes betweenWestminster and the Isle government, reflecting close cooperationbetween the two authorities.

Full independence lacks any strong support

Little popular support exists for full independence from the UK Areport by the Council of Ministers has concluded that there areinsufficient advantages for the Isle of Man to seek independence.At the same time, the report recommended that the governmentamend its policy with respect to constitutional development, tosustain the evolution of the Isle government's autonomy in bothinternal and external affairs. Politics remains grounded in the Manxtradition of consensus. In keeping with this, the majority ofparliamentary representatives sit as independents in the Tynwald,resulting in a virtual absence of party politics. In recent history, nogovernment has been subject to a vote of no confidence. At thesame time, parliamentary structures provide flexibility to react tochanges in the international environment or domestic events.

External relations

With the consent of Westminster, which is formally responsible forexternal relations and defence, the Manx government hasincreasingly represented its own interests in international forums.For example, although it is not a member state of the EU, the Isleof Man has successfully developed a special bilateral relationshipwith the Union, gaining exemptions from certain EU regulationsaffecting fiscal harmonization, financial services, and immigration. Inaddition, Manx policy-makers' strategy of active engagement withthe Isle's business community, as well as the UK and EUauthorities, minimizes any potential for disruption. With regard tothe EU's Savings Tax Directive, for example, the Isle of Mangovernment's decision to opt for the introduction of a withholdingtax was based on extensive consultation with the financial sector. Itwas also undertaken without stirring any discontent from the UKauthorities, who had made known their preference for the Isle toadopt automatic information exchange. Moreover, the Isle hassuccessfully reached agreement with the EU on the Code ofConduct (for offshore financial centres) and on the finalimplementation of the new tax strategy. Appropriately, the Isle isactively involved with the OECD on achieving the ‘level playing field’.Its present stance of constructive cooperation in bilateral taxagreements is intended to provide it with reciprocal economicbenefits such as shipping agreements and market access.

Economic Prospects

The Isle's main competitive advantage lies in its financial servicessector. Although increasing international scrutiny could give rise toconsolidation in the number of offshore financial centres around theworld, the Isle of Man's financial sector is not seen as underimmediate threat.

The Isle's real GDP growth trajectory in fiscal years 2004/2005 to2006/2007 is expected to remain in the region of 4.0% per year,underpinned by the global economic recovery.

Economic prospects over 2004/2005 are likely to continue todepend on the further expansion of the financial sector and netimmigration of labour.



Economic structure

While the Isle's economic structure is dominated by financialservices (42% of GDP) and manufacturing (10%), there is a degreeof diversification within these two sectors. In the absence ofabundant natural resources, the Isle's competitive advantage isbased on its financial services sector. Although increasinginternational scrutiny of the industry could give rise to consolidationin the number of offshore centres operating around the world, theIsle of Man's financial sector is not seen as under immediate threat.In addition to its strong regulatory environment, the sector boasts ahighly skilled workforce, and has already demonstrated its ability toaccommodate change imposed from outside, for example throughits quick response to the international Financial Action Task Forceinitiative aimed at combating money-laundering. Although the EU'sSavings Tax Directive is likely to affect the future prospects of thefinancial sector, any impact is expected to occur only gradually overseveral years. Moreover, policy-makers' response to the proposal isexpected to be driven primarily by the economic interests of theIsle, and the ability and willingness of its financial sector to fullyabsorb any related costs, rather than by outside pressures such asthe UK's preferences. This is particularly true of the decision toadopt a withholding tax over information exchange.

Economic growth.

The UK is the Isle of Man's largest trading partner, accounting formore than 95% of total exports. Consequently, the Isle's growthprospects are inextricably linked with those of the UK A revival inglobal demand over 2004-2005 is expected to help botheconomies to recover lost momentum. As a result, the Isle's realGDP growth trajectory is expected to stabilize at around 4.0 in themedium term. The proactive government policy of promoting highvalue-added industry, and its continued effort to expand anddiversify the financial sector, are expected to overcome the negativeeffect of implementing the EU Savings Tax Directive. On the supplyside, the temporary fall in net inward migration is expected toreverse as the Isle's business expansion creates more vacancies.

Fiscal Flexibility

The general government deficit is expected to narrow to 0.2% ofGDP in 2004 from 3.6% in 2002, before returning to a slight surplusin 2005.

A new tax strategy is expected to limit the revenues from directtaxation, but indirect tax receipts pooled with the UK provide areliable source of revenues. The general government is in a netasset position estimated at 52.8% of GDP at the end of March2004, while off-budget and contingent liabilities are low.

Revenue, expenditure and balance performance

In 2003, the central government deficit declined to 1.6% of GDPfrom more than 3.6% of GDP in 2002, outperforming the budgeted4%, mainly due to higher-than-expected revenues from customsand excise. The strong growth in capital spending, whichcontributed to the 20% annual increase in central governmentexpenditure in 2002 have levelled off following the completion ofmajor projects such as a hospital and a new incinerator. Theannual capital expenditure is expected to decline from almost £100million ($185 million) to less than £70 million by 2006.

Prudent policies--such as the commitment, under section nine ofthe Treasury Act (1985), to budget for a central government currentsurplus--and surpluses on the social security account are expectedto continue to underpin the general government performance. As part of the UK customs and excise area, the Manx government'srevenue-raising flexibility is largely limited to income and other

direct taxes, which contribute 35% of total treasury income. Incometaxes are substantially lower than in the UK, and personal tax-freeallowances are higher. Furthermore, there are no capital gains taxes,death or inheritance duties, stamp duties, estate duties, or wealthtaxes.

The standard corporate tax rate has been reduced from 18% to10% as part of a new tax strategy, and a further reduction to zero isexpected by 2006. A forthcoming income tax bill will include anamendment to prevent abuse of the divergent corporate andindividual tax rates. Further implementation of the government'staxation strategy is expected to remove preferential offshore taxbreaks and sustain the downward trend in the direct tax burdenover the medium term.

Indirect taxes are a more vital revenue source for the government.Under the customs arrangement with the UK government, whichcovers the bulk of traded goods, duty revenues are pooled andshared according to a formula. This mechanism has helped toensure much greater revenue reliability for the Manx budget,especially as revenues are now much less contingent on the healthof the domestic economy. The revenue redistribution formula isupdated every 10 years to allow for changes in relative populationand average consumption levels for the goods involved.

Government debt and interest burden

General government debt stood at 24.2% of GDP at the end ofMarch 2004. Nevertheless, at an estimated 2.4% of governmentrevenues in fiscal year 2003/2004, the interest burden is negligible.Total government assets remain sizable. They are distributed acrossa range of funds, including: an internal fund (to cover possiblerevenue shortfalls from the government's tax strategy); aconsolidated loans fund and hospital estate development fund (tofinance capital expenditure); a reserve fund (to provide a fiscalcushion for external shocks); a national insurance fund; and variouspension funds.

Surpluses in the national insurance system, averaging 3.1% of GDPin the past decade, have enabled the government to build up thenational insurance fund to 28.0% of GDP at the end of March 2004.A further fund, the public service employees pension reserve (£66million or 5.1% of GDP at the end of March 2003), partially financesthe public pay-as-you-go system. These and other assets, togetherwith favourable demographic trends, minimize future pensionliabilities and support a net asset position estimated at 52.8% ofGDP in fiscal 2003/2004.

Off-budget and contingent liabilities.

Contingent liabilities are low. The potential cost to the governmentof financial system stress is minimal, reflecting not only a strongregulatory environment, but also the fact that many of the licensedbanks or building societies operating in the Isle are subsidiaries orbranches of much larger parent institutions based mainly in the UKAny potential liability is further reduced by a depositor protectionscheme. Total outstanding government guarantees amounted to anestimated £5.3 million at the end of March 2004.

Total financial commitments under Private Finance Initiative-typecontracts are moderate, amounting to £31.0 million (2.4% of GDP).The main government-owned entities include Manx Electricity, theWater Board, and the Post Office. These companies operate on acommercial basis and are profitable, therefore posing littlecontingent liability risk to the sovereign. Moreover, outstandingborrowings by these entities are already recorded on thegovernment's balance sheet.

Reproduced with permission from Standard & Poor’s.



What Is a Credit Rating Agency?

A credit ratings company has the ability to assess the creditableworthiness of a foreign country or company in an objective andindependent way. It is able to determine the potential risks ofinvesting money or securities in these areas.

Credit in the Investment World

As in any foreign investment opportunity, there is the potential forthe investor to gain or lose depending on many factors. Howeverthe risks are considerably greater due to the lack of information thatis presented with investing in certain countries, people, companiesor other markets. The ratings company will be able to presentinformation to help measure the positivity of co-operation andwillingness to keep its financial commitment to whoever invests inthat particular area.

Rating Agencies

Of the many ratings companies in existence today, Moody’s,Standard and Poor’s, and Fitch Ratings are the three best-knowncredit rating agencies in the world. Individually, they provide a ratingsystem that helps investors to make decisions with a betterknowledge of the entity for investing in. Collectively this allows theinvestor to get an accurate assessment of that entity from threedifferent viewpoints.

Ratings can be assigned in the short or long term depending onthe type of investment required, the length of time involved, theassociated surroundings and the obligations and responsibilitiesconnected with the repayments either as local currency or foreigncurrency.

An accurate ratings assessment in any case of foreign investmentwill therefore act as a guideline, providing both positive andnegative aspects on the entity. This results in the knowledge thatthe entity has a certain level of ‘willingness to repay debt’ andhence a level of risk is identified.

How are the ratings made?

The ratings are made on a very broad scale ranging from the verybest to the very worst. Letters in the English language are used todenote the level of the credit rating.

The highest letter rating that can be awarded is triple A, denoted asAAA. With C or D being the lowest quality rating depending on thecredit rating company used. The broadness of the scale shows thefiner points or degrees within that letter rating. This can be seen asa plus or minus mathematical symbol or a number.

AAA is the best rating with extremely low credit riskBBB is a speculative rating and reasonably good credit qualityC or D is very poor and is of very high risk.A+, AA, BB, Ba2 are examples of levels of rating depending on theratings company so each style must be interpreted respectively andfrom those interpretations, a final collective assessment of risk ofwillingness of the entity to repay debt can be made..

What are Sovereign Credit Ratings?

Sovereign credit ratings refer to the general credit worthiness of theentity as opposed to just its financial obligations. In order to receivea respectable Sovereign credit rating, the country has to have asound economic structure, transparency in the capital market, publicand private investment, local and overseas investment, goodforeign currency reserves, and political stability.

A country with a sovereign rating will attract potential investors inthe first instance. The level of risk shown within that rating is moreeasily identifiable than one that does not have a sound investmentrating. It could be generally assumed that a country's sovereigncredit rating would in most cases also be its upper limit of creditratings.

Definition sovereign:

n. A nation (country) that governs territory outside its borders. adj. Self-governing; independent: a sovereign state

Country Credit Ratings

Global Status > Country Credit Ratings


Issuer credit rating definitions A Standard & Poor's issuer credit rating is a current opinion of anobligor's overall financial capacity (its creditworthiness) to pay itsfinancial obligations. This opinion focuses on the obligor's capacityand willingness to meet its financial commitments as they comedue. It does not apply to any specific financial obligation, as it doesnot take into account the nature of and provisions of the obligation,its standing in bankruptcy or liquidation, statutory preferences, orthe legality and enforceability of the obligation. In addition, it doesnot take into account the creditworthiness of the guarantors,insurers, or other forms of credit enhancement on the obligation.The issuer credit rating is not a recommendation to purchase, sell,or hold a financial obligation issued by an obligor, as it does notcomment on market price or suitability for a particular investor.

Counterparty credit ratings, ratings assigned under the CorporateCredit Rating Service (formerly called the Credit Assessment Service)and sovereign credit ratings are all forms of issuer credit ratings.Issuer credit ratings are based on current information furnished byobligors or obtained by Standard & Poor's from other sources itconsiders reliable. Standard & Poor's does not perform an audit inconnection with any issuer credit rating and may, on occasion, relyon unaudited financial information. Issuer credit ratings may bechanged, suspended, or withdrawn as a result of changes in, orunavailability of, such information, or based on other circumstances.Issuer credit ratings can be either long term or short term. Short-term issuer credit ratings reflect the obligor's creditworthiness over ashort-term time horizon.

Long-Term Issuer Credit Ratings AAA - An obligor rated 'AAA' has extremely strong capacity to meetits financial commitments. 'AAA' is the highest issuer credit ratingassigned by Standard & Poor's.

AA - An obligor rated 'AA' has very strong capacity to meet itsfinancial commitments. It differs from the highest-rated obligors onlyto a small degree.

A - An obligor rated 'A' has strong capacity to meet its financialcommitments but is somewhat more susceptible to the adverseeffects of changes in circumstances and economic conditions thanobligors in higher-rated categories.

BBB - An obligor rated 'BBB' has adequate capacity to meet itsfinancial commitments. However, adverse economic conditions orchanging circumstances are more likely to lead to a weakenedcapacity of the obligor to meet its financial commitments.

BB, B, CCC, and CC - Obligors rated 'BB', 'B', 'CCC', and 'CC' areregarded as having significant speculative characteristics. 'BB'indicates the least degree of speculation and 'CC' the highest. Whilesuch obligors will likely have some quality and protectivecharacteristics, these may be outweighed by large uncertainties ormajor exposures to adverse conditions.

BB - An obligor rated 'BB' is less vulnerable in the near term thanother lower-rated obligors. However, it faces major ongoinguncertainties and exposure to adverse business, financial, oreconomic conditions, which could lead to the obligor's inadequatecapacity to meet its financial commitments.

B - An obligor rated 'B' is more vulnerable than the obligors rated'BB', but the obligor currently has the capacity to meet its financialcommitments. Adverse business, financial, or economic conditionswill likely impair the obligor's capacity or willingness to meet its

financial commitments.

CCC - An obligor rated 'CCC' is currently vulnerable, and isdependent upon favourable business, financial, and economicconditions to meet its financial commitments.

CC - An obligor rated 'CC' is currently highly vulnerable.

Plus (+) or minus (-)The ratings from 'AA' to 'CCC' may be modified by the addition of aplus (+) or minus (-) sign to show relative standing within the majorrating categories.

R - An obligor rated 'R' is under regulatory supervision owing to itsfinancial condition. During the pendency of the regulatorysupervision the regulators may have the power to favour one classof obligations over others or pay some obligations and not others.Please see Standard & Poor's issue credit ratings for a moredetailed description of the effects of regulatory supervision onspecific issues or classes of obligations.

SD and D - An obligor rated 'SD' (selective default) or 'D' has failedto pay one or more of its financial obligations (rated or unrated)when it came due. A 'D' rating is assigned when Standard & Poor'sbelieves that the default will be a general default and that theobligor will fail to pay all or substantially all of its obligations asthey come due. An 'SD' rating is assigned when Standard & Poor'sbelieves that the obligor has selectively defaulted on a specificissue or class of obligations but it will continue to meet its paymentobligations on other issues or classes of obligations in a timelymanner. Please see Standard & Poor's issue credit ratings for amore detailed description of the effects of a default on specificissues or classes of obligations.

N.R. - An issuer designated N.R. is not rated. Short-Term Issuer CreditRatings

A-1 - An obligor rated 'A-1' has strong capacity to meet its financialcommitments. It is rated in the highest category by Standard &Poor's. Within this category, certain obligors are designated with aplus sign (+). This indicates that the obligor's capacity to meet itsfinancial commitments is extremely strong.

A-2 - An obligor rated 'A-2' has satisfactory capacity to meet itsfinancial commitments. However, it is somewhat more susceptibleto the adverse effects of changes in circumstances and economicconditions than obligors in the highest rating category.

A-3 - An obligor rated 'A-3' has adequate capacity to meet itsfinancial obligations. However, adverse economic conditions orchanging circumstances are more likely to lead to a weakenedcapacity of the obligor to meet its financial commitments.

B - An obligor rated 'B' is regarded as vulnerable and has significantspeculative characteristics. The obligor currently has the capacity tomeet its financial commitments; however, it faces major ongoinguncertainties, which could lead to the obligor's inadequate capacityto meet its financial commitments.

C - An obligor rated 'C' is currently vulnerable to non-payment andis dependent upon favourable business, financial, and economicconditions for it to meet its financial commitments.

R - An obligor rated 'R' is under regulatory supervision owing to itsfinancial condition. During the pendency of the regulatorysupervision the regulators may have the power to favour one classof obligations over others or pay some obligations and not others.

Standard & Poor’s rating definitions



Please see Standard & Poor's issue credit ratings for a moredetailed description of the effects of regulatory supervision onspecific issues or classes of obligations.

SD and D - An obligor rated 'SD' (selective default) or 'D' has failedto pay one or more of its financial obligations (rated or unrated)when it came due. A 'D' rating is assigned when Standard & Poor'sbelieves that the default will be a general default and that theobligor will fail to pay all or substantially all of its obligations asthey come due. An 'SD' rating is assigned when Standard & Poor'sbelieves that the obligor has selectively defaulted on a specificissue or class of obligations but it will continue to meet its paymentobligations on other issues or classes of obligations in a timelymanner. Please see Standard & Poor's issue credit ratings for amore detailed description of the effects of a default on specificissues or classes of obligations.

N.R. - An issuer designated N.R. is not rated.

Local Currency and Foreign Currency Risks

Country risk considerations are a standard part of Standard & Poor'sanalysis for credit ratings on any issuer or issue. Currency ofrepayment is a key factor in this analysis. An obligor's capacity torepay foreign currency obligations may be lower than its capacity torepay obligations in its local currency due to the sovereigngovernment's own relatively lower capacity to repay external versusdomestic debt. These sovereign risk considerations are incorporatedin the debt ratings assigned to specific issues. Foreign currencyissuer ratings are also distinguished from local currency issuerratings to identify those instances where sovereign risks make themdifferent for the same issuer.

Rating outlook definitionsA Standard & Poor's rating outlook assesses the potential directionof a long-term credit rating over the intermediate term (typically sixmonths to two years). In determining a rating outlook, considerationis given to any changes in the economic and/or fundamentalbusiness conditions. An outlook is not necessarily a precursor of arating change or future CreditWatch action.Positive means that a rating may be raised.Negative means that a rating may be lowered.Stable means that a rating is not likely to change.Developing means a rating may be raised or lowered.CreditWatch - CreditWatch highlights the potential direction of ashort- or long-term rating. It focuses on identifiable events andshort-term trends that cause ratings to be placed under specialsurveillance by Standard & Poor's analytical staff. These may includemergers, recapitalizations, voter referendums, regulatory action, oranticipated operating developments.Ratings appear on CreditWatch when such an event or a deviationfrom an expected trend occurs and additional information isnecessary to evaluate the current rating. A listing, however, does notmean a rating change is inevitable, and whenever possible, a rangeof alternative ratings will be shown.CreditWatch is not intended to include all ratings under review, andrating changes may occur without the ratings having first appearedon CreditWatch. The ‘positive’ designation means that a rating maybe raised; ‘negative’ means a rating may be lowered; and‘developing’ means that a rating may be raised, lowered, or affirmed.

Reproduced with permission from Standard & Poor’s.

Moody’s rating definitionsGeneral – Long term obligation ratingsMoody’s long-term obligation ratings are opinions of the relativecredit risk of fixed-income obligations with an original maturity ofone year or more. They address the possibility that a financialobligation will not be honoured as promised. Such ratings reflectboth the likelihood of default and any financial loss suffered in theevent of default.

Moody’s Long-Term Rating DefinitionsAaa - Obligations rated Aaa are judged to be of the highest quality,with minimal credit risk.

Aa - Obligations rated Aa are judged to be of high quality and aresubject to very low credit risk.

A - Obligations rated A are considered upper-medium grade and aresubject to low credit risk.

Baa - Obligations rated Baa are subject to moderate credit risk.They are considered medium-grade and as such may possesscertain speculative characteristics.

Ba - Obligations rated Ba are judged to have speculative elementsand are subject to substantial credit risk.

B - Obligations rated B are considered speculative and are subjectto high credit risk.

Caa - Obligations rated Caa are judged to be of poor standing andare subject to very high credit risk.

Ca - Obligations rated Ca are highly speculative and are likely in, orvery near, default, with some prospect of recovery of principal andinterest.

C - Obligations rated C are the lowest rated class of bonds and aretypically in default, with little prospect for recovery of principal orinterest.

Note: Moody’s appends numerical modifiers 1, 2, and 3 to eachgeneric rating classification from Aa through Caa. The modifier 1indicates that the obligation ranks in the higher end of its genericrating category; the modifier 2 indicates a mid-range ranking; andthe modifier 3 indicates a ranking in the lower end of that genericrating category.

Country guidelines for local currency obligationsMoody’s assigns local currency guidelines for many countries (ordistinct monetary areas) in order to facilitate the assignment of localcurrency ratings to issues and/or issuers. Local currency ratingsmeasure the credit performance of obligations denominated in thelocal currency and therefore exclude the transfer risk relevant forforeign-currency obligations. They are intended to be globallycomparable. The country guidelines summarize the general country-level risks (excluding foreign-currency transfer risk) that should betaken into account in assigning local currency ratings to locallydomiciled obligors or locally originated structured transactions. Theyindicate the rating level that will generally be assigned to thefinancially strongest obligations in the country, with the proviso thatobligations benefiting from support mechanisms based outside thecountry (or area) may on occasion be rated higher.

Reproduced with permission from Moody’s




Fitch rating definitions

International Long-Term Credit Ratings

International Long-Term Credit Ratings are more commonly referredto as simply ‘Long-Term Ratings’. The following scale applies toforeign currency and local currency ratings. International creditratings assess the capacity to meet foreign or local currencycommitments. Both foreign and local currency ratings areinternationally comparable assessments. The local currency ratingmeasures the probability of payment only within the sovereignstate's currency and jurisdiction.

Investment Grade

AAA Highest credit quality 'AAA' ratings denote the lowestexpectation of credit risk. They are assigned only in case ofexceptionally strong capacity for timely payment of financialcommitments. This capacity is highly unlikely to be adverselyaffected by foreseeable events

AA Very high credit quality 'AA' ratings denote a very lowexpectation of credit risk. They indicate very strong capacity fortimely payment of financial commitments. This capacity is notsignificantly vulnerable to foreseeable events

A High credit quality 'A' ratings denote a low expectation of creditrisk. The capacity for timely payment of financial commitments isconsidered strong. This capacity may, nevertheless, be morevulnerable to changes in circumstances or in economic conditionsthan is the case for higher ratings

BBB Good credit quality 'BBB' ratings indicate that there iscurrently a low expectation of credit risk. The capacity for timelypayment of financial commitments is considered adequate, butadverse changes in circumstances and in economic conditions aremore likely to impair this capacity. This is the lowest investment-grade category.

Speculative Grade

BB Speculative. 'BB' ratings indicate that there is a possibility ofcredit risk developing, particularly as the result of adverse economicchange over time; however, business or financial alternatives maybe available to allow financial commitments to be met. Securitiesrated in this category are not investment grade

B Highly speculative 'B' ratings indicate that significant credit risk ispresent, but a limited margin of safety remains. Financialcommitments are currently being met; however, capacity forcontinued payment is contingent upon a sustained, favorablebusiness and economic environment.

CCC, CC, C High default risk. Default is a real possibility. Capacity formeeting financial commitments is solely reliant upon sustained,favorable business or economic developments. A 'CC' ratingindicates that default of some kind appears probable. 'C' ratingssignal imminent default.

DDD, DD, D Default. The ratings of obligations in this category arebased on their prospects for achieving partial or full recovery in areorganization or liquidation of the obligor. While expected recoveryvalues are highly speculative and cannot be estimated with anyprecision, the following serve as general guidelines. 'DDD'obligations have the highest potential for recovery, around 90%-100% of outstanding amounts and accrued interest. 'DD' indicatespotential recoveries in the range of 50%-90% and 'D' the lowestrecovery potential, i.e., below 50%

Entities rated in this category have defaulted on some or all of theirobligations. Entities rated 'DDD' have the highest prospect forresumption of performance or continued operation with or withouta formal reorganization process. Entities rated 'DD' and 'D' aregenerally undergoing a formal reorganization or liquidation process;those rated 'DD' are likely to satisfy a higher portion of theiroutstanding obligations, while entities rated 'D' have a poorprospect of repaying all obligations.

Notes

‘+’ or ‘-’ may be appended to a rating to denote relative statuswithin major rating categories. Such suffixes are not added to the'AAA' category or to categories below 'CCC'.

'NR' indicates that Fitch Ratings does not publicly rate the issuer orissue in question.

'Withdrawn': A rating is withdrawn when Fitch Ratings deems theamount of information available to be inadequate for ratingpurposes, or when an obligation matures, is called, or refinanced.

Rating Watch: Ratings are placed on Rating Watch to notify investorsthat there is a reasonable probability of a rating change and thelikely direction of such change.

These are designated as ‘Positive’, indicating a potential upgrade,‘Negative’, for a potential downgrade, or ‘Evolving’, if ratings may beraised, lowered or maintained. Rating Watch is typically resolvedover a relatively short period.

A Rating Outlook indicates the direction a rating is likely to moveover a one to two-year period. Outlooks may be positive, stable, ornegative.

A positive or negative Rating Outlook does not imply a ratingchange is inevitable. Similarly, ratings for which outlooks are ‘stable’could be upgraded or downgraded before an outlook moves topositive or negative if circumstances warrant such an action.

Occasionally, Fitch may be unable to identify the fundamental trendand in these cases, the Rating Outlook may be described as‘evolving’.

Reproduced with permission from Fitch Ratings


Standard & Poor's Moody's Fitch Ratings IRS

Foreign Currency

Foreign currency

government bond rating. (Gov bonds)

long termforeign

currency

Jurisdictions Committed to Transparency and Effective Exchange of Information.

List of un co-operative Tax

Havens

Non-cooperative

countries and territories

Removed from black list

Know your customer

high medium low75 Countries 33 5 3 year 29 9 8 25Andorra (The Principality of) AA/Stable/A-1+ 1 1 1Anguilla 1 1Antigua & Barbuda 1 1 1Aruba (Kingdom of the Netherlands) BBB (negative) 1 1 1Australia (Commonwealth of) AAA/Stable/A-1+ Aaa AA+ (stable) 1Austria (Republic of) AAA/Stable/A-1+ Aaa AAA (stable)Bahamas A-/Stable/A-2 A3 1 2001 1 1Bahrain (Kingdom of) A-/Positive/A-2 Baa1 A- (stable) 1 1 1Barbados BBB+/Stable/A-2 Baa2 1 1Belgium (Kingdom of) AA+/Stable/A-1+ Aa1 AA (stable)Belize B-/Negative/C B2 1 1Bermuda AA/Stable/A-1+ Aa1 AA (stable) 1 1 1British Virgin Islands (Overseas Territory of the UK) 1 1 1BruneiCanada AAA/Stable/A-1+ Aaa AAA (stable)Cayman Islands Aa3 1 2001 1 1China (People's Republic of) BBB+/Positive/A-2 A2 A- (positive)Cook Islands (New Zealand) BB-/Stable/B 1 1 1Costa Rica (Republic of) BB/Negative/B 1Cyprus (Republic of) A/Stable/A-1 A2 A+ (stable) 1 1 1Denmark (Kingdom of) AAA/Stable/A-1+ Aaa AAA (stable)Dominican Republic CC/Negative/C B3 CCC+ 1 2002DubaiFinland (Republic of) AAA/Stable/A-1+ Aaa AAA (stable)France (Republic of) AAA/Stable/A-1+ Aaa AAA (stable)Germany (Federal Republic of) AAA/Stable/A-1+ Aaa AAA (stable)Gibraltar Aaa 1 1 1Greece (Hellenic Republic) A+/Negative/A-1 A1 A+ Grenada B-/Watch Neg/C 1 2003Guernsey (Dependency of the British Crown) 1 1 1Hong Kong SAR AA-/Stable/A-1+ A1 AA- (stable) 1 1Ireland AAA/Stable/A-1+ Aaa AAA (stable) 1 1Isle of Man (Dependency of the British Crown) AAA/Stable/A-1+ Aaa 1 1 1Israel (State of) A-/Negative/A-1 A2 2002 1Italy (Republic of) AA-/Stable/A-1+ Aa2 AA (stable)Japan AA-/Stable/A-1+ Aaa AA (negative)Jersey (Dependency of the British Crown) 1 1 1Labuan (Malaysia) A-/Stable/A-2 Baa1 BBB+ (positive) 1Lebanon (Republic of) B-/Stable/C B2 B- (stable) 2002 1Liberia 1Liechtenstein (The Principality of) AAA/Stable/A-1+ 1 2001 1 1Luxembourg AAA/Stable/A-1+ Aaa AAA (stable) 1 1Malta (Republic of) A/Stable/A-1 A3 A (positive) 1 1 1Marshall Islands (The Republic of) 1 2002 1Mauritius Baa2 1 1Monaco (The Principality of) 1 1 1Montserrat (Overseas Territory of the UK) BBB-/Positive/A-3 1Nauru (The Republic of) 1 1 1Netherlands (State of The) AAA/Stable/A-1+ Aaa AAA (stable)Netherlands Antilles (Kingdom of the Netherlands) 1 1 1New Zealand AA+/Stable/A-1+ Aaa AA+ (stable)Niue 1 2002 1Norway (Kingdom of) AAA/Stable/A-1+ (p)Aaa AAA (stable)Panama BB/Negative/B Ba1 BB+ (stable) 1 2001 1 1Philippines (Republic of) BB/Stable/B Ba2 BB (stable) 1Portugal (Republic of) AA/Stable/A-1+ Aa2 AA (stable)Russian Federation (The) BB+/Stable/B Baa3 BB+ (stable) 2002Samoa 1 1San Marino AA (stable) 1Seychelles (The Republic of) 1 1South Africa (Republic of) BBB/Stable/A-3 Baa2 BBB (stable)Spain (Kingdom of) AA+/Positive/A-1+ Aaa AAA (stable)St Kitts & Nevis 1 2002 1St Lucia 1 1 1St Vincent & The Grenadines 1 2003 1Singapore (Republic of) AAA/Stable/A-1+ Aaa AAA (stable) 1 1Sweden (Kingdom of) AAA/Stable/A-1+ Aaa AAA (stable)Switzerland AAA/Stable/A-1+ Aaa AAA (stable) 1 1Taiwan (Republic of China) AA-/Stable/A-1+ Aa3 A+ (stable)TongaTurks & Caicos (Overseas Territory of the UK) 1 1 1United Kingdom AAA/Stable/A-1+ NR AAA (stable) 1United States of America AAA/Stable/A-1+ Aaa AAA (stable)US Virgin Islands (US possession) 1 1Vanuatu (The Republic of) 1 1

Standards of financial regulation

Sovereign Ratings International Finance Centres

OECD FATF FSF

Global Status > Country Comparison Chart


Financial Regulators’ Reports

Global Status > Financial Regulators’ Reports

Financial Stability Forum- The Edwards Report

Financial Stability Forum Report: (Review of Financial Regulation inthe Crown Dependencies known as the Edwards Report)Report of the Working Group on Offshore Centres 5 April 2000is available from: www.fsforum.org

Offshore Financial Centre (OFC) issues have been of concern forsome time within the official sector. Considerable work has beenundertaken by the Basel Committee on Banking Supervision (BCBS),International Association of Insurance Supervisors (IAIS), InternationalOrganisation of Securities Commissions (IOSCO), Financial ActionTask Force (FATF), United Nations (UN), Organisation for EconomicCo-ordination and Development (OECD), and G-7 Finance Ministers.

Much of this work has focused on the development andassessment of standards or best practices in the areas of bankingand insurance supervision, securities market regulation, corporategovernance, money laundering, and information exchange, all ofwhich has relevance for OFCs.

The Group took note of the ongoing FATF work on non-cooperativejurisdictions (‘FATF on Money Laundering: Report on Non-Cooperative Countries and Territories’), and on the work beingundertaken by the OECD on tax competition (‘Harmful TaxCompetition: An Emerging Global Issue’) as well as bribery andcorruption (‘Convention on Combating Bribery of Foreign PublicOfficials in International Business Transactions’).

The Group also drew on the available analytical work on OFCs.

The Isle of Man and Regulatory Leadership, ‘The Edwards Report’,highlights many areas where the Isle of Man has led the CrownDependencies in the development of regulation and legislation.

These include:

● Firsts/Leadership

● First Island to institute a Financial Supervision Commission -fifteen years ago in 1983

● First to give FSC its own prosecution powers

● First to introduce unified Enforcement Division - commendedby Edwards

● Most extensive arsenal of legislation against financial crimeand money laundering - equal to that in the UK

● Most extensive enforcement powers - matching those in UK,including powers to ban, injunct and name and shame

● First and only Crown Dependency to introduce depositorprotection (compensation) provisions (wider even than thoseapplying in the UK)

● First to cover investment business generally under regulatorybodies - in 1991

● First to introduce statutory policy holder protection scheme

● First to introduce an Ombudsman scheme for occupationalpensions (using the UK scheme)

● First to get UK Designated Territory Status in 1988

● As a result of these and other initiatives, the Island is regularlyrecognised by leading specialist publications as the leadingoffshore jurisdiction in terms of legislation.

OECD Tax Haven Criteria

Four key factors are used to determine whether a jurisdiction is atax haven. The first is that the jurisdiction imposes no or onlynominal taxes. The no or nominal tax criterion is not sufficient, byitself, to result in characterisation as a tax haven. The OECDrecognises that every jurisdiction has a right to determine whetherto impose direct taxes and, if so, to determine the appropriate taxrate. An analysis of the other key factors is needed for ajurisdiction to be considered a tax haven.

The three other factors to be considered are:

● Whether there is a lack of transparency

● Whether there are laws or administrative practices that preventthe effective exchange of information for tax purposes withother governments on taxpayers benefiting from the no ornominal taxation.

● Whether there is an absence of a requirement that the activitybe substantial

Transparency ensures that there is an open and consistentapplication of tax laws among similarly situated taxpayers and thatinformation needed by tax authorities to determine a taxpayer’scorrect tax liability is available (e.g., accounting records andunderlying documentation).

With regard to exchange of information in tax matters, the OECDencourages countries to adopt information exchange on an ‘uponrequest’ basis. Exchange of information upon request describes asituation where a competent authority of one country asks thecompetent authority of another country for specific information inconnection with a specific tax inquiry, generally under the authorityof a bilateral exchange arrangement between the two countries. Anessential element of exchange of information is the implementationof appropriate safeguards to ensure adequate protection oftaxpayers’ rights and the confidentiality of their tax affairs.

The no substantial activities criterion was included in the 1998Report as a criterion for identifying tax havens because the lack ofsuch activities suggests that a jurisdiction may be attempting toattract investment and transactions that are purely tax driven. In2001, the OECD’s Committee on Fiscal Affairs agreed that thiscriterion would not be used in connection with determiningwhether a tax haven was cooperative or uncooperative.

Sourced with permission from www.oecd.org


Rating AgenciesStandard & Poor's20 Canada SquareLondon United Kingdom E14 5LH + 44 (0)207 176 7105www.standardandpoors.com

Moody’s700 19th StreetMincing LaneLondon United Kingdom EC3R 7XB+ 44 (0)207 772 5454www.moodys.com

Fitch RatingsEldon House, 2 Eldon StreetLondon United Kingdom EC2M 7UA+ 44 (0)207 417 4222www.fitchratings.com

Financial RegulatorsOrganisation for Economic Co-operation and Development(OECD), Minster Court2 rue André PascalF-75775 Paris Cedex 16Paris France+ 33 1 4524 9700www.oecd.org

Membership: 30 leading democratic market economies, whichtogether produce two-thirds of the world's goods and services.The role of the OECD is to foster good governance in the publicservice and incorporate activity by making recommendations togovernment policy makers in identifying those policies that work inthe international arena thereby helping the countries to progress bymultilateral agreement.

The Financial Stability Forum (FSF)25 The North ColonnadeCentralbahnplatz 2Basel Switzerland CH-4002+ 41 61 280 8298www.fsforum.org

Membership: National financial authorities in the G7, Australia, HongKong, the Netherlands and Singapore; international financialinstitutions; international regulatory and supervisory groupings;committees of central bank experts and the European Central Bank.The FSF uses information exchange and international co-operationby surveillance and supervision between countries to promoteinternational financial stability.

The World Bank1818 H Street, N.W.Washington, DC 20433 U.S.A.+ 1 202 473 1000www.worldbank.org

The International Bank for Reconstruction and Development (IBRD)or ‘World Bank’ has 184 member countries, nearly all the countriesof the world. It is one of five organisations in the World Bank Group.The World Bank Group’s mission is to fight poverty and improve theliving standards of people in the developing world. It is adevelopment Bank which provides loans, policy advice, technicalassistance and knowledge sharing services to low and middleincome countries to reduce poverty.

World Trade OrganizationCentre William Rappard, Rue de Lausanne 154CH-1211 Geneva 21 Switzerland+ 41 22 739 5111www.wto.org

Membership: 146 countries across the world. The WTO’s mainfunction is to ensure a safe, predictable and free trade flowsbetween nations according to internationally agreed trade rules.

Financial Action Task Force on Money Laundering (FATF)75775 Paris Cedex 16, Paris France+ 33 1 4524 7945www.oecd.org/fatf

The role of the FATF is to spread the message of anti-moneylaundering to all nations and check the ‘Forty Recommendations’has been implemented by its members and constantly reviewmoney laundering trends and countermeasures.

International Monetary Fund (IMF)Bank for International SettlementsWashington USA D.C. 20431+ 1 202 623 7100www.imf.org

Membership: 184 countries across the world. Votes are allocatedaccording to members’ economic strength, hence US 17.5% and StLucia 0.01%. The IMF promotes monetary co-operation, exchangestability and arrangements. It also fosters economic growth andimproved levels of employment.

The Financial Services Authority (FSA)20 Canada Square, Canary WharfLondon United Kingdom E14 5HS+ 44 (0)207 066 1000www.fsa.gov.uk

The FSA provides support for the financial services industry in theUnited Kingdom by promoting public understanding and confidenceof the financial system, reducing financial crime and protecting itsconsumers.

The Office of the Superintendent of Financial Institutions255 Albert Street, Ottawa Canada K1A 0H2+ 1 613 990 7788www.osfi-bsif.gc.ca

The OSFI is the primary regulator of federally chartered financialinstitutions and federally administered pension plans. It aims toprotect the rights and interests of consumers.

International Organization Of Securities Commission (IOSCO)C/ Oquendo 12, 28006 Madrid Spain+ 34 91 417 5549www.iosco.org

Membership: 175 countries across the world.The IOSCO promotes high standards of regulation in order tomaintain reputable markets by the exchange of information andeffective surveillance of international securities transactions.

Council of the European UnionRue de la Loi, 175 B-1048, Bruxelles Belgium+ 32 2 285 6111http://ue.eu.int

The Council is the main decision-making body of the EuropeanUnion. The ministers of the 25 member states meet within theCouncil of the European Union. Each country has representativeministers who are responsible for their field such as finance, foreignor social affairs.

Global Status > Organisations and Regulatory Bodies

Organisations and Regulatory Bodies


Country Fact File > Contents

The Key Points of the Isle of Man 19

> For businesses

> For the individual

Country Statistics 20

> Global position

> Demographics

> Climate

> Travelling

> New Residents

A British Crown Dependency 24

> What are Crown Dependencies?

> The relationship with the United Kingdom

> The relationship with the European Union Protocol 3

> Immigration and nationality

> Citizenship applications

> Overseas work permits

> Diplomatic and consular missions

> Island and British contacts

> Facts for individuals

> Entry requirements

> Isle of Man work permits

> Employment legislation

> Residency for tax purposes

> Personal taxation

> Quality of life

> Owning property

British and Overseas Contacts 27

> Associations, Societies, Institutes

> Manx Associations

Business Overview 28

> Financial Background

> Partnerships

> General Partnerships

> Limited Partnerships

> Manx Partnerships

> International Limited Partnerships

> Limited Liability Companies

> Companies

> Offshore or International Companies

> Non-Resident Companies

> Tax Exempt Companies

> Redomiciliation of Companies

> Company Formation

> The Company Registry

> Zero Rate Company Income Tax Strategy

> Trusts

> Express Trusts

> Non-Express Trusts

> Private, Public or Purpose Trusts

> Bare Trusts

> Fixed Interest and Discretionary Trusts

> Trading Trusts

> Unit Trusts

> Trust Service Providers

> Funds

> Mutual Funds

> Authorised Schemes

> International and Exempt International Schemes

> Professional Investor Funds

> Experienced Investor Funds

> Closed-Ended Funds (Investment Trusts)

> Insurance

> Captive Insurance

> Life Assurance

> General Insurance

> Pensions

> Domestic Pensions

> International Pension Schemes

> e-business

> Government incentives

> Currency and exchange controls

> Secrecy and Disclosure

> Data Protection

> Anti-money laundering controls

Old Mann, New Mann 37

> Social and political history

Tynwald Parliament and the Government 41

> The make up of Tynwald

> Tynwald and Government connecting (map)

> 2004 - Annual Report

> Department of Trade and Industry

> Treasury Department

> Department of Tourism and Leisure

> Department of Transport

> Department of Local Government and Environment

> Department of Health and Social Security

> Department of Home Affairs

> Department of Agriculture, Fisheries and Forestry

> Department of Education

> Statutory Boards and Government Offices

CountryFact File


Country Fact File > Key Points of the Isle of Man

Positive features of the Isle of Man: For businesses

The Isle of Man has shed its image of a ‘dubious tax haven’ andconvinced such organisations as the OECD, FATF, Standard &Poor’s and Moody’s that it is a well regulated, credit worthy,international finance centre of repute.

Over the last quarter of a century the Island has become home tomany successful international organisations within the financesector. In one of the longest established international financecentres in the world and as the Island’s largest employmentsector, it has a work force with considerable relevant experience.Local companies encourage their staff to take professionalqualifications, as well as providing in-house training. Industryrelated professional courses are run on the Island at theInternational Business School and the College of FurtherEducation.

The Island has a remarkable history of innovation. Because ofgenerous support packages and quality advice available tosuitable businesses, several innovative, high value manufacturingand service companies have set up their businesses on theIsland. The Island is also proud of the quality of its local produce.

The Isle of Man is a low tax regime. Corporate income tax is dueto be reduced to 0% with effect from the year 2006. Personalincome tax rates are low and the Island charges no Capital GainsTax, Inheritance Tax or Stamp Duty.

The Island has the oldest independent parliament in the worldand has proved its ability to make speedy decisions and quicklyimplement new legislation when circumstances or marketsindicate the need for change. This has enabled the Isle of Manto stay at the forefront of the international scene and build asuccessful and stable economy.

The Island also boasts state of the art telecommunications. It was a very close second in the race to be the first country tointroduce a third generation (3G) mobile telephone network, andbroadband technology is available in virtually all parts of theIsland.

Positive features of the Isle of Man: For the individual

The Island is a beautiful, uncrowded island. Its residents arefriendly, and have a strong sense of community. Levels of crimeare low compared to the UK and, in a recently conducted survey,the Manx people voted the safety of the Island as the aspectthey would most hate to lose.

A significant proportion of the Manx budget is invested in healthprovision and a new state of the art hospital was opened in2004.

The Island can boast education standards and exam results at alevel to challenge the best in the UK. Significant investment in ICTin senior schools means that over 90 per cent of students leavingschool in 2003 had IT qualifications.

Most people on the Island, whatever their origin, are interested inits culture and heritage, and are committed to enhancing itsdistinctive national identity. There is also a wide range of sports,social and leisure clubs on the Island and Manx teams competeat international level in a number of sports. The Island is famousworldwide for its annual TT races.

The Isle of Man is committed to ensuring that the quality of life itoffers is maintained in terms of social well-being, qualityenvironment, and sound infrastructure, coupled with political andeconomic stability.

Key Points of the Isle of Man


Country Fact File > Country Statistics

Global Position:Latitude 54˚3 - 54˚25_ N Longitude 4˚18 - 4˚47_ WLocation: The centre of the Irish Sea - 50 km (31 miles) fromIreland and 50 km (31 miles) from the U.K.Area: 572 sq. km (227 sq. miles) Length: 52 km (32.5 miles)Width: 22 km (13.5 miles)Perimeter coastline: 160 km (100 miles)Maritime claims: exclusive fishing zone: 12 NMTerritorial sea: 12 NMLongest River: Sulby 17 km (10.5 miles)Highest Point: Snaefell 621 metres (2,036 feet)Central Terrain: hills, valleysNorth Terrain: flat, long sandy beachesWest and South Terrain: rocky cliffs, sheltered baysCapital: DouglasLanguages: English and Manx GaelicCurrency: Manx pounds and pence (equivalent to GB pounds)Religion: Anglican, Roman Catholic, Methodist, Baptist, Presbyterian

DemographicsThe Isle of Man Government has produced a full census reportevery 10 years since 1821 with interim censuses introduced since1966. Copies of the reports can be found at the Central ReferenceLibrary in Douglas. The reports hold statistical and historicalinformation and can provide a valuable insight into the nature ofthe Manx people and their country.

Source: Census 2001Total resident population: 76,315Population by town: Males: 37,372, Females: 38,943East: Douglas 23,487, Onchan 8,656North: Ramsey 6,874West: Peel 3,819South: Castletown 2,958, Port Erin 3,218, Port St Mary 1,874

ClimateThe weather in the Isle of Man is similar to that of Ireland,Scotland, England and Wales. With the island being situated inthe Irish Sea, roughly halfway between England and Ireland, theprevailing wind is usually from the South West providing atemperate climate with moderate temperatures, rainfall andsunshine. The Gulf Stream travelling up through the Irish Seaensures a mild climate for most of the British Isles andparticularly for the Isle of Man, due to its unique positioning in theIrish Sea. Occasionally there are very short bursts of snowfall,mostly falling on Snaefell Mountain (Snow Mountain) in the centreof the island. The worst problem is sea fog on the south and eastcoast of the island. Least affected is the west coast.

Average rainfall is 863 mm (34 inches) increasing with altitude upto 2.5 times more.

Country Statistics

Central Reference LibraryGovernment Offices, Bucks Road, Douglas,Isle of Man, IM1 3PG Tel: + 44 (0)1624 685520

Vehicle Testing stationTromode, Douglas, Isle of ManTel: + 44 (0)1624 627431

Vehicle Licensing and RegistrationThe Treasury Government Offices,Bucks Road, Douglas, Isle of Man, IM1 3PG Tel: + 44 (0)1624 685600Email: [email protected]

Weather and Shipping Forecast

Weathermann:Speak to a Forecaster Direct:(24 hours) Tel: + 44 (0)900 6243 200Recorded Weather Forecast:(updated six tiimes each day) Tel: + 44 (0)900 6243 300Recorded Shippng Forecast:(updated five times each day) Tel: + 44 (0)900 6243 322

Fact File > Contact Information



Isle of Man AirportTel: + 44 (0)1624 821600www.gov.im/airport

Department of TransportTel: + 44 (0)1624 686600

Department of Tourism and LeisureTel: + 44 (0)1624 686801

Steam Packet CompanyTel: + 44 (0)870 552 3523www.steam-packet.com

Aer ArannTel: + 44 (0)800 587 2324www.aerarann.com

British NorthWest Airlines Ltd.Tel: + 44 (0)1624 617181www.flybnwa.co.uk

British AirwaysTel: + 44 (0)870 850 9850www.britishairways.com

Eastern AirwaysTel: + 44 (0)1652 680600www.easternairways.com

Emerald AirwaysTel: + 44 (0)870 850 5400www.flyjem.com

EuroManxTel: + 44 (0)870 787 7879www.euromanx.com

FlybeTel: + 44 (0)871 700 0123www.flybe.com

FlykeenTel: + 44 (0)800 083 7783Charter enquiries:Tel: + 44 (0)1253 400818

Manx FlyersTel: + 44 (0)1624 825999Charter & Training(Fixed wing & helicopter)www.manxflyersaerodub.com

Woodgate AviationCharter & TrainingTel: + 44 (0)1624 823707www.woodair.com

Fact File > Contact InformationTravelling to, from and around the Isle of ManAccess to the Isle of Man is either by air or sea.Sea routes operate daily all year round between Douglas and Heysham or Liverpool inthe north west of England and in the summer months to Belfast in Northern Ireland andDublin in the Republic of Ireland. The ferry operators have an excellent record ofconsistency, safety and all weather travel (see Isle of Man Steam Packet). It is only in themost extreme conditions that ferry services are cancelled. The transport of goods ismainly by sea and controls are kept to a minimum under the Isle of Man’s Custom UnionAgreement with the UK, allowing a smooth and relatively unrestricted passage for cargo.Due to the deep water harbour facilities around the island there are visitors and cargooperators who are able to dock with their own private cruisers, yachts, bulk containersand other seaworthy vessels.

Ronaldsway airport is situated nine miles south of Douglas between Ballasalla andCastletown in the south of the Island. The airport has excellent links to and from theUnited Kingdom and Ireland providing around one hundred flights each week throughvarious airline operators. This allows for interconnections at major airports to the rest ofthe world. Facilities are also available for charter airline and private small aircraft and jets.

Getting around in the Isle of ManThere are over 500 miles of public road access. Driving is like that of the United Kingdomin that road vehicles are always driven on the left hand side. (International travellersshould note that hire cars reflect this with right hand steering wheels). The majordifference between the UK roads and IOM roads is the absence of motorways. There is amisconception that the entire Island has no speed limit as dramatically advertisedworldwide by the famous TT races. In fact, drivers must adhere to the speed limits aroundtowns and residential areas that could be as low as 15 miles per hour. Due to theIsland's compact developments, there is an obvious lack of road names and signposts.This can only be offset by the length of stay on the Island since historical andgeographical landmarks provide the mainstay of road recognition and direction.

Public transport is user friendly. The buses are regular and mostly punctual. The busfacilities are adaptable for people of any ability with or without encumbrances such aswheelchairs, pushchairs and luggage. The cost of getting around the Island is verysensibly priced compared with UK fares. Taxis, however, are relatively expensive butconveniently placed at the sea terminal and at the airport. Other less conventionalmethods of transport include the summer running of the Victorian steam train along thesouth coast, the horse drawn tram along Douglas promenade and the electric railway toLaxey and Ramsey along the north east coast and to the top of Snaefell mountain in thecentre of the Island.



The Isle of Man has been knownthrough the centuries under variousnames such as Isle of Mann, from theManx Gaelic language as Ellan Vannin orMannin and as Mona from the Latinlanguage. The names can still be foundin use today.

The Isle of Man first produced its ownbronze money in the 18th century forthe earls of Derby and Atholl.

The motto ‘Quocunque Jeceris Stabit’ onthe Coat of Arms translates to‘whithersoever you throw it, it will stand’

The three legs symbol of the Isle of Manwas not originally Manx. Its origins areloosely European but the Manx adoptedthe symbol in about the thirteenthcentury with the legs now stronglyidentified as Manx or associated withthe Isle of Man.

The Manx cat has no tail. This is onlytrue for the ‘Rumpy’, the cat with nocartillage at the base of the rump. Manxcats can have varying lengths of tail.Myths still abound as to why this animalhas no tail, from having the tail trappedand losing it as the cat rushed to safetyon board Noah’s Ark, or from invadingVikings cutting their tails off, toexperimental use for finding a cure forspina bifida in humans. None of theseare true. This breed of cat hasdeveloped naturally within the confinesof the small island over time andwithout having other breeds of cat tomate with, retaining its specialcharacteristics. The island has in effectmanaged to perform its own ‘geneticmodification’ without human intervention.

The first TT (Tourist Trophy) Races wereheld in 1907 at St Johns with 27competitors racing 10 laps of a 15 milecircuit of public roads. In 1911 the 37.5mile Mountain Course replaced the originalcircuit. With minor changes a few yearslater, the circuit was reduced to 37.25miles and remains as such today.

St Patrick of Celtic Ireland is believed tohave brought Christianity to the Isle ofMan, though this has never beenproven. However there is evidence ofChristianity on the Island since 500AD.

The first literary work translated into Manxand printed was in 1707. Written Manxprior to this date is extremely rare andrelates mainly to ecclesiastical manuscripts.

Fact File > InformationFrom ‘Come-Over’ to ‘Stop-Over’Having made the decision to stay on the Isle of Man, becoming a resident of the Islandrequires a lot of planning and forethought.

The major reasons for a ‘big move’ are usually associated with career relocation,improvements in personal financial planning, retirement prospects and family situations.

Finding a financial or business adviser is half the battle won. The other half is thepersonal or family side of the move. Different countries have different rules and the Isle ofMan is no exception.

Car Owners:New residents who own non-Manx registered cars and bring them across to the Islandmust have them re registered and given Manx plates. In order to get these plates, thecar(s) must be road worthy and tested on the Island. Vehicle insurance must also besought if the vehicle is to be driven on the public roads.

Drivers:New residents who drive and hold non-Manx driving licenses are expected to obtain theManx equivalent. As in the United Kingdom, learner drivers are required to display a red L-plate until qualified. A newly qualified driver is required to display a red R plate for thefirst year, during which they are restricted to travelling at no more than 50mph.

Passports and other identificationCompliance is strictly observed on the Island and requests for personal identification arecommonplace for most financial changes such as opening a local bank account, rentingproperty, even the purchase of a local network mobile telephone.

Types of identification depend on the type of situation. It is advisable to bring acrossdocuments relating to the last residence such as the last utility bills, telephone bills,personal documents such as birth certificate, marriage certificate, divorce certificate,current driving license, passport, current pension or allowance details (books orstatements). The list is quite exhaustive, however, for those requiring overseas workpermits it is advisable to contact the appropriate office for correct procedural admittance.

Manx law is based on the English system. It does, however, treat road drivers who abusethe system due to reckless or dangerous driving, or drugs (including alcohol), very strictlyand can hand out very harsh sentences and fines.

Once settled, the only way to really find out about the Island is to explore and ask.


Country Fact File > Map of the Isle of Man


Country Fact File > A British Crown Dependency

What are Crown Dependencies?

According to the United KingdomDepartment for Constitutional Affairs, theIsle of Man along with the Bailiwick ofGuernsey and the Bailiwick of Jersey areinternally self-governing ‘Dependencies’ ofthe Crown included in the term ‘BritishIslands’. They are ‘British Possessions’ butnot ‘British Colonies’. They are not ‘UnitedKingdom Overseas Territories’ and shouldbe referred to as ‘Crown Dependencies’.

The Secretary of State for ConstitutionalAffairs and Lord Chancellor is the PrivyCounsellor with special responsibility forIsland* Affairs. The Department forConstitutional Affairs provides the mainchannel of communication between theIslands* and HM Government and acts onbehalf of the Islands* for liaising withother Government Departments and formaking them aware of Islands'* interestsover a whole range of issues.

The Isle of Man is not part of the UnitedKingdom and has no representation inParliament at Westminster. Theconstitutional relationship between theCrown Dependencies and the UnitedKingdom is the result of historicalprocesses and accepted practice.

The Kilbrandon Report of 1973acknowledged that there were areas ofuncertainty in the existing relationshipwhich itself was complex. It did notpurport to draw up a fully authoritativestatement and the Islands* are known tobe particularly sensitive to the need toobtain their consent, in accordance withdemocratic principle, to any decisiontaken in the United Kingdom which haslegal implications for them.

The Isle of Man has its own legislativeassembly, administrative, fiscal and legalsystem and own court of law. The JudicialCommittee of the Privy Council is theultimate court of appeal.

The Isle of Man Lieutenant Governor (TheQueen's representative), subject to theconsent of the Secretary of State forConstitutional Affairs and Lord Chancellor,grants Royal Assent to most primarylegislation passed by the Island'slegislature (Tynwald). In the case of aminority of Bills, Royal Assent is reservedto The Queen-in-Council.

Tynwald comprises the House of Keys (theLower House) with 24 popularly electedmembers and the Legislative Council (theUpper House) with eight members electedby the House of Keys, together with theAttorney General and the Bishop of Sodorand Man. Tynwald Court and the

Legislative Council are presided over bythe President of Tynwald who is electedby the Members of Tynwald. The Isle ofMan has adopted a Cabinet-styleGovernment with a Chief Minister electedby the Isle of Man Parliament (Tynwald),and up to nine Ministers chosen by theChief Minister from members of Tynwald.

The Isle of Man first came under theEnglish Crown in the fourteenth centuryfollowing periods under the suzerainty ofthe Kings of Norway and Scotland. In1405 the Island - with its ‘regalities’ - wasgranted to Sir John Stanley and his heirs.From then up to 1765 it was ruled by theEarls of Derby, and later the Dukes ofAtholl, as Kings or Lords of Man. By Actsof Parliament passed in 1765 and in 1825,the rights of the Lords of Man reverted tothe Crown, and for a time the Island wasvery largely governed from London.

In addition to the Lieutenant Governor,other Crown Officers in the Isle of Man arethe First and Second Deemster (the judgesof the High Court) and Attorney General.The latter - like the Law Officers in theChannel Islands - is legal adviser to boththe Crown and the Island government.

Relationship of the Crown Dependencieswith the United KingdomThe United Kingdom is responsible for theIslands’* international relations and fortheir defence and the Crown is ultimatelyresponsible for their good government.This means that, in the circumstances of agrave breakdown or failure in the admin-istration of justice or civil order, the residualprerogative power of the Crown could beused to intervene in the internal affairs ofthe Channel Islands or the Isle of Man.

The European UnionThe Channel Islands and Isle of Man arenot Member States nor are they part ofthe UK Member State.

The relationship of the Islands to theEuropean Community is governed byArticle 299(6)(c) of the Treaty establishingthe European Community and by Protocol3 to the UK's Act of Accession to theCommunity. By virtue of Article 299(6)(c),the EC Treaty applies to the Islands* onlyto the extent described in Protocol 3. Thisprovides that Community rules oncustoms matters and quantitativerestrictions apply to the Islands under thesame conditions as they apply to the UK;the Islands* are inside the CommunityCustoms Territory and certain aspects ofthe Common Agricultural Policy areapplicable in order to allow freemovement in agricultural products.

Community provisions on the freemovement of persons and services do notapply to the Islands*. Islanders benefitfrom these provisions within the rest ofthe Community only if they have closeties with the UK (i.e. if they, a parent orgrandparent were born, adopted or natural-ised in the UK or have at any time beenordinarily resident in the UK for five years).

The Islands* neither contribute to nor areeligible to benefit from Community funds.They are not subject to Communitymeasures on taxation, nor are they forany purposes within the EU's fiscal territory.

Protocol 3 also provides for theapplication in the Islands of the EuropeanCoal and Steel Community unified tariff.The European Atomic Energy Community(Euratom) Treaty applies to persons andundertakings established in the Islands*.

Although measures on police and criminaljudicial co-operation adopted under Title 6of the Treaty on European Union do notapply to the Islands*, the United Kingdomhas undertaken to consult the Islands*fully about such measures in order thatthe Islands* can consider whether, and ifso to what extent, they wish to adoptlegislation or administrative practices toimprove police and criminal judicial co-operation with Member States.

Immigration and NationalityThe Islands*, together with the UnitedKingdom and the Republic of Ireland, forma common travel area with immigrationcontrol at the periphery. There are noimmigration controls between the UnitedKingdom and the Islands. The LieutenantGovernors issue passports in the Islands*.Under the British Nationality Act 1981,Islanders are entitled to full Britishcitizenship.

(*’Islands’ refers to the Isle of Man, theBailiwick of Guernsey and the Bailiwick ofJersey)

Citizenship ApplicationsApplications from foreign nationals to benaturalised as British citizens areconsidered under the provisions of theBritish Nationality Act 1981 but involveamongst other things a period ofresidence in the Isle of Man, UnitedKingdom or any of the Channel Islands of5 years or 3 years if the applicant ismarried to a British citizen. Many otherrequirements also apply. The Channel Islands and the Isle of Manhave their own immigration laws andpolicies, but UK visa offices also issuevisas for these islands. GuernseyImmigration authorities also act for Herm,Sark and Alderney.

A British Crown Dependency


Country Fact File > Diplomatic and Consular Missions

Visas for Foreign Nationals Visiting the UKThe UK Visa unit is operated between theForeign and Commonwealth Office andthe UK Home Office and provides aservice through the British Diplomaticposts overseas.

Immigration RulesForeign Nationals - Entry ClearanceApplications from foreign nationals to takeup residence in the Isle of Man are dealtwith under the provisions of the Isle ofMan Immigration Rules. If the person isoverseas they are likely to require an entryclearance in order to do so and shouldmake enquiries in the first instance withtheir nearest British Embassy, HighCommission or Consulate to see whetherthis is the case. Application should bemade to them in the first instance andthey will in turn then refer the applicationto this office for a decision on it to bemade.

Overseas Work PermitsForeign nationals who wish to come tothe Isle of Man to work, require a workpermit issued under the Overseas LabourScheme and where necessary a visa, inorder to so. Work permits are issued for aspecific job with a specific employer andnormally only to people with high levelqualifications or occupational skills andwith substantial post qualificationexperience. The employer is required toshow that there is no one available to dothe job on offer in the Isle of Man, UnitedKingdom or European Economic Area.

Definition of Diplomatic and Consular MissionsDiplomatic Mission A Diplomatic Mission is the office of acountry’s diplomatic representatives in thecapital city of another country.Diplomatic Missions are established inaccordance with the provisions of theVienna Convention on DiplomaticRelations 1961.

A Diplomatic Mission of a Commonwealthcountry in another Commonwealthcountry is called a ‘High Commission’. Thehead of mission is called ‘HighCommissioner’.

A Diplomatic Mission in any foreign (i.e.non-Commonwealth) country is called an‘Embassy’ and the head of mission iscalled ‘Ambassador’.

High Commissions and Embassies performthe same functions and have the samestatus.

Consular Missions A Consular Mission is the office of acountry’s consular representative inanother country, either in the capital cityor in another significant city. Consularrepresentatives undertake a more

restricted range of duties than diplomaticrepresentatives. Their prime task is toprotect the interests of the nationals oftheir countries. Consular Missions are established inaccordance with the provisions of theVienna Convention on Consular Relations1963.

The Convention provides four differentgrades of Consular representatives (indescending order of importance): Consul-General, Consul, Vice-Consul, and ConsularAgent. The offices of these representativesare called Consulate-General, Consulate,Vice-Consulate and Consular Agency,respectively. Consular representatives maybe career officers (i.e. they are full timeemployees of their government) orhonorary officers (i.e. officers paid only anhonorarium by the country they represent).Career officers are normally nationals ofthe country they represent and membersof that country’s diplomatic or consularservice. Honorary officers are usuallypermanent residents of the country inwhich they work and may be nationals ofthe country in which they live or of thecountry that they represent.

In some Commonwealth countries, thesenior consular missions of otherCommonwealth countries are calledDeputy High Commissions and the headsof these offices are called Deputy HighCommissioners. However, the trend is forsuch offices to be called Consulate-General etc.

Consular Services

The following is what a British Consulatecan do for you:Issue emergency passports, and in someplaces full passports; Contact relatives and friends and askthem to help you with money or tickets; Tell you how to transfer money; In an emergency, cash you a sterlingcheque worth up to £100 in localcurrency, if supported by a valid banker'scard; Help you get in touch with local lawyers,interpreters and doctors; Arrange for next of kin to be told of anaccident or a death and advise onprocedures; Visit you if you have been arrested or putin prison, and arrange for messages to besent to relatives and friends; Put you in touch with organisations whohelp trace missing persons; Speak to the local authorities on yourbehalf; Only as a last resort, in exceptionalcircumstances, and as long as you meetcertain strict rules, give you a loan to getyou back to the UK, but only if there isno-one else who can help you.

Isle of Man

The Passport OfficeProspect House, 27-29 Prospect Hill,Douglas, Isle of Man, IM1 1ETwww.gov.im/cso/immigration/Tel: + 44 (0)1624 685208Fax: + 44 (0)1624 685210

The Immigration OfficerGovernment Office Bucks Road,Douglas, Isle of Man, IM1 3PGTel: + 44 (0)1624 685208 / 685203

Citizen ApplicationChief Secretary's OfficeTel: + 44 (0)1624 686283

United Kingdom

Foreign & Commonwealth OfficeKing Charles Street London, England SW1A 2AHhttp://www.fco.gov.uk/

General enquiriesTel: + 44 (0)207 008 1500

Services for Britons OverseasTel: + 44 (0)207 080 0210 (office hours only)

Travel advice unitTel: + 44 (0)870 606 0290

Visa enquiriesTel: + 44 (0)207 008 8438

UK Government Home OfficeDirect Communications Unit,7th Floor, 50 Queen Anne’s GateLondon England SW1H 9ATwww.homeoffice.gov.uk

General Enquiries

Tel: + 44 (0)870 000 1585Text: + 44 (0)207 273 3476Fax: + 44 (0)207 273 2065

email:[email protected]



Country Fact File > Facts for Individuals

The following is what a British Consulatecannot do for you:Get you out of prison; Give legal advice or start courtproceedings for you; Get you better treatment in hospital orprison than is given to local nationals; Investigate a crime; Pay your hotel, legal, medical or any otherbills; Pay your travel costs, except in specialcircumstances; Do work normally done by travel agents,airlines, banks or motoring organisations; Get you somewhere to live, a job or workpermit; Demand you be treated as British if youare a dual national in the country of yoursecond nationality

Crown Copyright

External Relations Division (IoMGovernment)The External Relations Division in the ChiefSecretary’s Office promotes theconstitutional relationship between theIsle of Man and the United Kingdom andensures recognition of the Island'sinterests internationally whilst honouringits international obligations.

Passports issued in the Isle of ManApplications and renewals are availablefrom the Passport Office, post offices,police stations, travel agents andCommissioners Offices throughout theIsland or directly from the governmentwebsite link. Since 26th October 2004 allchildren travelling to the United States ofAmerica are required to have their ownpassport.

Facts for Individuals

At the last census in 2001 the populationof the Isle of Man was just over 76,000with 47,000 of these of working age;14,500 below working age and the restretired. The level of unemployment hasbeen maintained at below 1% for severalyears.

Entry requirementsBritish citizens and citizens of the IrishRepublic do not require passports or entryvisas for travel between their respectivecountries and the Isle of Man. Other EUcitizens require only their ID cards fortravel to the Island. Citizens from non-EUcountries will need a passport and mayneed a visa.

The Island is part of the Common TravelArea so anyone entitled to enter theUnited Kingdom may also enter the Isle ofMan as an immigrant. This includescitizens of the United Kingdom, Ireland,the Channel Islands and nationals ofEuropean Economic Area. In generalpersons from outside the Common TravelArea will require some form of entry

clearance. However, Commonwealthcitizens whose passports have beenendorsed with a Certificate of Entitlementwill have a right of abode.

Work PermitsWhilst the restrictions on entry are only asgiven above newcomers require a workpermit before they can take upemployment or self-employment.Qualification as an Isle of Man worker aresuch as being born on the Island, residentfor at least 5 years, married to an Isle ofMan worker, having received full-timeeducation during residence (and havingremained on the island thereafter) orhaving a Manx-born parent who spent thefirst 5 years of their life on the Island.

Broadly speaking permits are grantedwhere there are no suitable local workersavailable for the job concerned and wherethere is no reason to doubt the goodcharacter of the individual. Except in thecase of self-employed, permits are grantedfor a specific job with a specific employerand are normally limited in duration butmay be renewed.

Employment LegislationThe Manx employment law hasessentially followed that of the UK andthe Minimum Wage Act was implementedin 2001. The Island is currently in theprocess of modernising and consolidatingthe employment law framework.

Residency for Taxation Purposes‘Residence’ is not defined in the IncomeTax Acts so the Manx Assessor of IncomeTax has regard to the United Kingdomdecisions on comparable legislation.However the Short term Residence ExtraStatutory Concession does lay downcertain rules for periods of temporaryresidence in relation to liability for Manxincome tax.

Since the 6th April 2003 the Treasuryintroduced a package of measures whereindividuals are required by their employerto take up residence on the Isle of Man tostart up a new business or to diversify /expand an existing one. For the firstthree years the individual may elect toonly be taxed on their Isle of Man sourceincome and their employer may be givenfinancial assistance for their relocation.

Personal TaxationThe Isle of Man operates a low personaltax regime with income tax being the onlydirect taxation; there being no capitalgains tax, inheritance tax or stamp duty.For income tax there are high personalallowances (for the year 2004/05 £8,225for a single person; £16,450 for a marriedcouple); and low tax rates (10% on thefirst £10,000 above the personalallowances for a single person; £20,000for a married couple; with the higher rate

of 18% payable on the rest of the taxableincome). A non-resident liable for Manxincome tax will pay 18% on all relevantincome, without receiving any personalallowances.

There is a reciprocal arrangement with theUK whereby the National InsuranceContributions are the same and the samerates of VAT are applied (with someexceptions).

Quality of LifeThe Island has a population density of335 people per square compared toJersey (1888) and Malta (3562). In 2002MORI carried out a Quality of Life survey inwhich over 90% of residents indicatedsatisfaction with the Island as a place tolive and over 70% were satisfied with theway the Government runs the Island.

The Island is relaxed, friendly andpeaceful. While it offers the services,facilities, and business opportunities of amodern European centre, is has alsomanaged to retain a work/life balancethat is attractive and the envy of manyurban dwellers.

The Island has invested significantly intoits health care, opening a new state ofthe art hospital in 2004. Acomprehensive National Health Service isat the heart of the Government’s policyand is reflected in their spending plans.

It also has high educational standardswith exam results in its senior schoolscomparing favourably with the UK. In2003 56% of Manx students achieved 5or more GCSE passes compared with 51%in the UK. There are opportunities forfurther education at the InternationalBusiness School, which offers a range ofMasters level programmes as well asundergraduate Business Studies and othercourses, and the College of FurtherEducation. Both are affiliated touniversities in the UK. In addition TheManx Government provides financialsupport for its students to attenduniversity in the UK. See Department ofEducation and Education sections.

Owning PropertySubject to immigration rules there arecurrently no restrictions regarding whomay purchase property and live on theIsland.

PensionsThe domestic pensions legislation issimilar to that of the UK with a reviewcurrently being undertaken. Individualswho reside on the Island can transfer theirUK occupational or personal pensionrights into equivalent Isle of Man basedarrangements and those who do not haveaccess to an occupational scheme areable to establish a personal pension.


Country Fact File > British and Overseas Contacts

Associations, Societies & Institutes

Isle of Man Insurance Brokers Association+ 44 (0)1624 611227

Association of Chartered Certified Accountantswww.accaglobal.com

Association of Corporate Service Providers+ 44 (0)1624 628131 www.acsp.co.im

Association of Licensed Bankswww.alb.org.im

Isle of Man Fund Management Association+ 44 (0)1624 689689 www.fma.org.im

Isle of Man Society of Chartered Accountants+ 44 (0)1624 662788 www.icaew.co.uk

IOM Junior Chamber of Commerce+ 44 (0)1624 674941www.iomjcc.com

Manx Insurance Association www.mia.org.im

Manx Insurance Managers Association+ 44 (0)1624 625431 www.mima.org.im

Isle of Man Chamber of Commerce+ 44 (0)1624 674941 www.iomchamber.org.im

The Isle of Man Trades Council+ 44 (0)1624 621156

The Royal Institution of Naval Architects+ 44 (0)1624 833548

The Institute of Marine EngineeringScience and Technology+ 44 (0)1624 833548

The Insurance Institute of the Isle of Man+ 44 (0)1624 681681 www.cii-iom.com

Chartered Institute of Marketingwww.cim.co.im

Chartered Institute of ManagementAccountantswww.cimaglobal.com

Institute of Chartered Secretaries& Administrators+ 44 (0)1624 630047 www.icsa.org.uk

Institute of Financial Serviceswww.ifslearning.com

Institute of Directors www.iod.com

Chartered Management Institute+ 44 (0)1624 822575 www.iom-manager.info

The Securities Institute+ 44 (0)1624 812925 www.securities-institute.org.uk

Isle of Man Engineering Society+ 44 (0)1624 614460

Manx Actuarial Society+ 44 (0)1624 821240 www.actuaries.org.uk

Isle of Man Law Society + 44 (0)1624 662910www.iomlawsociety.co.im

Manx AssociationsWorld Manx AssociationSecretary - Mrs H Murphy, Purt Ny Shee,Quarterbridge Road, Douglas, IM2 2RQ,Isle of Man + 44 (0)1624 [email protected]

British Isles Manx SocietiesBarrow-in-FurnessMr Eric Cain, 21 Monksvale Grove,Barrow-in-Furness, Cumbria, LA13 9JT+ 44 (0)1229 826479

LondonMs Wendy Kneen, 54 Meads Court,Carnarvon Road, London, E15 4BL+ 44 (0)956 537011

WirralMrs Irene Craine, 33 Parkhill Road,Birkenhead, CH42 9JB,+ 44 (0)151 604 3273

Australian Manx SocietiesNew South WalesMr John Stanhope, 13/24 Edensor Street,Epping NSW 2121, 0061 02 [email protected]

QueenslandMrs Val Ashworth, 10 Firelight Street,Sunnybank Hills, Qld, 4109,[email protected]

TasmaniaMr Michael Crellin, 24 Fletcher Ave,Moonah, Hobart, Tasmania, 0061 0362287274, [email protected]

South AustraliaMrs Joy Denver, 12 Ti Tree Road,Stirling, SA 5032

VictoriaMs Liz Newland, 5 Penola Place, WheelersHill, Victoria 3150, [email protected]

Western AustraliaMrs Kath Craine, 11 Governors Drive, Falcon,WA 6210, 0061 08 95342770,[email protected]

New Zealand Manx SocietiesAucklandMrs Loraine Lapish, 84 Stamford Park Road,Hillsborough, Auckland 4,[email protected]

CanterburyMarion & Bill Quayle, 3 Pukeuri Lane,Hillsborough, Christchurch 2

United Arab Emirates, DubaiGill Costain-Salway, + 971 4 394 3185,[email protected]

South AfricaMr Tom Cain, 81 Panorama Drive, Northcliff,JHB 2195, RSA, + 27 11 678996,[email protected]

North America, Canada & USA Manx SocietiesPresident – Mr Bradley Prendergast,221 N.LaSalle St, Ste. 1800 Chicago, IL60601, [email protected]

ChicagoMrs F Abbinanti, 9330 South RichmondAvenue, Evergreen Park, IL 60805 USA

ClevelandMrs Mona Haldeman, 191 Glenview Drive,Avon Lake, OH 4401 USA

GalvaShirley Kelly, 316 NE 6th Avenue,Galva, IL 61434 USA

MinnesotaMs Joan Gill, [email protected]

NebraskaMs Vicky Gabber, 214 Barrington Drive,Gretna, NE 68028 USA

North CaliforniaMr Larry Faragher, 830 Kiely Boulevard 200,Santa Clara CA 9505 USA,[email protected]

OntarioBob Watterson, 76 Dunlop Street, Appt 605Richmond Hill, ON L4C 2M5. Canada

Rocky MountainSheila Kent, 5131 Jellison Court,Arvada, CO 80002, USA

San DiegoMrs Ruth Smith, 4966 Rockford Drive,San Diego, CA 92115, USA,[email protected]

SouthernDr Barry Vann, 134 Ridge Road,Grenada, MS 38901

UtahMr Russel Cannon, 348 East WinchesterAve, 6400 South Suite 110,Salt Lake City UT84107, USA

VancouverMrs Vera Henry, 3142 W 32nd Avenue,Vancouver, BC, V61 2CI, Canada,[email protected]

WisconsinDoris Alff, 5436 Village Drive,West Bend, WI 53905 USA


Country Fact File > Business Overview

Financial Background

In recent years the Isle of Man has established itself as one ofthe most respected international financial centres in the world. It has enjoyed unprecedented growth over the last 20 years; theperiod between 1997 and 2002 being particularly impressivewith real growth averaging almost 10% pa. Its economy hasproved entrepreneurial in times of upturn and resilient in thedownturn and, although, like the rest of the world, the Island hassuffered from the economic impacts of the last few years, it isestimated that the growth rate is continuing to be around 5% pain real terms.

The Island’s Gross Domestic Product (GDP) outperformedexpectations for the 5 year period ending in 2002 at which timeit also surpassed the United Kingdom equivalent. In the sameyear the total GNP reached £1 billion for the first time.

The key sectors generating this performance have been financialservices, which have grown by over 60% in the last years, andprofessional services which have grown by 50% in the sameperiod. Banking generates typically around one quarter of theIsland’s GDP, with the rest of the finance industry adding a further15 to 20%.

A driving factor in this growth has been the willingness of the Isleof Man Government to attract new business by swiftly andeffectively implementing or amending legislation to reflect fastchanging developments and markets. The result is anenvironment which is well regulated and sophisticated whilstbeing flexible and up-to-date.

This desire to create a business friendly environment has beensupported by low taxation, political and economic independence,and stability. Implementation of a new and dynamic tax strategyhas begun which will introduce a corporate income tax strategyof zero standard rate for Isle of Man companies from January2006 (see under Companies), a reduction in the standard and toprate of tax for individuals, and a simplified approach to capitalallowances.

In an economically active population of 40,000 theunemployment rate has been maintained at below 1% for over 4years. Despite this full employment the increase in averageearnings has increased by just an average of 5.4% pa over thesame period. This balance has been maintained because,although the Island operates a work permit system, it aims toapply this sensibly to enable employers to recruit and transferpersonnel from off-island when necessary. In the last 3 years only100 permits have been refused out of the 13,000 applications.With a high quality education system and a impressive level ofinvestment in IT within schools, the Island has also created agood pool of capable employees.

Over the last 11 years the annual retail price index inflation hasbeen maintained at below 4% pa. Although the growth of theIsland into a financial centre has led to a change in lifestyle aMORI quality of life survey conducted in March 2002 found 93%of residents satisfied with the Isle of Man as a place to live. Thisequates to the highest result MORI recorded for any location inthe British Isles.

Regulation of the finance sector is conducted by the FinancialSupervision Commission (for banking, investment, fund andfiduciary businesses), and by the Insurance and Pensions Authority

(for insurance and pensions business). The Island’s regulatorshave close contact with their international counterparts andparticipate in a wide range of international groupings. The Islandhas adopted extensive regulatory measures to prevent moneylaundering and the financing of terrorism in line with the bestinternational standards.

Part of the success of the Isle of Man is its professional servicesindustry. The Isle of Man legal profession is practicing law to thehighest standards. The Judiciary of the Isle of Man enjoys thehighest international reputation and its judgements carry greatweight internationally. The accountancy profession is wellestablished, with all the major international firms represented fromthe Chartered, Certified and other branches of the profession. TheInstitute of Chartered Secretaries and Administrators is alsorepresented, as is the banking profession through a thriving centreof the Chartered Institute of Bankers.

The other business sectors also have their own professionalorganisations which maintain good working relationships with theGovernment and contribute towards the content of newlegislation.

The emphasis in the Island is on providing quality financialproducts and services in a properly regulated businessenvironment which is confirmed by the fact that both Standard &Poor’s and Moody’s have allocated the Isle of Man AAA long-termcredit rating.

Banking

The banking sector in the Isle of Man is a vital part of theeconomy with deposits totalled £27.8 billion at the end ofDecember 2002, and is dominated by branches and subsidiariesof the main United Kingdom clearing banks. There are also manyother United Kingdom and foreign banks present, together withbranches and subsidiaries of United Kingdom building societies.

For more information see the section on Banking.

Companies

The Isle of Man has been legally and politically distinct for over athousand years and has proactively enacted regulation toencourage good quality organisations to consider the Isle of Manfor its business. The Island prides itself on some of the mostsophisticated law relating to forms of business organisation of anyoffshore centre and is among the leading jurisdictions in theworld in this respect.

The Isle of Man has become one of the most sophisticated legalframeworks in the world relating to business organisations,particularly for offshore work. As a result the Manx corporatestructures have been widely used internationally.

Three structures available are

● Partnerships● Limited Liability Companies● Companies, either public or private

Partnerships

The law relating to Partnerships is contained in the Partnership Act1909 and provides for two types of partnership, namely GeneralPartnership and Limited Partnership.

Business Overview



The definition is ‘A Partnership is the relationship which subsistsbetween persons carrying on a business in common, with a viewto profit.’

Under the definition the maximum number of partners is 20 apartfrom the following exclusions, with certain restrictions:

a) Firms of Advocatesb) Firms of Accountantsc) Firms of Stockbrokers in a Stock Exchanged) Regulated Collective Investment Schemese) Partnerships for ownership, management or charter

of ships or aircraft.

A partnership is not a single legal entity in its own right, as is acompany. As such, the assets of a partnership are owned in thejoint names of all the partners or, where this is inconvenient, theassets can be owned in the name of a Trustee who will hold theassets in trust for the partners.

General Partnerships

The partners of a General Partnership are each generallyresponsible and personally liable, without limit, for the debts andliabilities of the partnership. The acts of a partner in pursuance ofthe normal business of the partnership are binding on thepartnership. Even after retirement or death, the partner or hisestate continues to be liable. A corporation cannot be a partner.

The interests of the partnership assets, and the rights and dutiesof the partners, are governed by the Partnership Agreement, ifthere is one. In the absence of any agreement default rules arespecified under the Act.

For the purpose of Manx income tax a Partnership is not ataxable entity and so is not assessable in its own right in respectof the annual profits or gains that accrue from its business.However each partner is liable to pay income tax on his/hershare of profits from the Partnership. A non-resident partnerwould only be liable to non-resident income tax on incomederived from Manx sources.

Limited Partnerships

A Limited Partnership may also not have more than 20 membersunless it falls within any of the exempted categories listed above.

It must consist of one or more ‘General Partners’ with unlimitedliability, and one or more ‘Limited Partners’. Either type of partnermay be an individual or a corporate entity.

A limited partner shall, at the time of entering the partnership,contribute a defined amount of capital or property, and his liabilityfor the debts of the partnership is limited to that amount. ALimited Partner may not take part in the management of thebusiness otherwise he will become liable for all debts andobligations whilst taking part in such management.

Manx Partnerships

In broad terms a partnership governed by Isle of Man law withManx resident partners is referred to in general terms as a ‘Manx’Partnership, regardless of the location of the partnership’s property.The Partnership Act of 1909 does not state that only partnershipsexpressly governed by Isle of Man law fall within the boundariesof the Act and the statutory provisions regarding limitedpartnerships do not appear to prohibit partnerships governed byforeign law with foreign partners from registering in the island aslimited partnerships.

International Limited Partnerships

The International Business Act 1994 introduced provisions for thetaxation of certain Manx Partnerships enabling them to apply tobe treated as International Limited Partnerships, which statusexempts limited partners resident outside the Isle of Man fromany liability to Manx income tax.

Limited Liability Companies (LLCs)

The Limited Liability Companies Act 1996 introduced a new formof business organisation into Manx law – the Limited LiabilityCompany. This American concept, originally conceived inWyoming, USA, combines a partnership-like membership structureand tax treatment with limited liability protection for its members.It is a separate legal entity whose members’ liability is limited tothe amount of their capital contribution. The right to manage theLLC is vested in the members themselves in proportion to theircontributions, although they do have the option of appointing amanager.

The Act provides for two types of LLC – a resident LLC which hasmembers resident in the Isle of Man, and an International LLC,which has no members resident on the Isle of Man.

For Isle of Man income tax purposes, an LLC will be taxed in thesame way as a Partnership and, if owned by non-residentmembers and having no Isle of Man source of income, can beexempt from all Isle of Man direct taxation.

As there is no limitation to the number of members of an LLC theform lends itself readily as a vehicle for the issue of debtinstruments in the raising of investment funds.

In many cases conventional companies are too complex andcostly to administer. The requirement for the separation ofownership (shareholders) from management (directors), the needfor AGMs, etc may be inappropriate for a small holding company,or even a small trading business. It was the need for a simplifiedstructure, while preventing its use as a mechanism for concealingownership and activities, that led to the development of theLimited Liability Company.

Companies

Several Companies Acts have been enacted since 1931. They setout the types of companies which may be incorporated and themanner in which their affairs should be conducted. Isle of ManCompany Law is largely based on that of Great Britain.

A company is a separate legal entity which is formed by one ormore subscribers signing the Memorandum and Articles ofAssociation. The beneficial ownership of the company is notrequired to be disclosed and shares may be held by nominees.All companies are required to have a Registered Office in the Isleof Man.

Companies may be

a) Limited by sharesb) Limited by guaranteec) Limited by guarantee and having a share

capital (hybrid company)d) Having a share capital with unlimited liability

Companies limited by shares are formed with authorised sharecapital.

Companies limited by guarantee have no predetermined capitaland thus no shares. Members are elected and can resign.Membership is not transferable.



As the name ‘hybrid’ implies these are companies which combinethe features of companies limited by shares and companieslimited by guarantee. The original purposes of this structure areno longer relevant.

However its flexibility has led to its increasing use as a‘Foundation’; being an alternative form for a discretionary trust,and also for proprietary clubs and resorts. It lends itself well tobeing structured as a foundation or quasi-trust where theshareholders act as trustees and the non-shareholding membersare discretionary beneficiaries. Such a structure comparesfavourably with a foundation in a civil law country being simpler,more flexible and less costly to establish and administer.

Companies having a share capital with unlimited liability have ashare capital in exactly the same way as a company limited byshares but there is not a limit to the liability of members. Suchcompanies are not dissimilar to civil law partnerships.

A company may be either public or private. Private companiesare not permitted to offer their shares to the public.

It is planned also to introduce Protected Cell Companies (PCCs).

Although the choice of which structure to operate in the Isle ofMan is not restricted, the most common vehicle for trading andinvestment is the Isle of Man private company limited by shares.

Offshore or International Companies

The Companies Act 1931 requires the registration of companiesincorporated outside the Isle of Man but which have anestablished place of business on the Isle of Man or have aninterest in real estate on the Island. It is therefore important todistinguish between the place of a company’s incorporation andthe place of its residence.

In determining whether a company is liable to Manx income taxit is deemed resident in the Isle of Man if its central managementand control is exercised in and from the island; for example ifthe majority of its board of directors are resident and/or thecompany’s board meetings are held on the island.

The company structures above relate to companies incorporatedand resident on the Isle of Man. There are other classes ofcompany which enjoy certain taxation advantages. These are asfollows:

Non-Resident Companies

A company which has been incorporated in the Isle of Man sinceat least 5th April 1999, but which is managed and controlledoutside the Island, may be treated as non-resident for taxpurposes.

Since 6th April 1999 all Manx incorporated companies have beendeemed resident for income tax purposes. Non-residentcompanies can no longer be formed and it is likely that theremaining non-resident companies will be brought within themainstream tax system by 2006 when the zero rate corporate taxstrategy is implemented.

Tax Exempt Companies

Tax Exempt Companies are exempted from liability to pay Manxtaxes on their profits if the provisions of the Income Tax (ExemptCompanies) Act 1984 (as amended) are satisfied. However, thereare considerable restrictions on the organisations that can applyfor exempt status. Also, as the treatment given to suchcompanies in the Island is perceived as ‘harmful’ under the EUCode of Conduct on Business Taxation, it is envisaged that this

structure will cease to be available after 31st December 2005.However, with the island’s planned introduction of the zerocorporate tax strategy in 2006, there should be no adversetaxation consequences for exempt companies as a result of thechange.

International Companies

The International Business Act 1994 introduced the concept of theinternational company which was designed to attract newinternational business to the Isle of Man. An internationalcompany is resident for Manx income tax purposes and thestatus is available to Isle of Man incorporated companies, bothpublic and private, and companies incorporated outside theIsland. The income and receipts must derive from outside the Isleof Man or from dealings with other international organisations,except for interest from approved financial institutions on theIsland.

As for Tax Exempt Companies there are restrictions on the types,location and customers of business permitted and no personresident on the Isle of Man can have a beneficial interest.

Like exempt and non-resident companies, the internationalcompanies regime has received criticism because of theirfavourable taxation treatment in comparison to resident tradingcompanies. Therefore, it is planned that such companies willbecome part of the government’s new tax strategy from 1stJanuary 2006. However, the planned introduction of zero ratecorporate tax should mean that any impact on InternationalCompanies will be negligible.

Companies incorporated outside the Isle of Man

A company which is incorporated outside the Isle of Man mayestablish a place of business in the Island and register as aforeign company under Part XI of the Companies Act 1931. Sucha company would then become liable to Manx income tax onsuch of its profits that are derived from Isle of Man sourceincome. However, it has been possible for a registered foreigncompany to become a tax exempt company or an internationalcompany under the terms of the relevant acts.

Although the introduction of the new Manx income tax strategyfrom 1st January 2006 will mean that exempt and internationalcompany structures will no longer be available, it is anticipated aforeign company suitably registered will be charged income taxon income from Manx sources at a zero rate.

Exempt Insurance Companies

The use of the Isle of Man as a jurisdiction for international lifeassurance and captive insurance companies has increasedsignificantly since the 1980s, largely because of the soundregulatory and competitive tax regimes. A company seekingexemption from all or part of its liability to tax on profits orincome will need to satisfy the Assessor of Income Tax that itsunderwriting profits or losses arise from risks outside the Islandand its other profits and income arise from outside the Island orfrom approved financial institutions on the Island.

Licences for exempt insurance companies are issued by theInsurance Supervisor who is responsible for the generaladministration of the Insurance Act 1986.

Although under the proposed new tax strategy to be introducedon 1st January 2006 exempt insurance companies will no longerexist, companies formerly falling into the category will becomepart of the mainstream zero rate tax system and should not sufferadverse consequences from the change.



Redomiciliation of Companies

The Companies (Transfer of Domicile) Act 1998 allows foreigncompanies listed on recognised stock exchanges and foreignsubsidiaries of such companies to re-establish in the Isle of Manas if they were Manx companies. Such companies would thenbe in the same position as if they had been registered in the Isleof Man. Under provisions in the Insurance (Amendment) Act 1995captive insurers and some reinsurers are also permittedredomiciliation.

Also, Isle of Man incorporated companies meeting therequirements are permitted to discontinue in the Isle of Man andemigrate to another jurisdiction. In cases of both immigration toand emigration from the Isle of Man, redomiciliation is dependenton there being suitable legislation in the relevant otherjurisdiction.

Redomiciliation avoids some of the costs associated with windingup and forming new companies, allows existing contracts tocontinue, allows assets to remain within the company andpermits continuity during relocation. This class is likely to beextended in the future.

Company Formation

Individuals or bodies wishing to establish an Isle of Man businessstructure may wish to use the services of a CSP (Corporate ServiceProvider). Under the Corporate Service Providers Act 2000, allentities engaged in ‘regulated activities’ much be licensed.Regulated activities include the formation, sale or transfer ofcompanies; the provision of registered offices; acting as directorsor company secretaries for others; or performing companyadministration tasks.

For further information see the section on Corporate ServiceProviders.

The Company Registry

The Isle of Man Companies Registry has been in existence since1865. In addition to the regulation of Manx companies theRegistry has four core functions;

1) The incorporation and registration of companies,business names, limited partnerships;

2) The registration of statutory documents filedpursuant to relevant legislation;

3) Ensuring compliance with the appropriaterequirements of the law and the striking off ofdefunct companies;

4) The provision of accurate and timely information tothe public.

Corporate Income Tax

At present an Isle of Man resident trading company is liable toManx income tax. There is no corporation tax or stamp dutypayable in the Isle of Man.

All companies incorporated in the Island are deemed to beresident there. There are provisions for companies to becomeexempt from the requirements to pay income tax (see above). Acompany incorporated outside the Island may be held to resideon the Isle of Man if its management and control is exercisedfrom the Island. A company is normally considered to reside atthe place where ‘central management and control’ is exercised,which will normally be the place where the board of directorsmeet.

Zero Rate Company Income Tax Strategy

In 2002 the Isle of Man revealed a radical new tax strategy ofstandard zero rate income tax for Isle of Man companies,scheduled to be implemented in 2006. The measure is designed,in part, to resolve the Island’s issue with the EU over its exemptcompanies legislation, which has allowed companies to claim taxexemption on income derived from outside the Isle of Man. Thistreatment is deemed harmful within the rules of the proposed EUCode of Conduct on Business Taxation.

The aim of the new legislation is to achieve a uniform tax systemfor the whole business sector, with a new zero rate of corporatetax for both resident and non-resident companies, but combinedwith a higher rate of 10% levied on some finance sectorbusinesses, principally banks. The intention is for the newcorporate tax regime to be introduced on 1st January 2006 whichwill coincide with the deadline for removing ‘harmful’ tax practices.It is understood that the European Commission has confirmedthat this zero rate is acceptable under the Code of Conduct.

Trusts

Definition of a Trust

Isle of Man Trust Law has its origins in English Trust Law. There isno complete definition of a trust in statute law, since trust law isderived from the rules of ‘Equity’ as evolved in English law, andnot from any Statute of Code.

In general, a trust is a fiduciary relationship whereby one person(the‘Trustee’) receives an asset from another person (the ‘Settlor’)to hold for the use or benefit of a third person (the ‘Beneficiary’).The legal ownership is vested in the trustee, but the beneficiaryhas an ‘equitable’ interest.

There are many forms of trust, and many definitions but no singledefinition of a trust has yet been written which is comprehensiveand precise. The types of trust permitted may be classified as follows:

A) Express Trusts which are created voluntarily and intentionallyand are the most common forms of trust. They are createdwhen a settlor transfers assets to a trustee to hold for thebenefit of the beneficiary or, on death, where the will of thetestator directs that some or all of the assets are transferredinto a trust.

B) Non-express Trusts which are created without any expressintention to do so by the settlor, often referred to as an‘implied’ trust. These can include

a) Resulting trusts where the purpose of a transactionfails and the property reverts back to the settlor;

b) Constructive trusts which arise by operation of lawand which may be imposed by a court incircumstances where it would be inequitable for aperson holding property to keep it, as such aperson would have been unjustly enriched.

C) Private, Public or Purpose Trusts

a) Private trusts are made for the benefit of specificprivate individuals

b) Public Trusts are made for the benefit of the publicat large, or a section of it – for example acharitable trust established to advance education,promote a religion or provide for the homeless.



c) Purpose Trusts. The Purpose Trust Act 1996 permitsthe establishment of non-charitable purpose trustsnot exceeding 80 years in duration.

The difference between a public and a private trustexists purely in relation to its purpose. As withpublic trusts, purpose trusts do not require anascertainable human beneficiary. A public trust inthe Isle of Man must be registered, must fileannual audited accounts, and is subject tosupervision by Her Majesty’s Attorney General inthe Isle of Man. A public trust is always anexpress trust.

D) Bare Trusts are where the trustee holds the property on trustfor a single beneficiary absolutely. He has no power ordiscretion to do anything other than hold the property anddeliver it when requested to the beneficiary. A ‘nominee’relationship is often a bare trust.

E) Fixed Interest and Discretionary TrustsMost trusts created in the Isle of Man are express privatetrusts. They may be fixed interest whereby the trust deedspecifically identifies the beneficiaries and stipulates how andwhen they are to enjoy the trust property, or discretionarywhere the settlor gives the trustees power to determine howmuch (if any) each beneficiary should receive and when.

Fixed interest trusts include:

a) life interest trusts where the life tenant beneficiaryhas the right to enjoy the income of the trust fundfor life and the beneficiary of the remainder hasthe successive interest, usually the right to thecapital of the trust on the death of the life tenantbeneficiary

b) contingent interest trusts where a contingent gift isheld in trust pending a satisfactory specificcondition whereupon the beneficiary is entitled tothe gift

c) protective trusts – a statutory form of trust whichshares the characteristics of a life interest trust anda discretionary trust. Under these the life interestends if the principal beneficiary does, or attemptsto do anything, which would deprive him of theright to receive income from the trust fund, and isreplaced with a discretionary trust under which theprincipal beneficiary is a potential beneficiary. Inthe US these are known as spendthrift trusts.

In a discretionary trust the trustee shall have such discretionto a greater or lesser extent as the trust deed may determine.In a non-discretionary trust the trustee has no discretion as towhich of a class of beneficiaries shall receive benefits, northe amounts or timing of such benefits.

F) Trading Trusts

Within Trading Trusts specific powers are given to the trusteesto carry on trading activities. Although the trustees haveimmense exposure to litigation for breach of trust should theyincur any losses, this type of trust is sometimes appropriate,generally to carry on a trading activity where the taxableevents are attributed directly to the beneficiaries, therebyomitting a level of corporation tax.

G) Unit Trusts

Within a unit trust the interests of beneficiaries are defined byreference to ‘units’. Such vehicles can be open-ended withthe number of units ‘created’ and ‘redeemed’ as required.

Unit trusts make excellent vehicles for extended families touse as a private trust, since they provide for participation byfamily members separated from management, with anindependent trustee to hold the assets.

A unit trust will generally be a collective investment schemewithin the meaning of the Financial Supervision Act 1988.The Isle of Man has a thriving collective investment/mutualfund industry. Any unit trust with more than 50 namedbeneficiaries, and which does not contain a prohibition aboutpromoting itself to the general public, is required to belicensed by the Financial Supervision Commission. (See alsodetails below on Funds)

Public unit trusts usually also have a custodian, in addition tothe trustee, who actually holds title to the assets. Thisprovides an additional layer of protection for the unit holders.

Elements of a Trust

As described above a trust is not formed as such, but comes intobeing as a result of the express or implied wishes or actions ofthe settlor. In any trust there must be:

a) A Settlor, sometimes also called the ‘Grantor’,‘Trustor’, ‘Creator’ or, in the case of a trust set upupon death, a ‘Testator’. This is the individualwhose assets are placed into the trust or‘settlement’.

b) A trustee, who is the recipient of the assets givenby the settlor

c) A beneficiary

d) Trust property. The nature of the property isirrelevant.

Trust Service Providers

Trustee services may be provided by individuals and companiesalike and these services may include creation of trusts; acting astrustee; providing trust administration services such as recordkeeping and the preparation of accounts; and providingadministration in relation to trust assets.

Having specifically regulated corporate services in the Isle of Manunder the provisions of the Corporate Service Providers Act 2000,the Financial Supervision Commission is now in the process ofcreating legislation to regulate trust service providers. Theexpectation of this regulation is that the provision of trusteeservices will become a licensable activity so as to ensure thatthose offering such services are fit and proper so to act. The ‘fitand proper’ criteria are likely to be based on the three tests ofintegrity, solvency and competence.

See also the section on Wealth Management.



Funds

The fund management industry has grown steadily on the Isle ofMan since the late 1980s and has recently been given a boost bythe introduction of a new initiative, the Experienced Investor Fund(EIF), and changes in the Isle of Man budget 2003 whichintroduced a number of key taxation and regulatory changes.These changes combine to raise the competitive position of theIsland in the fund industry.

As a mature financial centre the Isle of Man has a number ofinternational accounting firms present who, along with many ofthe local advocates (lawyers) can provide specialist advice inconnection with fund management and international fundofferings.

Custodian and trustee services are provided by subsidiaries of UKand international banks on the Island where these are required.In addition, there are a number of well known financialinstitutions providing third party administration for fund managersand promoters who do not wish to establish a physical presenceon the Island, and these can administer either Isle of Man oroverseas incorporated funds.

The fund structures available are:

Mutual Funds

In the Isle of Man mutual funds can take a number of forms:

● Companies (open or closed-ended)

● Unit trusts

● Limited partnerships (more than 20 partners areallowed)

● Pure contractual arrangements

Investors can participate through the holding of shares, debtsecurities, units or basic contractual rights.

Which structure is most appropriate will depend upon factors suchas the type of investments being made, the jurisdiction(s) wherethey will be made and the taxation treatment of the investors atwhich the structure is targeted. In addition, funds administered inthe Island have the choice of incorporation in the Island or otherdomiciles.

Authorised Schemes

Authorised Schemes are funds that are subject to detailed andprescriptive regulation and which are capable of promotion to thegeneral public in the Isle of Man, the United Kingdom andelsewhere. Investors in authorised schemes are covered by acompensation scheme so these funds are suitable for companieswanting to offer a retail investment product with a high degree ofinvestor protection.

International Schemes

International schemes can be used as both retail and institutionalfunds and are flexible as there are few regulatory investmentrestrictions which apply. They are subject to limited regulationand are capable of promotion outside the Isle of Man.

Exempt International Schemes

Exempt International Schemes are unregulated private fundswhich cannot be marketed to the public and are restricted tohaving no more than 49 participants. Their suitability, generally,is for use by small groups of investors where wide promotion andextensive regulation are not required.

Professional Investor Funds

Professional Investor Funds are a special category of funddesigned for the exclusive use of institutional and High Net Worthprofessional investors. As unregulated funds they can beestablished quickly and inexpensively, and are not subject to anyregulation or restriction on the number of investors. However,these funds must have a minimum subscription level ofUS$100,000 and can only be sold to defined ‘professionalinvestors’. The Professional Investor Fund, along with theExperienced Investor Fund (see below) is a particularly suitablevehicle for alternative investment products, for example hedgefunds.

Experienced Investor Funds

The Experienced Investor Fund, has been designed to provide asimple, inexpensive and flexible solution to the more complexneeds of sophisticated individuals, market professionals andglobal asset managers, while seeking to provide an adequatelevel of comfort to investors by ensuring proper disclosure andadministration. It has no mandatory minimum subscription orlimit on the number of investors. The fund is only available toexperienced investors, defined as ‘persons who, in relation to anyexperienced investor funds, are sufficiently experienced tounderstand the risks associated with an investment fund.’

Experienced Investor Funds, which may take the form of unittrusts, open-ended investment companies or limited partnerships,are the Isle of Man’s fund management vehicle of choice.

Closed-ended Funds (or Investment Trusts)

Strictly speaking, these are not classified as mutual funds underthe Isle of Man’s Financial Services legislation. However, they areanother vehicle for collective investment and, because of therestrictions relating to the withdrawal of capital before a set date,are particularly suitable for venture capital, unlisted securities orproperty investment, all of which are illiquid and require longerterm investment commitment. Normal (open-ended) funds arenot suited for these types of investment as investors usually havethe right to withdraw their capital at short notice and at frequentintervals.

2003 Tax Changes

The move towards zero tax on company profits was broughtforward by 3 years for fund administrators in a bid to attract newlicence holders looking to manage or administer funds on a thirdparty basis on the Isle of Man. The changes made were:

● Zero rate tax on fund manager’s profits for all thirdparty fund administrators and managers

● VAT exemption on services to Isle of Man funds.Imposition of VAT on Isle of Man funds had longbeen a bone of contention

● Overseas funds exemption from ‘dual regulation’.This will ensure that funds incorporated inrecognised jurisdictions can be in future beadministered in the Isle of Man without beingsubject to further Manx regulation.



Insurance

The Isle of Man is home to a large number of insurance relatedcompanies ranging from independent consultants and brokersthrough to large international companies specialising in lifeassurance and captive insurance.All insurance business isregulated by the Insurance and Pensions Authority (the IPA).

On its web site the IPA states:

‘The aim of the Insurance and Pensions Legislation and regulatoryprocess is to deter the unscrupulous without hindering forwardthinking dynamic companies. Supervision is achieved in anenvironment of trust and co-operation between the IPA and themarketplace.

The result is that the Island protects its history, and its future, asan international insurance and pensions centre of high repute,whilst at the same time encouraging new business and helpingthose businesses already here to expand. It is the organic growthwhich has contributed greatly to the flourishing success of theisland’s Finance Industry.

The ultimate goal is to ensure that companies based on theIsland, and their clients, have the confidence that they aretransacting business in a high quality, secure and well regulatedcentre, which has the expertise and capacity to cater for theirneeds both now and in the future.’

Captive Insurance

A captive insurance company is a subsidiary company formed toinsure or reinsure the risks of the parent company, generally toprovide alternative risk management solutions to those of theconventional insurance market. The administration is usually,though not always, outsourced to a specialist captive insurancemanager.

By creation of its own captive, the principal organisation cangenerally achieve substantial savings by accommodating its ownrisks, reducing brokerage commission and having greater controlover timing on its own cash flows of premium income,reinsurance and claims payment. An important additional benefitis that premiums are based on its own loss record and not onclaims falling on the wider insurance industry.

For over a quarter of a century the Island has been a recognisedas a captive domicile and the sector has remained dominant overrecent years. It is now in a strong position to attractivealternatives of risk management against a backdrop a rollercoaster commercial market which still has to learn the importanceof continuity of pricing and breadth of coverage to its clients.

The Isle of Man was one of the first domiciles to introducelegislation allowing captive insurance companies from otherterritories to re-domicile to the Island without being liquidated inthe original territory. This has considerable savings for thecompany concerned both in time and cost.

In March 2004, the Island’s Government introduced legislation toallow the setting up of Protected Cell companies (PCC) to carry oninsurance business. PCCs can provide a means of entry into thecaptive insurance market to entities for which it was previouslyuneconomic. The structure also makes it ideal for companiesseeking to set up captive insurance cover for joint ventureundertakings, and for the setting up of special purpose vehicles.

The Isle of Man also has legislation that allows captives to beformed as Limited Liability Partnerships.

Life Assurance

The Isle of Man has probably the largest offshore life assurancesector in the world and has repeatedly been voted the ‘bestoffshore jurisdiction’ by Independent Financial Advisers operatingin the international market. Since the mid 1980s it has becomehome to the international subsidiaries of highly respected lifeassurance companies, which attract business from all around theworld. The success of this sector can be seen from the fact that,at the end of 2002 the funds under management for the lifeassurance sector on the Isle of Man were £14.4 billion.

With such a long history in the international life assurance marketthe Island can boast a wealth of experience within its highlytrained workforce who are responsive to the needs of thedemanding market and demonstrate high levels of customerservice. The companies on the Island have led the field in thedevelopment and distribution of some of the most innovativeproducts on the international market.

Early in the growth of the life assurance sector the Isle of Manintroduced its Policyholder Protection Scheme to ensure that, inthe event of a life assurance company being unable to meet itsliabilities, there is protection for the policyholder. Unlike manyother policyholder protection schemes, the Island’s schemeoperates globally, providing protection to policyholders no matterwhere they reside.

General Insurance

The Island is also home to branch offices of some major UnitedKingdom general insurers who service the requirements of localresidents and businesses.

See also section on Insurance

Pensions

The Insurance and Pensions Authority has recently completed arevision of the Island’s Pension Legislation. The objective hasbeen to create a regulatory framework which

a) encompasses domestic pension arrangements toIsle of Man residents,

b) creates an environment which enables multinational and global businesses to use the Isle ofMan as a centre from which to manage retirementbenefit schemes for their employees who mayreside anywhere in the world.

Domestic Pensions

The domestic pension legislation operating in the Isle of Man issimilar to that in the UK. Individuals who take up residence onthe Isle of Man are able to transfer their UK occupational orpersonal pension rights into equivalent Isle of Man basedarrangements. Furthermore, similar restrictions on the payment ofcontributions, and the payment of benefits at retirement apply.

As with the UK, those who do not have provision within anoccupational scheme through their employer, are able to establisha personal pension arrangement.

International Schemes

The Retirement Benefits Schemes Act and International BenefitsSchemes Regulations, which came into operation on 1st January2002, create a strong infrastructure for the management ofinternational pension schemes.



The aim is to create an environment which provides security formulti-national or global businesses wishing to establish retirementbenefits schemes in the Island to provide retirement benefits fortheir global workforces.

The legislation has introduced rules which oversee themanagement of the schemes and protect the interests ofmembers. At the same time, individual companies or theiradvisers are afforded a large degree of flexibility to tailor schemerules in line with varying corporate or market objectives.

The legislation aims to ensure that retirement benefits schemesbased on the Island, and their members, gain from thereassurance that their retirement benefits are secured in anappropriate manner and that their retirement needs are beingcatered for by skilled and professional businesses.

The instruments which have been introduced to regulate thepensions industry build around the core attractions of politicalstability, strong investor protection, a stable currency base and astrong banking sector, and use them to add considerable value tothe business case for using the Isle of Man as a jurisdiction forpension scheme structuring.

Supporting Infrastructuree-Business

The Isle of Man offers many advantages as a location forbusinesses, particularly in the areas of e-business and tele-communications. They provide a strong environment on whichcompanies can build and grow thriving businesses. These include:

● A telecommunications infrastructure with resilienton and off-island connectivity and the capacity togrow. The Island has near universal broadbandcoverage and is at the forefront of technologydevelopments with its launch of 3rd generation(3G) mobile telephone network.

● Through appropriate regulation and judiciousintroduction of competition, thetelecommunications costs are highly competitive,whilst ensuring there is an incentive for investmentin quality and for the long term.

● A highly IT-literate workforce. Heavy investment inICT education has resulted in over 90% of schoolleavers in 2003 having a recognised ITqualification.

● A strong IT services industry providing softwaredesign, development and support, webdevelopment, IT hosting, security management,business continuity systems management andoutsourcing, all delivered locally.

Government Incentives

The Department of Trade and Industry (DTI) has many year’sexperience in attracting inward investment and can claim anumber of commercial successes from its investment programme,that has seen in excess of US$100 million invested in commercialprojects over the past 10 years. There are also a number offinancial assistance schemes available to qualifying companies.See also see the section on the Department of Trade & Industry.

Currency/exchange controls

The Isle of Man is in the currency union with the United Kingdomalthough it issues its own currency, which is legal tender only inthe Isle of Man. Within the Island the Manx notes and coins

circulate alongside the United Kingdom’s.

There are currently no exchange controls that apply to themovement of funds in and out of the island, whether capital orincome, nor is there any legislation in place whereby suchcontrols may be imposed.

Secrecy and Disclosure

The Companies Register maintains details of a company, its name,directors, secretary, shareholders, registered office, annual accountsfro public companies, and the annual returns. The Registry isopen to the public and company information may be inspected.

There are no general requirements for the details as to thebeneficial ownership of issued shares of the company to bedisclosed to the Registrar of Companies, the Assessor of IncomeTax or the Collector of Customs and Excise. However CorporateService Providers need to know the beneficial owners ofcompanies they administer.

Save for those partnerships and companies exempt from incometax, the accounts of sole traders, partnerships and companiesmust be submitted every year to the Assessor of Income Tax toconfirm the income tax returns already submitted. Annualaccounts may also be inspected by the Collector of Customs andExcise.

The EU Savings Tax Directive expects member countries,dependencies and ‘third countries’ outside the EU to introduceautomatic exchange of information or a withholding tax oninterest paid to individual EU investors. Given the varyingstandards of information exchange the Isle of Man, in line withJersey and Guernsey, has opted to introduce a withholding taxwhen the directive is due to take effect in 2005. The move doesnot affect individuals living outside the EU and is still subject to allrelevant countries adopting similar measures.

The Island’s regulatory bodies (the FSC and IPA) require thedisclosure of beneficial ownership of banks, investmentbusinesses, insurance companies, corporate and (soon) trustservice providers which are licensed or authorised in the Island.

Data Protection

Data Protection on the Isle of Man is governed by the DataProtection Act 2002 which came into force on 1st April 2003,replacing the Data Protection Act 1986. It reflects the contents ofthe UK Data Protection Act.

Anti Money Laundering Controls

Money laundering is the process by which criminals attempt toconceal the true origin and ownership of the proceeds of theircriminal activities. If undertaken successfully it also enables themto maintain control over the proceeds and, ultimately, provideslegitimate cover for their source of income.

Since the late 1990s specific international legislative initiativeshave taken place aimed at combating the prevalence of drugtrafficking, terrorism and associated money laundering activities.The Isle of Man has introduced a number of its own laws aimedat preventing such activities and has introduced the Anti MoneyLaundering Code. The code sets out ‘Know your Customer (KYC)’procedures and details the mechanisms for reporting suspicioustransactions.

FATF recently acknowledged the comprehensive steps taken bythe Isle of Man to combat money laundering, which is in keepingwith the Island’s role and reputation as a responsible and well-controlled international centre.

36 Mull Circle, background Port Erin


Country Fact File > Old Mann, New Mann

Old Mann,New Mann

The formation of the land dates back to about 500 million yearsago, the Palaeozoic era, with rocks from the Cambrian and Silurianperiod found in existence today over most of the Island. Thetypes of rocks are varied with granite, limestone, sandstone,quartz, slate and aggregate being the most common and mineralssuch as zinc and iron ore. Copper, lead, silver and even gold havebeen found and mined through history.

The black carboniferous rocks found at Poolvash in the south ofthe Island have been quarried and polished and used as headstones but more famously as the steps of St. Paul’s Cathedral inLondon. It is known as ‘black marble’. Fossils from the Cenozoicera have been found and cover the period of the last 10,000years revealing animal and plant relics.

The Calf is a small island of about 800 acres, off the Southcoast of the Isle of Man separated by a small break of seawaterThe Sound. It is a natural wildlife sanctuary, although visitors areallowed on the Calf at appropriate times of the year. It remainslargely unoccupied except for a team of researchers.

Island Civilisation - The Manx Identity

Studies, discoveries and excavations of the Island show thatthere were inhabitants as early as the 5th century AD althoughthe island was known to exist in 54 BC by the early Romans whonamed it ‘Mona’. These inhabitants were considered to beChristian Celts. Parts of their language are still in use today. Stonecircles and standing stones or quoits and stone crosses are to befound all over the Island. There are ancient stone graves, barrowsand cairns of which Orrey's Grave is the best known. Romanartefacts are extremely rare and show that at the time of theRomans invading the British Isles, the Isle of Man was largelyforgotten allowing Celtic beliefs and culture to flourish.

The Vikings that settled turned to Christianity and mixed withthe Celts. The Manx identity was now firmly established withlanguage, belief and culture. Anglo Saxon and Viking coin hoardshave been unearthed. Castle Rushen built in the Middle Ages wasin use until the early 20th century, and the town of Peel has itsown cathedral.

Politics and Social history

The Island People arrived from mainly Scotland and Ireland inthe first instances, followed by the Welsh, the Norsemen and theDanes by the 8th century, producing some very turbulent times.The possession of the Island continued to be fought and ruledintermittently by the Scots, the Irish, the Welsh, the Britons andthe Scandinavians. By the 14th century, the English under EdwardIII, had managed to secure the Kingdom of Man through marriageof the last Manx sovereign descendant to Sir William deMontecute (later to become Earl of Salisbury). This expelled theScots and safeguarded the land from further attack. The Islandwas sold on first to the Earl of Wiltshire in 1393 then passed onto the Earl of Northumberland in 1397, and in 1406 to Sir JohnStanley (of Lancashire), the Earl of Derby. The Island remainedwith the Stanley family until 1651 when the seventh Earl wasexecuted. The English Parliament retained the Island and was onlyreturned to the Stanley family after the Restoration. In 1735,following the tenth Earl of Derby’s death, the ownership went toone of the descendants of the Stanley family, James Murray, thesecond Duke of Atholl. In 1765, the British Government madedemands for the purchase of the Isle of Man. By 1774, the thirdDuke of Atholl surrendered payment of revenues and finally soldhis remaining interest to the British Crown in 1825. Since thatdate, a Lieutenant Governor has been appointed by the Crownand the Sovereign is now Lord of Mann.

> Fort Island, with 12th Century Norse-Celtic chapel (St. Michael) and fort built in 1645 by 7th Earl of Derby, viewed from Derbyhaven

> Ancient remains of circular stone hut, Chasms

38 Rushen Castle, Castletown


> One of many milestones found throughout the Isle of Man> Isle of Mann TT races

Country Fact File > Old Mann, New Mann

Mists shroud the Isle of Man; in physical terms this veilprotected the Islanders from marauders; socially, the stories ofgreat kings and heroes, fairies and witches, spirits and druids arestill told today. There is much literature to be found about thepeople of Man. The life of the people of Man was simple andstraight-forward. Farming and fishing were the mainstays. Learningthe ways of the land and the sea was the education of the day;the spoken language was simple with no need to write. Communitywas close and caring. Its people were poor in monetary terms butrich in spirit and creativity. By the time the British Crown took overthe Island, the Manx had learnt new skills; developed old skills,literature, art and music came to the fore, with traditional Manxstyles and integrated with European styles. Diversity had truly begun.

The Victorians of Britain began to see the Isle of Man as aspecial place for holidays. This further increased the skills of theManx people to create a demand for tourism and improve thefinancial aspect of the Island. With good governance, this boostedthe economy up until the 1960s when the availability of holidaysfurther afield took the regular tourists to Spain. The time was abig factor, flying instead of sailing and guaranteed warm weatherthroughout the summer season.

The Island economy suffered to some extent but concentratedon its strengths, the TT races (Tourist Trophy) providing excitementand adventure and an attractive element of danger. It had becomea lifesaver to the Island’s tourism industry. But this has not beenenough to sustain the people of the Island. The Manx governmentencouraged British expats to take advantage of living in the Isle ofMan due to its attractive taxation rates and property market. Dueto the United Kingdom government’s agreements with Europe inthe 1970s, the trade and travel arrangements that came into forceencouraged interaction not only with the Commonwealth but alsowith all European member states. The Isle of Man governmentidentified certain benefits and an agreement was set up with theUnited Kingdom, the European Union and the Manx government.The agreement between the Manx and British Governments is

known as the Customs and Excise Agreement 1979 or ‘TheCommon Purse’ and is fundamentally a revenue-sharing system. Itenables the Isle of Man to have its own independent Customsand Excise administration and to be responsible for the collectionof any duties and taxes arising in the Island.

Millennium Mann

The Isle of Man has been seen as a tax haven, primarily as aresult of its relativity to the United Kingdom providing financialarrangements and facilities not available in non-tax havenjurisdictions. Some countries in the European Union areconcerned about huge outflows of capital into certain Europeantax havens and are pushing for EU directives to bring all Europeantax havens into line. The Isle of Man remains globally strictlycompliant and continues to view the European directives with abroad mind. The area currently under scrutiny is the relationshipbetween the United Kingdom and the European Union. As thisdevelops so shall the Isle of Man.

> Hango Hill - Ancient place of execution, athough the ruins are of a late 17th century summerhouse known as Mount Strange

Act of Settlement 1703/4 or Manx Magna Chartathe Act of Tynwald that was passed to allow thetenants to buy their own land or to pass it toanother as a gift or inheritance. Act of Revestment1765 or Mischief Act – the English Crown boughtback the regalities of the Island from the Atholfamily thus gaining control over the land andbringing it in line with the United Kingdomcustoms and excise, thereby effectively preventingthe Island being used for the smuggling trade.

Fact File > Information

40 Laxey Wheel, ‘Lady Isabella’


Tynwald was sculpted over 1,000 years ago as a hill for rememberingancestors and airing grievances to the chief or king. Today, Tynwald isknown for being the world’s oldest continuous parliament. The formalsitting of Parliament still meets at the hill once a year on the ancientmidsummer’s day - 5th July. To mark the event the day is a public holidayon the Island. The people still air their grievances before whoever ispresiding.

The Manx Constitution

Historically, the system was more judicial than legislative. The Kingwould consult with his noblemen and declared to the ‘freemen’ orministers. The judge or deemster's word would stand as law to confirmthe outcome of the final acceptance of the declarations. Manx traditionallaw originates from this early period.

The Queen, Lord of Mann

In 1765 the third Duke of Athol surrendered the regality and customsduties to the British Crown for £70,000 plus an annuity of £2,000. As aresult, the British Crown purchased the Isle of Man and today Her MajestyThe Queen is Lord Proprietor of the Island and is formally referred to onthe Island as The Queen, Lord of Mann.

The Lieutenant Governor

The fourth Duke of Athol was made Governor General of the Island in1793, and held the post for over 30 years. He and his nephew, who wasthe Bishop of Sodor and Mann, became very unpopular by makingclaims to manorial rights and tithes and by contesting the earliercompensation accepted by his predecessors.

In 1829, the British Government removed the last of the Duke’sprivileges by paying out a final sum of £417,114. The British Governmentultimately gained from the surplus revenues of the Island before 1866more than they paid to the Duke. Since that date a Lieutenant Governorhas been appointed by the Crown. Today, the Lieutenant Governor is thepersonal representative of the Queen on the Island and presides at theannual ceremony at St John's unless the Sovereign or Royal Family

TynwaldParliament andthe Governmentof the Isle of Man

Country Fact File > Tynwald and Government

Tynwald ParliamentLegislative BuildingsDouglas, Isle of Man IM1 3PWTel: + 44 (0)1624 685500Fax: + 44 (0)1624 685504Email: [email protected]

President of TynwaldThe Hon Noel Q Cringle MLCTel: + 44 (0)1624 685500

Legislative CouncilTel: + 44 (0)1624 685500

House of KeysTel: + 44 (0)1624 685500

Office of the Clerk of TynwaldTel: + 44 (0)1624 685500

Official ReportTel: + 44 (0)1624 685512

LibraryTel: + 44 (0)1624 685520

Parliamentary Administration OfficeTel: + 44 (0)1624 685500

Members' OfficeTel: + 44 (0)1624 685505

Security OfficersTel: + 44 (0)1624 685500

Isle of Man GovernmentGovernment Office,Bucks Road, Douglas,Isle of Man IM1 3PN

Central SwitchboardTel: + 44 (0)1624 685685

Chief Secretary’s Office

Tel: + 44 (0)1624 685711




members are present. The Lieutenant Governor is appointed by theSovereign, on the advice of the United Kingdom Home Secretaryand the Government of the Isle of Man, serving for a five-year term.

The Lieutenant Governor used to be the executive head of theGovernment on the Island but now the role has become morevice-regal. The Lieutenant Governor has the power to dissolve theHouse of Keys and since 1981 has also been able to grant RoyalAssent on behalf of the Queen to designate Bills passed byTynwald.

The President of Tynwald

This is a fairly recent addition to the Tynwald office. The Presidentof Tynwald is the presiding officer responsible for order and theconduct of business at the sittings in Douglas. The members ofTynwald elect him from amongst their own number. Before 1990,the Lieutenant Governor presided over Tynwald and prior to 1980over the Legislative Council. The president remains impartial but hasa casting vote in the case of a tied vote in the Legislative Council.

The Lord Bishop of Sodor and Man

This is a historical title and can be traced back to medieval times.‘Sodor’, relates to the south and refers to the Southern Isles whichused to include the Hebrides as a diocese. ‘Nordreys’ were theNorthern Isles of the Orkneys and Shetland. The Bishop wasoriginally a Baron and also a Lord Spiritual, therefore was entitled to be a senior member of Tynwald. He sits on the LegislativeCouncil.

HM Attorney General for Isle of Man

The Attorney General is one of the three Crown Officers who sitson the Parliament Council and is the legal adviser to both theCrown and the Manx government.

The Legislative Council

The Legislative Council is the Upper Branch of Tynwald. It consistsof three ex officio members, the President of Tynwald, the LordBishop of Sodor and Man and Her Majesty's Attorney General andeight members elected by the House of Keys.

The House of Keys elects the remaining eight members of theLegislative Council for terms which expire in the February followingthe fourth anniversary of the date of election. Although elected bythe Keys, not infrequently from among its own members, theelected members of the Legislative Council are not controlled by, ordelegates of, the House of Keys.

The House of Keys

The House of Keys is the lower branch of Tynwald and is directlyelected by the people of the Isle of Man; a General Election is heldevery five years although, exceptionally, the House could bedissolved and a General Election held within that period.

For many centuries it has had twenty four members, althoughwhen the Kingdom of Mann and the Isles existed it hadrepresentatives from the Hebrides and numbered thirty-two. Thetwenty-four members represent single-member and multi-memberconstituencies.

The Speaker of the House of Keys

The Speaker of the House of Keys is elected by the House fromamongst its own members immediately the House assembles aftera General Election. He presides in the House and is responsible for order and its conduct of business. In Tynwald he is thespokesman of the House, although he attends Tynwald as anelected member and has there the same rights and duties as otherelected members.


> View of Tynwald hill with St John's church in the background > The ceremonial red case containing Parliament's agenda

> Tynwald in session



> Tynwald Day is a public holiday for the Islanders

The Officers of the Court

The Clerk of Tynwald, Secretary of the House of Keys and Counsel to theSpeaker assists the President and the Speaker in organising the business ofTynwald and the House of Keys, and advises on procedure. He isresponsible for maintaining a record of the proceedings and, as counsel tothe Speaker, he advises members on bills coming before the branches.

The Clerk of the Legislative Council and Clerk Assistant of Tynwald assiststhe President in the Legislative Council in organising the business of theCouncil, advises on procedure and is responsible for maintaining a record ofthe proceedings of that Branch.

The Chaplain of the House of Keys

The Chaplain leads the House in prayers at the beginning of their sittings.

Yn Lhaihder (‘The Reader’) fences the Court in the Manx language and,when required, promulgates the Acts in Manx.

The Deemsters

The First Deemster and Clerk of the Rolls is the Chief Judge of the Island'sHigh Court of Justice and, in the absence of the Governor, acts as DeputyGovernor. There is also a Second Deemster.

The office of Deemster is of very ancient origin and held considerablepower in Celtic times. The title is now only used in the Isle of Man andmeans ‘the pronouncer of doom or judgment’ and is of Gaelic Scottishorigin. The Deemster held a hereditary law position passing down throughthe generations the ‘Brehon’ or ‘Breast Law’ that which had been learnt byheart.

At the Tynwald Ceremony it still remains the duty of the Deemsters topromulgate Acts of Tynwald by reading the title of each Act and amemorandum containing a brief statement of its object and purport inManx and English from Tynwald Hill.

The Chief Minister and the Council of Ministers

The Chief Minister is the political head of the Isle of Man Government. Theoffice, in its present form, came into being in December 1986. The Councilof Ministers consists of the Chief Minister and nine Ministers and is primarilyresponsible for the formulation and implementation of Government policy.The Governor on the nomination of Tynwald appoints the Chief Minister.Ministers are appointed by the Governor on the nomination of the ChiefMinister. The Chief Minister and the Ministers are all members of Tynwald.

The Coroners

The Coroners are officers of Tynwald and the Courts, who servesummonses and other processes and enforce their execution.

The Sword of State

The sword has been dated to the 12th century at its earliest and wasknown to belong to King Olaf II of the Sudreys back in 1226. At eachannual meeting of Tynwald at St. John's, this ancient sword is ceremoniouslycarried before the Sovereign or the Governor by the Sword Bearer. Thesword signifies the duty of the Sovereign, acting through Tynwald, to protectand defend the people from their enemies.

Tynwald translates from the Scandinavian or Norse, ‘thing-völlr' meaning ‘assembly field’

Tynwald Day occurs on 24th June in the Juliancalendar but on 5th July in the Gregoriancalendar. Tynwald chose to keep the ancientMidsummer Court hence the date now reflectsmidsummer’s day as 5th July.

The true origin of the term ‘Keys’ whenreferring to the House of Keys is unknown, butmay be derived from the Welsh name “cais”meaning “catch”, or an English mishearing ofthe Norse word 'Kjosa' meaning 'chosen'. Themost likely explanation is that it is from theManx words Yn Chiare-as-Feed meaning 'the four and twenty', i.e. 24 members. There isalso a Latin documentation written by anEnglish scholar dating to 1417 referring to'Claves Mann' or The Keys of Mann'. Membersof the House of Keys are known as MHKs.

The phrase, ‘Traa-dy-liooar’ is often uttered bythe Manx and means ’Time enough’. It refersto leaving something to be done to anothertime. Some would term this as procrastination.However, some things do get done.

Fact File > Information



The chart is sufficiently accurate at the time of going to press. (The publisher is aware that Tynwald and the Government are currently undergoing organisational reviews).Sourced from Tynwald library.


Country Fact File > 2004 - Annual Report

Towards the end of 2004, the Isle of Man Government's ChiefMinister Richard Corkill presented the first annual report tomembers of the Manx parliament since corporate stylegovernance was introduced.

The aim of the new system is to set targets for each departmentand division of government and report annually on the progressachieved. Richard Corkill said the production of the annual reportrepresented another step forward in the continuing developmentof 'an effective, accountable system of government for the benefitof the people of the Isle of Man' and said the 2004 report is thefirst to measure a full year's activity under a business planningprocess 'introduced to give a clearer focus and sense of directionto the work of Government'.

There is no political party structure in the Isle of Man and mostcandidates stand as independents at election time. The nextGeneral Election is in the autumn of 2006. The Chief Minister isappointed by his political colleagues and then appoints theCouncil of Ministers. Each of the government's nine departmentsis led by a minister with support from one or more members ofthe House of Keys and Legislative Council.

The six central policy goals laid down by the government areidentified as economic progress, social well-being, qualityenvironment, sound infrastructure, good government and positivenational identity.

The Chief Minister has made much of the issue of openness ortransparency, and the importance of the public seeing the extentof the government's success or failure in translating policy

principles into action. He said the move to business planning hadbeen a major transition for the government.

The past 18 months has been remarkable for the number ofmajor capital projects that have been completed, including thenew Noble's Hospital, Pulrose power station, sewage treatmentworks, and incinerator.

One issue that remains a priority for the government is providingcouncil houses and affordable homes for first time buyers.Attention will be focused on this area over the coming months.

The Council of Ministers has identified four strategic aims for thenext planning period. The first is economic progress and thisshould be achieved by diversification and inward investment bymaximising the potential of existing wealth-creating sectors. Thesecond, social wellbeing, highlights the government's commitmentto health promotion measures and NHS primary healthcareprovision for all. The third, identified as good government, involvesa review of the scope and structure of central government andlocal authorities.

Positive national identity is the fourth aim and, says thegovernment, will be achieved via the development of improvedmanagement of the Island's relationships with the UK and EU andof wider international issues.

A coordinated programme to support the Council of Ministers inthe evaluation and management of the Island's profile in thewider world is being set up.

2004 - the annual report


Diversification and development - how the Isle of Man attracts newbusiness

It may be apocryphal but the story goes that when the United Kingdomplaced restrictions on private investment in the film industry and it lookedlike the plug would be pulled on the latest Johnny Depp vehicle,representatives from the Manx film industry happened to be inHollywood, secured the project and landed one of the world's biggestmovie stars onto Island shores.

Generally, there is a perception that luck has played a part in the Isle ofMan's uncanny success across such diverse areas as the film industry, e-gaming and marine administration but of course there is more to it thansimply being in the right place at the right time.

The Department of Trade and Industry recognised long ago thatdiversification was vital to the Island's economic strength.

DTI chief executive Chris Corlett says: 'The government has beensuccessful in its policy of diversification into global areas. Standing still isnot an option. Some people have misinterpreted it as good luck. Whatit's really about is understanding the needs of a sector and workingclosely with it.

'The private sector would say that one of the big strengths of the Isle ofMan is that the government is very willing to listen and to act - and hasproved itself on a number of occasions to be willing to do so. We areusing our size as an advantage. We can be the speedboat zippingbetween the supertankers.'

Farming and tourism, areas that still contribute to the economy, were indecline by the 1970s when the government decided to develop afinance sector that is now one of the world's leading offshorejurisdictions. In the early eighties, the Financial Supervision Commissionwas established to help regulate the industry and raise its profile.Manufacturing was boosted by the introduction of the industrial financialassistance scheme; the Island established a shipping register that is nowinternationally highly regarded and generates more than 50 jobs, withplenty of potential for future growth.

And in the 1990s, the Island recognised the opportunities presented bythe film industry and has hosted more than sixty feature films,establishing an industry in less than ten years that has generated a localspend of more than £13 million over the past year and has brought highprofile stars, and the publicity that attends them, to the Island.

In more recent times, the government has recognised the potential frome-business when combined with local tax advantages.

Department of Trade & Industry

Country Fact File > Government Departments > Trade and Industry

Department of Trade and Industry,Hamilton House, Peel Road,Douglas, Isle of Man IM1 5EPTel: + 44 (0)1624 682354Fax: + 44 (0)1624 682355email: [email protected]/dti

Chief Executive:Chris CorlettTel: + 44 (0)1624 682394

Chief Executive’s OfficePolicy, Strategy, Financial Management,Business Planning and Performance Management,Information Support and Development

Employment LegislationTel: + 44 (0)1624 682371

Properties, Mines and MineralsTel: + 44 (0)1624 682369

Economic DevelopmentFilm and Media, Manx Multimedia Centre,Manufacturing, E-business and E-gaming,Isle of Man Film CommissionTel: + 44 (0)1624 687173E-Business DivisionTel: + 44 (0)1624 687170E-Gaming DivisionTel: + 44 (0)1624 682307

Grants and Financial AssistanceTel: + 44 (0)1624 687179Financial Assistance Scheme,Business Support Service,Small Business Start-Up Scheme

Training and EmploymentEmployment services,Recruitment, Man power planning,Tynwald approved vocational training schemes,Work Permits / Associated Inspectorate andOverseas Labour OfficeTel: + 44 (0)1624 682393Job CentreTel: + 44 (0)1624 687014Investors in People (IIP)Tel: + 44 (0)1624 682383Shell Technology & Enterprise Programme (STEP)Tel: + 44 (0)1624 682383

Marine AdministrationTel: + 44 (0)1624 688500Ship Survey, Registry,Quality Assurance, Marine Legislation




Chris Corlett says: 'There are clear opportunities here when thetransaction is where the server resides. E-gaming is a niche insidee-business and we have brought six sports betting businesses tothe Isle of Man in the past year alone. Another advantage we enjoyis that we can be fleet of foot with legislation.'

The government prides itself on establishing firm infrastructures tosupport industry; it is not a case of following trends and playingcatch up but of identifying growth areas ahead of competingjurisdictions. The DTI now has international distribution and aircraftregistration in its sights.

Chris explains: 'UK container ports are full and we enjoy theadvantage of being outside the EU for customs and excise,employment and tax. Aircraft fleet management is another new andinteresting avenue for us and a detailed feasibility study is nowbeing carried out by specialist consultants.'

He is confident the Isle of Man has the skills base to adapt todiversification, and says: 'The Manx workforce showed itself to bevery adaptable and flexible with the birth of the finance sector. Oureducational standards are very high. The financial services sector isvery important to the Island and will remain so but we should nothave all our eggs in one basket. The public and private sectorsneed to work closely together to identify our target markets.'

The Isle of Man will succeed where other international financecentres might fail because of that policy of identifying new marketsand the willingness to put the necessary infrastructure in place. Thedays of the Isle of Man being perceived as a dubious tax haven areover.

Says Chris Corlett: 'We are more than able to cope with anyscrutiny. We requested the IMF to investigate all our structures andtheir report was very complimentary. We have a very well rungovernment. 'Offshore centres that are just about tax avoidance willincreasingly come under pressure. Where they are providing

valuable services, they are thriving. There is a general consensusthat offshore centres will shrink in number with only a handfulhaving the depth and breadth to survive. It is important for the Isleof Man to be one of the winners.'

Looking ahead

To meet the future challenges facing the Isle of Man, the DTI hasidentified and is acting upon some key aims. These include:

● Promoting diversification by encouraging new high value andsustainable businesses supporting existing commercially viableenterprises broadening the range and quality of employmentopportunities and providing a workforce with appropriate skills.

● Measures being taken by the DTI include offering financialassistance under the Small Business Start Up Scheme to newbusinesses that are deemed to stand a good chance of succeeding.The target is to help at least 25 new businesses each year.

● The department is building relationships with businesses thatare connected to target areas such as e-gaming, shipping and thefilm industry. Meanwhile, the advantages of e-business are beingpressed home, with the DTI making presentations to businessesand individuals, as well as encouraging more use of the internet byfunding broadband connection costs.

● Being a member of the DTI has its perks. Another stated aim ofthe department is 'to maintain an effective presence at the CannesFilm Festival'. Cannes is the shop window for the global filmindustry and has already resulted in some lucrative leads.

● Future support for the shipping industry includes theintroduction during 2005 of a new Merchant Shipping Bill, designedto modernise seafarers' social and employment protection and complywith the latest requirements of the International Labour Organisation.

● Looking further ahead, the DTI hopes to have completed thedevelopment of a new training centre by the end of March 2006.

> Ronaldsway Airport



Economic development

Unspoilt and free from pollution, the Isle of Man is the ideallocation for movie-making.

The DTI is committed to maintaining a long term investmentprogramme in film and TV productions through Isle of Man Film, anew company wholly owned by the government that enables it tointeract effectively with private sector production companies.

Exciting new ventures for the Island also include e-business and,within that, e-gaming. The DTI is helping businesses to exploit e-business opportunities by using technology to competeinternationally. Isle of Man businesses are being activelyencouraged to remain competitive in a global marketplace throughinitiatives like the Business Support Scheme, and DTI coursesdelivered by independent training specialists. Larger businesses thattend to implement large scale, more complex e-business solutionsare catered for with high level talks and seminars on the strategicmanagement implications of implementing large e-businesssolutions.

The DTI says this combination of assistance works at all levels toenable businesses to understand the technical, logistical andbusiness problems and challenges inherent in implementing e-business solutions effectively.

E-business opens up a variety of possibilities. The government iscommitted to developing an e-gambling business environment andto making this environment competitive internationally. The DTI isresponsible for the promotion and development of e-gambling andhas identified future expansion in online casinos, sportsbetting andassociated e-services.

The department says the Island's highly advanced technical andtelecommunications infrastructure, low duty, and the abolishment ofcorporation tax by 2006 provide compelling reasons for choosingthe Isle of Man as an e-gaming location.

Grants and financial assistance

The Isle of Man comes armed with a range of incentives to attractnew business. The Department of Trade and Industry can offer upto 40 per cent of the cost of new plant and machinery, newbuildings, operating costs such as research and development,relocation, consultancy and marketing; and can meet up to 50 percent of training costs.

The DTI's Financial Assistance Scheme has been operating for manyyears and is aimed at encouraging diversification of the economy.Eligible businesses must meet the commercial and environmentalcriteria laid down under the scheme, which is seen as a key tool toencourage existing businesses to adopt new technologies andpractices and for new businesses to develop on the Island.

The opportunity exists not only to encourage new projects butalso to develop projects in conjunction with private sectorpartnerships and contacts.

Meanwhile, the government's advisory service, established in1992, has helped more than 150 companies since that time. It canprovide expert consultancy in Quality Standards such as BS5750and business disciplines such as planning, marketing, financialmanagement, training and development.

The newly revised Business Support Scheme introduced in Maylast year expands and improves on the advisory service to coverten key disciplines covering all aspects of business.

These are:

● Marketing

● Design

● E-Business

● Environmental Efficiency

● Human Resources Development

● Quality

● Operations Management

● Business and Strategic Planning

● Information Communication Technology/ Information Systems

● Business & Financial Management Controls

Training and employment

A highly skilled workforce is central to the success of the localeconomy and the DTI has established a number of servicesdesigned to encourage people to acquire, update and upgrade theirskills and knowledge on an ongoing basis.

Overseeing this work is the Training and Employment Group,which is responsible for employment and training services andemployment legislation. The group also provides advice on the DTI'sremit in relation to the construction industry.

A sound framework of employment legislation meets internationalobligations and recognises the needs of local employers andemployees alike, and is an important element in the work of thegroup, which also administrates the work permit system andOverseas Labour Scheme.

The operation of the JobCentre is a key element in encouragingan efficient labour market. It retains application forms for most ofthe Island's major employers and updates the job vacancy list daily.This can be viewed online. The JobCentre provides interviewfacilities and offers a comprehensive CV word processing service.

The Investors in People (IIP) programme is promoted andmanaged by the group. This is viewed as a key element in thedevelopment of a high quality skills base. It is the national standardthat sets a level of good practice for improving an organisation'sperformance through its people by providing a clear benchmark ofgood practice in training and development.

> Television drama ‘Island at War’ scenes set in Castletown



The DTI was the first government department to be awarded IIPaccreditation.

The DTI operates a number of schemes designed to promotebusiness, including the small business start up scheme.

This awareness programme helps people to decide whether selfemployment is right for them, investigates the viability of businessideas, and helps with the preparation of a business plan and cashflow forecast. The scheme offers a training course, with financialassistance available on a discretionary basis.

STEP (Shell Technology and Enterprise Programme) is a highlyrespected scheme that places undergraduates with employers onspecific projects for eight weeks during the summer. A localcompetition is held, with the winner proceeding to a UK regionalcompetition and national final. For students, it can lead torecruitment or improved potential for employment, while companiesbenefit from fresh ideas and new skills.

Disabled people can take advantage of the department's DisabilityEmployment Service, which works closely with employers insupporting and encouraging good employment practices andattitudes in the recruitment and the retention of disabled people, aswell as with external organisations to improve mutual referralarrangements and employment related provision.

Almost everybody who comes to the Isle of Man to work willrequire a work permit whether they are from within the EU or therest of the world. The Work Permit Office is responsible forprocessing applications.

Work permits were introduced some 40 years ago and at firstapplied to only to manual workers. The present system is governedby the Control of Employment Act 1975 as amended and theControl of Employment Regulations 1993 and applies to almosteveryone who comes to the Island to take up employment,including self employment. Work permits are seen as a means of

protecting employment opportunities for local workers. They are notintended to act as a restraint of trade.

Marine Administration

The Isle of Man has nailed its colours to the mast with thedevelopment of shipping business. The Island's long maritimetradition and culture created a firm base from which to develop ashipping register that is now one of the most respected in the world.

The Marine Administration division of the DTI has built aninternational reputation for quality and service and is now attractinghigh profile multi-million dollar superyachts (see Pelagos Yachts)such as the Mirabella 5, the world's largest single masted yacht.Also registered in the Isle of Man is the most technically-advancedyacht afloat, the 64 metre Italian-built Felicita west.

Marine Administration has been able to secure these high qualityvessels thanks to new legislation that enables the registration ofyachts of over 24 metres.

The responsibilities of Marine Administration are separated intotwo core areas - the promotion of the Isle of Man to maintain andexpand the registered fleet, and the duty to ensure the safety ofeveryone serving in, or travelling on, a Manx registered ship, byenforcing national and international law governing the construction,equipment and operation of ships.

The Island is now a 'centre of excellence' in the Irish Sea, withlocally based expertise in ship management, ship finance, marineinsurance, maritime law, and trust and company formation.

A modern flag registry, the Island puts strong emphasis on quality,high standards and efficient service. It is the flag of choice for themost prestigious of the world's super-yachts.

Because the Isle of Man is a crown dependency within the BritishIsles, Manx registered ships are entitled to fly the prestigious RedEnsign, a symbol of shipping excellence that is recognised

> Large yachts in dock > Douglas Ferry terminal



throughout the world. But Manx registered vessels come under theauspices of Marine Administration which benefits owners andoperators in terms of favourable tax treatment, no annual tonnagetax, security of mortgages registered in the Island, and anadministration that will assist with safety and environmental mattersas well as manning and officer certification requirements.

The Isle of Man offers a fast and efficient registration process andthanks to its Customs and Excise agreement with the UK is part ofthe European Union for the purpose of collecting VAT.

Marine Administration makes the process of registry as simpleand straightforward as possible. The register is highly regarded bybanks and finance institutions all over the world and the MerchantShipping (Registration) Act in the Isle of Man sets out clear prioritiesfor mortgages following established English law so that lenders canbe assured that their charge is properly recorded and secure.

Staff are available to complete registry transactions at any time ofthe day or night in order to match with local time at the place ofcompletion.

Manx registered ships are British ships but under the separatejurisdiction of the Isle of Man Marine Administration. As British ships,the Merchant Shipping Act requires that the owner must be a'Qualified Owner'. To qualify, the majority interest in the ship mustbe held by one of the following:

● A company incorporated in the Isle of Man and having itsprincipal place of business in the Isle of Man (there are nonationality requirements for ownership of such companies).

● A company incorporated in the United Kingdom, the ChannelIslands, or any British Dependent Territory and having its principalplace of business in any such territory.

● A company incorporated in a member state of the EuropeanUnion or in a European Economic Area Country and having itsprincipal place of business in any such country (the company maybe incorporated in any of the above territories or member statesand have its principal place of business in any other of the aboveterritories or member states).

● A Limited Partnership established and registered in the Isle ofMan in accordance with the Partnership Act 1909 and theInternational Business Act 1994, and in certain prescribed countriesas detailed in Manx Shipping Notice No.194.

● A British citizen, a British Dependent Territories citizen, a Britishoverseas citizen, a British subject under the British Nationality Act1981, or a British National (Overseas).

● A citizen of a member state of the European Union andEuropean Economic Area Countries.

The remaining minority interest (not more than 31 out of 64shares) may be held by any other person.

Pleasure yachts registered in the Isle of Man enjoy all the same

benefits as merchant ships and commercial yachts, including thefavourable tax regime, minimal costs and no annual tonnage dues,the right to fly the Red Ensign - not to mention association with arespected and reputable jurisdiction.

All merchant ships must comply with enhanced internationalsecurity measures that were introduced as a result of 9/11. MarineAdministration inspects each of the 300-plus ships on the registerto verify they have security plans in place before the newInternational Ship Security Certificate can be issued. The Isle of Manis the only offshore jurisdiction to train its own surveyors and thecourse is so effective that inspectors from Bermuda, Cayman andGibraltar have enrolled.

Merchant ships of virtually all types are accepted for registry andthe Manx fleet includes bulk carriers, tankers, gas and chemicalcarriers, offshore support vessels, FPSOs, container ships, cargoships and Ro-Ro ferries. However, some ships are not accepted forregistry, including single hull oil tankers, ships older than 15 years,floating dry docks, and ships carrying irradiated nuclear fuel.

Marine Administration takes pride in the fact that it takes care toensure all merchant ships flying the Manx flag are a credit to theIsland. Following registry, a surveyor will visit the ship at two and ahalf year intervals to complete a thorough inspection, includingcrew accommodation, welfare and working conditions inaccordance with ILO178. Commercial yachts are visited by an Isle ofMan surveyor at 30 month intervals.

Freeport

Europe's only offshore freeport is based at Ronaldsway on a 20acre site next to the airport. It is touted by the DTI as the onlyfreeport in the world which combines easy accessibility to Europeanmarkets with the extra financial advantages of location in aninternational finance centre. Direct imports and exports may takeplace using trans-shipment arrangements through the UK.Movements via the UK and other EC States would need mandatorycommunity transit guarantees or guarantee waivers.

Security is maintained by restricting access to the defined area;control of goods is based on the normal commercial records keptby traders.

A wide range of activities takes place at the freeport including theassembly of components for export, public warehousing, loadingand unloading, storage, and the processing of goods from insideand outside the EC.

The special position of the freeport as an enclave outside thenormal customs procedures of the Isle of Man provides traders witha wide range of benefits. Free movement of goods between theIsland and the EC is possible through its special relationship with theEC, subject to the normal requirements for security of duty and tax.No Customs duties are payable on goods due for import into theIsle of Man or member states of the EC until the goods enter thecountry of final destination. No Customs duties are payable on

> Freeport at Ronaldsway Airport > Residential development in Douglas



imported goods due for export to a country outside the EC area.

The relative absence of customs formalities and the reliance uponcommercial documents for control, simplifies procedures forcompanies involved in international trade.

The Isle of Man Customs and Excise Service is completelyindependent and is readily accessible to the local communityproviding an efficient and responsive service. Traders can storegoods duty-free for indefinite periods until they decide to enter thegoods into the market when trading conditions are most favourable.The zone is secure, patrolled and fully serviced.

Construction

The DTI is responsible for government policy in relation to thelocal construction industry. The government's extensive capitalprogramme together with private sector work is generating highlevels of activity within this sector.

The DTI administrates the list of approved contractors and thescheme for certification of craftsmen, and has an establishedrelationship with the Employers' Federation. The department is alsorepresented on the Isle of Man Construction Forum, which is amulti-disciplinary organisation established to discuss a wide rangeof construction issues and promote training and good practicewithin the local industry.

The DTI works closely with the sector to help to address currentissues such as escalating employer liability insurance premiums,health and safety training issues, the increasing use of off-Islandcontractors and the introduction of relevant legislation.

A Construction Bill was prepared to provide a more effectivemeans of resolving contractual disputes. It is based on the UKHousing Grants, Construction and Regeneration Act 1996, which iswell established, and there are qualified and experienced arbitratorsfamiliar with the UK Act. The introduction of the Construction Designand Management Regulations by the Department of LocalGovernment and the Environment will be supported by the DTIthrough the provision of training and awareness raising sessions inconjunction with the industry.

Manufacturing

The manufacturing sector on the Isle of Man has a significant roleto play in supporting the continual growth and diversification of theIsland's economy. The DTI recognises this and is dedicated toworking closely with the sector to encourage existing businesses todevelop and grow and new ones to establish on the Isle of Man.The DTI is particularly keen to encourage high-tech high-valuemanufacturing opportunities and believes the Island has a wellestablished infrastructure to support this type of activity.

There are a number of schemes specifically designed to supportmanufacturing businesses through the provision of financialassistance towards capital investment, productivity improvements,efficiency savings and start-up assistance. There are more than 200manufacturing enterprises in the Isle of Man, ranging from opticalinstrumentation (see CV Optics) to automotive components.Manufacturing accounts for 8.2 per cent of full time employment inthe Isle of Man and is second only to the finance sector in terms ofgrowth and contribution to the economy.

> Views of Douglas from Douglas Head


The Isle of Man's low personal tax regime makes it a very attractivefiscal environment in which to live. Anybody who is entitled to live in theUK or the EU can live in the Isle of Man; there are no fiscal requirementsbefore tax residence can be achieved.

Because the Isle of Man operates its own tax system, with Tynwaldresponsible for enacting all tax law, Island residents are able to enjoyhigh personal allowances and low tax, and there is no capital taxation,so individuals and companies pay no wealth taxes, inheritance, gift orcapital gains tax.

Meanwhile, corporate tax will be down to zero by 2006.The Isle of Man operates a VAT system similar to the UK's. The standardrule is 17.5 per cent with a lower rate of five per cent and a zero rate.The current turnover registration requirement is £56,000 per annum. TheVAT rate for hotel accommodation in the Isle of Man is only five per centcompared to 17.5 per cent in the UK.

There are more than 7,200 traders registered for VAT in the Isle of Manand this figure, says the Treasury, is steadily growing, reflecting the interestshown in the Island as a business centre. On average, more than ahundred new applications to register are received each month. TheIsland's Customs and Excise aims to register new traders within sevendays of application.

From investigating the bootlegging of alcohol and tobacco tointernational money laundering, the remit of Customs and Excise is wide.The division operates the Island's two law enforcement patrol vehicles, a15 metre purpose built patrol craft 'Panther' and a 7.5 metre trailer basedRHIB purchased using the seized proceeds of illegal activities. These craftare operated on a 24/7 basis 365 days a year and are an effectivedeterrent to drug smugglers.

Another important division of the Treasury is bringing business to the Isle of Man.

The e-business division promotes electronic business and is continuallydeveloping the legal and technological infrastructure to meet increasingdemand for technological solutions. The Isle of Man's location, excellenttelecommunications structure and low tax environment enables it toattract e-business from around the world.

The Island offers secure servers with comprehensive support servicesincluding complete website design, software and hardware suppliers,internet payment gateway facilities and international tax and legal adviceand company administration services.

Isle of ManTreasury

Country Fact File > Government Departments > Isle of Man Treasury

Isle of Man Treasury,Central Government Offices,Bucks Road, Douglas,Isle of Man IM1 3PXTel: + 44 (0)1624 685586Fax: + 44 (0)1624 685662email: [email protected]/treasury

Chief Financial Officer:Mr PM ShimminTel: + 44 (0)1624 685586

FinanceTel: + 44 (0)1624 687037Government Financial Accounts, Investments,Borrowings, Insurance, Issue of Manx Currency

Economic AffairsTel: + 44 (0)1624 685741Statistics and Analysis

Customs and ExciseTel: + 44 (0)1624 648156Indirect Taxes and Duties, Control on ImportedDrugs, Anti Money Laundering

Financial ServicesTel: + 44 (0)1624 686400Support for Finance businesses, Development,Media RelationsFinancial Supervision Commission (FSC)Tel: + 44 (0)1624 689300

E-CommerceTel: + 44 (0)1624 686395

Income TaxTel: + 44 (0)1624 685400Income Tax, Corporate Tax, Taxation Strategy,Personal Allowance credits

Information SystemsTel: + 44 (0)1624 685523Information Technology Services, Development and Strategy

Internal AuditTel: + 44 (0)1624 685543Internal Controls, Data Protection,Forensic Accountancy Services to FinancialCrimes Unit

AdministrationTel: + 44 (0)1624 685584Secretariat, Inter-division Co-ordination



Country Fact File > Government Departments > Isle of Man Treasury

The e-business division boasts that the Island can offer the spacefor businesses to set up their own operations on a small or largescale. Key personnel can be relocated to the Island if required butbusinesses can also access a pool of well eduated and computeraware individuals. There has been massive growth in the ICT sectorand the Isle of Man boasts high bandwidth self-healing fibre ringconnectivity, was the first jurisdiction to offer third generation mobilephones outside Japan, and was quick to introduce legislation in theform of the Electronic Transaction Act 2000 to provide the necessarylegal framework for e-business to grow.

Isle of Man Finance is another division of the Treasury with amission to facilitate the ongoing development of the Island as aleading international finance centre. The regulation of the sector iscarried out by the Financial Supervision Commission (FSC) and theInsurance and Pensions Authority (IPA).

The economic affairs division of the Treasury provides a statisticalinformation and economic advisory service to the government, anda statistical information service to the public.Reporting on the way ahead, the Treasury states: 'The Island hasset out its stall to become the model of a small finance centre forthe 21st century, combining legitimacy with probity, a socialconscience and a willingness to work within internationalstandards.

'The Island's constitutional position and economic wellbeingdepend crucially on its exsiting levels of autonomy, in particular itsability to legislate on fiscal and other domestic matters.

'The development of a move towards a standard zero rate ofincome tax for trading companies by 2006 represents the mostradical change to our taxation system for 40 years and shouldenable the Island to avoid punitive sanctions being applied againstus by the EU and UK authorities.’

Tax rates 2004/2005

For individualsPersonal allowances Single person £8,225Married couple (combined) £16,450Single parent addition £5,630Blind person £2,530Disabled person £2,530Income tax ratesStandard rate 10%Higher rate 18%Non-resident rate 18%Standard rate tax thresholdsSingle person £10,000Married couple (combined) £20,000Balance taxable at 18%

Tax rates for companies

ThresholdsLimit £100 mLower rate 10%Higher rate15%Income tax ratesLower rate for resident trading companies 10%Higher rate for resident trading companies 15%

> Manx Currency

Illiam Dhone House, Circular Road, Douglas 55

56 Government Buildings, Prospect Hill, Douglas


The 'bucket and spade' days might be over but the Department ofTourism and Leisure has adapted to changing times and continues tomake a vital contribution to the quality of life of Island residents, as wellas market its attractions to the rest of the world.

The unspoilt, natural environment and different pace of life makes theIsle of Man the perfect destination for high quality domestic short breaksand, says the DTL, the Island is well positioned to capitalise on this trend.In a tourism strategy that takes departmental planning up to the year2008, recommendations are made that are designed to widen thetourism remit. The DTI says: 'In order for the tourism industry to succeedand flourish, a large-scale change in thinking about tourism is required,plus a recognition of the role that everyone has to play.'

The department is committed to creating a modern definition of tourismthat embraces diversification, including improving online services andrevitalising conference marketing, ensuring accommodation and facilitiesare available year-round. In its strategy for the future, the DTL says theIsland needs to recognise the changing behaviour of tourists and theincreasing sophistication of the market.

In 2002, there were 326,760 tourist visitors to the Isle of Man (see tablefor breakdown). More recently, the department has reported that visitorsspent a total of £102.5 million in the Isle of Man during 2003 - anincrease of 3.9 per cent in real terms on the year 2000, and a quickerrecovery than expected following the impact of the foot and mouth crisisthree years ago.

Measures were taken in 2001 which prevented the disease reachingthe Isle of Man but the tourism sector was badly hit, particularly by thecancellation the revenue-generating TT motorcycle races. The DTL says ithas achieved a full recovery more quickly than was expected. This hasbeen partly thanks to a marketing campaign aimed at higher spendvisitors.

Under its tourism responsibilities, the DTL operates the special eventsunit. Based at the TT Grandstand, it was set up to organise and supportany event on the Island that contributes to tourism, including the TT thatbrings around 40,000 competitors and fans to the Island each June.Committed to developing the Island as a conference venue, the DTL canassist with accommodation, communications and entertainment on anyscale for businesses, institutions and organisations. It actively markets toEurope and offers reciprocal arrangements in terms of foreign languagebrochures, trade and consumer advertising and internet links. The Isle ofMan currently has offices in Germany and France and is a member of theNorth West Country Marketing Consortium, benefiting through the BritishTourist Authority's worldwide offices.

Department of Tourism & Leisure

Country Fact File > Government Departments > Tourism & Leisure

Department of Tourism and Leisure,Sea Terminal Building,Douglas, Isle of Man IM1 2RGTel: + 44 (0)1624 686801Fax: + 44 (0)1624 686800email: [email protected]/tourism

Chief Executive:Carol GloverTel: + 44 (0)1624 686801

LeisureAdministrationTel: + 44 (0)1624 686801

Villa Marina ReceptionTel: + 44 (0)1624 694500General EnquiriesTel: + 44 (0)1624 694566

Gaiety TheatreBox OfficeTel: + 44 (0)1624 694555

Curraghs Wildlife ParkTel: + 44 (0)1624 897323

NEC (National Sports Centre)Tel: + 44 (0)1624 688588

Sports and Development CouncilTel: + 44 (0)1624 688555

TourismTel: + 44 (0)1624 686801Special Events UnitMarketing DevelopmentMarketing ServicesPublic RelationsRegistration and Grading CommissionTel: + 44 (0)1624 664552

Public TransportTel: + 44 (0)1624 663366

AdministrationTel: + 44 (0)1624 686801 extension 6705Corporate ServicesPolicy Planning and AdministrationFinance




The DTL has been developing its website, which receives more than40,000 visits each month, to cover local events and festivals, andplaces of interest and beauty.

Hoteliers have a large role to play in promoting the Isle of Man asan attractive destination. The DTL operates the Registration andGrading Commission that is responsible for all tourist premises.Ratings are denoted by stars, diamonds and keys and complementthose set by the British Tourism Council, the AA and RAC motoringorganisations.

Another division of the DTL is leisure, incorporating leisureadministration, the Villa Marina and Gaiety Theatre complex and theNational Sports Centre (NSC). The Villa reopened in 2004 after amajor refurbishment costing £15 million and heralded the start of amodern approach to entertainment in the Island, providing firstclass facilities for the performing arts, conferences, meetings,exhibitions and functions.

The NSC is run by Manx Sport & Recreation, part of the DTL, andhas played host to the Island Games. MSR is responsible for sportsdevelopment throughout the Island. The Isle of Man has producedOlympic and Commonwealth sports stars and offers a range ofactivities as well as being the road racing capital of the world.Annual events include International Cycling Week, the StudentFestival of Sport, professional football tournaments (the Isle of Manhas no fewer than 27 football clubs), and basketball camps. TheDTL can facilitate travel and accommodation packages for sportingorganisations.

The department also supports a wide range of local arts,including the Mananan International Festival, the Isle of MusicFestival and the Isle of Man Literature Festival. The DTL is alsoresponsible for the Curraghs Wildlife Park, museums and otherattractions that overall tell the Story of Mann, and tourist trans-portation including the steam train to the south of the Island andelectric trams to the north and to the summit of Snaefell Mountain.

The DTL operates the Isle of Man's public transport system.But the focus for the department over the coming years is attractingthe new market of visitors. The DTL recognises that long termdevelopment is being hindered by a lack of bed spaces and thequality now required to service the customer base. Support forthose who operate within the industry is required from thedepartment and cooperation is essential.

A number of key performance indicators and targets have beenidentified; these include increasing visitor spend by 15 per cent by2008, increasing bed spaces by more than a thousand to 8,000 by2008, and introducing a Manx Welcome training programme toimprove customer services. The DTL strategy for 2004-2008concludes: 'The challenge facing the Island is to ensure that all the weapons in the armoury are working together, to deliver aninternationally competitive product. This will not happen byaccident. It will require a determined, focused and coordinatedapproach.

'The tourism industry is made up of large numbers of smalloperators who struggle to recognise this reality and often lack theresources to enable them to deliver it. There are a number of keyissues such as bedstock, staff recruitment and quality standardsthat need to be addressed and we need to ensure that publicmoney is spent wisely against the areas of greatest return.'

Tourist visitors in 2002Period visitors in paid accommodation (PVPA) 113,978Period visitors visiting friends and relatives (PVVFR) 117,165Business 87,536Day trippers 8,081Method of travel by tourist visitors:Sea 176,373 (54 per cent)Air 150,387 (46 per cent)PVPAs

Period visitors staying in paid accommodation are defined aspeople visiting the Isle of Man and staying in paid accommodationfor at least one night (excluding business people). These people areregarded as the main tourist category

PVPAs accounted for 34.88 per cent of total visitors in 2002.Social Class breakdown of PVPAs in 2002ABC1 65 per centC2DE 35 per centTotal number of PVPA bed nights was 596,228 in 2002 and averagestay was 5.2 nights.

> National Sports Centre > Electric railway: Snaefell mountain train



Area of residence of PVPAs in 2002.Tourism division statistics 2002/03Net expenditure - £5,429,015 Net cost of the division per visitor - £16.61Net cost per head of population - £71.45Net expenditure for TT - £1,583,259 (£20.84 per head of population)Tourism contributed five per cent of GDP

Income amounted to £72,451,000Income generated from tourism - £953.49 per heard of population SourcesBased on 326,760 visitors to the Isle of Man in 2002 - EconomicAffairs Division Population figure of 75,985 - IOM Govt Policy review 2001. Isle of Man National Income Report 2001/02 - Economic AffairsDivision.

> Groudle Station> Ramsey golf course

60 Douglas Harbour


The Island's essential air and sea gateways come under the remit ofthe Department of Transport.

Flights to and from the Isle of Man are operated by a number of airlinesand demand increases year on year. As Fact File went to press, proposalsto extend one of the Ronaldsway Airport runways over the sea werebeing discussed.

The DoT is responsible for the provision, operation and maintenance ofthe airport, air traffic control and air navigation regulation. The departmentalso prepares civil aviation regulations and promotes air routes andservices for the Island.

The DoT remit is to provide and promote a safe and efficientinfrastructure for travel, transport and navigation, covering harbours,airports and highways. Proposals to introduce a speed limit in an Islandregarded, thanks to the TT, as the road racing capital of the world havecaused controversy. They are part of an initiative by the DoT to cut thenumber of serious road traffic accident on the 500 miles of Island roads.

Road safety training, the registration and licensing of vehicles anddrivers, road closures and the maintenance of highways, car parks andpublic paths are all administered by the department.

The Isle of Man is a seafaring nation and its harbours, foreshores andshipping services are a vital part of Island life. The DoT is responsible forthe provision, operation and maintenance of the eight statutory harbours,the local Coastguard service, and marine oil pollution contingencyplanning.

Manx waters extend 12 miles out to sea and the departmentcoordinates territorial sea management and monitors coastal erosion,which has affected the Island's north west coastline. Updating theIsland's antiquated sewerage system gave the Department of Transport itsbiggest project to date.

The IRIS scheme (Integration and Recycling of the Island's Sewage) is a£100 million-plus improvement to the treatment of sewage that hasresulted in the replacement of a Victorian system with one to suit 21stcentury needs and meet EU cleanliness requirements.

Department ofTransport

Country Fact File > Government Departments > Transport

Department Of Transport,Sea Terminal,Douglas, Isle of Man IM1 2RFTel: + 44 (0)1624 686600

Chief Executive:Mr AJ BellTel: + 44 (0)1624 686650

Management DivisionTel: + 44 (0)1624 686936Financial Management, Corporate Service, Legislation

Works DivisionTel: + 44 (0)1624 686655Engineering, Building Works,Transport and Plant, Quarries, Support Services

Design Services DivisionTel: + 44 (0)1624 686667Highway, Structural Design,Surveying, Administration

Highways DivisionTel: + 44 (0)1624 686676Network Operations and Planning,Vehicle Test Centre, Road Safety, Administration

Harbours DivisionTel: + 44 (0)1624 686626Harbour Operations, CoastguardTerritorial Seas Management, Administration

Airport DivisionTel: + 44 (0)1624 821600Air Traffic Services, Rescue & Fire-fighting,Technical Services, Customer Services,Meteorological Office, Administration

Drainage DivisionTel: + 44 (0)1624 693501Land Drainage and Operations, IRIS, Administration

Properties DivisionTel: + 44 (0)1624 660431Estate Management and MaintenanceAnimal Waste Management, Off Street Parking



Country Fact File > Government Departments > Transport

> Douglas railway station > Douglas promenade

Source: Treasury, Economics Affairs Division

Source: Department of Transport

Source: Department of Transport


Providing affordable homes for first time buyers in a property marketwhere prices have rocketed over the past ten years has given theDepartment of Local Government and the Environment one of its biggestchallenges.

The average house price broke the £200,000 barrier in 2003 (see table)and the Isle of Man remains largely immune to the fluctuations in the UKmarket, so finding affordable homes has been an issue for many people.The department established a first time buyer housing waiting list andhas committed to building a certain number of affordable homes eachyear, working in conjunction with local developers.

The DoLGE has probably one of the most diverse portfolios of all ninecentral government departments; responsibilities range from housingpolicy to the supervision of local authorities, waste management and thesometimes controversial issues involved in town and country planning.The work of the department touches the lives of everyone who lives inthe Island.

A major project for the department that came to fruition last year wasthe creation of the all-Island incinerator, a new facility to replace landfillas a means of disposal of the Island's rubbish. The department isresponsible for a wide range of services designed to safeguard the healthand physical safety of the public and the environment.

The planning committee, chaired by a member of Tynwald, controlsdevelopment across the Island and also determines which parts of theIsland and buildings are of special architectural or historic interest, andensuring they are safeguarded. DoLGE is also responsible for estatesmanagement, including the government landbank.

Environmental responsibilities include providing a specialised, scientificservice through the Government Analyst's Laboratory which monitorsearth, water and air quality and keeps a watching brief on radioactivesubstances. Historically, the Manx Government has a firm policy ofopposition to the operation of Sellafield on the Cumbria coast, England.

Planning legislation and processes differ from other jurisdictions withinthe UK. Many members of the public never have cause to use theservices of the planning office and have little or no experience of howthe system works, although planning issues are naturally of concern tolocal residents who may be affected by decisions.

Department of Local Government &Environment

Country Fact File > Government Departments > Local Government


Department of Local Governmentand the Environment,Murray House,Mount Havelock,Douglas, Isle of Man IM1 2SFTel: + 44 (0)1624 685954Fax: + 44 (0)1624 685873email: [email protected]/dlge

Chief Executive:Mr RA HamiltonTel: + 44 (0)1624 685859

Estates and HousingTel: + 44 (0)1624 686304Housing OfficeEstates OfficeOffice of Architecture

Corporate ServicesTel: + 44 (0)1624 685954Corporate Support SectionFinance OfficeLocal Government UnitLegislation and Policy Unit

Environment Safety and HealthTel: + 44 (0)1624 685882Health and Safety InspectorateTel: + 44 (0)1624 685879Environmental/Public Health UnitFood Safety UnitEnvironmental Protection Unit

Waste Operations Management UnitTel: + 44 (0)1624 685941

Planning and Building ControlTel: + 44 (0)1624 685903Planning SectionBuilding Control SectionMapping SectionConservation Section

Government AnalystTel: + 44 (0)1624 675151Microbiology SectionChemistry SectionRadioactivity SectionFreshwater Biology Section


Country Fact File > Government Departments > Local Government

One of the main differences between the Isle of Man and the UKis that permitted development rights are not as extensive in theIsland. There are works that can be carried out without planningapproval. The existing legislation is currently under review. Ifplanning permission is required it should be sought and obtainedbefore any development gets under way.

The Isle of Man is divided into seventeen parishes and the DoLGEdirectorate has five development control officers, each covering aspecific area. The present system of building control operatingthroughout the Isle of Man is based on the Building Control Act1991. Regulations apply to the construction of new buildings andalterations and extensions.

The regulations are in place to secure reasonable standards inareas such as health and safety, energy conservation, access andfacilities for disabled people, and preventing waste andcontamination of water supplies. Building control officers workclosely with other DoLGE services such as planning andenvironmental health, and other government departments.

> Newly built incinerator > Building development, Douglas


The creation of a £112 million new general hospital, the Isle of Man'sbiggest government capital project to date, has been the focus of DHSShealth division activities for several years. The result is a facility fit for the21st century on a greenfield site on the outskirts of Douglas, replacing theold hospital on a cramped site in the centre of the Island's capital.

There are 20 ward areas and 314 beds; most wards consist of four bedbays plus single en-suite rooms and spacious day rooms, all offeringgreater comfort and privacy than the old hospital. The new building hasretained the Noble's name in honour of the original benefactor. There aremore specialised outpatient departments and modern methods such asfilmless x-rays are now in use. Helicopter landing pads enable the rapidtransfer of critically ill patients.

The Department of Health and Social Security was created in 1986through the amalgamation of the Health Services Board and the Board ofSocial Security. The department is divided into three service divisions -health, social security and social services - with a central executive core.

Under the NHS Act of 2001, the DHSS is tasked with providing acomprehensive health service. As well as Noble's Hospital and RamseyCottage Hospital, the department is responsible for GPs, dentists, opticiansand pharmaceutical services, mainly through service contracts betweenthe DHSS and appropriately qualified self-employed practitioners. TheDHSS also oversees community services including school medicalservices, health visiting and immunisation programmes. Within the healthdivision, the Public Health Directorate has a research and advisory role aswell as statutory responsibilities under the public health legislation.

The social services division of the DHSS is responsible for the socialcare needs of the people of the Isle of Man and works with other agenciesto deliver as comprehensive a range of services as possible. Socialservices provides help and support for children under 16 and their families,people with physical and learning disabilities, people over 65 withphysical, mental, health or social care problems and care in the community.

The Isle of Man has an enviable benefits system that is administeredby the social security division of the DHSS. Benefits are provided forbereavement, families and children, illness and disability, people in work,people on a low income, retirement and unemployment. Happily, the Isleof Man has enjoyed an effectively zero unemployment rate for severalyears.

Department of Health andSocial Security

Country Fact File > Government Departments > Health and Social Security

Department of Health and Social Security,Markwell House,Market Street, Douglas,Isle of Man IM1 2RZTel: + 44 (0)1624 685028Fax: + 44 (0)1624 685130email: [email protected]

Chief Executive:Mr David Killip

Health Services DivisionHead of Division:Mr John WilsonCrookall House, Demesne Road,Douglas, Isle of Man IM1 3QATel: + 44 (0)1624 642608Fax: + 44 (0)1624 642617

Social Services DivisionDirector:Mr David CookeHillary House, Prospect Hill,Douglas, Isle of Man IM1 1EQTel: + 44 (0)1624 686179Fax: + 44 (0)1624 686198

Social Security DivisionDirector: Mr Ken CrellinMarkwell House, Market Street,Douglas, Isle of Man IM1 2RZTel: + 44 (0)1624 685021Fax: + 44 (0)1624 685030

Appropriate Personal Pensions 685069Benefit Fraud Freephone 0808 1624043Bereavement Benefits 685176Child Benefit 685107Disability Benefits 685104Disability Working Allowance 685092Family Income Supplement 685092Funeral Payments 685106General Benefit Payments 685108Incapacity Benefit 685105Income Support (Working Age) 685094Income Support (Pensioners) 685084Jobseeker’s Allowance 685126Liable Relatives 685089National Insurance - Account Transfers 685077National Insurance Contribution 685177National Insurance Number Registration 685078Occupational Pension 685124Retirement Pension 685176Retirement Pension Forecasts 685070TV Licence Refunds 685040



Country Fact File > Government Departments > Health and Social Security

The central executive core - the Chief Executive's Office - providesa range of support services across the department. It operates infive areas; corporate affairs, human resources, finance, informationsystems development and estate services. The corporate affairsdirectorate is responsible for the department's business plan andannual report, monitoring and reporting upon performance in thedelivery of the plan. It also provides private office functions for theDHSS minister.

There are staff of the human resources directorate in each of thethree divisions of the DHSS to provide hands on advice andsupport, and the negotiation of terms and conditions of

employment for non-civil service staff. Meanwhile, the financedirectorate is responsible for the full range of financial servicesincluding payroll management, creditor and debtor services, gift andtrust fund management and audit reporting.

Development of the DHSS website as well as computer systemsand telecommunication services across the department falls underthe remit of the information support and development directorate.And, bringing us full circle, the new Noble's Hospital along with allcapital projects, property portfolio and maintenance anddevelopment of property, and the vehicle fleet, is handled by theestate services directorate of the DHSS.

> Thie-Lheihys Noble is Manx Gaelic for Noble's Hospital > Noble’s hospital helipad


Policing the Island

Responsible for the police and fire services as well as the Island'sprison, the Department of Home Affairs' principal purpose is to protect thelocal community.

Putting bobbies back on the beat and enhancing community safety hasbeen a key feature of police force policy during Mike Culverhouse's timeas Chief Constable. He presides over a force of some 250 officers andsays high visibility policing is paramount to the community policingphilosophy.

Compared to similar regions in the UK, crime in the Isle of Man isrelatively low and it has long been perceived as a safe environment inwhich to raise a family. However, the drugs culture has reached localshores and the Manx Constabulary is supporting the government's fiveyear drug and alcohol strategy to provide drug enforcement andeducation.

The force is a supporter of the Department of Transport's campaign toreduce road traffic accidents and supports an all-Island speed limit, thefocus of much recent controversy. Traditionally, the Isle of Man has beenfree of speed limits outside built up areas - a natural attraction for fans ofthe TT motorcycle races. The force also supports the hard line taken bythe courts on drink-driving offences.

In his latest annual report, laid before Tynwald in October 2004, ChiefConstable Mike Culverhouse says: 'Optimistically there is a reduction inthe percentage of people arrested who were under the influence ofalcohol than experienced in previous years. Much of this improvementcan be directly linked to the work carried out by our alcohol unit.'

Community safety is one of the Chief Constable's primary goals. 'ProjectCenturion, launched to combat disproportionate levels of crime and anti-social behaviour principally on Douglas promenade, has been anoutstanding success and hopefully will be the incentive for similarpartnership approaches to other, albeit much more minor, social issuesimpacting on community safety,' said Mr Culverhouse. 'Satisfaction levelsand confidence in our service from the local community is at an all timehigh. By focusing on quality of life issues the Constabulary plays asignificant part in satisfying the ambition of the Isle of Man Government.'

According to the annual police report, 97 per cent of residents feel safe living in the Island, 93 per cent feel the Constabulary does a good job, 87 per cent have confidence in the police and 76 per cent say the relationship between the police and the public isgood.

Department of Home Affairs

Country Fact File > Government Departments > Home Affairs

Department of Home Affairs,Homefield,88 Woodbourne Road,Douglas, Isle of Man IM2 3APTel: + 44 (0)1624 623355Fax: + 44 (0)1624 621298email: [email protected]/

Chief Executive:Mr W GreenhowTel: + 44 (0)1624 623355

Central ServicesTel: + 44 (0)1624 623355

Finance and ResearchTel: + 44 (0)1624 623355

AdministrationTel: + 44 (0)1624 623355

PoliceChief ConstableTel: + 44 (0)1624 631212

Fire & Rescue ServiceChief Fire OfficerTel: + 44 (0)1624 647300

Emergency Planning & Civil DefenceTel: + 44 (0)1624 685798

Prison ServiceGovernorTel: + 44 (0)1624 621306

Probation ServiceChief Probation OfficerTel: + 44 (0)1624 687323

Communications DivisionTechnical DirectorTel: + 44 (0)1624 620199



Country Fact File > Government Departments > Home Affairs

Mike Culverhouse says: 'These results are extraordinary and willbe the envy of every Chief Constable in the British Isles.' Thefinancial crime unit has a vital role to play in dealing with seriousfraud, money laundering, drug trafficking and the financing ofterrorism - global issues that can threaten and potentially harm theIsland's economy.

The Chief Constable wants to see the unit become a dedicatedintelligence agency, and says: 'A new financial intelligence unitshould not fall under the management of the Constabulary or theCustoms division of the Treasury but should be legally constitutedby an Act of Tynwald and be an autonomous agency with its ownstatutory powers and its own line of accountability to Government.'Under the leadership of a Director General, direct recruiting from thefinancial market place could take place to supplement existinginvestigative knowledge and experience.'

The DHA is also ultimately responsible for the Fire and RescueService. Many of the Island's fire fighters work on a retained basis.In addition to fighting fires, the service provides the community withfire safety education and awareness as well as specific fire safetytraining to industry and commerce.

The Department of Home Affairs is responsible for the prisonservice and it's been a busy time for the department, with worknow under way on a new prison for the Isle of Man at Jurby in thenorth of the Island. This will replace the much-criticised Victorian-built facilities in the centre of Douglas which are overcramped. The DHA also runs the Island's probation service, assessing andmanaging offenders to reduce the risk of re-offending and protectthe public. The probation service must ensure that communitybased punishments are effective and credible. Probation alsoprovides a report writing and advisory service to the Family Courts.

The Isle of Man now has no fewer than three radio stations -Manx Radio, which is government-supported, Energy FM and 3FM -and the DHA advises other departments and agencies on radiocommunications matters through its communications division.

The division provides, maintains and operates the emergencyservices joint control room.

Emergency planning and civil defence falls under the remit of theemergency planning unit. The unit provides a corp of volunteers,trained in a range of skills, to assist the emergency services whenrequired and provides a link with other voluntary agencies, as wellas providing over coordinated support from the government toservices. The unit develops business continuity plans in the eventof a crisis. Other divisions within the DHA include central services,which supports the work of the operational divisions in achievingtheir aims and aids the chief executive in driving policy andstrategic matters; central services is also responsible for areas suchas online gambling, control of casinos, and granting and renewingbookmakers' permits.

> Castletown Police Station > Isle of Man Courts of Justice, Douglas


Preserving the Island's traditional industries and the environment

Farming and fishing may no longer account for a significant proportionof the Isle of Man's income but these industries remain a majorcontributor to the Manx identity.

The Department of Agriculture, Fisheries and Forestry is responsible forsupporting and developing these traditional industries to ensure theyremain viable. This also naturally involves the maintenance andenhancement of the Island's environment that central to the high qualityof life enjoyed by residents.

The sector accounts for less than one per cent of income to the localeconomy - compared to more than 40 per cent from the finance industry- but has a large role to play in the conservation of the rural andmaritime landscape. DAFF's stated policy is to encourage the effectiveutilisation of land and sea resources by the most efficient means, whilehaving due regard to wildlife conservation and maintenance of thephysical and social environment of the rural areas.

Consequently, the Isle of Man has signed several internationalconventions. These include the Bonne Convention on the Conservation ofMigratory Species of Wild Animals (CMS) that requires the conservation ofhabitats, the Berne Convention that requires the conservation of wild floraand fauna and their natural habitats, with emphasis on endangered orvulnerable species and the Ramsar Convention on wetlands, especially asa waterfowl habitat.

The Island has also signed up to CITES, the Washington Convention onthe International Trade in Endangered Species of Flora and Fauna, andOSPAR, the Oslo-Paris Convention for the Protection of the MarineEnvironment of the North East Atlantic, which requires that all possiblesteps be taken to prevent and eliminate pollution of the seas.It also includes measures to safeguard human health and conservemarine ecosystems.

The Isle of Man is renowned for its basking sharks, rare birds and rarewildflowers that add to the beauty of the countryside. Some sites require

Department ofAgriculture,Fisheries andForestry

Country Fact File > Government Departments > Agriculture, Fisheries and Forestry

Department of Agriculture, Fisheries and Forestry,Rose House,51-59 Circular Road,Douglas, Isle of Man IM1 1AZTel: + 44 (0)1624 685839Fax: + 44 (0)1624 685851email: [email protected]/daff

Chief Executive:Mr TA WarrenTel: + 44 (0)1624 685839

Administration and FinanceSchemesTel: + 44 (0)1624 685835FinanceTel: + 44 (0)1624 685855

AgricultureAgricultural Advisory ServiceTel: + 44 (0)1624 842335

FisheriesSea FisheriesTel: + 44 (0)1624 686045Fish HatcheryTel: + 44 (0)1624 812224

Forestry and AmenityTel: + 44 (0)1624 801263

Animal HealthTel: + 44 (0)1624 685844Cattle Passport CentreTel: + 44 (0)1624 685616Wool ControlTel: + 44 (0)1624 621723

Wildlife and ConservationTel: + 44 (0)1624 842335Tel: + 44 (0)1624 843109 (24 hour line)



Country Fact File > Government Departments > Agriculture, Fisheries and Forestry

extra protection and have been designated areas of SpecialScientific Interest (SSI). Organisations such as Manx NationalHeritage and the Manx Wildlife Trust assist DAFF in protecting sites.Landowners with an SSI must consult the department before takingaction that could affect the area.

DAFF can also declare an area to be a National Nature Reserveand create by-laws to protect it. The department has four divisions:agriculture and wildlife, forestry, amenity and lands, animal healthand administration and finance.

The agriculture and wildlife division supports farmers, conservesmarine and rural habitats and encourages Island residents to havea better understanding of the wildlife habitat and conservation.Management of commercial forestry plantations and the hugelypopular national glens is the responsibility of the forestry, amenityand lands division.

Animal health is another important aspect for DAFF, particularly inthe wake of the BSE crisis. Thanks to the Island's high standards ofanimal health and welfare in modern husbandry and theprevention and control of animal diseases, BSE did not reach localshores when the UK was hit. Meanwhile, exports in meat, livestockand other products are carefully monitored. The animal health

division also monitors the welfare of horses, particularly in ridingestablishments.

DAFF's administration and finance division is responsible for thedevelopment of agricultural and sea fisheries policy and theadministration of related support schemes. The key services of thisdivision are the drafting of legislation, management of freshwaterfisheries and planning processes for a viable long-term fishingindustry.

Those interested in developing agricultural skills can do an NVQ atthe Isle of Man College, supported by DAFF and with financialassistance from employers, in mixed farming, livestock production,crop management and environmental conservation. Other coursesare organised by DAFF when it is felt there is a need for farmers tobe better informed in some matters, and advice concerning land-based careers is available to school leavers.

Farming has seen its glory days in the Isle of Man but the level ofsupport for those within the industry remains high among thegeneral population. The Island's two annual agricultural shows -one held in the south and one in the north - are always extremelywell supported and a clear indication that this most traditional ofindustries continues to play a vital role in Island life.

> Lobster pots, Port Erin > Loaghtan Sheep


An enviable education system is one reason why the Isle of Man isattractive to potential new residents wishing to raise a family here.'A great place for the kids' is often given as a reason for moving to theIsland, thanks to the safe environment, small class sizes, consistently highexam pass rates and a vast range of extra-curricular opportunities.The Department of Education's commitment to meeting the everchanging nature of modern society is demonstrated in many ways. TheIsle of Man was the first education authority in Europe to provide everyteacher with a laptop - a move that has since been imitated in manyother jurisdictions.

The education system produces confident young people more thanable to meet the challenges of the workplace; over the past few decadesschool leavers have proved themselves more than up to the challenge ofstaffing a booming finance sector. The Education Minister is the politicalhead of the department and is supported by two Tynwald colleagues,determining the policies of the service as a whole. Many of thedepartment's functions are delegated to members of the Board ofEducation who include school governors, managers and those involvedin further education. Overall policy is clearly set out.

The Department of Education is committed to maintaining the Island'sreputation as a centre for educational excellence, ensuring the higheststandards of teaching and learning as well as encouraging individuals toreach the highest levels of personal attainment, to maintain services andpartnerships that support anyone delivering education in schools, clubs,the Isle of Man College, higher education and the workplace, and tomonitor future demands for staff and premises.

The department's stated overall aim is 'to provide high quality lifelonglearning opportunities for all the people of the Isle of Man so that theycan develop to their own potential and are able to contribute fully tosociety'. The department is not a local education authority but carries outthe same functions, as well as those of a government department.Simply, it has the roles of both central and local government in England,but is accountable solely to the Manx Treasury and is independent ofEngland's powers for education.

Education in the Isle of Man is entirely funded by the Isle of ManGovernment but there are strong links with UK. The National Curriculum is largely followed, though the Isle of Man curriculum has variations, andpublic examinations, the use of external inspectors and training andconditions of service for teachers follows the UK. So, while children'sexperience of education is similar to the UK, the Isle of Man has beenable to implement its own improvements. All pupils receive life education,along with the opportunity to study the Manx language from the age of

Department ofEducation

Country Fact File > Government Departments > Education

Department of Education,St. George's Court,Upper Church Street,Douglas, Isle of Man IM1 2SGTel: + 44 (0)1624 685820Fax: + 44 (0)1624 685834email: [email protected]/education

Director of Education:Mr J CainTel: + 44 (0)1624 685800

Deputy Director:Tel: + 44 (0)1624 685803

FinanceFinance Division, Student Grants and Lettings DivisionTel: + 44 (0)1624 685804

Human ResourcesTel: + 44 (0)1624 685805Legal and Administration Support UnitTel: + 44 (0)1624 685828

SchoolsCoordinating Advisor Primary EducationTel: + 44 (0)1624 685353Coordinating Advisor Secondary EducationTel: + 44 (0)1624 685353Isle of Man CollegeTel: + 44 (0)1624 685820

EstatesTel: + 44 (0)1624 686428School Meals Organiser and ServiceTel: + 44 (0)1624 685798

Youth & Community AdvisorTel: + 44 (0)1624 685810

Senior AdviserTel: + 44 (0)1624 685796Information & Communications TechnologyTel: + 44 (0)1624 686081

Assistant Education Officer (special needs)Tel: + 44 (0)1624 686058




seven and the provision of French language teaching in primaryschool. The pupil/teacher ratios are better than the UK, there is ahigher level of integration of pupils with special educational needs,the Island's five comprehensive secondary schools have what thedepartment believes is a true and balance social mix, and theIsland's culture and heritage are highly valued.

The quality and level of skills of the Island's workforce is of criticalimportance and the government recognises that education has akey role to play in developing each individual. The schools'admission policy is that all children can start school in the schoolyear in which they become five. The Department of Educationoperates four nurseries catering for children from three years of agebut the majority of pre-school provision is through private agenciesand individuals. The department works with private providers toproduce quality pre-school education and has a pre-schoolcurriculum for nurseries to use.

The department also operates a pre-school assessment centre forchildren with learning and/or behavioural difficulties. Most of thechildren attending the centre move into mainstream education buta small percentage are placed in special units attached to primaryschools. There are almost 40 primary schools in the Island and 22youth clubs run by the Department of Education, which also supportsvoluntary projects to help widen the range of youth provision. TheIsland's five secondary schools cater for students up to the age of18 and there is one independent school, King William's College. TheIsle of Man College provides further education study for students,with a wide range of NVQs, vocational A levels and otherprofessional qualifications. The International Business School offers

undergraduate and postgraduate courses in business and banking,as well as part time and evening courses in management.

There are several other learning opportunities. Pre-registrationnurse education returned to the Island in 2000. The programme ishalf theory and half practice-based and covers all areas ofhealthcare provision on the Island. The Island also has a Centre forManx Studies that provides a focal point for research in a range ofareas and is run by Manx National Heritage, Liverpool Universityand the Department of Education. The post graduate medical centrelinks with academic centres including the Liverpool Deanery formedical teaching. Grant aid for further education can be providedby the department. More than a thousand undergraduates andaround a hundred postgraduate students are supported each yearat a total cost of some £17.5 million.

Teachers are recruited locally wherever possible and priority givento newly qualified teachers who have been supported as studentsby the Department of Education. Only when places cannot be filledin this way are posts advertised outside the Island. Internationalteacher exchanges are available to local teachers and areorganised by the Central Bureau in London. Job exchanges forteachers on the Isle of Man is a principle which the Department ofEducation supports. The mechanism for such exchanges is thateach pair of teachers must seek approval from the appropriategoverning or managing body. The Department of Education employsmore than fourteen hundred people all committed to providing acombination of the best in traditional and modern approaches toteaching. The education service describes itself a 'dynamic, peoplecentred business which is at an exciting stage of evolution'.

> Department of Education, St. George's Court, Douglas > Innovative culinary classes, IHMES, International Hotel School



> The Old Grammar School, Castletown, now a museum>IFS seminar, Isle of Man Business School

Notes:(i) GCSE passes relate to Grades A*- C only. The above figuresinclude 'Short Courses', equivalent to half of a GCSE, from 1998onwards and intermediate GNVQ's.(ii) City & Guilds qualifications may have a number of units attachedto them. Above figures relate to the number of individual units passed.(iii) Although exams are not run by the Department of Education,results are notified to the Department.(iv) The above table only reflects achievements in those examinationswhere there were ten or more subject passes in 1998.

(v) From 1999 onwards the City & Guild and Construction Industry TrainingBoard Individual units have been converted to NVQ subject passes.(vi) Academic Courses include GCSE and GNVQ at Level 2, AS, A2 andAVCE at Level 3, HNC/D and Undergraduates at Level 4.Academic Courses include GCSE and GNVQ at Level 2, AS, A2 andAVCE at Level 3, HNC/D and Undergraduates at Level 4.(vii) ‘Vocational Courses’ relates to all vocationally specific programmesEXCEPT NVQ (which are recorded separately).(viii) From 2003 achievements are being grouped by category ratherthan specific qualifications. Source: Department of Education


Country Fact File > Government Departments > Statutory Boards and Government Offices

Statutory Boards and other Government Offices

Communications CommissionSalisbury House,Victoria Street,Douglas, Isle of ManIM1 2LWTel: + 44 (0)1624 677022

Responsible for the licensing and regulation of telecommunications,broadcasting and radio communications on the Isle of Man, theCommunications Commission works in close association with theUnited Kingdom Office of Communications – Ofcom. Ofcom workson behalf of the Isle of Man Communications Commission whereinternational matters are of concern.

Financial Supervision CommissionPO Box 58, Finch Hill House,Bucks Road,Douglas, Isle of ManIM99 1DTTel: + 44 (0)1624 689300

Established in 1983, the Financial Supervision Commission (FSC) isresponsible for the licensing and supervision of banks, buildingsocieties, investment business, collective investment schemes andcorporate service providers in the Isle of Man. The Commission isalso responsible for the Companies Registry which incorporatescompanies and registers documents required to be filed under theCompanies Acts and related legislation.

Insurance and Pensions Authority4th Floor,HSBC House,Ridgeway Street,Douglas, Isle of ManIM1 1ERTel: + 44 (0)1624 646000

The Insurance and Pensions Authority (IPA) is committed to ensuringthat all authorised insurers are properly managed, technicallycompetent and adequately financed. Through the Insurance Act1986, the IPA has kept in line with international standards and isresponsible for regulation of the Island’s insurance industry,developing a regulatory framework for international and domesticpension business.

Manx Electricity AuthorityP.O. Box 177,Douglas, Isle of ManIM99 1PSTel: + 44 (0)1624 687687

The Manx Electricity Authority (MEA) is charged in the 1996Electricity Act with providing a safe, secure and economic electricitysupply to the Isle of Man. The Authority has responsibility for thegeneration, transmission and distribution of electricity and for thebilling and collection of revenue from these activities. The MEA alsoprovides retail service centres throughout the island.

Isle of Man Post OfficePostal Headquarters,Spring Valley Industrial Estate,Douglas, Isle of ManIM2 1AATel: + 44 (0)1624 69800

The Isle of Man Post is constituted under the Post Office Act 1993and its business is to function as the public postal operator of theIsland. By focusing on the needs of its customers and the market, itis able to provide an efficient and effective service.

The Isle of Man Water AuthorityTromode Road,Douglas, Isle of ManIM2 5PATel: + 44 (0)1624 695949

The Isle of Man Water Authority is responsible for ensuring theeconomic, efficient and effective provision of the services andinfrastructure necessary to meet the Island’s needs in terms of awholesome supply of drinking water. The principal objective is toprovide a safe, reliable and high quality water supply to customers'homes backed up by an equally efficient customer service.

The Isle of Man Office of Fair TradingGovernment Buildings, Lord Street, Douglas, Isle of ManIM1 1LETel: + 44 (0)1624 686520

In 1998 the Board of Consumer Affairs was renamed the Isle ofMan Office of Fair Trading following the operation of the Fair TradingAct in 1996. The Office of Fair Trading provides the appropriatelegislation, advice, and compliance services to benefit and protectthe Island's consumers and businesses from unfair trading practices.The Financial Services Ombudsman Scheme also operates out ofthe Isle of Man Office of Fair Trading.

Financial Services Ombudsman SchemeGovernment Buildings,Lord Street,Douglas, Isle of ManIM1 1LETel: + 44 (0)1624 686500

The Financial Services Ombudsman Scheme is set up in theFinancial Supervision Act 1988 and operates out of the Isle of ManOffice of Fair Trading. In January 2002, the Financial ServicesOmbudsman Scheme became fully operational and is a free,independent dispute resolution service for private customers of anIsle of Man financial firm with a complaint against that firm.Companies are not eligible to use the scheme. The Scheme candirect the firm to correct any wrong-doing, including paying up to£100,000.


Country Fact File > Government Departments > Statutory Boards and Government Offices

Statutory Boards and other Government Offices

The Personnel Office,Goldie House, 1-4 Goldie Terrace,Upper Church Street, Douglas, Isle of Man IM1 1EBTel: + 44 (0)1624 685000

The Personnel Office acts as an agent for the Civil ServiceCommission and the Whitley Council in relation to terms andconditions. It offers advice and support to individuals, departmentsand the government as a corporate entity on business and peoplesolutions. Improving public relations, monitoring recruitment, andadvice on compliance of health and safety legislation are some ofthe functions the Office provides to the government.

The civil service represents the majority of the administrative,managerial and professional side of the government workforce,comprising over 1,800 employees in 20 different departments,boards and offices. It provides a wide range of opportunities forcapable individuals in most areas of Island life such as agriculture,education, health, the environment, the economy, manufacturingindustry, information technology and tourism.

Manual workers are not part of the Civil Service, neither are PoliceOfficers, Teachers, Firemen, Nurses and members of the Judiciary.The Whitley Council represents public service workers.

Manx National HeritageDouglas, Isle of Man IM1 3LYTel: + 44 (0)1624 648000

Manx National Heritage operates under the authority of the ManxMuseum and National Trust Acts 1959 –1986. It is independent bystatute on behalf of the Manx community and aims to protect andpreserve the Island’s natural and cultural heritage. Although not adepartment or statutory board, Manx National Heritage is subject tothe same regulations and controls as those that are. The financialcontrol is by an independent body of trustees. The trustee body isalso a public registered charity in the Isle of Man (No. 603)

Isle of Man Gambling Control Commission Homefield, Woodbourne Road,Douglas, Isle of ManIMI 2RFTel: + 44 (0)1624 623355

The Gambling Control Commission is responsible for the lawfulconduct of online gambling, gaming, betting and lotteries, toprovide licences to operate in the Isle of Man according to the On-line Gambling Regulation Act 2001 and Gaming, Betting andLotteries Act 1988. The Gambling Control Commission works closelywith the e-gaming division that is part of the Department of Tradeand Industry; it also works with the Department of Home Affairsand the Treasury’s Customs and Excise Office.

The General RegistryIsle of Man Courts of Justice,Deemsters Walk, Bucks Road,Douglas, Isle of ManIM1 3ARTel: + 44 (0)1624 685481

The General Registry is responsible for the administration of justice,registration of legal documents, the registration of births deaths andmarriages and the safekeeping of public records. The GeneralRegistry is made up of service divisions. These are the Courts, LegalAid, Registries and the Public Records Office.

Attorney General’s Chamber2nd Floor New Wing, Victory House, Prospect Hill, Douglas, Isle of ManIM1 3PPTel: + 44 (0)1624 685452

HM Attorney General for the Isle of Man is the legal adviser to theCrown in the Isle of Man. The Attorney General is appointed by theQueen and is ex officio a member of the Legislative Council.

The function of the Chamber is primarily to provide a high quality oflegal advice to all levels of the Isle of Man government, advice tothe constabulary, prosecution of offences in the Court of GeneralGaol Delivery and occasionally in the summary courts, legal servicesto the statutory boards and departments, legal advice ofgovernment financial schemes, commercial leases andconveyances, liaison with the United Kingdom, European Union andother international jurisdictions in the prevention and investigationof serious crime and fraud, consideration and advice oninternational agreements and relevance of European Union law tothe Isle of Man.

Chief Secretary’s OfficeGovernment Office,Bucks Road, Douglas, Isle of ManIM1 3PNTel: + 44 (0)1624 685711

The Chief Secretary’s Office was formed in 1989. The Chief Secretaryalong with the support of the Corporate Planning and OperationsManager operates four divisions: Government House, Council ofMinisters Division, Crown and External Relations, Drug and AlcoholCo-ordinator.

Office of Data Protection Supervisor (ODPS)PO Box 69,Douglas, Isle of ManIM99 1EQTel: + 44 (0)1624 661030

The Office of Data Protection Supervisor is responsible for theprotection of all data in the Isle of Man. The Isle of Man DataProtection Act 2002 was drafted in order to meet the standards setout in the European Data Protection Directive 95/46/EC and issimilar to the UK’s Data Protection Act 1998. The Act also repealsand replaces the Data Protection Act 1986 and extends dataprotection principles to include personal data held in any formincluding manual records.

Although the Isle of Man is not a member of the European Union(EU) and is therefore not required to implement this Directive, it hasdone so in order to be able to apply for an adequacy finding bythe European Commission. If this is granted, this will enable EUcountries to transfer data without undue administrative burdens, tothe Isle of Man. Without this, the Island would be deemed by theEU not to have an appropriate regime for data protection and thisimpacts on the smooth provision of financial and other services inthe Island.

The Act provides that all data controllers are under a duty to complywith the data protection principles in relation to personal data forwhich they are the data controller, subject to exemptions. The Actprovides for a system of notification and sets out the rights of anindividual under the Act.


Banking 77

> The Royal Bank of Scotland International Group

> Lloyds TSB Offshore Limited

> Singer & Friedlander

> Fairbairn Private Bank (IOM) Limited

> Conister Trust PLC

Corporate Service Providers 87

> Scarlett Corporate Services Limited

> Louis Group International Trustees

Insurance and Pensions 93

> Royal Skandia

Investment Services 97

> Capital International

Legal Services 101

> MannBenham Limited

Wealth Management 105

> BW Group Limited

Finance Sectors and Professional Services > Contents

Finance Sectorsand Professional Services


Finance Sectors and Professional Services > Banking

The services of the banks often extendbeyond deposit and money transmissionservices to include investmentmanagement, administering trusts and themanagement of the underlying assets ofthe trusts, services they provide forexpatriates around the world. Somebanks also act as custodians and trusteesto collective investment schemes, whileothers conduct trade finance and treasuryoperations. The growth in other areas ofthe Island’s finance sector means thatthere may be large sums of money to layoff in the money markets.

All banks are subject to a licensing andsupervision system administered by theFinancial Supervision Commission (FSC).Banking licences may be issued to bothbanks with a full presence on the Islandin terms of staff and management, and tothose who have no such presence andtherefore need to be managed by anapproved bank (a Managed Bank). Alicence can be issued with or withoutrestrictions on its operation and the typesof business it can conduct.

A banking licence issued withoutrestriction permits a bank to conduct a fullrange of banking business with customers

both in the Isle of Man and elsewhere inthe world. Such a licence holder mustdemonstrate a real presence in terms ofits own premises, management, staff,systems and resources on the Island. Alllicence holders conducting retail bankingmust be members of the DepositorsCompensation Scheme, which wasintroduced in 1991; the Isle of Man wasthe first offshore centre to introduce sucha scheme. Unlike the United Kingdomscheme protection is extended to foreigncurrency as well as sterling deposits.

A Managed Bank employs the services ofanother licensed bank in the Isle of Man,the ‘approved manager’, to provide theday to day management andadministrative functions. It may notemploy any staff without the consent ofthe FSC and it must operate from thepremises of the approved manager.Managed Bank licence holders may electwhether or not to join the DepositorsCompensation Scheme.

The FSC’s licensing policy is based on thefact that the Island is too small toshoulder high risk or start up operations.Therefore it will only grant licences tobranches or subsidiaries of existing banks

already licensed in jurisdictions which theFSC believes exercise proper licensing andsupervision and which subscribe to theInternational Concordat on bankingsupervision. Applicants must also have atrack record of at least 5 years’ profitableoperation, and the ownership andmanagement must be acceptable to theFSC.

The trade association on the Isle of Manfor the Banking industry is the Associationof Licensed Bankers. The Association hasregular forums for consultation withGovernment, the Financial SupervisionCommission, the Institute of FinancialServices and the Banking Associations ofJersey and Guernsey, as well as dialoguewith other professional organisation onthe Island in order to represent theinterests of its members. It also providesa forum for its members to debate issuesaffecting the industry with a view tocreating a consensus of opinion to enablethe Association to provide constructiveinput to the various regulatory bodies.Membership is open to and encouragedfor all licensed banking institutions on theIsland.

Banking

Financial Supervision Commission(FSC)Tel: +44 (0)1624 689300

Association of Licensed Bankerswww.alb.org.im




Finance Sectors and Professional Services > Banking > The Royal Bank of Scotland International Ltd (RBSI)

The Royal Bank of Scotland International Limited (RBSI)

is part of The Royal Bank of Scotland Group (the Group),

which is one of the UK's oldest financial institutions -

its ancestry dates back to a Royal Charter granted in 1727.

As one of the leading players in the UKoffshore market, The Royal Bank ofScotland International Group (the RBSIgroup) offers a full range of services tointernational clients, from personalbanking through to corporate financeunder the three brands; RBSI, Isle of ManBank Limited and NatWest. It operates infour offshore jurisdictions, namely the Isleof Man, Jersey, Guernsey, and Gibraltar.

Having had a presence in the Isle ofMan for 25 years, the Group’scommitment to the Isle of Man isreflected in its corporate headquarters - astriking glass building that sits at theseaport gateway to the Island and isdesigned to reflect its proud maritimehistory.

Well versed in every size and shape ofcorporate lending, the RBSI group is ableto tailor financing to a company’s exactrequirements. Everything from relativelystraightforward loans to complexstructured finance deals are available tolocal, offshore and internationalcustomers. RBSI Island Director, CIB JohnMacGregor has overseen local growth inline with the Group's expansion aroundthe globe to make it one of the world'sleading financial service providers.

‘What distinguishes us is that we areone of the largest offshore banks in theworld,’ he says, ‘and one of the reasonsfor our success is that we continuallystrive for innovation. We like to findsolutions for our clients. We appreciatethat everybody is different and has theirown needs and we provide a bespokeservice.’

eQ, RBSI’s electronic banking system isan example of how one of the UK'soldest banks is continually developingservices to meet the needs of today'scustomer. Specifically designed for theoffshore finance sector eQ enablescustomers to consolidate related accountsin different currencies under a singleaccount number via the internet, whichcan make even the most complex of cashportfolios simple to manage.

The RBSI group offers a comprehensiveservice to corporate and commercialcustomers, including global cashmanagement, lending services, securitiesservices, private banking and employeebanking services. Property developers andinvestors can take advantage of theflexible solutions it can offer and there arespecialist services for the offshore fundsindustry, investment and fund managers,> Helen Edwards and John MacGregor

The Royal Bank of ScotlandInternational Ltd (RBSI)


Finance Sectors and Professional Services > Banking > The Royal Bank of Scotland International Ltd (RBSI)

including global custody, hedging productsand cash management, and new productsfor the captive industry.

As John is keen to emphasise, the RBSIgroup can deliver the required servicesthanks to products that can be tailored tomeet individual needs, competitive pricingand quick decision making andimplementation.

Taking a typically proactive approach inthe offshore financial markets arena HelenEdwards, Director, Financial Markets, RBSI(FM, RBSI) manages a team of six highlyqualified individuals who provide acomplete treasury risk managementservice.

Helen explains: ‘Our treasury managerswork with John's team and our customersto understand what treasury risk they areexposed to. A customer's interaction withthe treasury manager is complimentary tothe relationship with their accountmanager and ensures a group approach.’

Customers with foreign exchangerequirements in excess of £500,000 perannum can enjoy a direct relationshipwith Helen’s team enabling them tobenefit from a range of bespoke hedgingsolutions. Interest rate risk managementfor core debt requirements can be tailoredto meet individual needs. Investmentsolutions include money market depositsand a variety of structured investmentsolutions along with money market fundsin sterling, US dollars and euros.

Helen joined FM, RBSI in March 2003from the Group’s Financial Marketsoperation in Leeds. With 17 yearsexperience, she has been involvedpredominantly in the internationaloperations within NatWest and The RoyalBank of Scotland (the Royal Bank) movinginto the Financial Markets arena in 1995.‘We are the customer facing arm of theFM, RBSI business and provide a localpoint of contact for our customers dealingin FX, money markets, interest rate riskmanagement and bespoke investmentstructures. Our aim is to work inpartnership with our customers to providesolutions to their financing, riskmanagement and investment needs,’ sheexplains.

Significant investment has been maderecently in refurbishing the dealing room,implementing new technology andsystems to enhance the overall serviceprovided to its client base. Open lines to

all Royal Bank’s dealing rooms globallyfurnishes the local team with up to theminute market information and pricingfrom the trading floors in all time zones.This consolidates its position as one ofthe Island’s leading providers of TreasuryRisk Management solutions and isworking evidence of the FM, RBSIbusiness strap line ‘Local knowledge,Global Reach’.

The RBSI group has nailed its coloursvery firmly to the mast of Isle of Man plc.‘We consider the Island to be a top

quality jurisdiction with a strong regulatoryenvironment. The government is proactivein changing legislation to meet industryneeds, mostly recently by introducing thezero corporate tax rate by 2006.’ explainsJohn.

By the end of 2002, and following theacquisition of NatWest, the Group was thesecond largest bank in Europe and thefifth largest in the world and from itsimposing seafront headquarters, the RBSIgroup is fully prepared for any challengesthat lie over the horizon.

Fact File > The Royal Bank of Scotland International Group

Company Name: The Royal Bank of Scotland International Group

Office Address: 2 Victoria Street, Douglas, Isle of Man IM99 1NJ

Website: www.rbsint.com

Email: [email protected] or [email protected]

Phone: + 44 (0)1624 646603 (Corporate & Institutional Banking)

+ 44 (0)1624 656500 (Financial Markets, RBSI)

Fax: + 44 (0)1624 646453 (Corporate & Institutional Banking)

+ 44 (0)1624 646439 (Financial Markets, RBSI)

Ownership The Royal Bank of Scotland (Holdings) Limited& Management: Directors: Jim Paton, Alex Rodger, James Morris, Jerry Linehan

Date Incorporated: 1996

Registered Office: Royal Bank House, 71 Bath Street, St Helier, Jersey JE4 8PJ

Directors: Gordon Pell, Brian Crowe, Jim Paton, Alex Rodger,Kathryn Winup, Miller McClean

Employees (2004): Approximately 1,800 (RBSI Group)

Affiliated Companies: The Royal Bank of Scotland International Limited, NatWest,IoM Bank plc, RBSI Securities Services Group, Coutts Offshore

Main Business: Offshore Bank

Licences: Licensed by the IOM FSC for banking and investment business

Auditors: Deloitte & Touche

> Financial markets, RBSI dealing room

Fact File Isle of ManFact File Isle of Man8080

Finance Sectors and Professional Services > Banking > Lloyds TSB Offshore Limited

Lloyds TSB Offshore Limited

Lloyds TSB began operating in the Isle of Man more than a

century ago and has subsequently developed into one of

the largest local employers, providing retail banking back

office operations for the bank in the Channel Islands and the

Isle of Man. The bank also offers the full range of personal

and business banking services on the Island.

> Peveril Buildings, Douglas, Isle of Man

> Tony Wild, Island Director


Finance Sectors and Professional Services > Banking > Lloyds TSB Offshore Limited

> Peveril Buildings (centre) occupy a prominent position at Douglas Bay

One of the major differences betweenthe Isle of Man operation and those inthe UK is that Lloyds TSB has anexpatriate centre in addition to traditionalhigh street banking. It was established in1989 to serve the needs of the Britishexpatriate community worldwide but isnow in demand by nationals from othercountries as well.

Island director Tony Wild says the Islandoffers a good base from which to dobusiness: 'The Isle of Man has goodfacilities and transport links, up-to-datetelecommunications and a reputation as ahighly professional international centre.There is also the added bonus that it is awonderful place to live and work, with areal quality of life.'

Customers, who are based in more than 130 countries around the world, can take comfort from the stability andreputation of the Island as well as theexperience of well trained and highlyproficient staff. The Island directorwelcomes the positive relationship thegovernment and regulators have with the finance industry.

He said: 'We are very fortunate here inthat the authorities are approachable andrealistic. They seek to both enhance andprotect the reputation of the Island and to encourage the best participants in the industry.'

Lloyds TSB has enjoyed a decade ofsignificant growth but is not complacent.The Bank is aware of the need to respondpositively to the ongoing challenges ofchanging legislation.

'As an international bank we have totake care that in addition to complyingwith the rules within the Island we alsokeep abreast of the rules of all thecountries within which we do business,'says Tony Wild. 'Competition in theindustry is strong but that is goodbecause it keeps us all on our toes. Withever-increasing globalisation, we will soonreach a stage where an internationalcentre succeeds or fails purely on thequality of the services it provides and the

staff supporting these services, rather thanin terms of tax breaks or the exploitationof anomalies within the laws of othercountries.' Lloyds TSB is well placed tocontinue to build on a century of bankingin the Island and maintains a confidentoutlook. Says Tony Wild: 'The Isle of Man,with a strong financial services andinsurance industry, together with talentedlegal, accounting and supporting services,is very well placed to take advantage offuture opportunities.'

Fact File > Lloyds TSB Offshore Limited

Company Name: Lloyds TSB Offshore Limited

Office Address: PO Box 12, Peveril Buildings, Peveril Square, Douglas, Isle of Man IM99 1SS

Website: www.lloydstsb-offshore.com

Email: [email protected]

Phone: + 44 (0)1624 638130

Fax: + 44 (0)1624 663824

Ownership & Management: Wholly owned subsidiary of Lloyds TSB Bank plc

Date Incorporated: 7 January 2004

Registered Office: PO Box 160, 25 New Street, St Helier, Jersey, JE4 8RG

Directors: D J S Oldfield, M F Fricker, W J McLaughlin, R T McGinnigle,A P White, T P Wild, R D Willcox, R J Musty, C Sutton

Employees (2004): IOM 460 Overall 1400

Main Business: Banking

Other Business: Financial Services and Wealth Management

Licences: Banking and Investment Business

Auditors: PricewaterhouseCoopers


Finance Sectors and Professional Services > Banking > Singer & Friedlander

Singer & Friedlander

A private bank that has built up a solid reputation in the

Isle of Man over the past 30 years, Singer & Friedlander

offers tailored wealth management services for expatriates,

overseas residents and international investors.

Managing Director of the bank, AidanDoherty says: 'Singer & Friedlander is aprestigious bank, with a pedigree secondto none. We offer banking, fiduciary andinvestment services to high net worthindividuals worldwide, providing flexiblesolutions to meet the needs of a highlydemanding market.

‘Given this demanding internationalclient profile we offer the unique MoneyMarket Currency Account (MMCA) whichmeets many clients’ needs by providingmulti-currency banking facilities.

‘With our MMCA clients may holdaccounts in a choice of currencies, withaccess to these accounts through ourSinger & Friedlander International VISAdebit card. An additional benefit with thisaccount is that clients can switch fundsbetween currencies at any time – free ofcommission charges.

‘Our comprehensive range of bankingservices also includes highly rated noticeaccounts. Our Base Rate Tracker Accountoffers interest rates that followmovements in Bank of England Base Rate.This offers clients the security that theiryield will always remain competitive. ThePlatinum Notice Account offers a similarcompetitive advantage, with interest paidannually. Both accounts offer terms of 32,60, 90 and 180 days.

‘Multi-currency lending facilities,including mortgage finance for residentialproperties in the UK, are also available.'

Aidan continues: 'At Singer & Friedlanderwe pride ourselves on the personalservice given to clients; each client hastheir own client manager who can becontacted during our normal workinghours.

‘It is the personal touch that distinguishesus; we do not have a call centre, preferringthat our clients have a rewarding, one-to-one relationship with us. For those who

want to take more control over theirbanking we offer a fully transactionalOnline Banking facility, allowing clientsaccess to their account wherever they live,work or have retired to.

‘The Trust operation initially grew fromour banking and investment business inkeeping with Singer & Friedlander’s ethosof providing innovative solutions tailoredto meet each client's needs.’

> A local, experienced staff of some 90 people administer international private banking and financial services

> Friendly and professional team members


Finance Sectors and Professional Services > Banking > Singer & Friedlander

> Anne Couper Woods, Robin James & Aidan Doherty

In 2000, Singers acquired the fiduciaryservice business from KPMG and 23 oftheir staff moved with the business.Senior Manager, Anne Couper Woods said:'Our clients are generally high net worthindividuals with international interests, andthey are becoming increasingly sophisticatedin their needs and expectations.

‘We are accustomed to dealing withtailored structures, which are generallydesigned by professional advisers.

‘Our traditional markets are the UK andIreland but we have seen growth furtherafield into new markets, including Centraland Eastern Europe.

‘Most of these countries haveundergone rapid change in recent years,transforming from socialism to thrivingmarket economies and the accession ofthese CEE countries to the EU will result intax harmonization and free movement ofgoods.

‘These markets have recently opened upand as attitudes and perceptions changewe will be able to provide the tools withwhich the professional advisers can createefficient tax planning structures.'

Singer & Friedlander’s breadth ofexperience includes the provision ofcompanies registered in variousjurisdictions, along with discretionary,express, employee benefit, and purposetrusts.

Companies limited by shares and byguarantee (often referred to as hybridcompanies) are also a useful tool, whichprovide flexibility and have been used to

great effect. Anne concluded: 'We aim tomeet each client’s needs, rather thanmaking everybody fit into the samemould. Our management areprofessionally qualified to provide

accountancy, company secretarial andtrustee services, and we believe thesediverse skills, coupled with an abundanceof experience, set us apart from otherproviders.'

Fact File > Singer & Friedlander

Company Name: Singer & Friedlander (Isle of Man) LimitedSinger & Friedlander Trust Company (Isle of Man) Limited

Office Address: PO Box 197, Samuel Harris House, 5-11 St. Georges Street,Douglas, Isle of Man, IM99 1SN

Website: www.singers-iom.co.im


Phone: + 44 (0)1624 699222

Fax: + 44 (0)1624 699200

Ownership Singer & Friedlander (Isle of Man) Holdings Ltd& Management: A wholly owned subsidiary of Singer & Friedlander Group PLC

IOM Co Registration No: 098432C

Date Incorporated: 24 December 1999

Registered Office: PO Box 197, Samuel Harris House, 5-11 St. Georges Street,Douglas, Isle of Man, IM99 1SN

Directors: R James, A Doherty, L F Doherty, RC Rawcliffe, A J Davies, S Coop, B Hatton, J E Haslett

Employees (2004): Approx 90

Affiliated Companies: Singer & Friedlander Investment Management (IOM) Ltd

Main Business: Banking, Fiduciary and Investment Management Services

Licences: Singer & Friedlander (Isle of Man) Limited is licensed by theIsle of Man Financial Supervision Commission for Banking &Investment Business. Singer & Friedlander (Isle of Man)Limited is Authorised and Regulated by the Financial ServicesAuthority for UK Mortgage Business. Singer & FriedlanderTrust Company (Isle of Man) Limited is licensed by the Isle ofMan Supervision Commission as a Corporate Service Provider


Finance Sectors and Professional Services > Banking > Fairbairn Private Bank (IOM) Limited

Fairbairn Private Bank (IOM) Ltd

Established in the Isle of Man in 1987, Fairbairn

Private Bank (formerly Gerrard Private Bank)

operates a successful and comprehensive

private and personal banking operation

on behalf of a wide range of clients.

Fairbairn Private Bank is unashamedlydriven by its clients’ needs and has wonnumerous awards and internationalrecognition for not only innovativeproducts and services, but also for the quality of its client service and employee commitment. In recognitionof these achievements, the bank was the first British offshore island based bank to hold an independent credit rating (Moody's).

Fairbairn Private Bank offers a widerange of wealth management servicesencompassing both banking andinvestment. The extensive range of multi-currency banking services includes chequeaccounts, fixed term and structureddeposits, loan arrangements, deferreddebit Gold Visa cards and foreignexchange. On the investment side there is a comprehensive offering, ranging fromfull execution only services, for those who wish to take control of their ownportfolio management, through todiscretionary managed investmentportfolios where either Fairbairn PrivateBank, or a chosen professional adviser,manages the clients’ wealth.

In addition, Fairbairn Private Bank cancombine banking and investmentrequirements within its unique, fullyintegrated Focus service.

This award-winning service provides acost effective consolidated account thatsaves clients or professional advisers time,effort and money when managing theirinvestments. Whatever a client’s needs, asingle combined report will give a clearand concise monthly snapshot of theirtotal net worth with Fairbairn Private Bank.

Managing Director Greg Horton explains,‘Today’s sophisticated investor orprofessional adviser is increasingly facedwith a complex chain of product and

service providers. Managing andinteracting within this environment cannot only be time-consuming, but alsocostly and often complicated. Integratingyour banking and investments within ouraward-winning Focus service can providethe solution.

Focus offers a simple, seamless package,which will save time and simplifyadministration. The ability to transact overthe phone makes banking and investmentdealing an effortless process.’

> The private banking team

> Managing Director Greg Horton


Finance Sectors and Professional Services > Banking > Fairbairn Private Bank (IOM) Limited

> St Mary’s Court by night

Fairbairn Private Bank’s commitment toquality products and services has notgone unnoticed. For an unprecedentedthree years on the run, it has won thehighly coveted award for Best OffshoreBank at the International InvestmentOffshore Fund and Product Awards. Thebank has also received highlycommended awards in the other twobanking categories, Best Offshore BankingProduct Range and Best Offshore BankingProduct for Focus.

This is the fourth year in succession thatthe Focus service has either won theaward outright or been highlycommended. With six outright wins andnine highly commended awards in a fouryear period, Fairbairn Private Bank hasamassed more awards than any otheroffshore bank at this highly covetedfinancial service industry event.

The International Investment OffshoreFund and Product Awards continue to bethe only awards devoted toacknowledging and bringing the majorsectors of the offshore financial servicesindustry together at one event. Theawards are in honour and recognition ofgroups who distribute financial productson an international basis and,consequently, remain the most soughtafter in the industry.

Despite the well-documented problemsfacing the offshore market, FairbairnPrivate Bank does not see its businessgrowth abating and has structures andplans in place to deal with the imminentissues arising in the marketplace. Thecontinuous development of new productsand services to meet the ever changingneeds of a dynamic market has led to a

steady increase in staff numbers and themove to St Mary’s Court, a prestigiousnew office development on Hill Street inDouglas.

‘We have set ourselves very highstandards both for innovative productsand the quality of our client services. Ourrecent change of name to Fairbairn PrivateBank provides us with a renewed impetusto build on our success,’ says Greg.

Part of the multinational Old Mutualgroup of companies, the bank benefitsfrom the financial strength and wide range

of products and services offered throughthe group. Old Mutual, a FTSE 100 listedcompany with over £130 billion of fundsunder management, is the bank’s ultimateparent company and was formed as aMutual in 1845 by John Fairbairn.

Following the sale of its sister company,Gerrard Limited, Fairbairn Private Bank, sonamed after the founder, was re-brandedin November 2004.

Fairbairn Private Bank has offices in theIsle of Man and Jersey, and representativeoffices in South Africa and Hong Kong.

Fact File > Fairbairn Private Bank (IOM) Limited

Company Name: Fairbairn Private Bank (IOM) Limited (formerly Gerrard Private Bank (IOM) Ltd)

Office Address: St Mary’s Court, 20 Hill Street, Douglas, Isle of Man IM1 1EU

Website: www.fairbairnpb.com


Phone: + 44 (0)1624 645000

Fax: + 44 (0)1624 627218

Ownership & Management: Ultimate parent company is Old Mutual plc

IOM Co Registration No: 32816

Date Incorporated: 23 January 1987

Registered Office: St Mary’s Court, 20 Hill Street, Douglas, Isle of Man IM1 1EU

Directors: Greg Horton, Nick James

Employees (2004): 72

Affiliated Companies: Fairbairn Private Bank (Jersey) Ltd. Fairbairn Trust (Jersey) Ltd.

Main Business: Private Banking and Investment

Licences: Fairbairn Private Bank (IOM) Limited is licensed by the Isle ofMan Financial Services Commission to conduct Banking andInvestment Business


Finance Sectors and Professional Services > Banking > Conister Trust PLC

Conister Trust PLC

The Isle of Man's only independent publicly owned bank

continues to operate successfully alongside the giants of the

local finance industry.

Conister Trust began life in 1935 as thefirst major provider of credit finance and,proving right the group of localbusinessmen who believed there was aneed for a locally based hire purchasecompany, is now a household name.Diversification into deposit taking and,most recently, litigation funding has alsopaid off. Licensed by the FinancialSupervision Commission to conductbanking business, Conister offers some ofthe highest interest rates on deposits tobe found in the British Isles. At the end ofJune 2004 the bank deposits exceeded£50 million.

Conister's comprehensive lendingservices range from personal motorfinance to loans and business lendingcovering everything from companyvehicles to computer systems. The banknow owns and operates two leasingbusinesses in the UK, complementing thebroker business that enables Conister tobreak into the UK market. Conister hasfended off fierce competition to retain asignificant share of the market forconsumer credit in the Isle of Man. Headof group marketing Michael Lees has beenwith Conister since 1967 and is the bank'slongest serving employee. This year,Conister celebrates its 70th anniversary.

Said Mr Lees: 'The biggest changes inworking practice have come withcomputerisation. I was not around whenthey were using quills, as some suggest,but our records were all paper. Now yousimply press a button and you are able toaccess any document you require, as canall 34 people in the building all at thesame time. 'As far as lending is concerned,this has always been our core businessand one of the gratifying things for mepersonally is to have worked with someof the garage personnel who started outwhen I did in 1967 and have gone on tobecome garage proprietors.

We have been able to build up lifelongworking relationships.' Conister's strongrelationship with the motor trade is re-flected in the annual Conister motor showthe bank organises in conjunction withthe industry. This year will see the eighthannual show, which gets bigger each year.Litigation funding is a new development forConister. It provides finance for individualspursuing personal injury claims.

Michael Lees says: 'We have providedlitigation funding for personal injury casesin the UK since 2002 and we arecommitted to supporting the legalprofession through building experience inthis field. We are building relationshipswith reputable partners and constantlydeveloping procedures and systems to

meet the changing needs of the market.'The majority of Conister's shareholdersand directors are resident in the Isle of Man,which can speed up decision making andensures Conister retains the personalservice that clients appreciate. 'There's alot to be said for being able to speak tosomebody face to face and to know thatperson as well,' says Mr Lees. 'Being smallerthan other banks has worked to ouradvantage. Personal service attracts customers.

'While litigation is very much a growingmarket, we must not forget our deposittaking side. We are a fully licenseddeposit taker and that is important to usas it is how we fund our business. Weenjoy a strong relationship with the FSCand with the government.'

> Conister House

Fact File > Conister Trust PLC

Company Name: Conister Trust PLC

Office Address: Conister House, 16-18 Finch Road, Douglas, Isle of Man, IM1 2PT

Website: www.conistertrust.com


Phone: + 44 (0)1624 694694

Fax: + 44 (0)1624 624278

Ownership & Management: Public Isle of Man company


Date Incorporated: 5 December 1935

Registered Office: Conister House, 16-18 Finch Road, Douglas, Isle of Man, IM1 2PT

Directors: Executive Chairman: Peter J S Hammonds, Executive Director:Gareth A Jones, Non Executive Directors: Alan Clarke, JenniferE Haigh, T Neil Kennedy, Simon P G Lee, John J Webster

Employees (2004): 34 Manx, 9 UK

Affiliated Companies: Conister Trust Limited, Conister Finance & Leasing Limited,Commercial Finance Limited, Conister Legal ManagementServices Limited, Waltons Finance Limited

Main Business: Banking

Licences: Banking and Consumer Credit

1935-2005


Finance Sectors and Professional Services > Corporate Service Providers

Corporate Service ProvidersIn the 1980s a substantial industry grewin the Isle of Man based on the provisionand administration of offshore companiesand trusts.

This industry was quite diverse in itsmake up and the services provided, fromthe large organisations with teams ofprofessionals capable of handling largecontracts, to the smaller operationsdisplaying less formality and structure.

In the 1990s the Isle of Man, as withother jurisdictions, came under themicroscope with organisations such asthe Organisation for Economic Co-operation and Development (OECD), theFinancial Action Task Force (FATF) and theFinancial Stability Forum (FSF). In additionthe UK carried out its own review of theOffshore British jurisdictions (now knownas ‘the Edwards Report’).

The Isle of Man Government respondedwith the introduction of the CorporateService Bill which became law towardsthe end of 2000.

The services of a Corporate ServiceProvider (CSP) are described as including:

● Formation of companies

● Sale, transfer or disposal ofcompanies

● Provision of premises for use as aregistered office or accommodationaddress for a company.

● Acting (or arranging for others to act)as a director or secretary of acompany

● Acting as, or arranging for others, toact as a nominee member orshareholder of a company.

● Provision of company administrationservices.

Prior to the new regulations there hadbeen approximately 250 companies orindividuals providing services ranging fromthe simple to the extremely complex.There was recognition amongst themajority of the companies in the sectorthat a licensing regime was necessary.This period saw the rationalisation of theindustry with a reduction in the number ofCSPs and, at the end of September 2003,161 licenses had been granted, including20 to new start up businesses.

Under the legislation a licence holder andits key staff are required to be ‘fit andproper’, and Clients’ money must be heldon trust for the client, or the client’scompany, and must be segregated fromthe CSP’s own moneys.

There is also in place the CorporateService Providers (General Requirements)Regulatory Code, which subjects all CSPsto universal standards in respect of theirconduct of business and the handling ofclients’ money.

The Association of Corporate ServiceProviders (ACSP) was formed in June 1999to create a representative body for theproviders of fiduciary and corporatemanagement and administration servicesin the Isle of Man. As the majority ofeligible members joined the Association ithas effectively become the professionalbody of the industry in the Island.

The Association had significant influencein the shaping and final content of theregulations and continues to play its partin representing the industry in continuingdiscussions with the Government. It alsorepresents the industry in other mattersaffecting its business environment andaddresses external forums, representingthe industry to a wider audience.

Financial Supervision Commission(FSC)Tel: + 44 (0)1624 689300

Association of Corporate ServiceProviders (ACSP)Tel: + 44 (0)1624 628131www.acsp.co.im



Finance Sectors and Professional Services > Corporate Service Providers > Scarlett Corporate Services Ltd

Scarlett Corporate Services

For the professional intermediary who is continuously

striving to minimise the tax liability of his or her high net

worth client, the use of companies and trusts incorporated

in favourable tax jurisdictions is often involved.

This is where corporate serviceproviders, or CSPs, come in. One such CSPthat identifies a need in today's globalmarket for appropriate managementstructures, backed up by comprehensiveadministration services, is ScarlettCorporate Services, based in the Island'scapital since 1997.

As well as the structures involved ininternational trading, Scarlett managespatents and copyrights and the affairs ofindividuals, sports personalities,entertainers and consultants who providetheir services away from their maincountry of residence. Scarlett also providestrust services, where an individual placesassets under the control of a trustee forthe benefit of a beneficiary or for aspecified purpose.

This could be to ensure anonymity ofownership, simplify the administration offoreign assets or reduce exposure to localinheritance laws. Scarlett is a boutiqueoperation, providing a tailored service,backed by a highly experienced team.

Managing director Richard Ellis says:'Since we started seven years ago wehave trebled the number of employeesand provide a very personal, bespokeservice to our clients. Setting up Scarlettwas a risk but one I am happy to saywas worth taking.

'We act on our clients' behalf by freeingthem from the burden of managing andadministering their affairs in a jurisdictionwith which they may not be familiar.

Thanks to our excellent communicationsinfrastructure, our clients and professionalassociates have virtually instant contactwith Scarlett from any location across theworld.' Richard Ellis has been resident inthe Island for almost two decades. TonyThompson was born and bred in theIsland and has been involved in thisbusiness, amongst others, for over thirtyyears. Both are keen for the industry as awhole to maintain and improve its profilelocally and for the Manx Government topromote CSP services as a vital component

in the financial services industry. In 1999,the Association of Corporate ServiceProviders (ACSP) was created to provide aforum for CSPs.

The take up from the industry wasoverwhelming and the ACSP haseffectively become the professional bodyfor CSPs in the Isle of Man.

'We have a very substantial industry,'says Richard Ellis, 'and the governmenthas gone to great lengths to implementprudent legislation for CSPs.

> Scarlett's Team: back row L-R Linda Hughes, Maxine Lace, Ross Byrne, Iain Laing & Steven Clague front row L-R Lorraine Martin, Jo Giles, Richard Ellis, Mary Crooks & Lesley Homer

> Richard Ellis, Managing Director


Finance Sectors and Professional Services > Corporate Service Providers > Scarlett Corporate Services Ltd

> Scarlett’s offices at Viking House, Nelson Street, Douglas

The Association has established stronglinks between the industry and thegovernment and maintains a closedialogue with the Financial SupervisionCommission and other governmentbodies. CSPs are the biggest licenceholders in the Isle of Man and asignificant percentage of the Island'sfinancial services workforce is involved inthe industry. I'm pleased to say the ACSPis a very proactive organisation.'

Corporate service providers havewitnessed increasing regulation on a globalscale with intense scrutiny fromorganisations including the OECD and FATF.

Locally, the Edwards Report, commissionedby the UK Government, was a review ofBritish dependent jurisdictions which theIsland responded to with the introductionof the Corporate Services Bill as well as acontinuing review and update of theCompany Law. It is also expected that theFiduciary Services Bill will be implementedin early 2005, which will require bothCorporate Service and Trust ServiceProviders to be licensed.’

The CSP industry has benefited from thescrutiny the Island has faced in recentyears as this has largely served toenhance the Island's reputation as a highquality jurisdiction. So what does Scarlettbelieve are the challenges to be faced?

'The major issue is going to be theeffect direct EU taxation has,' says RichardEllis, 'and how the Isle of Man reacts tothe pressures this will bring in terms ofcompeting with other jurisdictions.

‘The tax approach now adopted by the

European Union includes the Savings TaxDirective under which member states andtheir dependencies are expected tointroduce automatic exchange ofinformation or a withholding tax inrelation to interest paid to individualsresident in a EU country. The Isle of Manis expected to opt for the introduction ofa withholding tax, rather than disclosure,when the directive takes effect.

'The Isle of Man should be consideredan attractive proposition for any potential

investor, not least because of the zero taxfor businesses, and I would like to seethe government actively promoting theIsland’s corporate service providers' industryand helping to put this to the forefrontwhen the use of the structures provided byCSPs is being considered by professionalIFAs in jurisdictions around the world.

'Here at Scarlett, we look forward to thechallenges ahead and hope to continuethe same rate of growth that we haveenjoyed over the past seven years.'

Fact File > Scarlett Corporate Services Ltd

Company Name: Scarlett Corporate Services Limited

Office Address: PO Box 277, 2nd Floor, Viking House, Nelson Street, Douglas,Isle of Man, IM99 2LJ

Website: www.scarlettcorp.com


Phone: + 44 (0)1624 612892

Fax: + 44 (0)1624 613622

Ownership & Management: Mr Richard Ellis & Mr Tony Thompson


Date Incorporated: April 1997

Registered Office: 2nd Floor, Viking House, Nelson Street, Douglas, Isle of Man IM1 2AH

Directors: Chairman G. A Thompson, Managing Director R. D. Ellis,Secretary & General Manager R. K Byrne


Main Business: Corporate Service Provider

Licences: Licensed by the Isle of Man Financial SupervisionCommission as a Corporate Service Provider


Finance Sectors and Professional Services > Corporate Service Providers > Louis Group International Trustees

Louis Group International Trustees

Louis Group International is currently

celebrating its 90th year in business and

has since its inception in 1914 enjoyed

the entrepreneurial leadership

excellence of three generations of Louis

family members.

An examination of the reputations ofseveral offshore jurisdictions led aninternational firm to the Isle of Man.

Louis Group International (LGI) iscelebrating 90 years in business, first aswholesale merchants, then propertyentrepreneurs and present day venturecapitalists. Leadership has come from threegenerations of the Louis family and todayLGI is rated as one of the top South Africancompanies with significant global interestsin the Isle of Man, UK and Switzerland.

LGI operates in a diverse range ofindustries, including property, financialservices, IT, travel and leisure, media, hoteland vineyards. International growth andachievements were confirmed by thegroup's listing in publications such asSouth Africa's Top 300 Companies, both2003 and 2004 editions, South Africa'sLeading Managers 2004, and the 2005edition of Best Companies to Work for inSouth Africa.

Group CEO Alan Louis says: 'We take along term view when investing significantresources and our strategy is not aboutshort term gain and cost cutting, butrather one of steady long term growth inrobust environments. We would like tosee Louis Group International becoming amajor player in the Isle of Man.'

LGI offers most worldwide investmentinstruments as registered asset managersin Switzerland, the Isle of Man and SouthAfrica, ranging from guaranteed products,

equities and bonds to hedge funds andunit trusts. LGI Trustees was created fromthe acquisition of two established Isle ofMan corporate services firms and retainedthe services of David McPhee, a UK andIoM registered auditor and charteredaccountant with more than 39 years'experience in the field. LGI Trusteesoperates from the Louis Building in GoldieTerrace, Douglas.

Managing Director of LGI Trustees, LukasNakos, said: 'We studied the complexitiesand reputations of a number of offshore

jurisdictions and were particularlyimpressed by the Isle of Man. The AAAratings from Moody's and Standard andPoors, together with exemplary financialregulations, make the Island anappropriate setting for our operations.

'The Group's growth strategy is usuallythrough acquisition and in the Island thisstrategy has already been evident. Weacquire then consolidate by placingsignificant and varied resources behind aventure and then seek to grow thebusiness slowly but steadily.'

> LGIT Team - Douglas, Isle of Man

> Chairman Colia Louis and CEO Alan Louis


Alan Louis says what makes LGI uniqueis its ability to offer secure investments,consistently returning more than 11 percent compounded per annum in Sterlingand 20 per cent in Rand.

He says: 'Let me stress that theseproperty investments are giving trulyexcellent returns compared to any otherinvestment class with similar risk profile.Considering the current interest rateenvironment where bank deposits areoffering in the region of two per cent USdollars and 4.5 per cent Sterling, ourreturns are to be noted.'

LGI says it is committed to learning atevery level. Alan Louis recently received alifetime achievement award forentrepreneurial excellence from theInternational Biographical Centre atCambridge, which recognised hiscommitment to entrepreneurship andcommerce and for creating a professionallearning environment at LGI.

LGI annually mentors and educatesstudents in South Africa in all areas ofbusiness entrepreneurship. The businessacademy is wholly sponsored by LGI. Inten years' time LGI will celebrate itscentenary, a significant milestone and anachievement recognised by most businessschools as an important criterion for aworld class company.

Fact File > Louis Group International Trustees

Company Name: Louis Group International Trustees

Office Address: Louis Building, 6 Goldie Terrace, Douglas, Isle of Man IM1 1EB

Website: www.louisgroupint.com www.lgtrustees.com


Phone: + 44 (0)1624 649200

Fax: + 44 (0)1624 625712

Ownership & Management: Private Ownership


Registered Office: Louis Building, 6 Goldie Terrace, Douglas, Isle of Man IM1 1EB

Directors: Alan Louis, Lukas Nakos, David McPhee


Affiliated Companies: Louis Group International (SA), Louis Group International (UK),Louis Group International (Europe), Louis Group International(Switzerland), Seeff Commercial Properties (Cape), LGIResidential Properties, LGI Property Services, iCat, iWeb, iPro,SmartSurvWireless, The AV Alliance, LGI Securities, LGIProperty Associations, LGI Property Holdings, InsuranceManagement Group, LGI Hotels & Vineyards, KomsbergFarming, Blue Planet Travel, Primary News, Louis Media, etc

Main Business: Investments and Corporate Services

Licences: Licensed by the Isle of Man Financial Supervision Commissionto conduct Investment Business and as a Corporate ServiceProvider.Licensed in South Africa by the Financial Services Board, theEstate Agents Board, and the Insurance Brokers Board.

Auditors: Grant Thornton

Finance Sectors and Professional Services > Corporate Service Providers > Louis Group International Trustees

> 3-5 The Bridge, Walsall, UK

> 80 Strand Street, Cape Town, South Africa

> Abbey International House, Douglas, Isle of Man

> Louis Building, Century City, Cape Town, South Africa

92 View from Lord Street, Douglas, with ferry terminal in the background


Finance Sectors and Professional Services > Insurance and Pensions

Insurance and PensionsCompanies carrying out insurance orpensions business in or from the Isle ofMan are regulated by the Insurance andPensions Authority (IPA). The relevantregulations seek to ensure that seniormanagement and controlling parties are fitand proper and that the companies arefinancially sound. The reportingrequirements have been developed tosatisfy the IPA’s strict supervisory needswithout placing unnecessary demands onthe market place.

Many well-known names in the lifeassurance industry in the UK andelsewhere have chosen the Isle of Manas the centre for their internationalbusiness. Having existed since the early1980s the Manx life assurance industry isprobably the best developed of anyoffshore centre. At the end of 2003 therewere 18 life assurance companiesrepresented, with funds in excess of £14billion under management.

Their original market was the retired orworking British expatriate but thecompanies now deal with expatriates andlocal nationals of other countriesthroughout the world. Clients aregenerally high net worth or high earningindividuals who are attracted by taxefficiency, security and confidentiality, andthe protection offered by the PolicyholdersProtection Scheme.

All life assurance companies resident onthe Island are members of the ManxInsurance Association (MIA) which wasformed in 1986 to represent their interests.The Association’s aims are to provide aforum for discussion and exchange ofviews; to work closely with theGovernment, in particular the IPA, topromote change which will benefit theindustry; to increase understanding andraise the profile of the industry; and thedevelopment of the Isle of Man as acentre for life assurance companies.

Most members of the MIA are alsomembers of the Association ofInternational Life Offices (AILO), where theyare joined by international offices fromother jurisdictions, to create anorganisation which is borderless. AILOpromotes and encourages professionalismwithin the international life assuranceindustry, upholds consumer projection,and lobbies on legislative development.

The Isle of Man has been recognised as acaptive domicile for over 25 years, withthe market leaders in captivemanagement represented. The Island hasconsiderable experience in this field. Atthe end of 2003, there were 146authorised captive insurers on the Island.

The Manx Insurance ManagersAssociation (MIMA) was set up torepresent the interests of insurancemanagers; to develop the business ofinsurance on a sound basis; to create abetter understanding of the business bythe public; and to work with Governmenton legislation and other matters affectingits members.

Changes are being made to the Pensionslegislation to both domestic pensions andgroup schemes. In the latter case thechanges aim to encourage multi-nationaland international companies to considerthe Isle of Man as a good place to set upgroup schemes for their employeesworldwide.

The IPA say that their ultimate goal is toensure that companies based on theIsland, and their clients, have theconfidence that they are transactingbusiness in a high quality, secure and wellregulated centre, which has the expertiseand capacity to cater for their needs nowand in the future.

Insurance and Pensions Authority (IPA)Tel: + 44 (0)1624 646000

Manx Insurance Associationwww.mia.org.im

Manx Insurance Managers AssociationTel: + 44 (0)1624 625431www.mima.org.im

Isle of Man Insurance BrokersAssociationTel: + 44 (0)1624 611227

The Insurance Institute of the Isleof ManTel: + 44 (0)1624 681681



Finance Sectors and Professional Services > Insurance Services > Royal Skandia

An insurance company that employs more

than 7,500 people worldwide paid homage

to its Viking roots when it established an

operation in the Isle of Man.

Skandia Insurance company started 150years ago in Stockholm, Sweden and isproud to have a substantial presence onthe Isle of Man which has a strong Vikingheritage of its own.

Royal Skandia is one of the largestinsurance companies in the Island withassets in excess of $8 billion. In 1984 thefirm had 10 staff and today Royal Skandiaemploys 350 people in its purpose-builtheadquarters on Onchan Head which wascompleted in December 2002.

The company provides savings andinvestment plans from a tax-efficient base.Royal Skandia is part of an importantbusiness sector in an island where all lifeassurance companies are closelyregulated by the IPA (Insurance andPensions Authority).

General manager of the Manx operationIain Messenger has worked for the Groupfor 12 years, most recently in Japan. Hesays: 'The government does have verygood regulation in place and theperception from those outside is that theIsland is an appropriately regulatedinternational finance sector that is ripe forinward investment.'

Like many local financial servicesinstitutions, Skandia has welcomed thegovernment's decision to introduce zerotax for companies by 2006.

Iain Messenger believes strongly that toattract new business the governmentshould continue to present a businessfriendly outward looking face through its > Skandia House, Onchan

> Iain Messenger, General Manager Royal Skandia


Finance Sectors and Professional Services > Insurance Services > Royal Skandia

> Royal Skandia's Board of Directors

key division of the Treasury, Isle of ManFinance, which is committed and focusedon the development of the financialservices sector in the Isle of Man.

He said: 'The government does thinkinternationally. It's very easy to sit anddwell on the UK. That is still the mainsource of business, obviously, but Europeis becoming an issue now. It's a marketof over 420 million people. Where shouldwe focus?

'The Channel Islands are traditionallyviewed as a major competitor, but Ibelieve they are now largely irrelevant inthe life sector. To attract the majorinvestors, the government should continueto focus on the needs of all industrieswhen considering the workings ofparliament; without that focus, thepredilection for localised politics isincongruous alongside the desire for atrue international finance sector.'

Royal Skandia has benefited from theIsland's excellent telecommunicationsinfrastructure and Iain believes theChamber of Commerce and thegovernment's economic strategy think-tankare doing a good job of promoting theIsland to the wider world.

He said: 'There are a lot of clever peoplehere and to have that level of expertiseon the Island is of course a huge benefit.

'We are committed to our Isle of Manoperation and loyal local workforce.

The Isle of Man has given us theopportunity to grow and the opportunityto have our voice heard, which we have taken.

The message has to be that we needmore of the same.

The insurance industry must maintainclose links with the government, which inturn needs to keep listening and keepcommunicating with us.’

Fact File > Royal Skandia

Company Name: Royal Skandia

Office Address: Skandia House, King Edward Road, Onchan, Isle of Man IM99 1NU

Website: www.royalskandia.com


Phone: + 44 (0)1624 655555

Fax: + 44 (0)1624 611715

Ownership Wholly owned subsidiary of& Management: Skandia Insurance Company Limited (Sweden)


Date Incorporated: October 1984

Registered Office: Skandia House, King Edward Road, Onchan, Isle of Man IM99 1NU

Directors: Iain Messenger, Alan Wilson, Brian Pudney, Simon Burgess,Linda Forlan, Jim Roberts, Mark Allen, Mark Halewood, John Hollis, David Campbell, Terry Groves, Paul Dougherty


Affiliated Companies: Skandia Group Companies

Main Business: Offshore investment

96 The Parade, Castletown


Finance Sectors and Professional Services > Investment Services

Investment ServicesInvestment business, conducted in or fromthe Isle of Man, is regulated by theFinancial Supervision Commission underthe Investment Business Acts 1991-1993(IBA). Any person or company carrying outsuch business is required to hold alicence. The definition of InvestmentBusiness includes:

Dealing, or arranging deals in investments,either as principal or agent.

Managing investments, including under apower of attorney, and the provision ofcertain safe custody services

Giving investment advice.

Acting as the Manager or Trustee of aCollective Investment Scheme or providingadministration services to such schemes.

The term ‘investment’ includes thetraditional investment instruments, as wellas derivates. Life and pensions productsare also classed as investments, but landand cash are not.

The definitions above are wide but thereare a number of specific activities whichare excluded from the scope of the Act.

There are also a number of organisationsexempt from requiring an InvestmentBusiness licence as they are alreadylicensed under an alternative regulatoryregime. These include banks and buildingsocieties as well as insurance companiesregistered by the Insurance and PensionsAuthority.

The Commission applies stringent criteriato satisfy itself that the organisations are‘fit and proper’. Licences are issuedsubject to conditions, which specify thepermitted scope of the licence holder’sactivities and subject them to following anumber of regulatory codes which cover:

Financial resources Reporting requirementsClients’ moneyClients’ investmentsConduct of businessAudit requirements

An important requirement is also that anylicence holder who handles client moneymust apply the ‘four eyes’ principle, whichmeans that the procedures must becarried out by at least two people.

There are a number of companies carryingout investment business on the Island.They range from small organisationsproviding stock broking services to thelocal population, to larger companiesoffering a full range of investment servicesto local and non-local clients. Some areManx offices of companies based in theUK and other parts of the world.

The Securities Institute has a thriving branchon the Isle of Man with over 250 members,of which 33 are Fellows of the Institute.

The aims of the Institute are to promotethe advancement and dissemination ofknowledge in the field of securities andinvestments; to develop high ethicalstandards for practitioners; and to act asan authoritative body for the purpose ofconsultation and research in matters ofeducation and public interest concerninginvestment in securities.

The Manx branch is increasing thenumber of training courses and examswhich are available on the Island, as wellas increasing the number of eventsrelating to the industry.


The Securities InstituteTel: + 44 (0)1624 812925www.securities-institute.org.uk



Finance Sectors and Professional Services > Investment Services > Capital International

Capital International

Capital International was established by Peter Long and

his son Anthony in 1996. Starting with a small team of

just four, the firm has since built one of the largest and

most experienced investment and administration teams

in the Island, servicing the needs of both private and

institutional customers, including the Isle of Man

Government. Today the firm manages and administers

over $1bn of assets for its local and international clients.

As Anthony recalls: 'I was living andworking in Hong Kong and my father wasbased in London. We were looking foropportunities to set up a new stockbroking business and we were introducedto the Isle of Man. We arrived withoutany real expectations and wereimmediately attracted to the Island. Notonly is it a beautiful place, we werewarmly welcomed wherever we went.We were particularly attracted by the largenumbers of UK financial servicesinstitutions that were already here, notablyfrom within the life industry. We likedwhat we found and soon developed agood relationship with the governmentand with the regulators the FinancialSupervision Commission and theInsurance and Pensions Authority’.

Although Capital International wasoriginally set up to provide stockbrokingservices, it has successfully diversified itsbusiness mix during the last five yearsand now offers a wide range ofcomplementary services. 'There are fourvery distinct areas to our business,' saysAnthony, 'Discretionary management andefficient investment administration havealways been at the cornerstones of ourbusiness. Bridging the two are ourstockbroking and advisory services. Morerecently, we have started to develop abespoke wealth management service andthis is now an important growth area for us'. > Capital’s professional team

> The Board of Directors:Back row (L-R) Rod Leonard, Robert Floate, and Mark WilkinsonFront row: (L-R) Anthony Long, Peter Long, and Graham Bolton

capitalinternationallimited


Finance Sectors and Professional Services > Investment Services > Capital International

Among its staff of thirty-six, the companyemploys ten full time investmentprofessionals, with combined industryexperience in excess of two hundredyears. It’s investment managers are allqualified to city standards and all haveconsiderable experience in managinginvestments for private and institutionalclients.

In February 2004, the companylaunched Fusion, its new managedportfolio service, to complement its otherinvestment management activities. SaidAnthony. 'We believe in delivering a highlypersonalised service, tailored to meet theneeds of the individual. We activelymanage portfolios in order to achieveabsolute returns, over the medium tolong-term. We look at clients' personalcircumstances, ethical concerns, objectivesand risk tolerance before building aportfolio to best suit their needs. Webelieve that our focus on deliveringexcellent investment performance as wellas quality of service makes ourproposition very attractive.’

The company outsources its custodyand settlement activities to PershingSecurities Limited, part of the Bank of NewYork Group, giving Capital Internationalclients the backing and support of aglobal leader in securities servicing.

Embracing new technology is also apriority for this Manx company. 'We haveour own dedicated IT team and weconstantly strive to improve efficiency andservice through the effective use of tech-nology. We have always been progressivewith our IT solutions. It's essential in ourbusiness. As the world becomes an eversmaller place in which to do business, ourclients expect and appreciate greater onlineinteraction with us, says Anthony.'

Having firmly established itself in the Isleof Man, Capital International is forgingrelations with a number of localinstitutions with a view to establishing agreater presence in the internationalmarket place. Anthony says: ‘We dobelieve that entering into joint initiativesand partnerships with other leadingcompanies is the key to raising our profileabroad. As investors are increasingly

making greater use of offshore lifeproducts, trusts and other corporatestructures, we are very well placed to offerour services to international intermediariesand their clients, in partnership with otherservice providers’. Despite its rapiddevelopment into one of the Island'sleading financial companies, Capital isproud of its roots and has chosen toretain its headquarters in Castletown:Anthony believes it was the right decision;

'It's a wonderful environment in which towork. By staying in Castletown we havenot only been able to build our ownfabulous offices, but we have also beenable to build up a loyal and highlymotivated team, who have all contributedto the company’s growth in recent years.We took steps to strengthen all our teamsin the last six months of 2003 and withthat process now complete, we face thefuture with confidence’.

Fact File > Capital International

Company Name: Capital International

Office Address: PO Box 15, Mill Court, Hope Street, Castletown, IoM, IM99 5XH

Website: www.capital-iom.com


Phone: + 44 (0)1624 828200

Fax: + 44 (0)1624 828201

Ownership Capital International is a privately owned & Management: financial services company

IOM Co Registration No: 79857 C


Registered Office: PO Box 15, Mill Court, Hope Street, Castletown, Isle of Man

Directors: Peter Long: Chairman & SEO, Graham Bolton: Finance &Operations, Robert Floate: Compliance, Rod Leonard: WealthManagement, Anthony Long: Business Development & InvestmentAdministration, Mark Wilkinson: Dealing & Advisory Services


Affiliated Companies: Cheshire Trafford U.K. Limited, Hull, England

Main Business: Investment Management, Stockbroking and Investment Administration services

Other Business: Dealing & Advisory Services, Investment Administration,Investment Management, Wealth Management, FusionManaged Portfolio Service, Global Custody Services

Licences: Capital International Ltd is licensed to conduct investment bus-iness by the IoM Government Financial Supervision Commission

> Mill Court, Castletown

100 Isle of Man Courts of Justice, Douglas


Finance Sectors and Professional Services > Legal Services

Legal ServicesQualified legal practitioners in the Isle ofMan are called advocates and their rolecombines the functions performed inEngland and Wales by a solicitor and abarrister. This enables an advocate toprovide representation for their client bythe same person/firm from initialinstruction to final resolution in court. Toqualify as a Manx advocate an individualhas to pass the Manx Bar exams, even ifthey have a previous qualification as asolicitor or barrister.

Advocates’ firms on the Isle of Man rangefrom sole practitioners who primarilyprovide general legal services to Manxresidents, through to larger practiceswhich cover many of the business sectorsof the Island, including the finance sector;aviation; shipping; the film industry; andspace.

With the strength and growth of the Islandas an international financial centre thereare many advocates who provide servesto the finance industry. As theseinternational businesses often requirelegal services which span more than onejurisdiction, many of the legal practicesemploy advocates qualified in otherjurisdictions.

There are also strong associationsbetween Manx advocates and lawyers inother jurisdictions to offer assistance in

multi-jurisdictional matters.

The Isle of Man Law Society is the societywhich represents the members of thelegal profession and has over 160members across 31 firms, which in totalemploy around 500 people. Through itsmembership the Society plays a centralpart in the economic, political and sociallife of the Island.

The Society was formed by the LawSociety Act 1859 and is the oldest Manxprofessional body. Initially it was formedto provide access to a Law Library andwas based in Castletown in the south ofthe Island. In 1869 it moved to Douglas,where it has remained ever since, and itsrole and responsibilities have increasedsignificantly over the years.

Now, in addition to dealing with the inter-relationships between its members andthe Manx Government and otherassociated bodies, it has certaindisciplinary functions and responsibilitiesconcerning the education and guidance ofits members. It is in the process ofintroducing a quality standards frameworkfor its members’ practices to attain andstill fulfils its initial function of providing aLaw Library. To support this it has aqualified librarian.

The contribution of the membership to the

life of the Island is extensive withmembers serving as returning officers forHouse of Keys elections, chairmen ofstatutory tribunals, and members of thinktanks. Many members also serve onboards of private sector companies andcommittees for charities, social andsporting clubs enabling them to provideguidance on such matters as corporategovernance.

The membership has also provided theIsland’s Deemsters (Judges), AttorneyGenerals and many High Court Bailiffs.

The Society endeavours to strike abalance between servicing the needs ofthe local and international community,both of which they regard as being ofequal importance.

As part of this endeavour the Society has,in conjunction with the Office of FairTrading, produced a ‘complaints package’,which comprises a number of leaflets andforms to simplify the process for anindividual or organisation wishing to makea complaint.

The Island boasts a legal profession torival many much larger jurisdictions, witha very high standard of expertise in manyfields.

Isle of Man Law SocietyTel:+ 44 (0)1624 662910www.iomlawsociety.co.im

Isle of Man Office of Fair TradingTel:+ 44 (0)1624 686520

Financial Services OmbudsmanSchemeTel:+ 44 (0)1624 686500



Finance Sectors and Professional Services > Legal Services > MannBenham Limited

Public and private companies, high net worth individuals

and trust and corporate service providers, both locally and

internationally based, make up the core business of a rapidly

expanding firm of commercial lawyers in the Isle of Man.

MannBenham Ltd was created in 1997 by two advocates who

recognised the potential in a niche market. The company

directors Timothy Mann and Miles Benham started operating

from the ground floor of a building they have subsequently

taken over in the heart of the capital's finance district.

The practice deals largely with non-contentious commercial and trust mattersand commercial and trust litigation. Asmall firm, it nevertheless has considerableexperience in the arena of internationalcommercial disputes, shareholdersdisputes, asset freezing injunctions,corporate insolvency and trust disputes.Non-contentious work includes compliance,e-commerce and internet gambling andadvice on Isle of Man company law,negotiating agreements and trusts.

In other words, the focus is firmly on thebusiness aspect. In the setting of a wellrespected offshore jurisdiction,MannBenham can offer internationalcompanies and business people the legalservices they require and the expertise tocarry it through.

Tim Mann is a senior Isle of Manadvocate and was admitted to the Bar in1982. When Miles Benham joined tofound MannBenham the pair saw theneed to develop the services required bycompanies wishing to base theiroperations in a well regulated jurisdictionwith an attractive tax regime, and tailoredtheir new practice accordingly.

Miles Benham qualified as a Manxadvocate in 1996 and is also an Englishsolicitor and a Notary Public.

He explained: 'The commercial litigationside of the business is high value - wedon't encourage personal injury cases.There are not many firms offeringcommercial litigation services. A companymight employ staff around the world but ifit is based here for trading purposesgenerally any litigation falls in ourjurisdiction, so it will be dealt with in the Manx courts and that's where we come in.

'On the non-contentious, commercialside of the business we might be helpinga public company to raise funds, for

example by way of a private placement,we can form trusts and carry out work forcorporate service providers. We haveconsiderable experience in assistingcorporate service providers with regulatoryproblems. We also have our ownCorporate Service Provider arm. Thistypically is not in competition with ourcorporate service provider clients as ittends to provide services with a hightechnical or legal content.

A good example of this sort of workwas when five online casinos won Isle ofMan licences. We acted for three of thefive and in addition to obtaining theirlicences we provided advice andassistance with company administrationand regulatory matters as the parentcompanies were generally listed onoverseas stock exchanges.

'Basically, we are looking after theinterests of bigger clients who want to dospecific business in the Isle of Man. Weare business lawyers.'

Experience of compliance issues helpsMannBenham to assist their clients inthriving in the well regulated environmentof the Isle of Man which major clientsnow see as an advantage to theirbusiness. On the other hand the Islandstill has the advantages of a small

> Miles Benham and Timothy Mann

MannBenham Limited


Finance Sectors and Professional Services > Legal Services > MannBenham Limited

jurisdiction and Miles Benham says: 'Oneof our casino clients was able to meet theChief Minister of the Manx Government atquite short notice and was very impressedby the openness and approachability ofthe government generally. I believe thatthe government is prepared to adapt tomarket demands. The Isle of Man isfacing a challenging period with externalpressures from organisations such as theOECD and European institutions. Thegovernment is not burying its head in thesand. It's tackling the issues and reactingto concerns.'

A competitive tax package that includesproposals for a zero corporate rate of taxby 2006 and innovative legislation thatcan be enacted swiftly is keeping the Isleof Man competitive, Miles believes.

He said: ‘The Isle of Man also has theadvantage of an excellent infrastructure fortelecom and e-commerce, and increasinglycompetitive airfares. It's possible to bringkey staff to the Island with specialist skillsnot available locally. There are very fewplaces where you can get home fromwork in fifteen minutes, or have thecountryside on your doorstep, and still bean hour's flight from London. You can getthat relaxed lifestyle outside London buthere you also have the internationalbusiness.'

MannBenham has invested in its owninfrastructure to maintain a leading edge.Miles Benham says: 'We plan to grow thebusiness organically, improving ourspecialities in commercial work, satisfyingthe needs of the Island's diverse businesscommunity. We are getting more interestin areas such as, assisting in raisingcapital for companies and structuringcorporate transactions. We are alsobuilding our experience to provide aviable alternative to the traditionalproviders of legal advice to fundmanagers.

'Our work is becoming increasingly highvalue and specialist. The legislativeframework of the Island enables us to beadaptable and competitive.

‘We are in the service industry and weuse other local services, such as

accountants, banks, and corporate serviceproviders and they use us in turn.'

MannBenham’s wholly ownedsubsidiary company MannBenhamCorporate Service Providers Limited was inthe first wave of applicants to gain acorporate service providers licence, whichallows it to provide all services in relationto the formation and administration ofcompanies on the Isle of Man, private andpublic. Utilising their experience asadvocates, MannBenham is able to advise

in relation to public and private companies,joint ventures and share issues.

Overall, MannBenham has the level ofexpertise required to meet the needs ofthe international business community.From the seed of an idea developed bytwo colleagues, MannBenham nowinhabits a niche with a team of qualifiedstaff helping to develop the business.Says Miles Benham: 'We see ourselves asa smaller firm of commercial advocatesproviding a personal service.'

Fact File > MannBenham Limited

Company Name: MannBenham Limited

Office Address: 10 Hill Street, Douglas, Isle of Man IM1 1EF

Website: www.mannbenham.com


Phone: + 44 (0)1624 639350

Fax: + 44 (0)1624 617961

Ownership Shareholders,& Management: Timothy Mann and Miles Benham

IOM Co Registration no: 100904C

Trading date commenced: September 1997

Registered office: 10 Hill Street, Douglas, Isle of Man IM1 1EF

Directors: Timothy Mann, Miles Benham

Employees (2003): 5

Affiliated companies MannBenham Corporate Service Providers Limited

Main business: Commercial Advocates

Other business: Corporate Service Provider

Licenses: Corporate Service Providers Licence for wholly owned subsidiary MannBenham Corporate Service Providers Limited

> Mr Mann and Mr Benham outside their Douglas office

104 Finch Road, Douglas


Finance Sectors and Professional Services > Wealth Management

Wealth ManagementThe current market realities of globaleconomic uncertainty, stock marketvolatility, prominent corporate scandalsand rigorous regulatory environments,coupled with changing lifestyles, haveencouraged more people to seekprofessional advice on ways in which tosafeguard their assets.

For the majority of families in the UnitedKingdom their main residence is now themost significant asset in their estate.Increasing values have pushed manyproperties well above the Inheritance Taxnil rate band.

One in five UK residents aged over 50 ismoving abroad, either full or part time.Planning and timing the exit and entry todifferent countries is vital. It is alsoimportant to plan access to income, andpension migration.

Low interest rates and stock marketvolatility have encouraged many peopleto enter the buy to let market which, initself, has helped to fuel the dramatic risein house prices leading to more peopleseeing this as an attractive option to

increase wealth. However, a majorproblem facing those who make asignificant gain on their properties is thepotential capital gains tax liability.

Many individuals work in other parts ofthe world for much of their working life,often in locations which are economicallyor politically unstable. It is important tostructure their assets to safeguard theirwealth.

Estimates vary about the number ofindividuals living in the UK who havenon-domicile status. They too need toconsider how best to structure their assetsas they themselves straddle more thanone jurisdiction.

Increases in world terrorism have mademany individuals more aware of theirmortality and for the need to plan forsuccession, early in life, for their familyand also for their business, if they haveone.

All of the above, and many more personalsituations, need detailed planning tooptimise and safeguard the individual’sposition.

The Isle of Man has a number ofcompanies offering wealth, tax and trustplanning as well as local legal practicesand representative offices of several of thelarge UK accountancy practices all of whoare experienced in the provision of adviceto assist in tax planning.

Since the introduction of new legislationin 2000, corporate service providers onthe Isle of Man have had to be registeredwith the Financial SupervisionCommission. Similar legislation iscurrently under development for trustservice providers. Trust services areconsidered to include creation of trusts;acting as trustee; providing trustadministration services such as recordkeeping and the preparation of accounts;and providing administration in relation totrusts. The regulation is likely to beframed to ensure that companiesproviding such services are fit and properin terms of integrity, solvency andcompetence.


Insurance and Pensions Authority (IPA)Tel: + 44 (0)1624 646000


Isle of Man Fund ManagementAssociationTel: + 44 (0)1624 689689www.fma.org.im



Finance Sectors and Professional Services > Wealth Management > BW Group Limited

The BW Group was formed in 1998 toprovide a ‘one stop shop’ for customisedtax planning solutions. The Group initiallyconsisted of three companies.

Tax consultancy services, trust andestate planning are handled by BW FiscalSolutions Ltd (BWF). BW AdministratorsLtd (BWA) is a registered Corporate ServiceProvider and offers company and trustadministration; and BW Corporate ServicesLtd (BWC) acts as trustees of family trusts,wealth protection plans and other suchstructures.

David explained that their clients ‘buythe team’. David, Paul Baker, TechnicalDirector and Andy Lee, Marketing Directorhad worked together for four years beforethey came together again within the BWGroup. They have since been joined byPeter Evans, Managing Director. David is alawyer, Paul a tax consultant and ex-taxinspector, and Peter an accountant. Thedirectors are an unusual group of menwho see their individuality as a strength,but who stress that they also work wellas a team. In addition they offer a goodbreadth of professional qualification andexperience.

As the majority of BW Group’s businesscomes through their network of contacts,primarily independent financial advisers,accountants and lawyers in the UK, Andyis based in the UK to support thesecontacts although he travels regularly tothe Isle of Man to maintain the high levelof ‘team working’ that is the hallmark ofthe BW Group. David describes the teamas imaginative, lateral thinking problem

solvers who provide a personal service,and goes on to stress they are supportedby a strong team of 16 full time and twopart time staff.

To meet the changing market needs, afurther two companies have recently beenadded to Group. BWF (UK) Ltd to providetechnical support on the ground in theUK, and BW Pensions Ltd (BWP) to reflect

the fact that there is a growing demandfor advice on non-resident pensions.Douglas McDonald, a pensions expert,has joined as Director of BWP.

Andy Lee explains that their high networth client base tends to be over 50years of age and wants to organise theireconomic affairs, possibly at a time ofchange in their lives. Some of the driving

BW Group Limited

‘We pride ourselves on our ability to provide solutions to

meet our clients’ needs and to be able to react quickly to

changes in the markets or legislation,’ says David Pope,

Chief Executive Officer of the BW Group.

> Douglas Office


factors are early retirement; a desire tomove abroad for at least part of the year,or high property values putting morepeople into needing tax planning.

A significant portion of their work relatesto property purchase, disposal ordevelopment and the implications forCapital Gains Tax and Inheritance Tax.

They also have clients currently living inareas of the world that are economicallyor politically unstable who are seekingsecurity for their assets; and others whoare entrepreneurs keen to bring theirniche market businesses, and high networth directors, to the Isle of Man as partof the comprehensive tax planningstructures designed by BW Group.

David believes that, by being based inthe Isle of Man, the team is able to take aclear view from the outside, over anumber of jurisdictions, to create the bestsolution to meet the client’s needs.

Andy explains that when he ismarketing BW and the Isle of Man the keypoints he finds are positive features arethe fact that corporate service providersare regulated; the accessibility, culture, lowtax, political stability and AAA rating of theIsle of Man and the fact that it is Englishspeaking and has no capital taxes.However, David did hope that the Isle ofMan would continue to raise its profileinternationally and in particular to stressthe fact that it is a financial jurisdictionindependent of the UK.

Where does the BW Group see itsfuture? Growth has been healthy since itsformation. Sometimes changes in taxationpolicies affect the business, such as the

November 2002 budget changes whichheralded the end of the Employee BenefitTrust, but the BW Group moved quickly todevelop new markets, such as the growthin non-resident pensions, to compensatefor the loss and create further growth.

It also anticipates growth into otherjurisdictions over the next few years. Insummary Andy says ‘We don’t advertise.We don’t need to. Our business comes

through our business contacts. I also giveseminars and workshops, almost alwaysin response to a request from anorganisation or professional association.I was recently invited to speak to aseminar of 120 IFAs.

‘We believe that the fact that we have asteady supply of clients coming throughthese sources is the best endorsement forthe work we do.’

Finance Sectors and Professional Services > Wealth Management > BW Group Limited

Fact File > BW Group Limited

Company Name: BW Group Limited

Office Address: PO Box 343, 20 Finch Road, Douglas, Isle of Man, IM99 2QD

Website: www.bw.co.im


Phone: + 44 (0)1624 677100

Fax: + 44 (0)1624 627787

Ownership Chairman: G Pope, Chief Executive: DS Pope, & Management: Managing Director: PA Evans, Technical Director: PC Baker,

Marketing Director: AK Lee


Date Incorporated: 23/02/98

Registered Office: PO Box 343, 20 Finch Road, Douglas, Isle of Man, IM99 2QD

Directors: PC Baker, AK Lee, PA Evans


Affiliated Companies: BW Fiscal Solutions Ltd, BWF (UK) Ltd,BW Corporate Services Ltd, BW Pensions Ltd

Main Business: Company and Trust Administration

Other Business: UK and Offshore Taxation Consultants, Pension SchemeAdministration, Trustees of Family Trusts, Wealth ProtectionPlans, Property Holding Structures, and Offshore Employee Trusts

Licences: Licensed by the FSC as a Corporate Service Provider

> BW Team: Paul Baker, Andy Lee, Peter Evans, Andrew Hagyard, David Pope


Construction and Property 109

> Dandara Holdings Limited

> DeanWood Agencies

Education 113

> King William’s College

> IHMES International Hotel School

> Isle of Man International Business School

Information Technology and Computer Services 121

> Skanco Business Systems Ltd

Manufacturing and Retail 125

> CVI Technical Optics Limited

> Strix Limited

> Moore’s Traditional Curers

> MasterCraft Limited

> CV Jewellery

Media and Advertising 135

> Lily Publications Limited

Shipping and Yacht Management 137

> Pelagos Yachts Limited

Tourism and Travel 141

> The Isle of Man Steam Packet Company Limited

> Sefton Hotel

Telecommunications 147

> Manx Telecom

Other Sectors > Contents

Other Sectors


Other Sectors > Construction and Property

Construction and PropertyThe boom in the financial servicesindustry in the 1980s saw new buildescalate dramatically, with unprecedenteddemand for both commercial premisesand domestic property. Forward-thinkingdevelopers (see Dandara) rose to meet ademand in both sectors that hasremained high ever since.

The recent past has also seen thecompletion of major government schemessuch as the new Noble's Hospital,incinerator and Villa Marina

entertainments complex, with a newprison to serve the Island now in thebuild stage and the redevelopment of theSummerland site in Douglas set to getunder way. This extensive capitalprogramme along with abundant privatesector work has generated high levels ofactivity within the construction sector.

Accordingly, the government created a listof approved contractors and also operatesa scheme for the certification of craftsmen.It has an established relationship with the

Isle of Man Employers' Federation and isrepresented on the Construction Forum, amulti-disciplinary organisation establishedto discuss a wide range of constructionissues and promote training and goodpractice within the local industry.

The government has a policy toencourage the building of industrialpremises in advance of demand andthere is ample land zoned for future lightindustrial use.

Department of Trade and Industry(DTI)Tel: + 44 (0)1624 682354

Department of Local Governmentand the Environment (DoLGE)Tel: + 44 (0)1624 685954



Other Sectors > Construction and Property > Dandara Holdings Ltd

Dandara Holdings Ltd

The Dandara name has been synonymous with

property in the Isle of Man for the past 15 years.

Created in the Isle of Man in 1989, the Dandara

group now operates in the Channel Isles, London,

North West UK and Scotland and is a progressive

property development company which provides

a wide range of residential and commercial

property, and a competitive contracting division.

‘Our commercial property division in theIsle of Man is operated through DandaraCommercial Limited and boasts animpressive number of national andinternational clients,’ says ManagingDirector Seamus Nugent

The group’s residential division on theIsland operates through the HeritageHomes brand and provides high qualityresidential accommodation from first timebuyer housing to luxury apartments.

The contracting arm operates throughDandara Contracting Limited and is anexperienced and very well resourcedcontractor in the public and private sectors.

The group’s head office is located onthe Island at the Isle of Man BusinessPark, which is the Island’s premiercorporate out of town location, and iscurrently being developed by Dandara.Seamus Nugent says: ‘By constantlyreinvesting in the Island, we havesucceeded in establishing ourselves asthe Isle of Man’s premier propertydevelopment group and from thisfoundation successfully expanded ouroperations to the Channel Islands and theUK.’ Dandara employs large in housearchitectural, engineering and surveyingdepartments in the Isle of Man and thegroup’s entire accounts and paymentsdepartments are also based on the Island.The Dandara group’s activities, represent a

significant proportion of the localconstruction industry, and are majoremployers on the Island.

The Isle of Man enjoys an extremelypeaceful, low crime and pollution freeenvironment married to a well-developedtelecommunications infrastructure and astable self-governing, pro-active legislature.

The Dandara group maintains anexcellent working relationship withGovernment to facilitate the provision ofhousing, office and industrial developmentvital to the Island’s growth.

Commercial - The Manx ElectricityAuthority, Isle of Man Government,Scottish Provident, Manx Telecom, RoyalSkandia, Aon and Securicor - just some ofthe national and international companiesthat have chosen Dandara Commercial toprovide them with state of the art corporateheadquarters and office accommodation.

Seamus Nugent says: 'We havesuccessfully provided and continue toprovide high quality office accommodationto meet the growing demands of theIsland's business community, both in towncentre locations and out of town in theIsle of Man Business Park.'

To serve the commercial and industrialuser, Dandara Commercial providespurpose built units to the client’sspecification, ranging from small businessstart-up units, manufacturing facilities andcar showrooms to specialist buildingssuch as disaster recovery.

The company concentrates on newbuild property but has also redevelopedand restored some of the Island’slandmark buildings. From the awardwinning Falcon Cliff Court, a former hoteland now luxury offices, to Jubilee Buildings,which in its former life as a grand hotelexemplified the skill and craftsmanship ofthe Victorian era and today provides highquality office accommodation to theIsland's finance sector.

> Douglas Head Apartments, Douglas, Isle of Man

> Manx Telecom Headquarters, IOM Business Park


Other Sectors > Construction and Property > Dandara Holdings Ltd

Residential - Heritage Homes Limited isbest known for its development atGovernor’s Hill. Completed in 1997, thisdevelopment is now a thriving community,with a thousand homes in a landscapedsetting including lakes, children’splayground and large areas of openspace. With a school, children’s nursery,doctor and dental surgery, conveniencestore and public house all on site,Heritage Homes believes this scheme is ablueprint for successful residential planning.

Heritage Homes has been buildingapartments on brownfield sites in Douglasand Onchan for a number of years. NHBCaward winning developments such asDouglas Head Apartments and theMajestic Apartments have helped bringmodern urban living to the capital. Intandem with the apartments, moretraditional housing developments areoffered throughout the Island in mosttowns and villages, to allow the housebuying public to have the property of theirchoice in the location of their choice.

One of the problems facing the Isle ofMan today is the provision of first timebuyer accommodation. In view of this,Heritage Homes works closely withGovernment to help meet the need.

Seamus Nugent says: 'We haveconsistently provided for this sector of themarket by the provision of over 700 firsttime buyer homes to date. We aim toprovide housing for all sectors of thecommunity in all locations in the Isle ofMan, our trade mark is high quality andgood value for money. Testimony to this isthe number of customers who repeatedlytrade up the housing ladder with us.

'As part of our commitment in the Isle ofMan, we actively support many sporting,community projects and charityorganisations on the Island.'

Expanding on its success in the Isle ofMan, the Dandara Group is now thelargest developer in the Channel Islandsand a significant developer in centralManchester, Leeds, Glasgow and London,constructing modern multi storeyapartments and offices.

‘The Dandara Group's aim is to complementthe Isle of Man's unique advantages byproviding excellent working and livingenvironments offering people a true qualityof life. Dandara are now looking forwardto maintaining their position on the Islandand repeating this success storythroughout the British Isles’, says Seamus.

Fact File > Dandara Holdings Limited

Company Name: Dandara Holdings Limited

Office Address: Park House, Isle of Man Business Park, Cooil Road,Braddan, Isle of Man IM2 2SA

Website: www.dandara.com


Phone: + 44 (0)1624 693300

Fax: + 44 (0)1624 693301

Ownership & Management: Dan Tynan


Date Incorporated: 22 September 1989

Registered Office: Park House, Isle of Man Business Park, Cooil Road, Braddan, Isle of Man IM2 2SA

Directors: Dan Tynan, James Nugent, Gary Leeming, Martin Clancy, Mike Neilson

Employees (2004): 252 as at 1st August 2004

Affiliated Companies Dandara Contracting Limited, Dandara Commercial Limitedand Heritage Homes Limited.

Main Business: Commercial & Residential Developer

Other Business: Building Contractor

> St Georges Island, Castlefield, Manchester


Other Sectors > Construction and Property > DeanWood Agencies

DeanWood Agencies

The growth of the Isle of Man's economy since the

finance sector became firmly established in the mid to late

1980s has had a dramatic effect on the property market.

Prices have rocketed and the landscape has changed.

Over the past two decades, housingestates have sprung up on the outskirts ofDouglas to meet the needs of new Islandresidents. Meanwhile, the decline of thebucket and spade variety of tourism hasseen traditional boarding houses on thepromenade being converted intoapartments or being replaced by purposebuilt ones.

DeanWood estate agents has had apresence in the heart of Douglas since1986 being the original estate agents inVictoria Street and witnessed the changingfortunes of the market from those earlyboom years to today's period of steadiergrowth and consolidation.

The firm was created by David Deanand Peter Wood. David now leads a teamof 29 people. As well as an office inDouglas the south and north of the Islandare covered with offices located in theheart of Castletown and Ramsey highstreet.

He says: 'Up to the late eighties,property prices were static for some time.House values doubled in a few years and,because there was a shortage of homesfor new residents, developers beganbuilding new estates. Even in the earlynineties when the UK was experiencing aslump, the Isle of Man was still growingits finance sector so we were cushionedfrom that slump.

'What also helped was that people inthe Isle of Man were fairly conservative intheir borrowing so we did not experiencethe same level of repossessions as theUK when interest rates rose to 15%.

We have now just come through fiveyears of growth in prices and we arestarting to see another levelling off.'

DeanWood is one of the Island's longestestablished estate agencies that is movingwith the times.

All its properties can be found on awebsite that offers virtual tours of some ofthe listings. Offering sales, valuations,surveys and mortgage advice, DeanWoodalso specialises in property managementand lettings under the directorship ofDavid McNeill.

Prices today are a far cry from twentyyears ago when a family home inDouglas might sell for £30,000. Today, aone bed apartment in a convertedproperty will sell for £75,000 andexecutive houses anything between£300,000 and £450,000.

'I think the most significant change inrecent years is the replacement of hoteland guest house accommodation withpurpose built apartments,' says David.

'Originally that met demand from olderand business people - those domiciledhere for part of the year and travelling therest. But now a lot more younger peopleare living on the promenade.

The buy to let market is finely balancedwith a substantial supply level anddemand slightly off its peak there is achoice of accommodation at most pricelevels. The recent higher level in prices islargely due to a shortage of zoned landforcing land prices high.’

There is a need for affordable homes forthose looking to get on to the propertyladder and it is government policy toprovide a certain number of these perannum. A first time buyer housing waitinglist has also been established to helplocal first time buyers.

> Douglas Office

Fact File > DeanWood Agencies

Company Name: DeanWood Agencies

Office Address: 37 Victoria Street, Douglas, Isle of Man

Website: www.deanwood.co.im


Phone: + 44 (0)1624 620606

Fax: + 44 (0)1624 677363


Directors: David Dean, David McNeill, Mark Mills, David Ranson, Charles Garside


Main Business: Residential & Commercial Property Sales, Property Management, Lettings

Other Business: Financial Services

Licences: Financial Services


Other Sectors > Education

EducationParents can be satisfied that childreneducated in the Isle of Man are receivingthe finest learning experience on offer,whether state or independent.

From bold decision making inexaminations (see King William's College)to a commitment to providing the higheststandards, the Island's educational systemis second to none. Information technologyis prominent and the computer to pupilratio is 1:5 in secondary schools and 1:7in primary schools.

All schools have broadband networked

internet access and all full time teachersare provided with modern laptops.

The general framework for education issimilar to that in England and Wales, withstudents following the NationalCurriculum, with additional studies inManx language, history and geography.

Higher and further educational needs aremore than adequately catered for. The Isleof Man College offers a range ofvocational courses as well as adulteducation on the college site and inlocations throughout the Island.

Meanwhile, the International BusinessSchool provides full and part time highereducation opportunities in a variety offlexible modes.

The specialist environment of the IBS in aleading offshore jurisdiction enablesstudents from all over the world to focuson the international finance industry.

The Isle of Man's unique environment isalso an attraction for students studying atthe International Hotel School in the southof the Island.

Department of EducationTel: + 44 (0)1624 685820

British Accreditation Council forIndependent Further and HigherEducation (BAC)Tel: + 44 (0)207 224 5474



Other Sectors > Education > King William’s College

King William’s College

Bold decision making by the Principal of

King William's College has positioned the Isle of Man's

only independent school at the leading edge of

international standards of education.

Philip John took up his post four yearsago and has engineered what he himselfdescribes as enormous changes to aCollege that was founded in 1833 and isarchitecturally one of the Island's mostoutstanding landmarks.

The replacement of traditional A levelswith the International Baccalaureate andits philosophy of creating independentlearners has resulted in an improvementin academic standards, with outstandingresults in 2004 which were the equivalentof a 100 per cent A level pass rate.

Altering the exam structure to provide aprestigious qualification not previouslyavailable in the Isle of Man has not beenthe only major change to life at KingWilliam's since the Principal's arrival. TheCollege, which has a Junior School, theBuchan, on a separate site in Castletown,is endorsed by the Headmasters' andHeadmistresses' Conference, anorganisation devoted to promotingexcellence in independent schools.

'I was previously Housemaster atMalvern College and the naturalprogression is a headship,' said PhilipJohn. 'It was very important to me that Iwent to a good school and the previousPrincipal was a member of the HMC. Iliked the idea of the Isle of Man, too, andwas attracted by Island life. My fatherused to come here a lot and told greatstories about the characters that he met.'

Attracted by the idea of overseeing bothSenior and Junior schools, Mr John saw KWCas a challenge and metaphorically rolledup his sleeves: 'I like a challenge. I felt theschool needed to be brought up to date.

Student numbers were falling at theCollege and at the Buchan and it wasreaching a critical point as the school hadbeen through a couple of troublesomepatches. I felt the academic standard wasnot really good enough for an HMC school.'

The number of students at the SeniorSchool has increased by more than ahundred over the past four years, from

259 when Philip John arrived to 360today. There are approximately 110 boarders.

'The College had made the decision thatboarding was on the way out; it was thetrend in the UK,' says Mr John. 'We havebucked that trend and, even though twothirds of our students are from the Isle ofMan, 60 per cent of the Sixth Formboards. It helps them academically and it

> sport, drama, music, community service

> Extra-curricular activities thrive at King William's College:

> The Principal, Philip John


Other Sectors > Education > King William’s College

> A full chapel Service at King William's College

serves as a useful link between homeand the independence of being atuniversity. But boarding is also great fun.My son spends most of his time in theboarding house even though I live in theschool grounds! The image of rows ofbeds in dorms is out of date. Ourboarders have their own rooms. The Isleof Man does offer a much safer environmentso the students can have more freedom,although obviously they are monitored.Boarding here offers a more independentexistence than it does in England.'

As well as bringing the InternationalBaccalaureate to the Island, the Principalhas worked hard to make KWC part of thelocal community.

'When I arrived I found that people werequite negative about the school. It wasour fault as there was an element ofstandoffishness - an impression that wedid not want to be part of the Manxcommunity. So we opened our doors,invited people in, showed them what weare trying to achieve and introduced themto the students, who are all fantastic.'

Having, in his own words, 'tightened up'on the academic side, which involved alarge turnover of teaching staff, andintegrated KWC into the community, PhilipJohn turned his attention to the schoolfacilities. The College now boasts a newSixth Form Centre, new Fifth Form Centre,refurbished boarding facilities, new Biologylabs, new classrooms and outdoor sportsfacilities, including an astroturf pitch, whichare available for Island sporting events.

Mr John says he is lucky to have a strongBoard of Governors who share his vision.

'We deal with extremely bright pupilsbut also pupils who are quite weak andneed the smaller class sizes,' he says. 'Weare a non-selective school that tries to dothe best for everybody. Our first set of IBresults has been outstanding.

'Universities prefer the IB to A levelqualifications because IB students don'tdrop out. It's the Theory of Knowledgeelement - IB students love learning.

'We are a very successful school. Webelieve in ourselves now in a way thatperhaps we did not four years ago.

What we are looking for now is a periodof stability.’ But that doesn't mean theCollege intends to rest on its laurels. PhilipJohn's vision is far-reaching.

'One key area is the Junior school. There is going to be greater interactionbetween the two schools.

What I would like to see, personally, is the Junior school embracing the IB philosophy. Parents committing their children to us from age three to eighteen will reap huge benefits.

Fact File > King William’s College

Name: King William’s College

Address: King William's College Castletown Isle of Man IM9 1TP

Website: www.kwc.sch.im


Phone: + 44 (0)1624 820428

Fax: + 44 (0)1624 820401

Principal: Mr Philip John

Assistant to the Principal: Mrs Stella Craine

Age Range: 11 - 18

Day Pupils: 140 boys 115 girls - £9,330 - £12,495 min-max annual fees

Full Boarding: 70 boys 40 girls - £14,745 -£17,910 min-max annual fees

Total Pupils: 210 boys 150 girls including 6th form: 108, 63 boys, 45 girls

Staff Numbers: 40 full time - 9 part time

Method of Entry: Interview, Report from previous school

Professional Affiliations: BSA, HMC, SHA, AGBIS (formerly GBA & GBGSA), ISBA, IAPS, IBO

Religious Affiliation: Church of England

Junior School: The Buchan, in Castletown, age range from 3


Other Sectors > Education > IHMES - International Hotel School

IHMES -International Hotel School

Thanks to the tenacity of two

business partners, more than 25

countries worldwide send their

students to the Isle of Man for

training in a major global industry.

Edward Lee and Elizabeth Lee, co-founders and co-directors of theInternational Hotel School based in PortErin, fought the odds to prove the scepticswrong.

Elizabeth said: 'Fifteen banks turned usdown - every bank in the Isle of Man! -and we were told we would fail by thethen Tourist Board. It was a red rag to abull. We obtained fifty per cent of themortgage for the building from 3i-Investorsin Industry and the previous owners leftfifty per cent in, as we could not secureany further backing.

'That was 20 years ago. In 1999, weopened our campus in Manila, Philippines,where our head of school is a Britishwoman.'

The success of the school, which hadthe foresight to anticipate the hugegrowth in tourism in Asia, with SouthAmerica and Africa in hot pursuit, speaksfor itself. Tourism accounts for eleven percent of the world's economic output,employs more than 250 million peopleand is the third largest foreign currencyearner. Well trained staff are essential andthis is where the International HotelSchool comes in.

> Students learning the art of restaurant service

> Enjoying a computer class on Fidelio in one of the IT suites

> Enjoying the culinary delights prepared by their fellow class mates


Other Sectors > Education > IHMES - International Hotel School

> Students learn all aspects of international cuisine and management

Elizabeth Lee says: 'At long last thehospitality, travel and tourism industry isgaining the recognition it so rightlydeserves. With growing global affluenceand shorter working weeks, the industryrepresents an important employmentsector which should not be overlooked byyoung people wanting an interesting andexciting career.'

The school was created in 1984 to meetthe demand for high quality staff andmanagers. It's mantra is to offer allstudents, irrespective of sex, race,nationality or religion, the opportunity todevelop their strengths to the maximumand embark on a successful career intheir chosen field.

Students receive training in theory andanalysis as well as realistic practicalexperience, working in the industry at theend of their second year.

'The style and system of running IHMESis very much based on reality,' saysElizabeth. 'As the hotel business hasbecome increasingly globalised andsophisticated, hoteliers have come to therealisation that the skills required bymanagers have changed in line witheconomic and technological development.If anything, generic management skillsand knowledge have become asimportant as industry specific knowledgeand experience.'

The school is a member of CHRIE, theprestigious Council of Hotel, Restaurantand Institutional Education, and isaccredited by the British Accreditation

Council (BAC) for independent and furthereducation.

The school has also helped the Isle ofMan's multiculturalism. Students areencouraged to involve themselves in thelocal community and many play for localsports teams.

The student council organiseswelcoming parties for new students, manyof whom are travelling far from home forthe first time.

Elizabeth Lee says: 'During their stay atIHMES all students are involved in thepractical side of running the schoolrestaurant, kitchen, bar, front office and

rooms division. We endeavour to make itas realistic as possible and in a totallearning situation. However, nothing beatsreality and this we promise all ourstudents as long as they have reachedthe necessary standard. In the first year allstudents are sent on industrial release totop class English hotels.

‘These hotels are generally part of largehotel chains. For ten to twelve weeksstudents are treated as regular productivemembers of staff - naturally they are paidfor this work and in return they learn thereal business. They find out the differencebetween theory and reality within thetourism industry.'

Fact File > IHMES - International Hotel School

Name: IHMES - International Hotel School

Address: Windsor House, Port Erin, Isle of Man IM9 6LA

Website: www.ihmes.com


Phone: + 44 (0)1624 832836

Fax: + 44 (0)1624 835365

Academic Director: Joseph Parys

Operations Manager: Angela Byrne

Age Range: 18 upwards

Full Boarding: Fully residential

Total Students: 300

Staff Numbers: 30

Method of Entry: Direct Applications after Secondary/High School


Other Sectors > Education > Isle of Man International Business School

Isle of ManInternational Business School

It makes sense to locate a teaching institution focusing

on international finance, banking and insurance in an

offshore environment, and that's exactly what the

International Business School has done.

The IBS has a symbiotic relationshipwith the community; around half of itsstudents are already working in the localfinance sector and are looking to improvetheir qualifications at an institute thatprides itself on extremely high academicstandards, while students from off theIsland benefit from the proximity of thefinance sector and the additional learningopportunities this provides.

Paid work placements and competitivefees are just two of the key benefits ofthe IBS. In addition, scholarships andbursaries are available, the main studytext books are free and students willleave the IBS with internationallyrecognised degrees. Small teaching groupsmean that results are consistentlyexcellent and the school is located on anhistoric campus, The Nunnery. Set inmagnificent parkland on the edge of thefinance sector and built in 1823, theNunnery Mansion House is renowned asone of the Isle of Man's finest buildings.

The school is at the forefront of applyingnew technologies and is IT intensive, withcomprehensive electronic library servicesand fully equipped lecture rooms andseminar rooms. Each student has apersonal tutor and a careers serviceprovides students with all the help andguidance needed to ensure their careersare on track. > Learning resource centre


Other Sectors > Education > Isle of Man International Business School

There is an English LanguageProgramme designed to help internationalstudents achieve the level of Englishnecessary to study their chosen degreeprogramme and deliver ongoing supportto students throughout their studies.

Full and part time courses forundergraduates include a BA in BusinessStudies, either four years' full time withwork placement in year three, or six years'part time (evenings), and a BA in BusinessManagement that is a three year full timecourse.

Postgraduate courses include an MSc inInternational Banking and Finance that isone year full time or two years part time(evenings), an MBA that provides the skillsand knowledge relevant for managers inall sectors of business, and postgraduateresearch degrees.

There are also professional and shortcourses such as Mindful Leadership andBecoming a Director.

IBS director Professor Roger Carey said:'We see the IBS as the beginning of theUniversity of Mann. The Isle of Man is anideal location for anyone to come to andstudy - students can put their head downand get on with it.'

The school is now a firmly establishedpart of the community.

Says Professor Carey: 'One of the factors

that led to the establishment of the IBSwas to serve and assist the developmentof the finance industry, where we canalso place students. What we have to

offer is something quite special - our ownenvironment within the school and alsothe Isle of Man as a place to stay. It's asafe place, a very welcoming place.'

Fact File > Isle of Man International Business School

Company Name: Isle of Man International Business School

Address: Nunnery Estate, Old Castletown Road, Douglas, Isle of Man, IM2 1QB

Website: www.ibs.ac.im


Phone: + 44 (0)1624 693700

Fax: + 44 (0)1624 665095

Director: Professor Roger Carey

Academic Co-ordinator: Professor Mike Lloyd-Williams

Degree Programmes: BA (hons) Business Studies/Management, MBA, MSc International Banking & Finance

Professional Programmes: Chartered Management Institute Qualifications

Professional Short Courses: Mindful Leadership, Becoming a Director

Affiliated Partners: Liverpool John Moores University

Method of Entry: Application Form and References

Age Range: 18 Upwards

Consultancy: Peter Ginty

Executive Training: Sean Gadman

English Language Programme: Bob Kirby

Venue Hire & Events: Gill Maddox

> The Nunnery Mansion House Estate

120 Parliament Street, Ramsey


Other Sectors > Information Technology and Computer Services

Information Technologyand Computer ServicesThe Isle of Man is ably served bybusinesses offering the highest standardsin IT and computer services, in terms ofsoftware, hardware and full businesssolutions.

Offshore e-business has been able toflourish in an environment that earlyrecognised the potential of the electronicage. Thanks to its ability to create andenact legislation swiftly, the Isle of Manhas already put in place a legalframework to cope with this new industry,such as the Electronic Transactions Act2000 and the Data Protection Act of 2002.

Simply, e-commerce is just another way ofdoing business, where existing companiesuse technology to their advantage, andcreating new business, such as onlinegambling and digital rights management.The Manx Government is actively

encouraging e-business and hascommitted millions of pounds over thepast two years to implementing e-commerce initiatives.

Inward investment is being encouragedand existing Manx-based companies arebeing encouraged to exploit newtechnology to the full. To this end, thegovernment offers internet education andbroadband connection to individuals andsmaller businesses and, for largerbusinesses, has a support schemeproviding access to technological supportand expertise. Because the Isle of Manhas always recognised the potential in e-business, it is already streets ahead ofmany of its larger competitors such asBermuda and the Channel Islands.

IT is seen as a core skill for everybodyand more than 95 per cent of Island

school leavers have an IT qualification.The government's commitment to newtechnology has been met by thewillingness of business to embrace it.There are now more ADSL connections inthe Isle of Man than in the Republic ofIreland. The Island's advantageous taxand regulatory regimes are also a hugeattraction for e-business.

As the Island's director of e-commercesays: 'We have made the investment. Weare not jumping on the e-businessbandwagon.'

The more new e-business the Isle of Manattracts, the better it will be for thisoffshore jurisdiction; new businesses arecustomers for the financial servicesindustry, while the finance sector itself willincreasingly be using e-business services.



Isle of Man Gambling ControlCommissionTel: + 44 (0)1624 623355

Office of Data Protection (ODPS)Tel: + 44 (0)1624 661030



Other Sectors > Information Technology and Computer Services > Skanco Business Systems

Skanco Business Systems Ltd

Skanco was created in 1985 by a local accountancy

practice which saw an opportunity to supply computer

solutions back when the IBM PC first emerged. The

directors had the foresight to acquire the Compaq,

Lotus and Pegasus dealerships for the Island and soon

expanded into supporting fields.

Skanco is an Isle of Man companywholly owned by its four directors, all ofwhom are Manx residents. The companyhas continually invested in the Isle of Manboth in terms of buying its own premisesand an ongoing commitment to stafftraining. Skanco has grown steadily since1985 and its growth has followed thegrowth of the business sector in the Isleof Man and its product portfolio haschanged according to their needs.

Managing Director David Butterworth,who has been with Skanco sinceinception, said: 'A business exists tocreate customers, to service thosecustomers and to keep them. After nearly20 years in business this still remains ournumber one priority'.

The company operated out of a numberof leased premises until 1997 when theprincipal business was relocated to newheadquarters on a business park on theoutskirts of Douglas. Skanco has a currentworkforce of around 40, of which asignificant number have worked for thecompany for many years.

In 1999 Skanco’s business continuitycentre was relocated to the Isle of ManBusiness Park which is two miles from thebusiness centre of Douglas.

Operations Director Barry Kennedy, who

has been with Skanco since 1989, said:'This brought Skanco’s total space toaround 20,000 square feet in twobuildings linked by their own fibre opticcable thus providing exceptional flexibility.

‘The company is owned by the board ofdirectors, with over 70 years’ experiencein Skanco and has a strong managementteam with over 40 years’ experiencewithin the company.

> Restart Court

> The Management Team: Andrew Kermode, David Butterworth, Barry Kennedy and Andrew Gosnell


Other Sectors > Information Technology and Computer Services > Skanco Business Systems

> Skanco Court

‘We focus on providing the full range ofour services to our client base each yearand I would say one of our mainstrengths is our ability to identify andmove into new areas without degradationof existing offerings.

‘For example we have a significantnumber of firsts in the Isle of Man.

◆ First dedicated business continuityfacility (1995)

◆ First purpose built IT companyheadquarters (1997)

◆ First purpose built business continuityfacility (1999)

◆ First dedicated secure hosting facility(2000)

◆ Hosted the first three on-line gamingcompanies to go live as part of the IOMGinitiative (2001)

'Our core business is finding completesolutions. In the Isle of Man many clientswant a one-stop shop and we aim to beseen as the company to provide it. Weprimarily provide services to the privatesector and our policy to always provide aquality offering has enabled us to developlong term relationships with a loyal clientbase,’ said Barry.

Over 50 per cent of Skanco’s staff areinvolved in the technical area andSkanco’s commitment to ongoing trainingensures that they are amongst the highestqualified technical staff available on theIsle of Man. Steady growth has madeSkanco one of the Island's best knownbusiness names.

The company now focuses on five mainproduct ranges – Microsoft, Cisco, HP, Citrixand Novell. Skanco’s current services include:

◆ Outsourcing◆ Hardware Maintenance◆ Business Continuity◆ Disaster Recovery◆ Managed Secure Hosting◆ Managed Office Space◆ IT Procurement◆ 24 x 7 Support

The company has full confidence in itsinvestment in the Island. Says BarryKennedy: 'I believe that the Isle of Man isnow the offshore place to be especially inthe EMEA marketplace.

‘The proposed introduction of zero rate corporation tax in 2006 and the significant investment in communicationstechnology make it an even moreattractive place for companies to basetheir operations.'

Fact File > Skanco Business Systems Ltd

Company Name: Skanco Business Systems Ltd

Office Address: Skanco Court, Cooil Road, Braddan, Isle of Man, IM2 2SR

Website: www.skanco.co.uk


Phone: + 44 (0)1624 680808

Fax: + 44 (0)1624 680803

Ownership & Management: Private Limited Company


Date Incorporated: October 1985

Registered Office: Skanco Court, Cooil Road, Braddan, Isle of Man, IM2 2SR

Directors: L A Kearns, P N Horsthuis, D M Butterworth, G B Kennedy


Affiliated Companies: Restart Limited and Restart Holdings Limited

Main Business: The provision of IT related business services

Current services: Outsourcing, hardware maintenance, business continuity,disaster recovery, managed secure hosting, managed officespace, IT procurement and 24x7 support.

Products: Microsoft, Cisco, HP, Citrix and Novell.

124 View of harbour from Ridgeway Street, Douglas


Other Sectors > Manufacturing and Retail

Manufacturing and RetailThe manufacturing sector in the Isle ofMan has a significant role to play insupporting the continual growth anddiversification of the Island's economy.

High-tech, high-value manufacturingopportunities are particularly welcomed bythe government and there is a solidinfrastructure to support this type ofactivity. Existing business is encouraged togrow and develop.

The Isle of Man Chamber of Commercehas a manufacturing and technicalindustries committee that champions thesector. The government has strong linkswith Salford University, an industrial baseduniversity providing the Island with directaccess to specific expertise.

There are several schemes designed tosupport manufacturing businesses,including financial assistance towardscapital investment and start-up assistance.Grants are available of up to forty per cent

towards the cost of new buildings andbusinesses can apply for ongoing financialassistance.

The Isle of Man is one of few placeswhere operating grants are available.

Tax incentives are extremely generous byEuropean standards. Capital allowancesinclude up to 100 per cent of the cost ofplant, machinery and buildings in the firstyear of ownership. For taxation purposes'plant and machinery' is defined widelyand includes lorries, aircraft and ships.Government grants are not deducted fromthe gross cost when calculating the reliefwhich may be claimed. Equally, grants arenot taxable as a trading receipt, which isthe case in some countries.

Excellent transport facilities to and fromthe Island mean that companies have nodifficulties in securing materials andcomponents. There are no customsformalities and transportation of goods

and passengers to and from the UK isunhampered by customs and passportcontrols.

The Isle of Man boasts a highly skilledworkforce and excellent labour relations.The variety of skills available are illustratedby the range of companies manufacturingdifferent goods, such as opticalinstrumentation, electronics, thermostaticcontrols, aerospace components, medicalcomponents and biotechnology.

Quality of life is a crucial component ofIsland life and the retail sector has a vitalrole to play here. This sector has grown inline with the boom in offshore servicesand the demand for high quality anddiverse goods and services from Islandresidents and visitors. The Chamber ofCommerce monitors and aids the retailsector, which offers a comprehensivechoice, from branches of major UK outletsto specialist shops and stores.


Chamber of CommerceTel: + 44 (0)1624 674941www.iomchamber.org.im

Isle of Man Trades CouncilTel: + 44 (0)1624 621156

Isle of Man Customs and ExciseTel: + 44 (0)1624 685156



Other Sectors > Manufacturing and Retail> CVI Technical Optics Ltd

CVI Technical Optics

From stargazing and monitoring our planet’s weather and

ozone layer to medical applications, it’s all in a day’s work for

CVI Technical Optics. This specialist manufacturer has

produced optics for some of the most powerful lasers in the

world and is a well-known player in a market that continues

to develop rapidly. CVI grinds and then polishes glass to

optical specifications and, if required, coats it to enhance or

reduce reflectivity, according to the customers’ specifications.

General Manager Dr Helmut Kessleracknowledges that to the layman thishighly technical field is difficult to grasp -how many of us are familiar with anetalon? - although laser technology haschanged the way we live our lives -modern scanner cash tills and CD/DVDplayers all contain lasers.

‘The difficulty understanding our productis that you hardly ever see it,’ says DrKessler. ‘Our optics are used in lasers toeither make them work or steer theirbeam to where it is required. The obviousway in which lasers have been of benefitis through medical applications, such aslaser scalpels. Vision can now becorrected thanks to laser technology andtattoos removed using lasers. On theindustrial side, laser welding makespossible things that in the old days wereunthinkable. For example, welding carbodies was a very difficult, dirty andcumbersome job. Lasers have made theworkplace cleaner and more energyefficient.’

The company began as Technical OpticsLimited and in May 2000 was incorporatedinto the US group CVI, a global companyin the field of laser optics. From theoutset, it has been based on an industrialestate in Onchan with the companybuilding having seen several expansionsover the years. > State of the art coating chambers allow the manufacture of high quality optics


Other Sectors > Manufacturing and Retail > CVI Technical Optics Ltd

> A view into the polishing department where substrates from 1mm to over 500mm diameter are polished

Says Dr Kessler: ‘The interesting thingabout this field is that it is not fullydeveloped. It’s a field where ourknowledge is growing. The demands fromcustomers are getting higher and higher.We have to offer much tighterspecifications at lower prices. That reflectsthe progress that has been made.

‘Over the last five years we havedrastically improved our productivity andsome products that used to take six toeight weeks to manufacture we can nowmanufacture in one to two weeks.’

Helmut Kessler came to the Isle of Maneight years ago from Hanover Universityqualified in physics and optical coatings.He oversees a staff of 31 at the Onchanpremises.

‘Originally, the Isle of Man governmentwas looking to attract light industry and todo so offered a number of incentives. Weare in the fortunate position that we ownour company’s building and it hasphysically grown to about four times theoriginal size,’ says Dr Kessler. ‘Theadvantages of being in the Isle of Man faroutweigh the disadvantages. We receiveup to forty per cent of capital expenditurefrom the government which is unheard ofin other jurisdictions, as far as I am aware.The zero tax regime will also be a distinctadvantage.

‘Furthermore, we have a low crime ratecompared to the UK. The maindisadvantage is that the Isle of Man is avery expensive place to live. It's difficult toattract workers from other areas becauseof relocation problems - they can’t affordto live here. Consequently, we have to payhigher salaries. We also train up our own

apprentices and we have built up anextremely loyal workforce as a result.’

So, back to the etalon... Dr Kesslerexplains: ‘Etalons are used to improve thebeam quality of lasers. Researchers senda laser beam into the atmosphere and itis the etalon that helps to analyse thereturning beam, allowing us to see theamount of pollution in the atmosphereand how the ozone layer is doing. Etalonsalso narrow down the laser beam insemiconductor production, allowing thenecessary small structures to be inscribedon the computer chip.

‘The raw material we use is in mostcases worth just a few pounds but thefinished product is worth much more.

A finished etalon can sell for thousands ofpounds.’

CVI products are in the world’s mostpowerful lasers, in satellites, space probesand numerous medical and industrialapplications. There is also a wide researchmarket requiring CVI optics forexperimental work. The company's smallbut dedicated team might bemanufacturing an ‘invisible’ product butthey share the same vision.

Dr Kessler says: ‘Optical grinding andpolishing requires a great deal ofcraftsmanship and attention to detail.Optical coating requires a lot of theoreticalknowledge. All our people take great pridein their work.’

Fact File > CVI Technical Optics Limited

Company Name: CVI Technical Optics Limited

Office Address: Second Avenue, Onchan, Isle of Man, IM3 4PA, British Isles

Website: www.cvi-tol.co.uk


Phone: + 44 (0)1624 647000

Fax: + 44 (0)1624 676859

Ownership CVI Laser LLC,& Management: Albuquerque, New Mexico, USA


Date Incorporated: Founded in 1973 as Technical Optics Limited

Registered Office: Stanley House, Lord Street, Douglas, Isle of Man

Directors: Stephen S. Burge, John Hale, Dr. Helmut Kessler


Affiliated Companies Parent company US-based CVI Laser LLC (from 2000)

Main Business: Manufacture of high energy laser optics and etalons


Other Sectors > Manufacturing and Retail > Strix Limited

Strix Limited

An Isle of Man-based company that started up in 1951

with all the right elements for success enjoyed sales of

£85 million last year and is on target to break the £100

million barrier by 2006.

A regular winner of the Queen’s Awardfor innovation and export, Strix is the world’s biggest maker of kettlethermostats and is switched on for furtherexpansion thanks to a move into waterfilters to meet the increasing demand forsafer drinking water across the globe.

Morphy Richards, Philips, Russell Hobbsand Tefal are just a few of the householdnames that use Strix technology. Strixthermostats are used more than a billiontimes a day around the world andchances are the kettle you own containsa Strix component - but few people willbe aware of the Strix name and that's justthe way the company likes it.

Chief executive Brian Amey said:‘Historically, Strix has always been aboutinnovation. We were responsible formoving the kettle to an electric versionand putting the element in the baseinstead of inside the kettle. We bringideas to different brands to grow themarket, widening the application todifferent brands and different companies -opening up a whole new set ofpossibilities.’

An example of the innovative approachtaken by Strix is the electric ‘moka maker’.Initially, Italian appliance manufacturer,Bialetti took some convincing that anelectric version of their Moka maker toreplace traditional methods would

produce a high quality drink but Strixpersuaded the manufacturer that themarket existed and produced anintegrated control and element system fora modern appliance. More fundamentally,Strix is helping improve drinking waterquality around the world.

Brian Amey said: ‘We do a lot ofbusiness in China and have found thereand in other areas of the world there is a

fundamental distrust of the water thatcomes out of the tap. What if there wasan appliance that could filter the water, boil it and then hold it at the requiredtemperature? That was where our thinkingstarted five years ago and it opened up anew market opportunity.’

With operations in China, the UK andEurope, Strix remains committed to theIsle of Man. The company began life as

> Strix Directors and Senior Management Team

> Brian Amey, Chief Executive


Other Sectors > Manufacturing and Retail > Strix Limited

> Strix Head Office, Forrest House, Ronaldsway, Isle of Man

Castletown Thermostats and has, quietly,become a global leader, continuouslydeveloping manufacturing techniques andgenerating new products.

Strix is based in the Island simplybecause its founder John Taylor waseducated locally but Brian Ameyappreciates what he perceives as a‘consistent’ offshore regime.

He said: ‘I would rather have thisoperation here than in the UK, althoughwe do experience staff relocationdifficulties. I think the Isle of ManGovernment understands the Isle of Manand the advantages and disadvantages ofdoing business here. The government isconsistent. In some jurisdictions youwonder what is going to happen next.’

Strix translates from the Latin as ‘screechowl’ and this Manx company says it is awise approach to business as well as theconfidence to spread its wings that hasplaced it in its position today of worldmarket leader.

Fact File > Strix Limited

Company Name: Strix Limited

Office Address: Forrest House, Ronaldsway, Isle of Man IM9 2RG

Website: www.strix.com


Phone: + 44 (0)1624 829829

Fax: + 44 (0)1624 822918

Ownership & Management: Private company



Registered Office: Forrest House, Ronaldsway, Isle of Man IM9 2RG

Directors: E. Davies, B. Amey, P. Anderson, P. Snowden, J. Brodie, M. Scott, G. Lamb, P. Inglis

Employees (2004): 850 employees (IoM 300; UK and Europe 50; Asia 500)

Affiliated Companies Strix (UK) Ltd, Strix Guangzhou Ltd, Strix Europe SA, Strix Hong Kong Ltd.

Main Business: The design, manufacture and sale of thermostatic controls and cordless interfaces


Other Sectors > Manufacturing and Retail > Moore's Traditional Curers

Moore's Traditional Curers

The methods employed by Moore's

Traditional Curers in Peel haven't changed

since 1883 - but this is one Manx business

that isn't standing still.

Owner Paul Desmond has been runningthe 120 year old kipper yard for the pastseven years and says dedication to thetrade is now paying off. This is very mucha family business and Paul himself hasbeen involved in the fishing industry allhis life, and as a traditional fishmonger isproud to say he can tackle anything theIrish Sea can throw at him.

'This yard was built in 1883 and wasthe premier yard in the Isle of Man,' saysPaul. 'I have fond memories of it and of atremendous community spirit. I wouldcome down with my father as a child. Hestarted in the fishing industry in 1946 andI was taught the old-fashioned way.

'We are the only traditional kipper curersin the Isle of Man. It's great to see theherring hanging up and following thewhole process through. I went into this forsentimental reasons, which some peoplemight say are the wrong reasons, but Ihad a great affinity for the yard and haveenjoyed building up the business again.'

The Isle of Man is famous for its kippersand Moore's is busy developing its exportbusiness via the internet. The yard hasfour smoke houses, each capable ofholding 20,000 herring. Fires are lit underthe fish to create the kippers. > Stacking herring ready for smoking

> Kippers on racks in the smoke house


Other Sectors > Manufacturing and Retail > Moore's Traditional Curers

> Traditional Kipper House, Peel> Gutting herring

Says Paul: 'We use oak chippings andthe process can take up to 12 hours.Some modern methods force the fish inthree hours but you don't get the samequality kipper.'

As well as a thriving business, Moore'sis also a working museum and visitorscan take advantage of a daily tour at3.30pm and then buy kippers and oaksmoked bacon in the yard shop.

'We get a lot of people who used towork here,' says Paul. 'Most people in Peelworked in kipper houses when they wereyoung and they appreciate that Moore'shasn't changed over the years.

‘We have great support from localpeople and from tourists. This yard has avast potential and we are now starting toreap the rewards of a lot of hard work.You don't do this for money - my father is77 and still comes down at 4am to startthe machines. Most of the people whowork here are family.'

Moore's Traditional Curers is a vibrantpart of the fishing port's past, present andfuture with the development of its websiteattracting customers from across theworld. Paul Desmond is a member of the

Isle of Man Produce Association and hasa presence at UK food shows. Fish is inthe family's blood and Paul's own sonearns his pocket money at the yard. 'Myson is eleven now and loves the kipperyard. He comes to work every Saturdayand gets his wages,' says Paul, 'but timeshave changed and he will probably go off

to university. If he wants to work here heknows he can come back to a businessthat is now rapidly expanding. We'relooking at niche markets and at increasingprofits by 25 per cent each year over thenear future. But the kipper yard is morethan a job, it's part of your life. There arevery few places like this left.'

Fact File > Moore's Traditional Curers

Company Name: Moore's Traditional Curers

Office Address: Mill Road, Peel, Isle of Man, IM5 1TA

Website: www.manxkippers.com


Phone: + 44 (0)1624 843622

Fax: + 44 (0)1624 812155

Ownership & Management: Paul Desmond

Date established: 1883

Employees (2004): 6

Main Business: Traditional Smoking & Curing (smoked over oak fires in brick chimneys) – Herring, Salmon, White Fish, Bacon

Affiliated Companies: Desmonds Fish Monger - Ramsey


Other Sectors > Manufacturing and Retail > MasterCraft

MasterCraft

MasterCraft is the world’s largest manufacturer of

high performance wakeboard, water ski and luxury

inboard engine powerboats.

MasterCraft Ltd, based in the Isle ofMan, is the exclusive distributor forMasterCraft products throughout Europe.Initially founded in the UK in 1975, as afamily enterprise serving the UK marketonly, owners Ian and Peter Birdsallpursued a business development strategydedicated to providing the higheststandard of customer service and care,ensuring solid, steady, sustainable growth.

This philosophy has been encompassedthroughout the company history creating a

loyal customer base and unprecedentedrespect within the industry. Today the Isleof Man company is a wholly independentdistributor, responsible for all aspects ofMasterCraft business in Europe and otherinternational regions. Company Chairman,Ian Birdsall, has unrivalled experience inthe market sector and has beenresponsible for business developmentacross multiple regions.

The MasterCraft product range nowencompasses over 27 different models,

including the ProStar 190 Tournament Skiboat powered by a 390HP V8 engine,which currently holds every water skiworld record. The revolutionary X-Star,which is the only purpose builtwakeboard boat and was developed at acost of more than 5 million dollars, headsup a range of nine X-Series boatsdedicated to this, the world’s fastestgrowing water sport.

The exclusive MariStar range of luxurypowerboats sees the addition of a

> MasterCraft events support unit

> Ian Birdsall


Other Sectors > Manufacturing and Retail > MasterCraft

flagship model for 2005. The MariStar 280STS twin engine 750 HP offshore luxurysport cruiser, which has already wonaccolades from the boating press andsecured orders from around the world.

An additional aspect to the business is astrong worldwide involvement in theoperation and management of water skiand wakeboard events.

MasterCraft is the exclusive partner ofthe Wakeboard and Water Ski World Cupand also the World WakeboardChampionships. This brings recognition tothe sport and its athletes whilst providinga proving ground for new products andtechnology.

‘We look at it like Formula 1 is to themotor industry’, said Ian Birdsall. ‘Theestablishment of our dedicated Europeandistribution and marketing centre in theIsle of Man will contribute greatly to theefficient growth of our business as wemove into a more diverse market place.

Our historic philosophy of customer careand loyalty together with a growingproduct range and development of newmarkets is core to our long term businessplan’, he continued.

When choosing a location from which tospearhead growth into new markets theIsle of Man was a logical choice for

MasterCraft, offering a wide range offinancial services and excellentcommunication links, plus a pro-activeDepartment of Trade and Industry togetherwith a pleasant working environment formanagement and staff.

After 30 years in the business, IanBirdsall recognises that MasterCraft is a

trendsetter and benchmark for theindustry, however complacency has noplace in a globally changing market.

The entire management and staff atMasterCraft understand this and arecommitted to setting ever-higherstandards and bringing innovative ideas to fruition.

Fact File > MasterCraft Limited

Company Name: MasterCraft Limited

Office Address: Westminster House, Parliament Square, Castletown,Isle of Man IM9 1LA

Website: www.mastercraft-europe.com


Phone: + 44 (0)1624 829445

Fax: + 44 (0)1624 829446

Ownership & Management: Private



Registered Office: Westminster House, Parliament Square, Castletown,Isle of Man IM9 1LA

Directors: Ian Birdsall, Christine Birdsall

Main Business: European distribution and support of high performance luxury powerboats

Other Business: Water ski and wakeboard event management

> MasterCraft MariStar 280

> MasterCraft X-Star

> MasterCraft ProStar 190

> MasterCraft X-45


Other Sectors > Manufacturing and Retail > CV Jewellery

CV Jewellery

A gem in the heart of Douglas's shopping district,

CV Jewellery creates unique designs for individuals and

corporate clients from its on-site workshop.

It's a family business that drawsinspiration from the beautifully carvedCeltic crosses that can be foundthroughout the Isle of Man and are alegacy of a rich heritage. In his upstairsworkshop, Sean Corlett carves exclusivedesigns using the latest technologyalongside traditional jewellery makingmethods, and the finished pieces aredisplayed to full effect on the ground floorgallery under the careful supervision ofSean's wife Janet.

The Island's legislative and businesscommunity calls on CV Jewellery whensomething extra special is required. CV(Celtic Venture) has provided chains ofoffice for local authorities, tie-pins andcufflinks for the Manx Electricity Authorityand complete wedding packages,including bride and groom rings, cufflinksfor best man and ushers, and pendantsfor bridesmaids and mums - and CVallows customers to carry its uniquedesign through to wedding stationery andeven the wedding cake.

To mark CV's fifth anniversary, Sean andJanet created a unique Three Legs designfor pendants, rings, tie-pins and cufflinks -effectively joining Manx culture to modernday business. In other words, every Isle ofMan company director should have one.CV Jewellery offers a bespoke corporategift service and is able to create a uniqueand lasting piece to fit the exact needsand budget of a company looking tocreate distinctive corporate awards,giveaways or merchandise.

Thanks to the use of the latestcommunications technology, CV is alsomaking an impact off the Island.

'We created a St Chad's cross for StChad's College in Durham, which was aninternet commission,' said Janet. 'We've

done cap badges for the Ellan VanninPipes and Drums, pendants and stick pinsfor Andreas and Bride millenniumcelebrations and a silver spoon formillennium babies born in Onchan.'

The Onchan Knot is one of theexamples of the Heritage Collection that isinspired by Celtic and Viking art. Eachpiece is created in silver, 9ct or 18ct gold,many set with precious or semipreciousstones, and hand finished in theworkshop. Each CV Heritage piece thatleaves the workshop is accompanied by acertificate of origin.

Says Janet: 'Each piece has its ownstory. We make our own sketches ofcrosses and pick out detail that createsoriginals. The designs carry a message -for example, the knot work is created froman unbroken line symbolising eternity andis a charm for long life and good luck.Spirals, meanwhile, stand for tranquillityand eternity.'

CV Jewellery's gallery displays its owncollections alongside other contemporarydesigners in 18ct gold and diamond. Asworking jewellers, CV offers a full repair,restoration and valuation service.Commissioned jewellery takes up to sixweeks from original design to completeditem.

Sean, a graduate of the BirminghamSchool of Jewellery, says: 'I work in CAD(computer aided design) so images canbe produced in 3D and the client caninspect the design in that format.'

Sean's parents started the business inRamsey, buying in Celtic jewellery fromelsewhere before realising they couldproduce their own, high quality designs.Sean and Janet have now found theirniche in exclusive corporate and heritagedesign. Says Janet: 'Our prices start at £20for a silver pendant christening gift for achild to, well, the reaches of the client'simagination.'

> Spirit of Mann design from the heritage collection

Fact File > CV Jewellery

Company Name: Celtic Venture Ltd T/A CV Jewellery

Office Address: 5 Marina Road, Douglas, Isle of Man IM1 2HD

Website: www.cvjewellery.co.uk


Phone: + 44 (0)1624 676422

Ownership & Management: Sean Corlett & Janet Corlett

Date Started: 1985

Registered Office: 5 Marina Road, Douglas, Isle of Man. IM1 2HD

Directors: S Corlett, J.A Corlett, J.E Corlett

Employees (2004): 3

Main Business: Jewellery Manufacture & Retail


Other Sectors > Media and Advertising

Media and AdvertisingThe Isle of Man enjoys a comprehensivelydiverse and active media presence. At thetime of going to press there were threeradio stations serving the Island, ManxRadio which is part-funded by thegovernment, and two fully commercialstations, Energy FM, which launched twoyears ago, and 3fm which launched inOctober 2004.

Owned by Johnston Press, the newspapergroup Isle of Man Newspapers has threeweekly titles, the paid-for Isle of ManExaminer, paid-for Manx Independent andfreesheet Courier. Isle of Man Newspaperspublishes a monthly lifestyle magazine,Outlook.

Long-established publishing companyMannin Media also publishes a monthlymagazine Manx Tails and is one ofseveral local publishers issuing regularmagazines and publications aimed atpeople working within the finance sectorand their customers.

Meanwhile, there are specialist publishers(see Lily Publications) that are Manx-basedand whose remit includes promoting theIsle of Man.

The media has taken full advantage ofnew technology and there are severalwebsites offering Manx news and insightsinto Island life.

One of the biggest boosts the Isle of Manhas received in terms of coming to thenotice of the wider world has beenprovided by the burgeoning film industry.

Isle of Man Film comes under the remit ofthe Department of Trade and Industry andis responsible for bringing majorproductions, and British and Hollywoodstars, to Manx shores.

There is now a solid framework of supportservices, including extras, film workers andancillary services in the Island. Isle of ManFilm actively markets the Island as alocation and as an investor at major filmindustry events.


Isle of Man Film CommissionTel: + 44 (0)1624 687173



Other Sectors > Media and Advertising > Lily Publications

Lily Publications Limited

Well known for the definitive All Round

Guide to the Isle of Man, Lily Publications

is setting the standard in promoting the

Island’s diverse appeal through words and

pictures to an ever-growing UK and

international audience

From humble beginnings in Pembrokeshirein 1991, when Miles and Linda Cowsilltook the bold decision to strike out ontheir own, Lily Publications has rapidlyevolved into something of a uniqueorganisation.

Now based near Ramsey, the companyis not only producing an impressive andexpanding portfolio of high-quality books,as befits a leading Island publishinghouse, it is also making available its fullrange of creative services concept, design,photography, writing, editing, proofreadingand production to companies andorganisations both on Island and acrossthe UK.

The specialist skills acquired in bringingthe business this far embrace the wholespectrum of promotional and PRcommunications, notably brochures andcustomer inflight-style magazines.

For more than a decade Lily Publicationshas been entrusted with the task ofcreating and producing the Island’s annualholiday guide for the Department ofTourism & Leisure. Among other majorclients are Isle of Man Post, Steam PacketCompany, P&O Ferries, Brittany Ferries andthe Island’s Department of Agriculture,Fisheries & Forestry.

Alongside the bestselling and much-enlarged new edition of The All RoundGuide to the Isle of Man stand suchpopular titles as Spirit of Mann, WildFlowers of Mann, Spirit of Guernsey, Spiritof Jersey and Lucky Little Devil, the latterabout famous Manx resident Sir NormanWisdom and his life on the Island.

The Lily Publications house style isdistinctive for its large format andgenerous use of excellent colour

pictures, many of which are the work of accomplished and experiencedphotographer Miles Cowsill.

Publishing is a dynamic business and the development of further new Manx and destination-related titles is an ongoing process particularly as Lily Publications is dedicated to helping put the Isle of Man ever more prominently on the global tourism map.

> Some of the many publications produced by Lily Publications

Fact File > Lily Publications Limited

Company Name: Lily Publications Ltd

Office Address: PO Box 33, Ramsey, Isle of Man, IM99 4LP

Website: www.lilypublications.co.uk


Phone: + 44 (0)1624 898446

Fax: + 44 (0)1624 898449

Ownership & Management: Miles Cowsill and Linda Cowsill

Date Started: 1994

Registered Office: PO Box 33, Ramsey, Isle of Man, IM99 4LP

Directors: Miles Cowsill, Linda Cowsill

Employees (2004): 4

Main Business: Advertising, Publishing and Photography


Other Sectors > Shipping and Yacht Management

Shipping and YachtManagementThe development of the Island's shippingregister alongside the emergence of theso-called mega yacht has provided boththe government and private companieswith an exciting opportunity.

The Isle of Man has a highly effective andproactive Marine Administration and isproud to be a Red Ensign jurisdiction, auniversal signifier of quality.

Through its association with the UK, theIsle of Man forms part of the EU VAT areabut maintains its independence regardingcompany tax. This means that yachtowners who operate through an Isle ofMan company enjoy the benefits of nocorporation tax.

The requirements for Isle of Mancommercial yacht registration are broadlysimilar to the UK MCA code. There is arequirement to have an Isle of Man-basedvessel manager/representative with locallegal responsibility to ensure the vessel iscompliant with all current regulations andis run in accordance with regulations.

The high regard in which MarineAdministration is held has resulted in theIsle of Man becoming home to many ofthe world's most prestigious shippingfleets, with registered tonnage figures thatexceed the UK's commercial fleet totals.Against this background, the Isle of ManCommercial Yacht Registry is flourishingthanks to the stability, fiscal advantages

and technical expertise the Isle of Manhas to offer.

The Isle of Man shipping register is morethan two hundred years old and, whiletraditionally it was used to register locallyoperated vessels, today it is aninternational success. In 2002 the fleetpassed the 300 ships mark for the firsttime and the commercial yacht registerhas been in existence since 2003.

The tax advantages and local expertiseplace the Isle of Man at the vanguard ofship and yacht registration andmanagement.

The international shipping industry nowemploys more than 600 people locally.

Marine Administration andRegistrationTel: + 44 (0)1624 688500

Isle of Man Customs and ExciseTel: + 44 (0)1624 648156



Other Sectors > Shipping and Yacht Management > Pelagos Yachts Limited

Pelagos Yachts Limited

The world's largest single masted sailing

yacht is flying the flag for commercial

yacht registration in the Isle of Man.

Twice as heavy and 60 percent longer

than the next largest single masted

yacht, she eclipses the competition.

Mirabella V is a fitting ambassador forthe Isle of Man commercial yacht register.The technical advancements andinnovations of the yacht herself arematched by the level of sophisticatedservices that are available to the megayacht owner through its local Isle of Manmanagers, Pelagos Yachts.

Securing the Mirabella V was a coup forRamsey-based yacht managementcompany Pelagos Yachts but also areflection of early success in a growingindustry for the Island.

The company boasts the fact that themanagement of Mirabella V and her twosmaller sister ships Mirabella I and III isprovided by Pelagos Yachts, shows it isready and able to provide a world classservice from within its own resources.Pelagos Yachts is in its infancy but hasalready made waves in a very competitiveindustry.

Declan O'Sullivan, who started thecompany with a former colleague ChrisStewart, explained: 'We were both alreadyinvolved the field, locally, through acorporate service provider and decided wecould offer a better, more focused serviceby providing pure yacht managementservices. Many of our competitors, banks,corporate service providers etc, set upyacht management companies to draw inhigh value clients in order to sell themtheir other non yacht related products, butmost of these clients already have their > Mirabella V

> Super Yacht gas turbine engine


Other Sectors > Shipping and Yacht Management > Pelagos Yachts Limited

> Super Yacht interior

bank, accountant, tax adviser, etc. Ourclients are looking specifically for yachtmanagement and that's exactly, andsolely, what Pelagos provides - impartialadvice and an expert service. Pelagosoffers a unique, tailored yachtmanagement service that enables theowner to simply enjoy their yacht.’

Mega yachts are set to become megabusiness for the Isle of Man. Says Declan:'Commercial yacht registry in the Isle ofMan is already a huge success. Peopledon't realise the actual volume ofcommercial shipping the Island is alreadyinvolved in, and it's good quality stuff.

‘The Island is a good jurisdiction to dobusiness in; from the fiscal point of view ithas many advantages. The MarineAdministration and the DTI have been verysupportive of the emerging commercialyacht sector.

‘We were the first yacht managementcompany on the Island to be audited andreceive approval from the MarineAdministration and the first pure yachtmanagement company to receive adocument of compliance. We played amajor role in the activation of the Isle ofMan Commercial Yacht Code in 2003 andso are in an ideal position to adviseclients as to its requirements.

'We are the only yacht managementcompany in the Isle of Man certified toprovide International Safety Management(ISM), which also makes us unique. Thereare shipping companies providing ISM tocommercial vessels but the commercialyacht is a world removed from youraverage commercial ship and so requiresa service specifically tailored to the needsof a yacht.'

Pelagos can provide a complete yachtmanagement service or simply assist withspecific tasks, drawing on the company'sexperience and worldwide network ofcontacts.

This means clients can have all theiryachting requirements met through asingle contact point - from dealing withpractical aspects such as design,construction, survey and maintenance tothe less tangible but equally important

tasks, such as ownership structures,management, registration, finance, VATand tax issues. 'We can run a yacht fromstart to finish if required,' says Declan. 'Wehave an involvement to varying degreeswith probably about a hundred yachts.

Having a yacht of the stature of theMirabella V on our books leads usnaturally down the road of high quality ofservice. However, we do not want to growtoo quickly and lose that quality.’

Fact File > Pelagos Yachts Limited

Company Name: Pelagos Yachts Limited

Office Address: Auldyn House, Ramsey, Isle of Man, IM8 1DW

Website: www.pelagosyachts.com


Phone: + 44 (0)1624 819867

Fax: + 44 (0)1624 819887

Ownership & Management: Private Limited Company


Date Incorporated: 17th July 2003

Registered Office: Auldyn House, Ramsey, Isle of Man, IM8 1DW

Directors: D O’Sullivan, CE Cleary & PT Whipp

Affiliated Companies: Pelagos Crewing Ltd, Pelagos (UK) Ltd

Main Business: Yacht Management

Other Business: Commercial and Private Yacht Registration, InternationalSafety Management, International Ship and Port FacilitySecurity, Project Management, Yacht Management, CrewEmployment, Leasing, VAT and Tax Services, Marine Finance,Insurance

Licences: International Safety Management Document of Compliance

140 Harbour, Douglas


Other Sectors > Tourism and Travel

Tourism and TravelAlthough measuring no more than around33 by 12 miles and located in the centreof the Irish Sea, the Isle of Man is very farfrom being an insular environment. Thisseafaring nation is historically gregariousand the residents of far flung locationscan trace their Manx ancestry. Indeed,there are Manx societies from one side ofthe world to the other, in Australia,America and New Zealand.

Similarly, the Island has welcomed visitorssince the earliest days of tourism and has

readily adapted to the changing needs ofholiday makers. Excellent air and sea linkswith the UK and Ireland make the Isle ofMan an ideal location for short breaksand this is a market that has grown inrecent years.

An annual walking festival highlights thebeauty of the Island's hills, glens, beachesand coastal footpaths and the Isle of Manis a popular destination for golfing holidays.The relatively mild Manx climate, warmedby the gulf stream, means visitors can

enjoy the Island's unspoilt environment allyear round, although the traditionalsummer season continues to be 'toppedand tailed' by the TT races in May/Juneand the Manx Grand Prix inAugust/September.

Hotels, guest houses and restaurants havemoved upmarket and into specialist areasto meet the needs of today's sophisticatedvisitor.

Department of Tourism and LeisureTel: + 44 (0)1624 686801

Manx National HeritageTel: + 44 (0)1624 648000



Other Sectors > Tourism and Travel > The Isle of Man Steam Packet Company Limited

The Isle of Man Steam Packet Company has travelled a long waysince journey times to the UK exceeded ten hours and passengershad to be rowed into Douglas bay to reach the ferry. Admittedly,that was 175 years ago but it was those entrepreneurial early daysthat have enabled the Steam Packet to become the oldestcontinuously operating passenger shipping company in the world.

Today's fleet is based in the port ofDouglas and the Packet is held in high,and affectionate, esteem by local people.As the main provider of passenger, vehicleand freight services to the Isle of Man, thecompany is dubbed 'the Island's lifeline'and it's easy to see why.

The only operator of dedicated yearround scheduled services, the Packetcarries more than 650,000 passengers ayear together with a mixture of over 170,000cars, vans and motorcycles. Additionally, it is also important that the shipment offreight so vital for an island community isnot constrained in any way.

In its earliest incarnation as the Mona'sIsle Company, named after the first paddlesteamer commissioned in 1830, thecompany was set up to serve the Manxpeople. The first sailing was to Liverpool, aroute that remains popular today. Anybodyinterested in the history of the SteamPacket can visit the Manx Museum, whichholds the minutes of directors' meetingsgoing back to the companies’ incorporation.

Communications Manager Geoff Corkishsaid: 'There had been other shippingcompanies but they were not committedto the Isle of Man and would come in onan ad hoc basis. One of the turning pointstowards the creation of the Steam Packetwe know today was when the Governorof the day complained it was taking up totwo weeks for his mail to reach him! > A friendly ‘at your seat’ service is offered on all company vessels

The Isle of ManSteam Packet Company Ltd


Other Sectors > Tourism and Travel > The Isle of Man Steam Packet Company Limited

> Fast craft have dramatically reduced travelling times to and from the Island

'Our first ship, the Mona's Isle, cost£7,052 and the company was called theMona's Isle Company for two years beforebecoming the Steam Packet. Thecompany grew as the Island grew.' By theturn of the twentieth century and thesubsequent heyday of tourism, the SteamPacket operated up to 17 passenger ships.Today, the deployment of fast craft makesthe Island an easily accessible short breakdestination.

In the mid-1980s, Sea Containers took astake in the Manx company, finally takingover the Steam Packet in 1996. Thecompany operates under a useragreement with the Isle of ManGovernment which provides for the soleoperation of services via the linkspans inDouglas in return for a guaranteed level ofsea services. Since 1996, passenger andvehicle carryings have increased by over50 per cent. In 2003, the Steam Packetwas sold to Montagu Private Equity, aninvestment company previously calledHSBC Private Equity.

Says Geoff: 'Since the takeover, ourflagship ropax vessel, the Ben my Chreewhich was built in 1998 at a cost of £24million, has had a passengeraccommodation extension costing £1.5million that provides the vessel with thepotential to carry an extra 200,000passengers annually. The Ben my Chreeoperates twice daily to Heysham all yearround, excluding Christmas Day”.

In addition to the Ben my Chree, whichcarries freight, passengers and vehicles,the Steam Packet operates the passenger/car ferry Lady of Mann during peak timessuch as the TT festival.

Two car / passenger carrying fast craftalso operate on Steam Packet routes to

England and Ireland from March toOctober.

As well as being the Island's ferryservices lifeline, the Steam Packet is amajor local employer, with a core staff of300 and additional staff employed duringseasonal peaks. The celebrations plannedthroughout 2005 to mark the SteamPacket Company's 175th anniversary testifyto the popularity of this ferry operator.

There is to be a special stamp issuefrom the Isle of Man Post, the Isle of ManTreasury will mint anniversary coins, and abook and DVD will be produced, inaddition to a host of celebratory eventsand launches. The Steam Packet's

managing director Hamish Ross says: 'This is a very special year of celebrationfor the Steam Packet. We value thespecial relationship we have with theIsland and fully understand theimportance of our role in providing anattractive and reliable year-round service.

The heavy investment in fleetmodernisation over the last few years, ourenhanced level of frequency of serviceand capacity underline our commitmentto the Island.

All of us at the Steam Packet lookforward to sharing our celebrations withour customers in what promises to be avery exciting and memorable year.'

Fact File > The Isle of Man Steam Packet Company Limited

Company Name: The Isle of Man Steam Packet Company Limited

Office Address: Imperial Buildings, Douglas, Isle of Man IM1 2BY

Website: www.steam-packet.com


Phone: + 44 (0)1624 645 645 (Admin) + 44 (0)1624 661 661 (Reservations)

Fax: + 44 (0)1624 645 609 (Admin) + 44 (0)1624 645 608 (Reservations)

Ownership & Management: Montagu Private Equity (Owners)



Registered Office: Imperial Buildings, Douglas, Isle of Man, IM1 2BY

Directors: Juan Kelly (Chairman), Hamish Ross (Managing Director),Douglas Grant (Finance), Mark Woodward (Operations), JohnWatt (Strategy & Planning), Stuart Garrett (Human Resources),Walter Gilbey, Dursley Stott, Robert Quayle, AnthonyGreensmith, Simon Pooler, Peter Longinotti.


Affiliated Companies: Steam Packet Holidays

Main Business: Passenger and freight shipping


Other Sectors > Tourism and Travel > Sefton Hotel

Sefton Hotel

Hotels are usually the first stop for the visitor to the Isle of Man

and the need to offer a friendly and high quality welcome is

something that is recognised by one of the Island's

longest-standing establishments.

The Sefton Hotel on Douglas promenadehas a 4-star rating from the AA and ahundred rooms that overlook either thepicturesque sweep of the bay or atranquil indoor atrium. It is presided overby managing director Chris Robertshawwho has witnessed major changes in thetourism industry since he joined theSefton in 1977.

Back then the ‘bucket and spadebrigade’ was still in full swing. Today'shotelier is as likely to be greeting thebusiness visitor as the tourist.

Said Mr Robertshaw: ‘Although it is trueto say the traditional tourist markets havefaded, as long as the necessary levels ofinvestment go in there are opportunitiesto integrate our business and leisurevisitor requirements. One of the keystrategic positions we adopt is that weare very much a hotel that focuses on ourresident guests rather than try to be allthings to all people.

‘The fundamental role of our hotel is towelcome visitors on behalf of the Isle ofMan. We represent the Island.’

The Sefton Hotel building is an eye-catching feature on the promenade. Fiveminutes' walk from the Island’s mainshopping areas, government buildings andthe finance district, the hotel is adjacent > The Gallery Restaurant

> The Water Garden


Other Sectors > Tourism and Travel > Sefton Hotel

> The Gallery Restaurant

to the new £15 million Villa Marinaentertainments complex. A boutique hotel,it has a unique personality that, thanks tothe internet, is now reaching a wideraudience.

Chris Robertshaw says: ‘Increasingly, ourbusiness comes from our website. This isone of the happy advantages thatboutique style hotels now have over thegroup and chain hotels on the internet -market accessibility by location specificrequest.'

The hotelier came to the Isle of Man in1960, intending to remain for three years.He started a family, decided to stay in theIsland and says he has never regretted it.

‘Speaking as a businessman, one of themost distinctive advantages of the Islandmust be the ability to communicate easilywith the legislators,’ says Mr Robertshaw.‘I remember when it was recognised thatthe level of investment in hotels had toincrease and myself and others lobbiedthe Treasury to have the VAT on hotelservices reduced from 17.5 per cent to fiveper cent.

‘The idea was that this would enable anopportunity where although the price tothe customer did not necessarily go down

the available funds to service capital invest-ment increased. The positive responseresulted in the Sefton being able to pourmore cash into improving the property.

‘When it’s really important thegovernment has a good track record ofshowing a positive response to businessneed.'

He says the Sefton Hotel has a firm andclear policy of investment to maintain itsprofile in the Island.

Said Mr Robertshaw: ‘We have recentlypurchased two guesthouses next to thehotel and our intention is to build deluxeapartments. We are very focused on whatwe are doing. We invest.’

Fact File > Sefton Hotel

Company Name: Sefton Hotel

Office Address: Harris Promenade, Douglas, Isle of Man IM1 2RW

Website: www.seftonhotel.co.im


Phone: + 44 (0)1624 645500

Fax: + 44 (0)1624 676004

Ownership & Management: Sefton Hotel plc

IOM Co Registration No: 439 (IoM)


Registered Office: Sefton Hotel, Douglas, Isle of Man IM1 2RW

Directors: WJ Cowell, RTD Stott, CR Robertshaw, SG Alder


Main Business: Hotel

146 Parliament Street, Ramsey


Other Sectors > Telecommunications

TelecommunicationsLocated in the geographic centre of theBritish Isles, the Isle of Man promotesitself as a global hub for offshore businessand, as a result, a thoroughly reliabletelecommunications infrastructure isessential.

Luckily, the Island's capability is often citedby business as an advantage to doingbusiness from a Manx base.

The Isle of Man is served by bothmicrowave radio and fibre opticsubmarine cable links to the UK and,according to the government, the cable'sfive fibre optic pairs are capable ofcarrying some 23,000 simultaneoustelephone calls. A satellite earth stationalso offers digital or analogue links tointernational destinations and unmetered

access to the internet has beenestablished by Manx Telecom and isavailable to all.

Offering high bandwidth resilient services,the Island is proud of its leading edgeinfrastructure. Almost £50 million hasbeen invested in telecoms over the pastfive years; the Isle of Man was the testbed for Europe for third generation mobilephone services and has a wide choice ofindependent ISPs, web hosting services,business continuity and IT co-locationproviders.

Thanks to the recognition several yearsago of the need to invest intelecommunications, the Isle of Man nowbenefits from one of the most advancedcommunications systems in the world.

Emphasis has been placed on digitalcommunications and both ISDN and ASDLservices are now well-established. Thedevelopment of telecommunicationsadvanced rapidly with the creation ofManx Telecom, a wholly owned subsidiaryof mm02, in 1987.

In 1996, MT introduced its own mobilecommunications service and is nowworking with other GSM affiliatedcountries to establish roaming agreementsto the benefit of customers. The bodywith overall responsibility for the licensingand regulation of telecommunications andbroadcasting in the Isle of Man is theCommunications Commission, a statutoryboard of the Manx Government.

Communications CommissionTel: + 44 (0)1624 677022



Other Sectors > Telecommunications > Manx Telecom

It is widely acknowledged that a world-class telecommunications

infrastructure is a key element in attracting business to any

jurisdiction. On the Isle of Man this key element is provided by

Manx Telecom, a wholly owned subsidiary of international

telecommunications operator mmO2.

The fixed, mobile and internet servicesand resilient off-Island connectivityprovided by the company have played avital role in helping the Island to attractinternational finance companies to locatehere.

Manx Telecom has a proven track recordas a pioneer of leading edgetechnologies; the company was amongthe first in the world to offer broadbandservices to its customers in March 2000,and became the first mobile operator inEurope to switch on a live 3G service, inDecember 2001.

Director of Strategy and BusinessDevelopment at Manx Telecom, IanSanders, explains: 'Over the years wehave consistently kept at the forefront ofdeveloping telecommunicationstechnology. Because of our technicalexpertise and with the strong support ofthe Manx Government we were given therole by BT, our former parent company, oftrialling the BT group’s deployment of 3Gnetwork technologies. This was the firstcommercial trial of these technologiesoutside of Japan, generating a hugeamount of interest from industry andmedia specialists all over world whovisited the Isle of Man to see our 3Gshowcase.'

As part of a £50 million spend on itsnetwork over the last five years, ManxTelecom has also put in place theinvestment to enable all its telephoneexchanges around the Island to provideADSL broadband. > Manx Telecom Headquarters at Isle of Man Business Park

Manx Telecom


Other Sectors > Telecommunications > Manx Telecom

All broadband connections, for businessor residential purposes, continue tobenefit from an Isle of Man Governmentsubsidy scheme which covers the initialconnection charge. These two measures,along with the enthusiasm of the localpopulation for new technology, has seenADSL broadband take-up on the Islandrise to over 11 per cent of householdsand businesses compared with just 7 percent in the UK and around 2 per cent inthe Republic of Ireland.

Manx Telecom offers a comprehensiveportfolio of quality internet hosting anddisaster recovery services. The company’sweb hosting facility is situated adjacent tothe Island’s internet backbone andfeatures impressive security measures,Uninterrupted Power Supply (UPS) andenvironmentally-friendly argonite firesuppression.

All Manx Telecom's on-Island internetand telecommunications infrastructure isbacked by highly resilient fibre connectionsoff the Island.

'The Isle of Man is connected to the UKby self-healing fibre optic rings that linkinto the main UK telecommunicationsnetwork,' explains Ian Sanders. 'The ringsconnect the Isle of Man to the north ofEngland in one direction and to NorthernIreland and from there to Scotland andthen back down to England in the otherdirection, forming the ring. If there were tobe a failure in the eastern leg going tonorthern England, then all the trafficwould automatically and seamlesslyswitch to the western leg and reach itsdestination by travelling in the oppositedirection.'

As well as state of the art fixed line andinternet technology, Manx Telecom offersthe latest in mobile data and mobileoffice solutions, with General Packet RadioServices (GPRS) in place around the Islandand roaming agreements set up withoperators in the UK and around the world.

'We are one of the most advancedoperators in the world in providing thelatest services such as push email on ourmobile network,' says Ian. 'It's a greatproduct and we are right at the forefront.'

'Push email' is a service run from yourcorporate e-mail server, which allows amobile device such as the O2 XDA II toreceive your e-mail and calendar updatesin real time. As you open an e-mail onyour mobile device, or add anappointment to your calendar, this actionis simultaneously duplicated on youroffice PC.

Manx Telecom was formed in 1987 andis a significant contributor to the localeconomy with over 270 staff. Keepingstaff up to date with technology andcustomer service standards is a highpriority - the company has an annualtraining budget of around £300,000.

Manx Telecom was the first company inthe Island to be awarded theISO9001:2000 Quality Standard and isworking towards achieving the InformationSecurity standard BS7799 and hasachieved the environmental standardISO14001. Ian Sanders says: 'In a worldwhere business depends very much on

computer networks, excellenttelecommunications services are anabsolutely necessary tool, particularly forfinancial services but also in otherindustries which are crucial to the Islandsuch as shipping and manufacturing.

'We have been a key enabler of theincrease in prosperity of the Isle of Man inrecent years. We have a very positiverelationship with the Manx governmentand our commitment to the Isle of Manwas recognised in January with theextension of our licence to providetelecommunications services on the Islandfor the next fifteen years.'

Fact File > Manx Telecom

Company Name: Manx Telecom

Office Address: Isle of Man Business Park, Cooil Road, Braddan, IoM, IM99 1HX

Website: www.manx-telecom.com


Phone: + 44 (0)1624 633633

Fax: + 44 (0)1624 636011

Ownership & Management: O2 (Netherlands) B.V.



Registered Office: HQ Building, IoM Business Park, Cooil Road, Braddan, IM2 2QZ

Directors: W. A. Gilbey (Chairman), C J Hall (Managing Director), Ms D Gray, Mrs A. C Baldwin, R.J Dunne, R. Dowty JP, Sir Miles Walker CBE


Main Business: Telecommunications supply

Licences: Telecommunications licence

> Ian Sanders, Business Development Director at Manx Telecom


Company Profiles > Contents

Accountants 151

> Horwarth Clark Whitehill LLC

Banks 151

> Conister Trust PLC

> Fairbairn Private Bank (IOM) Limited

> Isle of Man Bank Limited

> Irish Permanent International

> Lloyds TSB Offshore Limited

> Singer & Friedlander

> The Royal Bank of Scotland International

Building Societies 152

> Britannia International

Construction 152

> Dandara Holdings Limited

Corporate Service Providers 152

> Louis Group International Trustees Limited

> MeesPierson Intertrust Limited

> Scarlett Corporate Services Limited

> The ILS Group Limited

Delivery Service 153

> Isle of Man Post

Education 153

> IHMES International Hotel School

> Isle of Man International Business School

> King William’s College

Financial Advisers 154

> Financial Options

> Sefton Financial Services Limited

Information Technology 154

> Skanco Business Systems Limited

> Syntec Limited

Insurance Services 154

> Friends Provident International

> MBL

> Royal Skandia

Internet Service Providers 155

> Netcetera

Investment Services 155

> Capital International Limited

> Thornton Associates Limited

Legal Services 155

> MannBenham Limited

> Stuart Smalley & Co LLC

Manufacturing 156

> CVI Technical Optics Limited

> Strix Limited

Property Sales and Management 156

> DeanWood Agencies

Publishing and Media 156

> Lily Publications Limited

Recruitment Services 156

> Hamblin Limited

> Link Recruitment Consultancy Limited

> Orchard Recruitment Limited

Retail 157

> CV Jewellery

> MasterCraft Limited

> Moore’s Traditional Curers

Shipping and Yacht Management 157

> Dohle (IOM) Ltd

> Pelagos Yachts Ltd

Telecommunications 158

> Manx Telecom

Tourism 158

> Sefton Hotel

Travel 158

> The Isle of Man Steam Packet Company

Utilities 158

> Manx Gas Limited

Wealth Management 158

> BW Group Limited

Company Profiles


Company Profiles > Isle of Man

> Accountants

Horwath Clark Whitehill7th Floor - Victory House, Prospect Hill,

Douglas, Isle of Man IM1 1EQ

Tel: + 44 (0)1624 627335

www.horwathcw.com

Established in the Isle of Man in 1983, we are anindependent member of the Horwath ClarkWhitehill network in the UK, one of the leading UKaccounting firms.

We are a modern firm with traditional values andspecialise in services for the owner managedbusiness and high net worth clients, includingbusiness assurance, tax planning, accounting,payroll and tax compliance. We also have our ownLicensed Corporate Service Provider arm.

Our team of 3 directors and 20 staff are highlytrained and use the latest equipment, softwareand techniques to give our clients a high degree ofclose and continuous service.

For a credible alternative to the ‘Big Four’accounting firms, use Horwath Clark Whitehill.

> Banks (Private) page 86

Conister Trust PLCConister House,

16-18 Finch Road, Douglas,

Isle of Man IM1 2PT

Tel: + 44 (0)1624 694676

www.conistertrust.com

Conister Trust PLC was established in 1935 in theIsle of Man and is a Manx public company with abanking licence.It is licensed by the Isle of Man FinancialSupervision Commission for Banking business andoperates within the Depositors Protection Scheme regulations of 1991.

Conister’s deposit and savings rates are verycompetitive and we accept sterling deposits frompersonal individuals.

We pay interest gross to all customers withoutdeduction of any tax. Uk residents must declareinterest earned to the relevant authorities in theusual way. Other nationals should check with their own taxation authorities to confirm declaration requirements.


Fairbairn Private Bank (IOM) Ltd.St Mary’s Court, 20 Hill Street,

Douglas, Isle of Man IM1 1EU

Tel: + 44 (0)1624 645000

www.fairbairnpb.com

At Fairbairn Private Bank, we are committed tomaking life easier for our clients, particularly whenit comes to managing their finances. Our uniqueintegrated approach to banking and investmentservices can save both time and money.

We offer an extensive range of multi-currencywealth management services that includes:

● Cheque account facilities ● Fixed term and structured deposits● Loan arrangements ● Deferred Gold Visa debit cards● Fiduciary cash management facilities● Investment dealing● Investment Management Services● Custodial services

We have won numerous awards and internationalrecognition not only for our financial products andservices, but also for the quality of our client services.

Fairbairn Private Bank (IOM) Limited was established in 1987 and

is licensed by the Isle of Man Financial Services Commission to

conduct Banking and Investment Business.

> Banks

Isle of Man Bank Ltd.2 Athol Street, Douglas,

Isle of Man IM99 1AN

Tel: + 44 (0)1624 637000

www.iombank.com

Isle of Man Bank has 11 branches throughout theIsle of Man and is part of the Royal Bank ofScotland Group, the world’s third largest bank.

Providing a full range of banking, insurance andinvestment services for local, offshore andinternational customers, the Bank’s localknowledge, appropriate products, flexibility andconnections help bring the Bank’s businesscustomers success.

Backed by the strength of the RBS Group, Isle ofMan Bank is a modern and dynamic organisation.

Isle of Man Bank Limited (‘IOMB’). Registered Company Number: 1Isle of Man. Registered Office: 2 Athol Street, Douglas, Isle of Man,IM99 1AN. Licensed by the Isle of Man Financial SupervisionCommission for banking and investment business.

> Banks (Retail)

Irish Permanent International12/14 Ridgeway Street, Douglas,

Isle of Man IM1 1EN

Tel: + 44 (0)1624 641641

www.irishpermanentintl.com

Irish Permanent International is an internationalbanking organisation based in the Isle of Man,which is part of a major Irish financial servicesgroup, Irish Life & Permanent plc.

We provide lending, deposit and other bankingservices to both individuals, corporate and trustclients.

We pride ourselves on the service we provide toour international customers and we also provide arelationship team dedicated to meeting the needsand requirements of our new and existingcustomers and intermediaries.

Irish Permanent International is a registered business name ofIrish Permanent (IOM) Limited, which is licensed by the Isle ofMan Financial Supervision Commission for Banking andInvestment business.

> Banks page 80

Lloyds TSB Offshore LimitedPO Box 12, Peveril Buildings, Peveril Square,

Douglas, Isle of Man IM99 1SS

Tel: + 44 (0)1624 638101

www.lloydstsb-offshore.co.uk

Lloyds TSB is one of the Isle of Man's largestemployers and offers the full range of internationalbanking services. The bank's customers arelocated not just on the island but also in 130countries around the world and enjoy the manybenefits of banking in a well-regulated jurisdiction.

We have enjoyed a period of sustained growthand remain optimistic that this will continue.

Lloyds TSB has operated on the island for morethan a century and is well placed to takeadvantage of future opportunities as a key playerin the banking sector.




Singer & FriedlanderSamuel Harris House, 5-11 St. Georges Street,

Douglas, Isle of Man IM99 1SN

Tel: + 44 (0)1624 699222

www.singers-iom.co.im

Singer & Friedlander's area of expertise lies infinding tailored solutions for high net worthindividuals and expatriates. This private bank hasbeen providing banking, fiduciary and investmentservices in the Isle of Man for the past 30 yearsand clients benefit from this wealth of experience.

A highly experienced team provides the full rangeof offshore private banking and financial services,including current and savings accounts,international money transfers, multi-currencyaccounts, mortgages, investments and trust andcompany services.

Clients are guaranteed a bespoke service thanks tothe Singer & Friedlander philosophy of providinginnovative and competitive solutions from anequally competitive and highly regarded offshorejurisdiction.

Singer & Friedlander (Isle of Man) Limited is licensed by the Isle of ManFinancial Supervision Commission for Banking & Investment Business.Singer & Friedlander (Isle of Man) Limited is Authorised and Regulated bythe Financial Services Authority for UK Mortgage Business.

> Banks page 78

The Royal Bank of ScotlandInternational

2 Victoria Street, Douglas,

Isle of Man IM99 1NJ

Tel: + 44 (0)1624 646603

www.rbsint.com

The Royal Bank of Scotland International Group(RBSI Group) provides the full range of corporateand personal banking services to local, offshoreand international customers, and the RBSI grouphas had a presence in the Isle of Man for 25 years.Recent innovations include the establishment ofthe Island's most sophisticated treasury dealingroom and the eQ electronic banking systemdesigned specifically for the offshore financesector.

All our products can be tailored to meet individualneeds and we offer competitive pricing, and quickdecision making and implementation from ourIsland headquarters in Victoria Street.

The Royal Bank of Scotland Group (RBS Group) isthe parent of the Isle of Man Bank networkfollowing the takeover of NatWest in 2002, makingthe RBS group the second largest bank in Europeand the sixth largest in the world.

> Building Societies

Britannia International Ltd.Britannia House, 64 Athol Street,

Douglas, Isle of Man, IM99 1SD

Tel: + 44 (0)1624 681100

www.britanniainternational.com

Britannia International is the wholly ownedoffshore deposit-taking subsidiary of BritanniaBuilding Society, one of the UK's largest buildingsocieties.

With over 14,000 customers in more than 100countries around the world and over £1billion ondeposit, we have been impressing personal andcorporate investors for over 15 years with ouraward-winning savings accounts and structuredcapital protected deposits. We also offer a bespokeservice for high net worth IFA clients.

We pride ourselves on our attractive rates, uniquecommitment to customer service and on givingcustomers the freedom to manage their affairs theway that suits them best.

Licensed by the Isle of Man Financial Supervision Commission forBanking and Investment Business.

> Construction page 110

Dandara Holdings Ltd.Park House, Isle of Man Business Park,

Cooil Road, Braddan,

Isle of Man IM2 2SA

Tel: + 44 (0)1624 693300

www.dandara.com

Created 15 years ago in the Isle of Man, DandaraHoldings is responsible for providing a broad rangeof residential, commercial and corporate property.Based at the Isle of Man Business Park, where ithas created purpose-built headquarters fororganisations including Manx Telecom, ScottishProvident International and Securicor, the grouprepresents a significant percentage of the localconstruction industry and makes a meaningfulcontribution to the Manx economy.

The commercial side of the business is operatedunder the Dandara name, while the HeritageHomes brand provides residential accommodationthroughout the Isle of Man. Dandara hasexpanded successfully into Jersey and Guernseyand is now undertaking major developments inthe UK with operations in Manchester, Glasgowand London.

> Corporate Service Providers page 90

Louis Group International Trustees Ltd.Louis Building, 6 Goldie Terrace,

Douglas, Isle of Man IM1 1EB

Tel: + 44 (0)1624 649200

www.louisgroupint.com

Louis Group International Trustees are licensed by theIsle of Man Financial Supervision Commission toconduct Investment and Corporate Services Business.

LGI provide the complete range of Offshore CorporateServices and Fiduciary Services including, but notlimited to:

◆ Formation and administration of companies,trusts, foundations and hybrid companies;◆ A range of corporate and trustee servicesincluding provision of directors and nomineeshareholders, and acting as company secretary andshare registrar;

◆ Asset protection structures; ◆ Banking and insurance products; ◆ Accounting and re-invoicing; ◆ LGI specialise in Establishing a variety of structures

specific for Individual client needs.LGI’s Investment Business provides the full spectrum ofinvestment products worldwide. LGI specialize in private placements on Commercial Propertyinvestments in the IOM, UK, South Africa & Switzerland.

> Corporate Service Providers

MeesPierson Intertrust Ltd.Clinch’s House, Lord Street,

Douglas, Isle of Man IM99 1RZ

Tel: + 44 (0)1624 683229

www.meespiersonintertrust.com

MeesPierson Intertrust is the world’s number oneprovider of corporate and trust services with anextensive network of offices in both major onshoreas well as traditional offshore locations.

Our specialist services include, but are not limitedto, company and trust formation, managementand statutory secretarial work, trusteeship as wellas international corporate, financial and taxstructuring.

Although we do work with direct clients, we regularly work with professional intermediaries and assist them in providing their clients with a truly global serviceincorporating all relevant aspects such as tax, legal,accounting and VAT.

! Intertrust



> Corporate Service Providers page 88

Scarlett Corporate Services Ltd.PO Box 277, 2nd Floor,

Viking House, Nelson Street,

Douglas, Isle of Man IM99 2LJ

Tel: + 44 (0)1624 612892

www.scarlettcorp.com

In today’s Global markets it is imperative tostructure corporate activities in a way thatmaximises international profitability.

Scarlett Corporate Services is a licensed CorporateService Provider, managing tailored Corporatestructures for a Worldwide network of clients.

Through prudent planning, Corporate structures can be utilised for your client’s activitiesand may include:

• International Trading

• Intellectual Property Management

• Employment & Consultancy Services

• Asset Protection

Scarlett Corporate Services Limited is Licensed by the Isle of ManFinancial Supervision Commission as a Corporate Service Provider.

> Corporate Service Providers

The ILS Group Ltd.1st Floor, Millennium House, Victoria Road,

Douglas, Isle of Man IM2 4RW

Tel: + 44 (0)1624 682500

www.ils-world.com

The ILS Group is one of the world’s leadingindependent international corporate serviceproviders, offering incorporation and administrationof offshore and onshore companies and trustsprimarily to professionals. Through our worldwidenetwork of offices we provide innovative solutionsfor tax efficiency, asset protection, estate planningand trading.

ILS has been working offshore for over thirty yearsand is known for its personal service and integrity.We are fully licensed in the Isle of Man, Guernseyand the British Virgin Islands.

Barcelona • BVI • Gothenburg • GuernseyIsle of Man • Johannesburg • Lisbon

London • Montevideo • Vilnius

> Delivery

Isle of Man PostPostal Headquarters,

Spring Valley Industrial Estate,

Douglas, Isle of Man IM2 1AA

Tel: + 44 (0)1624 664664

www.iompost.com

Isle of Man Post offers a range of postal services.We deliver mail directly into the domestic andinternational mail streams, for worldwide delivery,with speed and efficiency. Other services includeisland-wide counter network, collections anddeliveries – tailored to your needs, Door2Doordistribution and Special Delivery.

Isle of Man Stamps enjoy an excellent reputationworldwide for the quality and variety of their stampissues and collectibles, commemorating subjectsas diverse as Manx Heritage & History and therecent blockbuster movie The Lord of The Rings.

IMS is the Integrated Mailing Solutions division ofIsle of Man Post. IMS specialises in every aspect ofmailing from simple franking, scanning, printingand envelopment to the outsourcing of your entiremailroom operation.

> Education page 116

IHMES International Hotel SchoolWindsor House, Port Erin,

Isle of Man IM9 6LA

Tel: + 44 (0)1624 832836

www.ihmes.com

Based in Port Erin and Douglas, The InternationalHotel School trains students from more than 25countries worldwide. In 1999, a second Campuswas opened in Manila, Philippines.

The school was created in 1984 to meet thedemand for high quality staff and managers tosupport a tourism industry that employs more than250 million people globally. Students receivetraining in theory and analysis as well as practicalexperience in the field, working in the industry atthe end of their second year.

The International Hotel School is a member ofCHRIE (Council of Hotel, Restaurant and InstitutionalEducation) and is accredited by the BritishAccreditation Council (BAC) for independent andfurther education.

IHMES - developing tomorrow’s managers today


Isle Of Man International Business SchoolOld Castletown Road, Douglas,

Isle of Man, IM2 1QB

Tel: + 44 (0)1624 693700

www.ibs.ac.im

The International Business School offersundergraduate and postgraduate degree coursesin business that are internationally recognised.Professional and short courses add to the wealthof learning opportunities we provide from astunning and historic campus, The Nunnery, on thefringes of the Isle of Man's finance sector.

The Island is the ideal location for a businessschool, enabling international students to gainvaluable experience within a thriving and well-established offshore sector and providing thosealready working in the local finance industry withan opportunity for further valuable training.

Our fees are highly competitive, while scholarshipsand bursaries are also available. The IBS is ITintensive and students can update skills in thisarea alongside their studies. An English languageprogramme helps international students achievethe level of English necessary to study their chosendegree programme.


King William's CollegeCastletown,

Isle of Man, IM9 1TP

Tel: + 44 (0)1624 820428

www.kwc.sch.im

The Isle of Man's only independent school hasbrought the International Baccalaureate to theIsland. IB replaces traditional A levels and is thequalification of choice of leading universities.Outstanding results at KWC in 2004 were theequivalent of a 100 per cent A level pass rate.

Established in 1833, the college offers day andboarding to local and international pupils, andmodern teaching facilities in a building thatremains one of the Island's most outstandinglandmarks.

The Buchan, on a different site, is the junior schoolenabling KWC to offer outstanding education to 3 to 18 year olds.



> Financial Advisers

Financial Options68 Athol Street, Douglas,

Isle of Man, IM1 1QQ

Tel: + 44 (0)1624 612611

www.financialoptions.co.im

We are Independent Financial Advisers. We arefully qualified to advise on and arrange yourmortgage, insurance, pension or investments.

As truly independent advisers, we are able tochoose from the entire market, finding the bestscheme to suit your individual needs. We act asyour agent and as such accept responsibility forany advice given.

We are regulated by the Isle of Man FinancialSupervision Commission to conduct investmentbusiness and by the Insurance and PensionsAuthority in respect of general business.

Our service is professional yet easy to understand.Any information supplied to us will be treated inthe strictest confidence and any advice offered asa consequence of your enquiry will be withoutobligation.

> Financial Advisers

Sefton Financial Services Ltd.Museum Building,

Church Road, Port Erin,

Isle of Man IM9 6AH

Tel: + 44 (0)1624 838053

SFS are a firm of Independent Financial Adviserswith over 20 years successful experience, enablingus to give personal attention to all our clientswhatever their financial needs. Our specialists Independent Mortgage Team willalso ensure you get the best mortgage deal foryour purchase or re mortgage.Licensed by the Isle of Man Financial SupervisionCommission to conduct investment business andregistered with the insurance and pensionsauthority in respect of general business.We offer professional advice in the following keyareas.

• Offshore Investment Planning• Tax Efficient Savings Plans• Life Assurance and Critical Illness• Retirement Planning• Equity Release & Health Insurance • Income Protection• Estate and Wealth Preservation• Mortgages

> Information Technology page 122

Skanco Business Systems Ltd.Skanco Court, Cooil Road, Braddan,

Isle of Man, IM2 2SR

Tel: + 44 (0)1624 680808

www.skanco.co.uk

Skanco has been in business for 20 years and isan Isle of Man company wholly owned by its fourdirectors, all of whom are Manx residents.

Skanco’s principal services are:-

◆ Outsourcing ◆ Hardware Maintenance

◆ Business Continuity ◆ Disaster Recovery

◆ Managed Secure Hosting ◆ Managed Office Space

◆ IT Procurement ◆ 24 x 7 Support

We operate from two purpose built premises onthe outskirts of Douglas and over 50 percent ofSkanco’s staff are involved in the technical area.

Skanco’s commitment to ongoing training ensuresthat our engineers are the highest qualifiedtechnical staff available on the Isle of Man.

> Information Technology

Syntec Ltd.Woodbourne House, Woodbourne Lane,

Douglas, Isle of Man IM2 3LJ

Tel: + 44 (0)1624 640100

www.syn-tec.com

Syntec are an IT technical services providerbringing the leading technologies to small-mediumbusinesses and enterprises alike.

Our consultants have many years of experience inlocal and wide area networking; Internettechnologies and security specialisations.

Working with and alongside our clients andcustomers, we assist and deliver a common sensesolution to today’s often confusing world ofacronyms, buzzwords and hype. Our people are allfriendly and plain speaking.

We provide a ‘one stop shop’ for business in theirIT requirements.

Not all needs are the same, flexibility is our strength.

> Insurance Services

Friends Provident InternationalRoyal Court, Castletown,

Isle of Man IM9 1RA

Tel: + 44 (0)1624 821212

www.fpinternational.com

Friends Provident International Limited (FPI Ltd) isone of the oldest and most respected offshore lifeassurance companies in the world. Established inthe Isle of Man in 1978, FPI Ltd has over 25 yearsof experience in the industry, and administersfunds in excess of US$4 billion on behalf of over30,000 policyholders worldwide.

The Friends Provident International product rangeis award winning, and within this FPI Ltd offers acomprehensive selection of single and regularpremium products designed to meet allinvestment and financial needs.

FPI Ltd is a member of one of the most prestigiousfinancial organisations in the world. FriendsProvident Group has 2.6 million customersworldwide and is a FTSE 100 company. The Groupalso has credit ratings of A+ (Standard & Poor's)and A2 (Moody's).

> Insurance Services

MBLFalcon House, 22/24 Ridgeway Street,

Douglas, Isle of Man, IM1 1RS

Tel: + 44 (0)1624 672233

www.mbl.co.im

MBL is a leading firm of Independent FinancialAdvisers, Commercial and General InsuranceBroker based in the Isle of Man.

Established in 1986, located in the heart of theDouglas business centre, employing 20 staff at itslandmark offices.

Specialising in Offshore Investment and RetirementPlanning, the team of highly experienced andqualified staff, are also able to assist with OffshoreInvestment, Life Insurance, Health Insurance andSavings on a Corporate or Individual basis.

MBL is the trading name of Morris Brokers Limitedand is licensed to conduct Investment Business bythe Isle of Man Government Financial SupervisionCommission, and is also registered with theInsurance and Pensions Authority in respect toGeneral Business.



> Insurance Services page 94

Royal SkandiaSkandia House, King Edward Road,

Onchan, Isle of Man IM99 1NU

Tel: + 44 (0)1624 655555

www.royalskandia.com

Royal Skandia is one of the world's leadinginsurance companies with assets in excess of$8billion. The Manx operation employs 400people and recently relocated to purpose-builtpremises on Onchan Head, in a building that isalready a local landmark.

The company provides savings and investmentplans from the Island's tax-efficient base and isregulated by the Insurance and Pensions Authority.

Skandia is a long established company, havingstarted 150 years ago in Stockholm, andconsequently has all the experience one wouldexpect of a major player in the insurance industry.

We are committed to our Isle of Man operationand loyal local workforce, and secure within ahighly regulated international finance sector.

> Internet Service Providers

Netcetera12-14 Ridgeway Street, Douglas,

Isle of Man IM1 1EN

Tel: + 44 (0)800 2987 214

www.netcetera.net.uk

Formed in 1996, Netcetera is one of Europe'sleading Web Hosting service providers, withcustomers in over 50 countries worldwide. Ourservices are biased towards Microsoft basedInternet Technologies - we have been a MicrosoftCertified Partner since 1999.

Netcetera provides complete solutions for WebHosting, Domain Name Registration, E-Commerce,E-mail, Dedicated Server Hosting and Server-basedApplications Hosting (ASP).

We are focused exclusively on providing advancedhosting services for the Microsoft platform. Everyaspect of Netcetera has been architected toachieve the highest quality of service possible forcustomers with applications that are critical to yourbusiness.

Web Hosting • Dedicated Servers • E-CommerceCo-location • Domain Names • Connectivity

capitalinternationallimited

> Investment Services page 98

Capital International Ltd.PO Box 15, Mill Court, Hope Street,

Castletown, Isle of Man IM99 5XH

Tel: + 44 (0)1624 828200

www.capital-iom.com

Capital International Limited is committed tosecuring a brighter financial future for all our Clients.

We have the ability to deal on-line and settle in anycurrency. This along with secure custodial serviceshas enabled the Firm to develop long-termrelationships with our private and institutionalclients in a world where confidence remains afragile commodity.

Our specialist services include:

• Investment Management Services

• Wealth Management Services

• Execution Only Dealing

• Third Party Investment Administration

• Global Custodial Services

A Member of the London Stock Exchange and Licensed to conduct investment business by the Isle of Man Financial Supervision Commission.

> Investment Services

Thornton Associates Ltd.Thornton Grange, Belle Vue Lane,

Peel, Isle of Man IM5 1UH

Tel: + 44 (0)1624 845450

www.thorntonfs.com

Thornton Associates Ltd are specialist providers ofindependent advice to expatriates. Licensed by theIsle of Man Government Financial SupervisionCommission to conduct Investment Business, areliable, competitive and personalised service isassured for Pensions and Investments; Lifeassurance; Critical Illness Cover; Private MedicalInsurance; Income Protection.

We take account of your multi jurisdictionalcircumstances and offer plans in major currencies.

Thornton Associates clients benefit from 18 yearsexperience in offshore financial services. We arededicated to providing an honest, first-rateprofessional service with attentive back-up as yourneeds change - as the world changes.

Thornton Associates Ltd.- taking care of yourfinances today AND into the future.

> Legal Services page 102

MannBenham Ltd.10 Hill Street, Douglas,

Isle of Man IM1 1EF

Tel: + 44 (0)1624 617960

www.mannbenham.com

MannBenham Limited is an incorporated legalpractice of Isle of Man Advocates. We have a broadbase of clients ranging from the individualbusinessman through to large International listedpublic companies. Our preferred areas of work arenoncontentious commercial work and commerciallitigation. Our aim is to provide a fast and cost effectivesolution to your legal requirements.

Commercial Department:Timothy Mann

Litigation Department: Miles Benham

> Legal Services

Stuart Smalley & Co LLC18 St Georges Street, Douglas,

Isle of Man, IM1 1PL

Tel: + 44 (0)1624 626557

www.law-man.com

Stuart Smalley & Co LLC Solicitors provides qualityadvice on a range of international banking,commercial and financial operations, trust and taxlaws. It represents banks, insurance companies,investment houses, governments and high networth individuals.

Stuart Smalley & Co LLC advises on both Isle ofMan and English legal issues, so as to providesingle-source advice on both jurisdictions. It hassubstantial experience of the critical issues ofconflict of laws that arise in most internationaltransactions

STUART SMALLEY & Co LLCS O L I C I T O R S



> Manufacturing page 126

CVI Technical Optics Ltd.Second Avenue, Onchan,

Isle of Man IM3 4PA

Tel: + 44 (0)1624 647000

www.cvi-tol.co.uk

Founded in 1973 in the Isle of Man, we are aspecialist manufacturer of optics for use in manydifferent applications. Our optics are created by adedicated workforce of 31 from our base on anindustrial estate in Onchan and shipped tolocations throughout the world for use in lasersand other optical systems. CVI optics can be foundin some of the most powerful lasers in the world.

Examples of some of the uses where CVItechnology is implemented include laser scalpelsfor surgery and telescopes for studying the ozonelayer and the stars. Our optics are also used byresearchers carrying out experimental work. In May2000, this highly successful Isle of Man companywas incorporated into the US group CVI, a globalleader in the field of laser optics.

> Manufacturing page 128

Strix Ltd.Forrest House, Ronaldsway,

Isle of Man IM9 2RG

Tel: + 44 (0)1624 829829

www.strix.com

A family firm founded by John Taylor, who waseducated in the Isle of Man, Strix started trading in1951 and now has 1000 employees at its sites inthe Isle of Man, Europe and China. Our mainbusiness is the design, manufacture and sale ofthermostatic controls and cordless interfaces andour thermostats are used more than a billion timesa day around the world.

We have won Queen's Awards for innovation andinternational trade and continually strive to findnew markets for our products. Strix recentlyexpanded into the provision of water filters tomeet the high demand for clean drinking wateracross the world. Household names that use Strixtechnology include Morphy Richards, Philips,Russell Hobbs and Tefal.

> Property Sales & Management page 112

Deanwood Property37 Victoria Street, Douglas,

Isle of Man, IM1 2LF

Tel: + 44 (0)1624 620606

www.deanwood.co.im

Offering a wealth of local experience, Deanwoodwith offices in Douglas, Castletown & Ramseyestablished itself as a leading estate agents in theIsle of Man just before the huge boom in theoffshore finance industry in the 1980s.

Since then, we have helped thousands of clientswith their property needs in a robust market thathas historically avoided the slump periodsexperienced by the United Kingdom. We employ ahighly skilled team of 29 people offering sales,valuation, survey and mortgage advice, andproperty management.

Potential buyers who visit our state of the artwebsite can take a virtual tour of some of thehomes on our comprehensive list. From starterhomes to executive properties, Deanwood has justwhat you're looking for.

Offices also at Ramsey & Castletown

> Publishing & Media page 136

Lily Publications Ltd.PO Box 33, Ramsey,

Isle of Man IM99 4LP

Tel: + 44 (0)1624 898446

www.lilypublications.co.uk

Lily Publications was set up in 1991 by MilesCowsill and Linda Cowsill.

Their initial business foundation was in Walesworking closely with the Wales Tourist Board andtourist authorities in Wales.

During the first five years of its inception, thecompany was responsible for producing a series ofguides covering Wales for the tourist industry andalso the onboard magazine for P&O Ferries fortheir continental routes.

The company also produced a wide selection ofhigh quality coffee-table style books during thattime, dealing with the requirements of a specialistniche market. In 1995, the company wasappointed by the Isle of Man Government toproduce their tourist guide for the Island.

The company has since then produced a series ofA4 style books on the Isle of Man, Jersey andGuernsey to promote the respective Islands.

> Recruitment

Hamblin Ltd.33-35 Victoria Street,

Douglas, Isle of Man IM1 2LF

Tel: + 44 (0)1624 620022

[email protected]

Hamblin has been providing permanent andcontract staffing at all levels for over seventeenyears to the Island’s professional and commercialsectors, in areas such as:

Accountancy, Banking, Investment & FundAdministration, Legal, Life Assurance, Trust &Company Administration, Ship Management

The largest recruitment consultancy on the Island,Hamblin has gained an enviable reputation withemployers and candidates alike for a quality ofservice that embraces professionalism, experience,market knowledge and effective delivery.

Hamblin Consultancy has three divisions: Executive,Permanent and Temporary Staffing, providing searchand selection, recruitment and candidate assessmentservices to the most senior level.

Hamblin’s range of services also embrace:Interim management supply, management of largevolume recruitment campaigns, ‘soft skills’ training,coaching, outplacement training, preferred supplierarrangements, career counselling, interview roomfacilities for clients.

> Recruitment

Link Recruitment Consultancy Ltd.33 Hope Street, Douglas,

Isle of Man IM1 1AR

Tel: + 44 (0)1624 615600

www.link.co.im

Link Recruitment has been designed specifically forprofessionals in the finance sector on the Island.

We have a team of 3 Consultants who are qualifiedin their field with several years experience. Our aimat Link is to assist you with your recruitment andemployment requirements; whether you are lookingfor Permanent, Contract or Temporary opportunitiesin the finance sector, we take the time to discussyour employment options in detail.

For a confidential discussion regarding your career and employment requirements with qualifiedrecruitment consultants, please contact the team on 615600.

Additional Services Include:

• Recruitment & Selection • Executive Search

• Life Coaching • Counselling • HR Administration& Consultancy Services • Interview Techniques

• Conference Facilities & Psychometric Testing.

Let us be the Link with your new employer…



> Recruitment

Orchard Recruitment Ltd.28 Victoria Street,

Douglas, Isle of Man IM1 2LE

Tel: + 44 (0)1624 617577

www.orchardrecruitment.com

An established recruitment consultancy based inthe heart of Douglas. Run by qualified staff,providing the best professional service to bothcandidates and clients. It has another office inBelfast, which doubles their access to vacanciesand people alike.

Its divisions include:

• Finance & Commercial • Hospitality & Retail • Construction & Engineering, all working forexecutive, permanent & contract/temporary staff.

These divisions cover sectors such as:

• Corporate Services • Insurance & Banking • Ship Management • Accountancy & Legalpersonnel • Hotel Management & all staff • Technical Construction/Engineering professionals• Retail senior to junior staff.

> Retail page 134

CV Jewellery5 Marina Road, Douglas,

Isle of Man IM1 2HD

Tel: + 44 (0)1624 676422

www.cvjewellery.co.uk

From unique christening gifts to complete weddingand corporate packages, CV Jewellery has built upa reputation as a quality jewellers. CV stands forCeltic Venture and the Isle of Man's rich Celtichistory is evident in the beautifully intricate designscrafted into rings, bracelets, tie-pins, cufflinks andpendants from the on-site workshop.

We even have our own, unique version of theThree Legs, made to celebrate our sixthanniversary, that can be incorporated intowonderfully original corporate gifts. The Island'slegislative and business community call on CVJewellery when something extra special isrequired. We are able to meet the requirements oflocal companies and are now also making animpact off-Island thanks to the development of ourwebsite. Our own collections are on showalongside other contemporary designers in 18ctgold and diamond.

> Retail page 132

MasterCraft Ltd.Westminster House, Parliament Square,

Castletown, Isle of Man IM9 1LA

Tel: + 44 (0)1624 829445

www.mastercraft-europe.com

MasterCraft is the Worlds largest manufacturer ofhigh performance Wakeboard, Waterski and luxuryinboard engine powerboats.

MasterCraft Ltd based in the Isle of Man is theexclusive distributor for MasterCraft Productsthroughout Europe, initially founded in the UK in1975 as family enterprise serving the UK marketonly, owners Ian and Peter Birdsall pursued abusiness development strategy dedicated toproviding the highest standard of customer serviceand care ensuring solid steady sustainable growth.

This philosophy has been encompassedthroughout the company history creating a loyalcustomer base and unrivalled respect within theindustry, today the Isle Of Man Company is awholly independent distributor responsible for allaspects of MasterCraft Business in Europe andother international regions, Company Chairman IanBirdsall and director Christine Birdsall bring withthem unrivalled experience in the market sector.

> Retail page 130

Moore's Traditional CurersMill Road, Peel,

Isle of Man IM5 1TA

Tel: + 44 (0)1624 812155

www.manxkippers.com

Capitalising on one of the Isle of Man's traditionalindustries, Moore's Traditional Curers is nowexporting the famous Manx kippers around theworld.

Our 120 year old kipper yard is a working museumas well as a viable business and the onlytraditional kipper curers in the Isle of Man. Visitorscan take advantage of a daily tour around ourkipper yard, which has four smoke houses capableof holding 20,000 herring, every afternoon andthen purchase our product from the on-site shop.We also specialise in traditionally oak smokedbacon.

Moore's is an integral part of the fishing port ofPeel that is now, thanks to the internet, putting thetraditional dish on the worldwide map.

> Shipping / Yacht Management

Döhle (IOM) Ltd.Fort Anne, Douglas,

Isle of Man IM1 5PD

Tel: + 44 (0)1624 649649

www.doehle-iom.com

Döhle (IOM) Ltd the Isle of Man’s largest ShippingCompany, managing over 150 vessels, is situatedin Fort Anne overlooking Douglas Bay. On theIsland for over 14 years, our company has growninto a dynamic global business with wholeheartedcommitment to clients and personnel alike. Weenthusiastically invest in staff development, as anyorganisation is only as strong as it’s employees.We recognise this is key to our success.

Döhle (IOM) Ltd offer a full range of crewing,technical and shipping related services to ourclients who benefit from our long term view ofbusiness relationships.

With considerable investment in staff, training andadvanced IT solutions, we believe that Döhle (IOM)Ltd can offer a perfect combination providing thehighest standards of safe, efficient and costeffective services

> Shipping / Yacht Management page 138

Pelagos Yachts Ltd.Auldyn House, Ramsey,

Isle of Man IM8 1DW

Tel: + 44 (0)1624 819867

www.pelagosyachts.com

Our Ramsey-based company is capitalising on theearly successes enjoyed by a growing industry forthe Isle of Man. We are experts in commercialyacht registration and can offer a tailored yachtmanagement service that is second to none.

The reputation of Pelagos was sealed when wesecured the world's largest single masted yacht,the Mirabella 5; Pelagos already manages earlierMirabella versions.

Pelagos was the first yacht management companyin the Isle of Man to be audited and receiveapproval from Marine Administration and the firstindependent company to receive a document ofcompliance. We were also instrumental in theactivation of the Commercial Yacht Code in 2003.Pelagos is unique in that it is the only Manx yachtmanagement company to provide internationalsafety management (ISM).



> Telecommunications page 148

Manx TelecomIsle of Man Business Park,

Cooil Road, Braddan,

Isle of Man IM99 1HX

Tel: + 44 (0)1624 636383

www.manx-telecom.com

Manx Telecom, the Isle of Man`s incumbenttelecommunications operator, is a wholly ownedsubsidiary of international operator, mmO2.

Manx Telecom provides fixed, mobile and Internetservices and highly resilient off-Island connectivity.

Manxnet, Manx Telecom`s ISP, offers a one-stopshop solution for all your Internet needs. Thisincludes Web Hosting, high quality Internet access,Payment Platforms and Security Solutions.

Manxnet`s facilities are resilient and secure, with24 x 7 staffing and multiple Internet carrier feeds.A strong local team, coupled with the considerablestrength and resource of a multi-nationalcommunications provider ensures high qualityproducts with a personal service.

> Tourism page 144

Sefton HotelHarris Promenade, Douglas,

Isle of Man IM1 2RW

Tel: + 44 (0)1624 645500

www.seftonhotel.co.im

The Sefton Hotel is a landmark building onDouglas Promenade and offers a hundred roomsthat overlook either the picturesque bay or anattractive atrium. The Sefton has a four star ratingfrom the AA and is a popular choice for thebusiness and leisure visitor alike.

The hotel is located close to the capital's mainshopping streets, the finance district andgovernment buildings. The Sefton is adjacent tothe Villa Marina entertainments complex thatrecently benefited from a £15million refurbishment.

A boutique hotel, the Sefton has a uniquepersonality that is now reaching a wider audiencethanks to the internet. The management iscommitted to maintaining high quality investmentto maintain the Sefton's profile in the Island andrecently purchased two adjoining guesthouses forfuture redevelopment.

> Travel page 142

The Isle Of Man Steam Packet CompanyImperial Buildings, Douglas,

Isle of Man IM1 2BY

Tel: + 44 (0)1624 645645

www.steam-packet.com

The Isle of Man's ferry services lifeline has movedwith the times to today's position of providing amodern, comfortable and reliable passenger andfreight service.

The Steam Packet Company is the oldestcontinuously operating passenger shippingcompany in the world and this year celebrates its175th anniversary. Today's fleet is based in the portof Douglas. The flagship vessel is the £24 millionbuild Ben my Chree that recently benefited from a£1.5million passenger accommodation extensionand operates all year round. The Lady of Mannferry is brought into service during peak times,such as the TT festival, and there is a seasonal fastcraft service.

The Steam Packet carries more than 650,000passengers annually.

> Utilities

Manx Gas Ltd.Murdoch House, South Quay,

Douglas, Isle of Man IM1 5PA

Tel: + 44 (0)1624 644444

www.manxgas.com

Gas in the Isle of Man is distributed andmaintained exclusively by Manx Gas. Thecompany has more than 22,000 customers andnumbers continue to grow.

In 2003 Manx Gas converted over 13,000 homesand businesses in the Douglas and surroundingarea to Natural Gas. The work took five months tocomplete. More than 22,500 appliances, some ofthem older than their owners, were converted toNatural Gas. Conversion kits were sourced from allaround the world or made up specially for theproject.

Not only is there central heating from Manx Gas,but also cookers, tumble driers, lighting, BBQs,patio heaters and many more gas-fired appliances.There’s even low-cost Autogas for your car.

You can enjoy the benefits of gas wherever youlive or work on the Isle of Man.

> Wealth Management page 106

BW Group Ltd.PO Box 343, 20 Finch Road,

Douglas, Isle of Man IM99 2QD

Tel: + 44 (0)1624 677100

www.bw.co.im

The BW Group is an independent group ofcompanies providing taxation consultancy,offshore trustee services, corporate management,and financial structuring services to corporations,financial institutions and private clients.

Committed to professionalism, fiscal innovation,the application of sound and competent adviceand guidance in dealing with our client’s financialaffairs, all our executives are actively involvedwithin the group –working to identify and resolvecomplex tax problems and provide a wide rangeof services on an international basis.

Controlled by a Board of professionally qualifieddirectors, the Group has considerable experiencein Tax, Trust and Corporate Services with access to a network of advisors experienced incomplementary fields and industries.

> Fact File Isle of Man

ADNP Ltd.PO Box 32,

Castletown, Isle of Man IM99 5XU

Tel: + 44 (0)1624 838440

www.adnp.co.im

Fact File Isle of Man is a two-year publication.

On behalf of Fact File PublicationsLimited, ADNP Limited is currently taking

bookings for the 2007/8 edition of Fact File Isle of Man.

For further information or to purchase the current edition, please telephone

+ 44 (0)1624 838440 or visitwww.countryfactfiles.com

Athol Street, Douglas 159

160 South view of the Island


Fact File Diary > Information Pages > 2005/2006

Please Note: Diary dates may be subject to change; pleasecheck with event organisers. All 2005 public and bankholidays are correct at the time of going to press; 2006 public and bank holiday dates are subject to confirmation.

Events and national holiday dates 2005

JANUARY3 New Year's Day in lieu of 1 January

MARCH25 Good Friday28 Easter Monday25 - 27 Easter Shoot25 - 28 Easter Festival of Rugby31 Mar - 4 Apr Student Festival of Sport

MAY2 Early May Bank Holiday 30 Spring Bank Holiday 6 & 7 Roush Manx Rally 27 - 30 De Montford Pre-T.T. Classic 27 - 31 Whit Hockey Festival 28 May - 10 Jun T.T. Festival

JUNE10 T.T. Bank Holiday 11 SPCo. National Races 19 - 24 Walking Festival 29 June - 2 July Manx Kart Grand Prix

JULY5 Tynwald Day 11 - 14 Southern 100 23 & 24 Drag Bikes 28 - 30 Manx International Rally31 July - 13 Aug British Chess Championships

AUGUST29 Summer Bank Holiday4 & 6 Stockcar F2 Open Championship114 Marathon & 1/2 Marathon 15 & 18 Stockcar F2 T.T.12 - 14 Jazz Festival 20 Aug - 2 Sept Manx Grand Prix 27 & 28 Manx National 2-Day Trial

Events and national holiday dates 2005 cont.

SEPTEMBER3 & 4 Manx Classic Trial 5 - 9 September Crown Green Bowling Festival7 - 12 TT Car Centenary

DECEMBER25 Christmas Day26 Boxing Day27 Substitute Bank Holiday in lieu of 25 December

Events and national holiday dates 2006

JANUARY2 New Year's Day in lieu of 1 January

APRIL14 Good Friday17 Easter Monday

MAY1 Early May Bank Holiday 29 Spring Bank Holiday4 & 5 Roush Manx Rally 26 - 30 May Whit Hockey Festival27 May - 9 June T.T. Festival

JUNE10 SPCo. National Races 18 - 23 Walking Festival

JULY5 Tynwald Day

AUGUST28 Summer Bank Holiday19 Aug - 1 Sept Manx Grand Prix

SEPTEMBER2 & 3 Sept Manx Classic Trial

DECEMBER25 Christmas Day26 Boxing Day

Fact File Diary 2005/2006


January 2005

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February 2005

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28

March 2005

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28 29 30 31

April 2005

M T W T F S S

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4 5 6 7 8 9 10

11 12 13 14 15 16 17

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25 26 27 28 29 30

May 2005

M T W T F S S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

June 2005

M T W T F S S

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6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

July 2005

M T W T F S S

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4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

August 2005

M T W T F S S

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8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

September 2005

M T W T F S S

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12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

October 2005

M T W T F S S

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3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31

November 2005

M T W T F S S

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7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30

December 2005

M T W T F S S

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5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31

Year Planner 2005


Year Planner 2006

January 2006

M T W T F S S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

February 2006

M T W T F S S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

March 2006

M T W T F S S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

April 2006

M T W T F S S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

May 2006

M T W T F S S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

June 2006

M T W T F S S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

July 2006

M T W T F S S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31

August 2006

M T W T F S S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

September 2006

M T W T F S S

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30

October 2006

M T W T F S S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

November 2006

M T W T F S S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

December 2006

M T W T F S S

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


January 2005

M T W T F S S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31

January 2005

M T W T F S S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31

January 2005

Appointments / Notes

Important dates hereImportant dates hereImportant dates hereImportant dates hereImportant dates here3 New Year's Day in lieu of 1 January


February 2005

M T W T F S S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28

February 2005

M T W T F S S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28

February 2005



March 2005

M T W T F S S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

March 2005


25 Good Friday28 Easter Monday25 - 27 Easter Shoot25 - 28 Easter Festival of Rugby31 Mar - 4 Apr Student Festival of Sport


April 2005

M T W T F S S

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30

April 2005



May 2005

M T W T F S S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

May 2005


2 Early May Bank Holiday 30 Spring Bank Holiday 6 & 7 Roush Manx Rally 27 - 30 De Montford Pre-T.T. Classic 27 - 31 Whit Hockey Festival 28 May - 10 Jun T.T. Festival


June 2005

M T W T F S S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

June 2005


10 TT Bank Holiday 11 SPCo. National Races 19 - 24 Walking Festival

29 June - 2 July Manx Kart Grand Prix


July 2005

M T W T F S S

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

July 2005


5 Tynwald Day 11 - 14 Southern 100 23 & 24 Drag Bikes 28 - 30 Manx International Rally31 July - 13 Aug British Chess Championships


August 2005

M T W T F S S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

August 2005


29 Summer Bank Holiday4 & 6 Stockcar F2 Open Championship1

14 Marathon & 1/2 Marathon 12 - 14 Jazz Festival

20 Aug - 2 Sept Manx Grand Prix 27 & 28 Manx National 2-Day Trial


September 2005

M T W T F S S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

September 2005


3 & 4 Manx Classic Trial 5 - 9 September Crown Green Bowling Festival7 - 12 TT Car Centenary


October 2005

M T W T F S S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31

October 2005



November 2005

M T W T F S S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30

November 2005



December 2005

M T W T F S S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31

December 2005


25 Christmas Day26 Boxing Day

27 Substitute Bank Holiday in lieu of 25 December


January 2006

M T W T F S S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

January 2006


2 New Year's Day in lieu of 1 January


February 2006

M T W T F S S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28

February 2006



March 2006

M T W T F S S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

March 2006



April 2006

M T W T F S S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

April 2006


14 Good Friday17 Easter Monday


May 2006

M T W T F S S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

May 2006


1 Early May Bank Holiday 29 Spring Bank Holiday4 & 5 Roush Manx Rally 26 - 30 May Whit Hockey Festival27 May - 9 June TT Festival


June 2006

M T W T F S S

1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30

June 2006


10 SPCo. National Races 18 - 23 Walking Festival


July 2006

M T W T F S S

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

31

July 2006


5 Tynwald Day


August 2006

M T W T F S S

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

August 2006


28 Summer Bank Holiday19 Aug - 1 Sept Manx Grand Prix


September 2006

M T W T F S S

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30

September 2006


2 & 3 Sept Manx Classic Trial


October 2006

M T W T F S S

1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

October 2006



November 2006

M T W T F S S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

November 2006



December 2006

M T W T F S S

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4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

December 2006


25 Christmas Day26 Boxing Day


Fact File > Contact Pages

Name Telephone email/web


Fact File > Index

Accommodation, 141Advertising, 135Advocates, 101Air Charter 21Air Travel, 21Airport, Ronaldsway, 21, 61Anti Money Laundering Controls, 35Association of Chartered Certified Accountants, 27Association of Corporate Service Providers, 27, 87Association of Licensed Banks, 27, 77Attorney General's Chamber, 75Banking, 77Blacklist (FATF), 15British Accreditation Council (BAC), 113British Crown Dependency, 24Business Courses, 113Captive Insurance, 34Chamber of Commerce (Isle of Man), 27, 125Chartered Institute of Management Accountants, 27Chartered Institute of Marketing, 27Chartered Management Institute, 27Chief Secretary’s Office, 75Citizenship, 24Climate, 20Communications Commission, 74, 147Companies, 28, 29Companies incorporated outside the IOM, 30Company Formation, 31Company Registry, 31Computer Services, 121Consular Missions, 25Construction, 52, 109Corporate Income Tax, 19, 31Corporate Service Providers, 87Council of European Union, 17Country Ratings, 7, 11, 12, 13, 14, 15, 17Curraghs Wildlife Park, 57Customs and Excise (Isle of Man), 53, 125, 137Data Protection, 35, 75, 121Demographics, 20, 22Dept of Agriculture, Fisheries and Forestry, 69Dept of Education, 71Dept of Health and Social Security, 65Dept of Home Affairs, 67Dept of Local Government and the Environment, 63, 109Dept of Tourism and Leisure, 57, 141Dept of Trade and Industry (DTI), 47, 109, 125, 135Dept of Transport, 61Diplomatic Missions (Embassies), 25Driving Licences, 22Duke of Athol (Atholl), 37e-Business, 35, 47e-Commerce, 53Earl of Derby, 37Economic Affairs, 53Education, 19, 71, 113Edwards Report, 16e-Gaming, 47

Electricity Authority, Manx (MEA), 74Emergency Planning and Civil Defence, 67Employment, 26, 47, 49Engineering Society (Isle of Man), 27Environmental Safety and Health, 63Estates and Housing, 63European Union, 9, 24Exempt Insurance Companies, 30Fair Trading (Office of) Isle of Man, 74, 101Film Commission (Isle of Man), 47 ,135Financial Action Task Force (FATF), 15, 16, 17Financial Services Authority, 17Financial Services Ombudsman, 74, 101Financial Stability Forum (FSF), 15, 16, 17Financial Supervision Commission (FSC), 53, 74, 77, 87, 97, 105, 121FitchRatings, 12, 17Fire & Rescue, 67Freeport, 51Fund Management Association (Isle of Man), 27, 105Funds, 33Gaiety Theatre, 57Gambling Control Commission (Isle of Man), 75, 121General Insurance, 34General Registry (The), 75Government Incentives, 35Grants and Financial Assistance, 47Gross Domestic Product (GDP), 7, 8, 9, 10Health Services, 65Immigration and Nationality, 24, 25Income Support, 65Income Tax, 53Inflation, 19Information Technology, 121Inland Revenue Service (IRS), 15Institute of Chartered Secretaries & Administrators, 27Institute of Directors, 27Institute of Financial Services, 27, 77, 105Institute of Marine Engineering Science and Technology (The), 27Insurance and Pensions, 93Insurance and Pensions Authority, 34, 74, 93, 105Insurance Brokers Association (Isle of Man), 27, 93Insurance Institute of the Isle of Man (The), 27, 93International Finance Centres, 15International Monetary Fund (IMF), 15, 17International Organisation of Securities Commission (ISOSCO), 17Internet Service Providers, 121, 147Isle of Man Post, 74Isle of Man Society of Chartered Accountants, 27Isle of Man Trades Council (The), 27, 125Job Centre, 47Junior Chamber of Commerce (Isle of Man), 27Jurisdictions, 15Know Your Customer (KYC), 15Law Society (Isle of Man), 27, 101Legal Services, 101Legislative Council, 42Library (Central Reference), 20Lieutenant Governor, 41

Index


Fact File > Index

Life Insurance, 34Manufacturing, 52, 125Map of the Isle of Man, 23Manx Actuarial Society, 27Manx Associations, 27Manx Cats, 22Manx Insurance Association, 27, 93Manx Insurance Managers Association, 27, 93Manx National Heritage, 75, 141Marine Administration, 47, 50, 137Media, 135Moody's, 13, 17Mutual Funds, 33National Insurance Contributions, 65National Sports Centre, 57Noble’s Hospital, 65Non-Resident Companies, 30Office of the Superintendent of Financial Institutions, 17Offshore or International Companies, 30Organisation for Economic Co-operation & Development (OECD), 16, 17Partnerships (General, Limited, Manx), 29Passports, 22, 24Pensions, 26, 34, 65Personal Taxation, 26Personnel Office (The) Government, 75Planning and Building Control, 63Police, 67Post Office, 74President of Tynwald, 42Prison Service, 67Probation Service, 67Property, 26, 63, 109Protocol-3, 24Public Health, 65Rates (Housing), 63Residency, 22, 26

Retail, 125Schools, 71, 113Secrecy and Disclosure, 35Shipping Management, 137Social Security Benefits, 65Sovereign Credit Ratings, 11Sports Council, 57Standard and Poor's, 7, 12, 17Tax Exempt Companies, 30Tax Havens, 15, 16Tax Rates, 54Telecommunications, 147The Royal Institution of Naval Architects, 27The Securities Institute, 27, 97Tourism, 57, 141Tourist Trophy (TT), 22Training, 47, 49Transport (Public), 57Travel, 21, 141Treasury (Isle of Man), 53Trust & Trust Service Providers, 32Tynwald, 41United Kingdom, 24Vehicle Licensing and Registration, 20Vehicle Testing Station, 20Villa Marina, 57Visas, 24Waste Operations Management Unit, 63Water Authority (Isle of Man), 74Weather and Shipping Forecast, 20Work Permits, 24, 25, 26World Bank, 17World Manx Association, 27World Trade Organisation, 17Yacht Management, 137Zero rate company income tax, 31

Useful Isle of Man NumbersOperator Services:

Isle of Man/UK/Rep of IrelandTel: 100InternationalTel: 155

Directory Enquiries:

Isle of ManTel: 192UK and Rep of IrelandTel: 193InternationalTel: 153

Emergency Services:

Health, Fire, Police & Air and Sea RescueTel: 999

Non Emergency Services

Noble’s HospitalTel: 650000Ramsey Cottage HospitalTel: 811811

Police HeadquartersTel: 631212

Manx Automobile AssistanceTel: 827827

Isle of Man Post OfficeTel: 698400

Erin Arts CentreTel: 832662

Villa Marina & Gaiety Theatre ComplexTel: 694555

Ferry ServicesIsle of Man EnquiriesTel: 661661UK EnquiriesTel: 08705 523 523

Ronaldsway AirportTel: 821600

fact file isle of man 2005

Documents