IOM depositors scheme.

  • everythingtolose
  • 01/11/08 31/05/09
  • a depositor
  • Offline
Posted: Sat, 01/11/2008 - 17:47

Am new to the site - a big thanks to all.

Does anyone know how the depositors scheme will actually work - am I right in thinking there is no precedent for this? Any timelines set out in legislation? - Is the DSC the responsibility of the IOM FSC or the IOM Government?

Keep up the good work everybody!

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Precedent

  • cold-dose
  • 11/10/08 31/05/09
  • unspecified
  • Offline
  • Sat, 01/11/2008 - 17:53

The DCS has been used once before - BCCI in 1991.


Precedent - cold-dose

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
  • Offline
  • Sat, 01/11/2008 - 18:04

Yes, but the legislation was different then.
As you will be aware the scheme manager can borrow, gov't can contribute etc. so the 'new scheme' is in fact untested


Granted

  • cold-dose
  • 11/10/08 31/05/09
  • unspecified
  • Offline
  • Sat, 01/11/2008 - 18:43

Granted. The operation of the scheme is pretty well laid down in the regulations. The BCCI precedent is useful for what is/is not covered by the terms of the scheme. These are now pretty identical to the 1991 regulations, and there were a few court cases over those that set the boundaries.


cold-dose - I agree but some v significant

  • manx-person
  • 17/10/08 31/05/09
  • not a depositor
  • Offline
  • Sat, 01/11/2008 - 18:51

But there are significant differences - the treatment of defined beneficiaries in a trust for example - I think that the significance of this should definitely not be overlooked.
Also remember that this legislation was prepared very quickly, and there is the possibility that there may novel aspects with the new drafting.