Trust us, says the Isle of Man, ...

  • anrigaut
  • 19/10/08 30/10/09
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Posted: Mon, 07/11/2011 - 20:52

Seem unable to edit the News item posted earlier re this article in today's Telegraph, so am re-posting here.

http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/88596...

"The Isle of Man is launching an international push to persuade more British expats and international companies to domicile their pensions on the island. ...”.

Well done Peter&Louise for this heartfelt comment:

"WARNING!!! Do not place any of your savings on the Isle Of Man. The banks, the regulatory authorities, and particularly the politicians on the IOM cannot be trusted. Do not fall for their spin. We did, and it was the biggest misake of our lives. We entrusted them with our life-savings and they let us down. They said our savings were secure and 100% guaranteed. Well, it has now been 3 years and another 3 years still to go before we get an indeterminate amount back. They will do nothing to help you in times of crisis (and there are many crises on the horizon). DO NOT BANK ON THE ISLE OF MAN!! This is a warning from 2 people who have had experience with officials on the IOM. Go elsewhere!!!"

How about some more of this sort?

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S&P downgrades IOM rating

  • anrigaut
  • 19/10/08 30/10/09
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  • Fri, 11/11/2011 - 10:41

Reported yesterday and commented in Richard Murphy's blog:
http://www.taxresearch.org.uk/Blog/2011/11/11/just-when-the-isle-of-man-...

The Wall Street Journal has reported:
"Standard & Poor’s Ratings Services lowered its long-term sovereign rating on the Isle of Man from triple-A, the firm’s highest rating, citing the British crown dependency’s external vulnerabilities and lack of monetary flexibility as credit weaknesses."

and added
"S&P noted the island’s ratings could come under pressure if its offshore financial sector loses business to competitors, without offsetting economic and fiscal adjustments. ..."


Anrigaut - Standard & Poors

  • Gordon 45
  • 22/10/08 n/a (free)
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  • Fri, 11/11/2011 - 10:53

Hi Anrigaut,

What can I say - brilliant news,

Gordon 45


Comment made

  • anrigaut
  • 19/10/08 30/10/09
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  • Sat, 12/11/2011 - 19:45

Just submitted this comment to RM blog:

“S&P noted the island’s ratings could come under pressure if its offshore financial sector loses business to competitors, without offsetting economic and fiscal adjustments.”:

Meanwhile, with the uncritical help of the Daily Telegraph:
“The Isle of Man is launching an international push to persuade more British expats and international companies to domicile their pensions on the island. The island’s financial promotional body, the Isle of Man Finance Partnership, has joined forces with the Isle of Man Association of Pension Scheme Providers (APSP) in this initiative. The main target of the campaign will be financial advisers and its buzz phrase will be “international retirement solutions”. ”

Judging by the avalanche of enraged comments this has provoked from the victims of recent disasters in the IOM financial sector (KSF, Premier Shareholders), they may have an uphill struggle on their hands.

http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/88596...

Unlike the Telegraph, Shelter Offshore has been “looking beyond the headlines” and finds all is perhaps not as well as Mr Bell and his cronies would have us believe:
“Just reading the positive promotion of the Isle of Man’s position at the moment, one could very easily be forgiven for thinking that this is a progressive, secure, open and transparent jurisdiction, with investors’ best interests at heart. However, you needn’t scrape too far beneath the headlines to see an entirely different side to the story.”

http://www.shelteroffshore.com/index.php/2/dont-bank-on-isle-of-man-11132


‘Don’t Bank on the Isle of Man’ Say Shelter Offshore Readers

  • anrigaut
  • 19/10/08 30/10/09
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  • Wed, 09/11/2011 - 21:55

http://www.shelteroffshore.com/index.php/2/dont-bank-on-isle-of-man-11132

Unlike the Telegraph, Shelter Offshore has been "looking beyond the headlines". Good reporting and a remarkable result from an (admittedly small) survey of their expat readers:

"all but 7 of the 75 people we chose to survey informed us that they did not consider the Isle of Man as a place that they would favour for any investment activity – despite the positive headlines."

Seems maybe the message is starting to get out.

They are asking for more opinions. Comments are easy to make - no need to register. I've set the ball rolling ...


More praise for island ...

  • anrigaut
  • 19/10/08 30/10/09
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  • Wed, 09/11/2011 - 11:45

See also here: http://www.iomtoday.co.im/news/isle-of-man-news/more_praise_for_island_o...

and my comments just added on Manx Herald: www.manxherald.com/index.php/politics/666.html

IOM PR on full steam ahead under its new CEO and our dear friend Allan Bell !


Letter to editor of Telegraph

  • anrigaut
  • 19/10/08 30/10/09
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  • Tue, 08/11/2011 - 20:08

Thanks to those who have responded by commenting on this article. For those who haven't, it's not too late to join the fray!

Meanwhile, a letter has been sent to the editor on behalf of KSFIOMDAG and a copy posted as a comment:

"Sir,

Re: “Trust us, says the Isle of Man, we're the pension place”

The article (published on 7th November 2011, author Mike Goodman) referred to above says that “the Isle of Man (IOM) is launching an international push to persuade more British expat’s and international companies to domicile their pensions on the island.”

The KSFIOM Depositors’ Action Group is the representative of the retail depositors and bondholders in Kaupthing Singer & Friedlander (Isle of Man) (KSFIOM), which collapsed in October 2008. Over three years on, higher-value depositors and life company bondholders in the bank have received just 73% of their cash back, and will not know the final out-turn until 2017.

The whole process of the bank’s liquidation has been tortuous and the IOM authorities have sought at every turn to obfuscate and delay it, both by failing to protect the bank’s creditors in the run up to the collapse and subsequently wasting creditors’ time and money in trying to foist a scheme of arrangement onto creditors that offered those creditors nothing whatsoever, but would have saved the IOM financial industry from the perceived stigma of a bank insolvency on the island.

The failure of the IOM regulatory authorities to cover the island’s offshore (and onshore) customers has been established by the IOM’s own investigation into the collapse.

The whole sorry tale has shown that the IOM has neither the personnel nor the know-how available to it to operate a credible financial regulatory system to protect the interests of retail creditors. Regrettably, the IOM being not very populous – it has the same population as Hastings - potential conflicts of interest are rife if not almost inevitable (for example, John Cashen, a board member of the failed bank, was simultaneously deputy chairman of the IOM financial regulator. The IOM regulator reached a decision to remove the bank’s exposure to the Kaupthing group long before the collapse, which was then mysteriously resiled from). The authorities themselves admit this, which is why they permit these potential conflicts to persist.

We would accordingly have welcomed a more balanced view in your article about the very real financial risks that could be associated with moving or domiciling a pension to IOM. It would appear that the author of the article has overlooked, forgotten about or - worse - chosen to ignore, the great financial harm that the IOM has historically caused and continues to cause innocent depositors and retail creditors, and which could also apply to expat pension fund holders.

We can only hope that the financial advisers that are targeted by this IOM campaign have memories that stretch back three years and will consider those circumstances when confronted by IOM PR campaigns such as this. A number of them were in the direct firing line for having potentially mis-sold their customers bonds in KSFIOM, which signally failed their customers and left them fully exposed (insurance company bondholders not being covered by the island’s (unfunded) deposit protection scheme).

Anyone thinking about moving their pension to the IOM would do well to look at the stories covered by the website of the Manx Herald (see e.g. http://www.manxherald.com/comm... on the IOM’s new Chief Minister) and our own website (www.ksfiomdag.com), together with the website of one of our members (www.iombankfailure.info) and to consider the information there before making a decision whether the IOM is indeed a place that a pensioner would trust with their life’s savings and future income.

For and on behalf of KSFIOM Depositors Action Group "


Telegraph comments

  • bellyup
  • 10/10/08 09/01/10
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  • Wed, 09/11/2011 - 11:40

Well done everyone who commented - I have tried but for some reason can never get into the TG


@bellyup

  • anrigaut
  • 19/10/08 30/10/09
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  • Wed, 09/11/2011 - 14:22

That's odd - seems straightforward enough. Maybe you could have another go? We need to keep the momentum going.

I note you have returned to manxforums. Interesting debate going on there, with 1) admissions that IOM is indeed a tax haven and that, while it might be legal it is definitely not moral; 2) real concerns about the decline of the FS industry and 3) serious discussions of alternatives for the island. A least a few seem to be waking up?


Some more added

  • IoM-neveragain
  • 12/10/08 30/03/10
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  • Tue, 08/11/2011 - 15:21

Whatever you do don't put even a penny on the Isle of Man, far far too much chance of loosing the lot.
They have a terrible reputation - a whole string of bank failures -
Dumbell's bank, then followed by the Isle of Man Stock Bank, then the absolutely appalling Savings and Investment Bank then followed by Kaupthing, Singer and Freidlander just 3 years ago then followed by (insert the name here of the next to fail - possible with your money!)
The Savings and Investment Bank failure led at the UK's insistence to the establishment of a "regulator" the Financial Services Commission.
This FSC has as its main regulatory objective —
securing an appropriate degree of protection for the customers of persons carrying on a regulated activity;

Well despite having a member of the FSC as a senior board member of the KSF(IoM) bank it failed, miserably, to meet its main objective.
The IoM FSC is NOT fit for purpose.

Have money in the Isle of Man? Don't want to risk loosing it? Then move it urgently.


Where to bank?

  • Lostinspace
  • 13/10/08 31/05/09
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  • Thu, 10/11/2011 - 13:12

Now we are getting another dividend - which is great news - it raises a delicate question of where to bank/invest it....?

The ongoing Eurozone crisis is getting really spooky - 85K compensation limit per person per bank in the UK is OK, so far as it goes (on paper) but if the pasta really does hit the fan, and if all those 85Ks were called in....OK, best not to go there...

Aside from putting the money in a bank, obviously not on the IOM, just wondering what other 'solid' alternatives are out there - or is that an oxymoron these days.

Any offers?


IOM again

  • Lostinspace
  • 13/10/08 31/05/09
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  • Fri, 11/11/2011 - 03:27

Just to follow up on this, I had a chat with a rep from Barclays Wealth yesterday. We discussed the 85K compensation in the UK and what would happen if the chips really were down (Eurozone etc) - but wait, he said, we can also offer you an account offshore with a 50K compensation limit.
Where was that? I asked - Wait for it, the answer was the Isle of Man!
When I pointed out to him that I was having more or less this same discussion three years ago on the IOM with KSF ("don't worry, Mr. X, your money is safe with us,") , with the bank then going bang days later, he sighed....and then pointed out the global differences between Barclays and KSF, which to be fair, is/was probably true.
Anyway, the IOM is still out there and being touted as a reputable centre for expats. Just thought I'd let you know....