It may be a cliche, but it is difficult to avoid the conclusion that the Isle of Man is going through a defining period of change – and opportunity. The island has recently spent several years on the back foot, reacting to the international drive for transparency and the erosion of harmful tax competition, largely at the behest of supra-national organisations such as the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF) and the European Union (EU). On the regulatory side, this has resulted in the introduction of strict anti-money laundering requirements, the regulation of fiduciary service providers and enhanced supervision of financial services companies. On the tax side, steps have been taken to eliminate ring-fenced tax regimes, to implement the EU Savings Directive and to settle the terms of bilateral tax information exchange agreements.
Fortunately, this whirlwind of change now seems to have subsided and the Isle of Man, in common with other offshore financial centres, can plan for the future. Ironically, many of the changes that have been forced upon the island are now key aspects of its economic strategy for the next 10 to 15 years.
