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1. The Isle of Man
In terms of political and financial security, few locations can rival the advantages of the Isle of Man. The Isle of Man is one of the world's leading offshore financial centres. The Island has been granted Designated Territory status under the UK's Financial Services Act 1986. This means that the financial regulations in place meet standards similar to those in the UK. The Isle of Man enjoys exceptional political and economic stability, as exemplified by a history of over 1,000 years of continuous Parliamentary Government- the longest unbroken period of Government in the world. Aside from the security provided by the regulatory framework, dealings on the Isle of Man are conducted in an environment that respects the right of individuals to carry on their business affairs in private. Unless otherwise required by law, details of client affairs to third parties, including tax authorities, will not be realised. The Isle of Man has the only statutory compensation scheme of any offshore centre, incorporated in the Life Assurance (Compensation of Policyholders) Regulations 1991. These regulations provide for clients to receive up to 90% of the amounts due under their contracts in the unlikely event that an Isle of Man life assurance company were to become unable to meet its liabilities. Unlike many investors compensation schemes, there is no upper limit on the amount payable, and policy holders are protected wherever they are resident. Full details of this legislation are available on request. The Investment Companies used by St. James International on the Isle of Man, are all authorised and regulated in the Isle of Man. They are exempt from corporation, income and capital gains tax, and as a result all clients funds grow tax free. However, some countries in which funds are invested may impose an irrecoverable tax on investment income. No Isle of Man tax is deducted when funds are withdrawn. In terms of direct taxation and legal matters, the Isle of Man is independent of, and not subject to, laws passed by the United Kingdom parliament. In addition, the Isle of Man is not a member state of the European Union and is therefore not obliged to bring its tax system into line with that of the European Union.
2 The Channel Islands
With offshore jurisdictions increasingly under the spotlight the strength and importance of The Channel Islands as an international finance centre is worth serious consideration. The Channel Island’s financial industry is now stronger than ever. Recent reports have further highlighted many of the inherent strengths in The Channel Island’s position among the international elite. There is a regulatory framework that is comprehensive and a supervisory structure that is well positioned to impose regulations effectively. The Channel Islands has a well-established and well respected Financial Services Commission and experienced staff. The Channel Islands was one of the first jurisdictions to apply a comprehensive regulatory regime for trust and company service providers. There is a developed framework for anti-money laundering, combating the financing of terrorism and there is a strong rapport on these issues between the Commission, the licensed institutions and the various finance associations. This can only be good news for all concerned, not least policyholders who benefit from the Channel Island ’s expertise and flexibility. Of course, the other key issue is security and again, The Channel Islands leads the way. For international investors, the potential benefits that an offshore location brings can make it a compelling choice, in particular when dealing with companies registered to write long term insurance business under Section 11 of the Insurance Business (Bailiwick of Guernsey) Law 2002. Among the other best practices this implies, Channel Island Life Companies follow the guidelines whereby assets representing at least 90% of its liabilities to policyholders are held in custody by an independent trustee. In short, The Channel Islands has responded positively to the overtures of international bodies by pro-actively negotiating an acceptable position on the world stage.
3. Switzerland
Switzerland is not an offshore jurisdiction such as the Cayman Islands, it is nonetheless a low-tax jurisdiction, having a series of specialised corporate forms which can be used by international investors and multinational companies to reduce their tax bills to a significant extent. As the world's predominant private banking center Switzerland is estimated to be the home of 35% of the world's private wealth. Banking secrecy and Switzerland have long been considered synonymous terms, although the country has passed many laws directed against money laundering, and participates fully in international efforts against it.
4.
Dublin All
life assurance companies licensed to conduct business in Ireland
are directly regulated by the Irish Government through the Department
of Enterprise, Trade and Employment. Ireland is a full member of
the European Union and The Irish regulatory system is in line with
EU requirements. All life assurance companies are subject to strict
EU. solvency margin rules. The same rules that apply to life companies
in the UK, Germany, Belgium, Holland, France and anywhere else in
the EU. The aim of the solvency margin requirements is to insure
that the company concerned has sufficient funds to comply fully
with its obligations to policyholders. Policyholders of unit-linked
life assurance savings, investment, pension policies are secure
in the knowledge that companies based in Dublin's financial services
centre are required at all times to hold investments to the value
of the units held by client's life policies. These funds are held
separate and distinct from the shareholders funds, and are reported
separately to the regulator.
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