Isle of Man Introduces New ISPV Legislation
by Jason Gorringe, Lowtax.net, London
02 April, 2015
The Isle of Man's Insurance and Pensions Authority has introduced new Insurance Special Purpose Vehicle legislation to promote the growth of the island's insurance sector.
The legislation enables Isle of Man firms to facilitate insurance-linked securities (ILS) and similar transactions, including catastrophe bonds.
John Garland, Head of Corporate Financial Services with the Isle of Man Government's Department of Economic Development, said:
"We have been working and consulting closely with industry and the Insurance and Pensions Authority on introducing this legislation and already have inquiries in the pipeline. We believe that our framework for ISPVs offers excellent features for potential users as well as the proportionate and focused legislation that we are renowned for. This new framework promises to open up new business streams for the Isle of Man and provide welcome competition in this area, particularly given our close proximity to London."
"We can offer speed to market with the licensing process designed to take just five days following receipt of fully prepared applications. We can also offer a highly competitive fee structure, [which] that may be fixed for the lifetime of any ISPV with a determinable lifespan, along with simplified regulatory requirements, including [on] returns."
"I am confident that our framework will prove of great interest to potential users in this specialist area who want to place their business in a highly respected and responsible international finance center with a long track record of attracting high quality insurance business from around the world."
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