A safe haven in an offshore port of call provides you with a shelter from the turbulence of today’s international markets and a secure harbour in stormy times.
There are many offshore centres to choose from, some more regulated than others. At Park Lane International our principal concern is to use only safe havens which have more than adequate investor protection and safeguards in place. For that reason the two principal centres we use are the Isle of Man and Guernsey.
Neither of these islands have debt, in fact, it’s against the law for either government to borrow money and go into debt.
Isle of Man, AAA-rated
The Isle of Man is an established international finance centre, with a secure base built on political stability, low taxation and a firmly established fiscal and regulatory environment independent of the UK. In relation to providing international services it is fully supported by a modern infrastructure and more than 1,000 years of continuous stable government.
More information on the Isle of Man government website.
As an offshore jurisdiction, Guernsey is widely recognized as a well-regulated financial centre with very well-developed advisory and financial infrastructure. Guernsey is the home to the offshore operations of many of the world’s largest banks, investment and insurance companies.
More information on the States of Guernsey website.
The Republic of Mauritius in the Indian Ocean is positioned strategically at the region’s investment crossroads. Over the last 20 years it has seen unprecedented social and economic development with an average of 5% growth. These impressive results come from a solid infrastructure for business and finance, scrupulous economic governance and a reputation for probity, efficiency and reliability.
The government of Mauritius followed principles of best practice when drafting new legislation which has made the republic a very attractive center for holding and structuring international investments. The legal framework for companies and trusts is perhaps more modern than any other jurisdiction. The government has also abided by international agreements and requirements regarding money laundering and terrorism financing, enacting new legislation where appropriate. Membership of the Egmont Group in 2003 brought Mauritius even more prestige, further strengthening its image.
Through laws and regulations governing the relationships between financial institutions, professionals and their clients, Mauritius assures confidentiality for those involved in legitimate business and has a strong reputation as a well-regulated jurisdiction. These are important facts that further enhance its attractiveness.
This fast growing financial centre is a group of 115 islands in the Indian Ocean to the north of Madagascar. The Seychelles economy is mainly based on tourism and fishing, but has a rapidly growing financial sector.
This new growth area now represents a significant part of the economy and was born out of the creation of the Seychelles International Business Authority and passing of laws that make it easier to establish offshore structures and encourage inward investment.
A growing number of global banks and insurance firms now have branches or subsidiaries in the Seychelles and provide excellent client support, along with local accounting, management and legal companies.
Government protection and compensation funds
Guernsey wears the crown by offering a minimum of 90% investor protection against bankruptcy. Typically, the offshore assets are fully ring-fenced and do not appear on the balance sheet of the group. Unlike government compensation schemes you are not dependent on a government to pay out in the event of something going wrong, every financial institution that operates from the island signs up and contributes to the compensation schemes.
The Isle of Man’s Life Assurance (Compensation of Policyholders) Regulations 1991 ensures that, in the event of a life assurance company being unable to meet its liabilities to its policyholders, up to 90% of the liability to the protected policyholder will be met. Also, unlike many other policyholder protection schemes, the island’s protection is provided regardless of where policyholder resides.