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Amongst the major offshore centres the Isle of Man is the only jurisdiction to have a statutory compensation scheme for investors
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The Isle of Man was the first offshore financial centre to introduce a Depositors' Protection Scheme.

Amongst the major offshore financial centres, including Jersey, Guernsey, Luxembourg and Dublin, the Isle of Man was the first jurisdiction to have a statutory compensation scheme for investors.

  • Quality. Paramount importance is attached by the Isle of Man's Financial Supervision Commission to the protection of depositors' and investors' interests. Only institutions of quality, with proven track records which will contribute to the best economic interests of the Island, are granted licences.
  • Suitability. In assessing suitability, both the FSC and IPA pay careful regard to the nature of the proposed business, the status of the parent company, sufficiency of financial resources, quality of management personnel and the adequacy of the systems and controls necessary to run the business. It is on this basis that the FSC is prepared to licence managed operations, including banks and approved fund managers, where the management is undertaken by an approved financial business on the Island.
  • Legislation. In 1988 the Isle of Man strengthened its Investor Protection Legislation with the implementation of the Financial Supervision Act.
In 1991 the Island radically revised its regulation of investment business with the Investment Business Act, which provides for an effective system of regulation to internationally accepted standards.
Also in 1991 the Island introduced a Deposit Protection Scheme - the first offshore jurisdiction to do so.

The 1991 Deposit Protection Scheme offers the equivalent protection to that available in the UK (i.e. 75% of the first £20,000 of a deposit). But it extends protection to foreign currency as well as sterling deposits.

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