Sunday, November 8, 2009

Depositing savings on the Isle of Man is too risky

In a news article in the online 'be your own financial adviser'
Gordon Brown, UK PM said: "..we need to make sure that customers can be confident when they open a bank account that they will be treated fairly; that charges and fees are clear, easy to understand and reasonable; and that their savings are safe."

That is something with which John Aspden, Chief of the IoM Financial Supervision Commission, does not concur. He states that deposits, like investments, on the island carry risk and this has to be recognised by people when depositing their life savings with a bank on the IoM.

Despite this people from around the world still take that risk believing that the reward of a higher interest rate justifies a belief in what the banks tell them concerning the security of their money. That is a dangerous way to make a judgement on whether your money is safe.

Banks only tell prospective depositors what they want them to know; they do not answer the questions depositors ask in order that they may make an informed judgement before parting with their money.

Until the Isle of Man is able to endorse and adopt the principles stated by the British Prime Minister the island can not be considered a safe place to put your money. The message is clear; DONT BANK ON THE ISLE OF MAN as it could seriously damage your wealth.

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