Sunday, November 1, 2009

Foot said nothing that we didn't know already

Sir Michael Foot said nothing that we didn't know already. In acknowledging the role played by the Crown dependencies in attracting money from across the world & funneling it into the City he could only focus on making recommendations that would make that activity conform with total transparency to mandatory international standards.

However, reading between the lines Foot made observations that would make a wise & prudent person think twice before being lured by higher interest rates into depositing offshore. Depositing on the Isle of Man can not be considered safe & secure until there is a new & credible compensation scheme in place that delivers quickly what it promises should the deposit taker be in trouble.

Until then the message is clear, don't bank on the Isle of Man to look after your life savings in a manner that gives you total peace of mind through an unambiguous assurance that your money is in safe hands. As said in its article 'Taking a closer look' "do not be seduced by offers of higher rates or guaranteed returns without a healthily cynical view of the small print."

Foot Review Report here

1 comment:

  1. As one would expect from a "report" compiled by those with a vested interest in the “city” the Foot Report tells us nothing that the public does not already known. Excepting that on the subject of consumer protection the Isle of Man “ombudsman scheme could be considered as an example for others. … See Page 53
    Ombudsman Schemes

    6.23. A separate but related issue to depositor protection insurance was bought to the Review’s attention during the consultation process. In the Crown Dependencies, where UK nationals (often ‘ex-pats) purchase many financial products, one important element of consumer protection in the UK is typically missing.

    Only in the case of the Isle of Man doers an ombudsman scheme exist along the lines of that in the UK.
    The jurisdictions (9) whether such a scheme is justified.

    Although the Isle of Man government enhances the appeal of the Island as a safe place for investors by boasting an “Ombudsman Scheme” it does not actually employ an ombudsman and instead relies on previous court rulings and FSA/FSC adjudications.

    The experience of the Premier Shareholders Group is that this so called “scheme” gives positive discrimination to the interest of Isle of Man based financial product providers – and not pensioners who are foolish enough to transfer their savings to the Island.

    Never deposit or invest even one penny on the Isle of Man