The Isle of Man considers investment relatively more important than deposits as they are the butter on the bread of the island's economy.
Funds under management on the Isle of Man have fallen from a high of £57.7billion in June 2008 to £34.4 billion end September 2009. That's a massive £23.3billion, a decline of 40.4%. Yet to date the Financial Services Commission choses to make no comment on this decline as to do so would draw critical attention to it.
In the face of the huge holes that are appearing in its financial resources - including a 24% loss of budget revenue as a consequence of HM Treasury's review of the VAT subsidy enjoyed by the IoM - the island's much vaunted AAA Credit Rating is now on notice for being downgraded. The loss of this 9 year old 'sacred cow' will have a major impact on the way the IoM as an offshore financial centre is viewed throughout the world.
Altogether the Isle of Man's economy is now in a precarious position, hence the government is spending £300,000 of taxpayers' money employing PR agencies to promote the Isle of Man as an attractive & desirable place where there is 'freedom to flourish'.
After the financial tsunami of 2008 prospective depositors & investors are now far more on their guard about trusting glossy sales pitches. People are now ultra cautious about where & with whom they put their money. They are doing their own 'due dilligence' looking more closely at the small print and the reality behind the efforts of banks and offshore financial centres to promote a positive image about themselves.
Dispossessed Kaupthing bank depositors are now highlighting the reasons why expats & others should not risk banking on the Isle of Man. This has been dismissed by the IoM as being of no consequence, but the reality is 3,170,000 people have specifically Googled DON'T BANK ON THE ISLE OF MAN and 4,880,000 have Googled DONT BANK ON THE ISLE OF MAN, with an additional 800,000 having Googled DONT BANK ON THE IOM. These are figures that are increasing as the message is being relayed via Twitter, Facebook, blogs and the DON'T BANK ON THE ISLE OF MAN website www.kaupthingiom-dag.co.uk
The wholly justified campaign by & on behalf of dispossessed depositors is not going to go away until the government accepts that there is a real need for it to seek a political solution to restore all lost deposits 100% in order to promote the best interests of the IoM as a safe & trustworthy place in which to deposit & invest.