Interview with Geoff Skillicorn, RBS Coutts Isle of Man
By: Liz Corlett
31 January 2009
For how long has the Isle of Man been at the forefront of wealth management solutions?
The Isle of Man has continually developed its finance sector over the last 40 years, since it became apparent that a more diversified economy would benefit the Isle of Man and its residents. The traditional industries of tourism, farming and fishing had served the Island well but with the advent of international tourism and the changing face of the surrounding world, the Isle of Man needed new sources of income to sustain itself and grow.
In what ways has it evolved as a jurisdiction to answer the needs of the diverse clients?
With its capability to manage its own fiscal affairs, the Isle of Man has been able to attract new business and develop its legislation, not only for residents but to allow the Isle of Man to become a highly- regarded and well-regulated place to carry out international business. It is clear from the continuous period of growth since the 1960s that the Isle of Man has become more attractive to individuals and businesses both as a place to live and to carry out international commerce.
What does the Isle of Man offer in terms of support services to the main financial institutions?
Whilst there are restrictions for employment, the Isle of Man actively encourages new businesses to bring personnel with them where practical, in an effort to add to the economy. The ability to purchase property without restriction is a definite advantage over some other jurisdictions, which again helps the economy to continue to grow.
Education standards are high and ‘home grown’ talent have considerable opportunities available to them. Encouraging graduates to return to the Island to further their careers helps to stimulate growth and increased stability for the Isle of Man.
In your experience, what factors have typically brought high net worth individuals to the Isle of Man?
Increasingly, we are seeing people moving to the Isle of Man for lifestyle reasons. In some cases, it may be to reduce levels of taxation in their present country but usually this is only part of the story.
Having the ability to set up home in a place where the air is clean, the work ethic is strong and there is breathtaking scenery to explore, is very attractive. The flexibility to approach the Government and Judiciary and to gain an audience is also refreshing.
The transportation links are good with the UK and beyond, and ownership of private aircraft has increased recently. These factors and more attract high net worth individuals who are seeking either to retire or to continue working just as hard but in a better environment.
Do you think that ongoing economic turmoil has shaken confidence in the Isle of Man and if so what challenges lie ahead?
The financial events of 2008 have touched everyone throughout the world and the Isle of Man has and will continue to feel the effects. We have already seen several financial institutions brought to their knees and the healing process will take considerable time.
The reverberations will affect all aspects of our economy including retail, finance, and housing. We will all have to look hard at where our priorities lie. The Isle of Man is perhaps in a better position than some other small economies, in that we have saved for a rainy day and to an extent that day has now arrived.
Because we are a diversified economy and don’t have all our eggs in one basket, we will survive. Although much of the Isle of Man’s income is derived from the finance sector, this sector incorporates many different areas, not all interdependent. We cannot be complacent, however, and must strive to look for new opportunities in order to be in the best position when the next phase in the economic cycle – recovery - returns, which it surely will.
It is up to us all to enhance the reputation of the Isle of Man in our dealings with our clients throughout the world, in order to maintain the Island’s credibility as a first class place to live, work and continue with growth.