Regulatory Bodies

Guernsey:
Upon the occurrence of a compensation event the Commission shall, subject to paragraph (3) and to rules 3.04, 3.05 and 6.01 (2), determine that the investor should be paid compensation of an amount (not exceeding 90% of the amount of the liability which the Commission is satisfied that the participant is unable, or likely to be unable, to meet) appearing to the Commission to be appropriate having regard to -

(a) the investor’s rights in respect of the liability; and

(b) any compromise of the liability; and

(c) any security or right of set-off available to the investor in respect of the liability; and

(d) the investor’s ability, if any, to recover in respect of the liability from any third party also liable in respect of it; and

(e) any other means whereby the investor has, or has had, or might have, an opportunity of recovering in respect of the liability, including any means of so recovering from the defaulting participant.

IIsle of Man:
The benefits of investing offshore include tax efficiency with regard to savings and confidentiality. Another key feature is that of security, and this is why the financial institutions with whom Phoenix Consultants Ltd choose to do business are typically based in areas like the Channel Islands and the Isle of Man, off the UK mainland. The Isle of Man is one of the world's leading offshore financial centres and offers unequalled levels of investor protection.

Regulations allow for the establishment of a fund out of which compensation is to be paid to investors in authorised collective investment schemes if a manager or trustee of an authorised scheme is unable to satisfy clients in respect of a civil liability incurred by them in connection with their business. The regulations also provide for the levying of contributions to the fund from managers and trustees of authorised schemes.

Compensation is as follows:
100% of the first £30,000
90% of the next £20,000
with a maximum compensation of £48,000

To date no defaults have taken place and consequently the Compensation scheme has not been activated. This gives weight to the Financial Supervision Commission's contention that the licensing criteria and supervision regime presently in existence, contributes in no small way to the stability and reputation of the Island 's fund industry.