Safe and secure
This applies 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 Services Authority'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.
The Financial Services Authority is responsible for the licensing and regulation of fund managers as well as the authorisation of collective investment schemes (mutual funds). For more information please see http://www.iomfsa.im/