The Isle of Man has an excellent reputation with over £18bn of funds under management; well established relationships with prime brokers and a full complement of supporting professional services including fund administrators, legal firms, fiduciaries and custodians, ensure a complete service.

The Island’s functionaries include globally recognisable names and boutique and specialist providers. They are supported by internationally recognisable advisers including lawyers and accountants. The fund legislation provides for the flexibility of appointing functions from other jurisdictions deemed to be suitable regulated by the Isle of Man Financial Services Authority (IOMFSA).

Local regulation and experienced, mature sector staff ensure that you can expect a high quality service to rival anywhere within the global fund industry.

The Isle of Man offers a full range of vehicles for use as fund structures. Companies can be established under the more traditional Companies Act 1931 or the more flexible Companies Act 2006, which offers a stand-alone vehicle with minimal administrative requirements, flexible capital structure and limited disclosure requirements. Both types of company can be established as protected cell companies or ("PCCs"). PCCs are ideal for use in both multiclass/single manager structures and in multi-manager offerings. 

Isle of Man limited partnerships offer tax transparency and a flexible legal framework. A limited partnership may return capital prior to the winding up of the partnership. Furthermore, in order to provide comfort to investors, the statute sets out a “whitelist” of activities that will not result in limited partners being regarded as involved in the management of the partnership, thereby prejudicing their limited liability status. 

Your fund can be administered in the Isle of Man, whether it is one of the excellent local products on offer or domiciled in another jurisdiction - e.g. a Cayman or BVI domiciled fund might be used, with an Isle of Man regulated administrator.

All types of funds are administered on the Isle of Man, from simple private arrangements to complex multi-strategy hedge funds, managed accounts, funds of funds, quoted companies and private equity.

Isle of Man trust law is similar to that of England and Wales. 

Local regulation and experienced, mature sector staff ensure that you can expect a high quality service to rival anywhere within the global fund industry.

Experienced, local non-executive directors can be appointed to the board of the fund bringing independence and valuable knowledge to the corporate management.

The Isle of Man couples favourable tax regimes for both individuals and companies.

For individuals there is a basic rate of income tax at 21% with generous personal allowance levels, no CGT or inheritance tax and a cap on maximum tax payable.

For companies there is a zero rate of corporate tax, ensuring tax neutrality and predictability in relation to tax structuring.

The Isle of Man offers a highly skilled and experienced workforce at a considerably cost than many other major European cities and international financial centres. This cost efficiency makes the Island an attractive location for establishing and operating investment funds, particularly for businesses seeking to maximise value without compromising on talent or expertise.

In addition to lower staffing costs, the Isle of Man benefits from exceptionally low staff turnover rates. This stability ensures long-term continuity across fund administration teams, helping to maintain strong client relationships and consistent service standards. For fund managers and promoters, this means smoother operations, reduced recruitment overheads, and greater confidence in the long-term management of their structures.

Regulation of fund managers and administrators is undertaken in the Isle of Man by the IOMFSA. A number of fund vehicles require no pre-approval from the IOMFSA which means they can be launched quickly and without any risk of regulatory delays.

There are no regulatory restrictions on the types of investments and no restrictions on the trading strategies that can be employed by managers or advisers for most funds, other than those described in an appropriate offering document.

Target investors may range from high net worth investors, through family offices, to institutional investors. Dependent on the product, minimum investments will vary and investors may be required to certify the degree of experience they have is sufficient for the risks associated with the product in question.

The Isle of Man has a well-founded reputation as a premier jurisdiction in terms of regulation, achieving a balance between providing a business friendly environment and meeting international standards of financial supervision. The Isle of Man continues to have capacity to attract and accommodate real business operations, welcoming physical operations and personnel with no quota type restrictions on employment or accommodation.

Licensed activities, including fund administration and management are overseen by the Isle of Man Financial Services Authority (IOMFSA)

• The IOMFSA has entered into a memoranda of understanding with equivalent regulators in a wide range of jurisdictions
• Specific regulation is tailored to the various administrator services and the different types of fund
• The comprehensive AML/CFT legislation is fully compliant with international requirements
• A positive and constructive relationship exists between the IOMFSA and the funds industry, with both working together to ensure the Isle of Man remains at the forefront of this dynamic and developing industry