Isle of Man raises its game with e-gambling

The latest survey of financial institutions in Jersey shows the tremendous growth in the fund-management industry in the past year. While banking still accounted for four-fifths of the total profits of £1,314m. last year, fund management grew faster than banking.

Profits for banks rose by 28%, trust and company administration grew 6% and accountancy firms 5%, but the fastest growth came from fund management which increased by 35%.

Profit per employee across the whole finance sector reached £113,000, 15% higher than in 2005. Average profit per employee in fund management overtook banking for the first time since 1998. Fund managers earned £199,000 average profit per employee last year, compared to £188,000 in banking, £24,000 in accountancy and £23,000 in trust and company administration, including lawyers.

The Isle of Man believes that it can take on Guernsey and Alderney in the rapidly growing e-gaming sector, according to the chairman of the Manx E-gaming Association, John Webster.

Speaking after the inaugural

e-gaming summit there, Mr Webster said that the Isle of Man is in a good position to compete as it is the world headquarters of a number of leading players.

The sector already employs 230 people on an average salary of £45,000 and includes such leading companies as PokerStars, Microgaming and Continent 8.

Isle of Man Today pointed out that the summit took place in the same week that the Treasury appointed a new e-business inward-investment manager.

Inflation has hit a 16-year high in Bermuda.

Monthly inflation rose 1.4% between April and May, mainly due to energy prices. However, a Finance Ministry spokesman said that the Bermuda domestic economy was not overheating.

The underlying 12-month inflation rate remains close to the 3% desired track and was 3.3% in May, the spokesman told The Royal Gazette.

Inflation is also expected to climb to 3.5% from its current level of 2.2% in the Cayman Islands, according to Cayman NetNews.

An analysis of the 2005 States accounts in Jersey shows that 310 public-sector employees earned in excess of £70,000 total remuneration each last year. Eighteen of them earned more than £150,000.

The total States wage bill was £232m., plus £26m. in pensions and £12m. in social security contributions.

The first Japanese-owned reinsurance company has set up business in the Isle of Man. Tokio Marine Bluebell Re is capitalised at £40m. and is also the first life reinsurance company to be administered there.

Gibraltar has achieved its highest-ever budget surplus. The Rock, which has a population of only 28,000, ended last year with a surplus of £24.8m. and capital reserves of £100m. The economy is continuing to grow at about 7 to 10% a year.

The top rate of income tax has been reduced from 42% to 40%, which affects 7,000 taxpayers, and none with income below £25,000 will pay more than 25% in tax.

Road tax has been abolished, but duty on petrol has been increased by 4p per litre. However, the duty exemption on fuel and oil for boats under 250 tonnes has been abolished.

The Cayman Islands Government has paid at least $1.5m. to a lobbyist in the United States 'to help erase a lingering perception of the Cayman Islands as a hotbed of money laundering', according to the New York Times.

The Caymans are now anxiously watching attempts by the US authorities to stem tax abuses by global hedge funds. Three-quarters of them are said to have their corporate headquarters in the islands, according to Cayman NetNews.

A review of the work-permit system in the Isle of Man has suggested sector-based ones and a 10-year qualifying period for Isle of Man worker status in place of the current five years.

Further consultation will be needed on sector-based permits which can be obtained before applying for a job and which can be transferred between employers. There are fears that they could be difficult to enforce, according to Isle of Man Today.

The British Virgin Islands Financial Services Commission has introduced a new penalty system to fine licensees who breach regulatory rules.

Fines range from $100 to $20,000 and are applied according to the seriousness of the offence but also recognising the significant differences in the size and resources of licensees.