Use Investor Protection Laws to your advantage.

Investor Protection Laws vary depending on location. We would always advise you use a company based in a jurisdiction that offers excellent Investor Protection.

The Isle of Man and Guernsey are two of the most popular destinations for International Investors and Expatriates, mainly because almost all credible advisers will use these locations, as well as some others such as Luxembourg.

Isle of Man

The Isle of Man is an established offshore investment center with a stable and independent legal, political and regulatory framework and with confidentiality maintained. The Isle of Man provides an ideal location for investment.

The Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991 protects all investors who invested after 1991. This ensures that in the unlikely event that Skandia became unable to meet its liabilities investors would receive up to 90% of their fund value.

Life assurance is an important business sector of the island, representing a considerable share of the total international market of AILO (Association of International Life Offices) members. All life assurance companies based on the Island are closely regulated by the Isle of Man Government Insurance & Pensions Authority, which controls the type of business written and imposes detailed reporting requirements. The island enjoys full designated territory status under the United Kingdom Financial Services Act 1986, which means that the island’s investor protection laws are regarded by the UK authorities as being at least as effective as those for the UK.

To read more about Isle of Man Investor Protection regulations please visit The Isle of Man Government Site.


The comfort of knowing that assets representing at least 90% of any licensed financial institution (not banks) such as “Generali International” liabilities to policyholders are held in custody by an independent trustee. Which in effect means that 90% of investors capital is protected, in the event that company could not meet its liabilities.

To read more please visit the Guernsey Financial Services Commission.


Luxembourg, at the heart of Europe, is a major international financial center. It is the private banking capital of the EU, the largest center outside the USA for the administration and management of investment funds and the premier location for the pan-European cross border life assurance industry.

A secure on-shore regulatory jurisdiction

Historically, many high net-worth individuals turned to off-shore financial centers for confidentiality and tax avoidance. Apart from a lack of regulation and investor protection, off-shore centers have been subject to increasing attacks from European legislators and international bodies such as the OECD. As a result, confidentiality is giving way to disclosure and off-shore investment is becoming the worst of all worlds, with investors placing their assets in real jeopardy in return for no real or sustainable benefits.

In contrast, Luxembourg’s regulations are governed by European Directives that require strict financial controls and supervision to provide investors with a safe, secure on-shore regime.

A tax-efficient environment

All interest, dividends and capitals gains in Luxembourg life assurance funds are reinvested free of taxes. Furthermore, certain withholding taxes can be reclaimed from countries that make this deduction. Although your tax position will ultimately depend on the rules in your country of residence, the tax-exempt status of Luxembourg life funds provides a decisive advantage.

Luxembourg’s unique investor protection regime

Luxembourg law provides maximum protection to life insurance policyholders. The cornerstone of this investor protection regime is the legal requirement that all clients’ assets must be held by an independent custodian bank approved by the Luxembourg state regulator. This arrangement is known as the “triangle of security”.

This regime ensures the legal separation of clients’ assets from the insurance company’s shareholders and creditors. Furthermore, the custodian bank is required to “ring-fence” clients’ assets and is bound by the regulator’s legal powers to protect the assets on behalf of policyholders.