The Isle of Man Treasury has confirmed that savers in offshore bond wrappers will not get any individual cover under the enhanced depositor protection scheme.
On the 23rd of October the Manx government raised protection levels from £15,000 to £20,000 for non-individual depositors previously covered under the 1991 scheme, including charities and businesses.
However, according to Isle of Man Finance director John Spellman, these changes do not provide cover for individual clients with investments in offshore wrappers. He says: “My reading of the legislation is that offshore bond savers are only covered under a corporate cover of £20,000. It is up to the scheme adviser but my understanding is that it’s one cover per insurance company.”