Isle of Man based Insurance Companies are on target to meet the looming changes to the way they do business with UK investors.
 
The assurances from the Manx Insurance Association (MIA) come after the results of a survey by Capital Financial Software controversially suggested more than half of all offshore investment and retirement products still failed to meet the new retail distribution review (RDR) regulations.
 
The RDR regulations will come into force on December 31st 2012 and are aimed at making it easier for customers to ascertain what advice they are paying for along with both educational and capital requirements for UK Independent Financial Advisers.
 
MIA Deputy Chairman Gill Marples said:
 
‘MIA members have been working for some time to ensure that their products and services are RDR compliant in time for the regulatory deadline.
 
‘RDR is one of the largest changes faced by the UK financial services industry for some years and MIA members are aware of the need to offer support, where they are able, to IFAs during this change.’
 
MIA members whose business is impacted by RDR have been working individually and as part of the Association to identify the product and services changes they need to make. Work is ongoing to ensure systems and products are RDR ready.
 
Some members have already released details of post RDR product and services and others will be releasing details over the coming months.
 
‘Members are confident that they will be in a position to offer RDR compliant products and services for business written from 2013,’ reassured Gill Marples, Isle of Man Assurance director.
 
A source close to the UK industry suggested that the changes required by offshore providers may be indeed be more easily catered for than many large onshore providers who are in a race to be ready in time.