Details of the investigation into the Isle of Man's regulatory system have been made public on the United Kingdom Treasury website.

It says the independent review will look at the immediate and long-term challenges facing British offshore financial centres in the current economic climate.

Beth Espey reports (text, below, from attached audio file):

As expected, those in charge of the investigation say it will give Crown Dependencies a chance to show their strong track record in relation to the regulation of their financial services industries.

On the UK Treasury website it's highlighted that the existing constitutional arrangements in place between the territories and the UK will continue to be respected. That means the Island will continue to have complete independence in fiscal matters and the setting of rates of taxation. Constitutional change has been specifically excluded from the scope of the review.

What will be examined is financial supervision and transparency, taxation - in relation to financial stability - financial crisis management and international co-operation.

The review was announced by the United Kingdom chancellor in a pre-budget speech last week, and will be led by Michael Foot, who has had an extensive career with the Bank of England.

It's expected his initial findings will be presented in time for next year's budget, with fuller conclusions published later in 2009.