New listings on The International Stock Exchange (TISE) are among the opportunities for the Isle of Man’s financial services industry arising from Brexit, according to Carolyn Gelling, Head of Isle of Man Office at The International Stock Exchange Group.
Speaking to members of the Isle of Man branch of the Chartered Institute for Securities & Investment (CISI), Mrs Gelling provided an overview of the Isle of Man Government’s reporting of its activity in respect of Brexit.
This included the potential implications for the Isle of Man of the United Kingdom’s withdrawal from the European Union, possible memberships which the Isle of Man may choose to pursue in its own right and the ongoing program of engagement to raise awareness of the island’s position in response to Brexit. She noted that, at a time of such uncertainty in the UK, the stability being offered by the island means that it is ideally placed to support the UK economy through Brexit.
Mrs Gelling said: “Brexit has thrown up a number of questions. However, while there are a number of important considerations for the Isle of Man, we do have already an established engagement programme to ensure the island’s position is understood and addressed as part of the negotiations.
“In addition, of course, compared to the uncertainty in the UK, the Isle of Man can offer the certainty of a financial services jurisdiction which is a third country in relation to the European Union. It is though important that we build on our successes and continue to innovate so that we can take advantage of the opportunities, which may come in niche sectors.”
Using TISE’s business as an example, Mrs Gelling explained how its ability to offer a stable and proportionate regime has already helped to attract more business during the last year, for example, in the form of HMRC approved Real Estate Investment Trusts investing into UK property and through new debt issues.
Mrs Gelling added: “We also think that this offering might prove attractive to Small and Medium sized Enterprises in the island and from the UK. They are being feted as the engine room of the British economy but they will need support to continue to grow yet there are limited financing options available to them, including through the capital markets.
“A listing on a major stock exchange is often prohibitively expensive and/or bureaucratic. We believe that TISE provides a complementary offering to those which already exist and, by acting as an ‘incubator’ exchange, we can help to oil the wheels of economic growth in the UK, especially given the context of Brexit.”
Mrs Gelling was speaking to Isle of Man CISI members on Friday 22 September at the iMuseum.
Paul Kneen, Chartered FCSI, President of the Isle of Man CISI Committee said: “Carolyn’s excellent overview has provided plenty of food for thought regarding Isle of Man opportunities developing as a result of Brexit.
“Her incisive presentation is a perfect example of the value and benefits to the island’s financial services practitioners of CISI professional membership. Our next CPD event is 23 November, which will look at absolute return investing and navigating an uncertain future therein, with two investment directors from Ruffer. We look forward to welcoming members at that event.”