Isle of Man Treasury ends contract with reserves investment advisors

The Isle of Man Treasury has ended its contract with a company providing financial investment advice on its £1.7bn reserves.

MJ Hudson Investment Advisers Limited had been providing external scrutiny.

However Treasury Minister Alex Allinson said in December they became aware of "problems with the parent company in terms of their auditors".

He said concerns around the company had been compounded following the "recent resignation of their CEO".

MJ Hudson has been given a three-month notice period while the department works to recruit a new investment manager.

Dr Allinson said the company had been advising the Treasury specifically on investments over the past 12 months and ending the relationship did not cast any doubt on the advice already received.

He said: "We have quite a large amount of money that we look after on behalf of the taxpayer and I think it's absolutely right that we get the best external advice of how to invest that."

It was important that the Treasury had "external advice and scrutiny" to help it make the "best decisions", he said.

People should be reassured that the move did not mean there was "any public money at risk", he added.

Why not follow BBC Isle of Man on Facebook and Twitter? You can also send story ideas to [email protected]