Regulation of the finance sector in the Isle of Man is carried
out by the Financial Supervision Commission and the Insurance and
The Financial Supervision Commission
The Financial Supervision Commission (FSC) is responsible for the licensing, authorisation and supervision of banks, building societies, investment businesses, collective investment schemes and fiduciary businesses.
Institutions and businesses that wish to operate from the Isle of Man must establish a real presence with offices and staff.
Deposit-taking requires a Class 1 licence and permits a business operating in or from the Isle of Man to accept a deposit of money and lend it to others.
The Banking Licence
An unrestricted banking licence permits a bank to conduct a full range of banking business with customers both in the Isle of Man and elsewhere.
The licence holder must have a real presence on the Isle of Man though. This means that it must have on the Isle of Man:
- Management and staff
- Discrete and secure premises
- Adequate systems and resources to conduct banking business.
Almost all banking licenceholders must be members of the Depositors' Compensation Scheme ('the Scheme'). However if they are not accepting retail deposits, then they may apply for exemption from the Scheme.
A managed licenceholder employs the services of another licensed bank in the Isle of Man, the 'Approved Manager', to provide the day-to-day management and administrative functions to it.
The managed licenceholder may not employ any staff in the Island without the consent of the Commission; and it must operate from the premises of the 'Approved Manager'.