Banking in the Isle of Man

The Isle of Man, situated less than 60 miles from the north west of England in the Irish Sea, is an internally self-governing dependent territory of the Crown which is not part of the United Kingdom. It has over 10,000 years of history, its own currency, stamps and local dialect. The Isle of Man parliament, the Tynwald, has the longest recorded history of any seat of government in the world. The IMF report has commended the Isle of Man for its robust regulatory regime and high level of compliance with all the standards against which it was assessed.

IOM Financial Supervision Commission

The Financial Supervision Commission was established in 1983 as an independent statutory body in the Isle of Man. The Commission’s functions are described in the Financial Services Act 2008 and include:

• (a) the regulation and supervision of persons undertaking regulated activities (i.e. deposit-taking, investment business, services to collective investment schemes, fiduciary services, money transmission services) in or from the Isle of Man;
• (b) the maintenance and development of the regulatory regime for regulated activities;
• (c) the oversight of directors and persons responsible for the management, administration or affairs of commercial entities; and
• (d) the operation of the Companies Registry.

The Commission’s responsibilities do not extend to the insurance and pensions industries, which are supervised by the Insurance and Pensions Authority.

The Commission’s regulatory objectives are —

• (a) securing an appropriate degree of protection for the customers of persons carrying on a regulated activity;
• (b) the reduction of financial crime; and
• (c) supporting the Island’s economy and its development as an international financial centre.

The work of the Commission is overseen by seven Commissioners appointed by the Treasury, subject to the approval of Tynwald. The Chief Executive is also a Commissioner. The Commission is structured in divisions.

In discharging its functions the Commission is required to have regard to the —

• (a) need for the regulatory, supervisory and registration regimes to be effective, responsive to commercial developments and proportionate to the benefits which are expected to result from the imposition of any regulatory burden;
• (b) need to use its resources in the most efficient and economic way;
• (c) desirability of implementing and applying recognised international standards;
• (d) desirability of cooperating with governments, regulators and others outside the Island;
• (e) need to safeguard the reputation of the Island;
• (f) responsibilities of those who manage the affairs of permitted persons;
• (g) international character of financial services and markets and the desirability of maintaining the competitive position of the Island;
• (h) desirability of facilitating the development of the financial services industry.

IOM Financial Supervision Commission Licensed Banks
(as of December 2008)

Abbey National PLC
AIB Bank (CI) Limited
Alliance & Leicester International Limited
Alliance & Leicester PLC
Anglo Irish Bank Corporation (International) PLC
Bank of Bermuda (Isle of Man) Limited
Bank of Ireland (I.O.M.) Limited
Bank of Scotland International Limited
Bank of Scotland plc
Barclays Bank PLC
Barclays Private Bank & Trust (Isle of Man) Limited
Barclays Private Clients International Limited
BNP Paribas Trust Company (IOM) Limited
Bradford & Bingley International Limited
Britannia International Limited
Cayman National Bank and Trust Company (Isle of Man) Limited
Celtic Bank Limited
Close Bank (Isle of Man) Limited
Close Trustees (Isle of Man) Limited
Conister Trust Limited
Duncan Lawrie (IOM) Limited
Fairbairn Private Bank (IOM) Limited
Habib European Bank Limited
HSBC Bank International Limited
HSBC Bank PLC
HSBC Custody Services (Isle of Man) Limited
Irish Nationwide (IOM) Limited
Irish Permanent (IOM) Limited
Isle of Man Bank Limited
Lloyds TSB Offshore Limited
Merrill Lynch Bank and Trust Company (Cayman) Limited
Nationwide International Limited
RBS Coutts Bank (Manx) Limited
Standard Bank Isle of Man Limited
The Co-Operative Bank PLC
The Royal Bank of Scotland International Limited
The Royal Bank of Scotland PLC
The Standard Bank of South Africa Limited
Zurich Bank International Limited

Source: Offshore Library & Isle of Man Financial Supervision Commission