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Isle of Man: Business Environment

Banking and Financial Services

This page was last updated on 24 January 2020.

In July 2001 the government announced a financial services ombudsman scheme which deals with complaints about personal financial advice in the realms of banking, credit, insurance and investment. Originally, the legislation for the scheme was the Financial Supervision Act 1988 as amended by the Fair Trading (Amendment) Act 2001. As from 1st August 2008, this was replaced by the Financial Services Act 2008, which brought about the following changes:

  • The scheme’s adjudicators, including the senior adjudicator, are appointed by the Appointments Commission instead of the Office of Fair Trading.
  • If a complaint is submitted for formal determination by an adjudicator, either party, the complainant or financial provider, may now request a review by the senior adjudicator of the adjudicator’s provisional determination. The outcome of any such review will be binding on both parties. The only right of appeal against the final determination is to the High Court on a point of law.
  • The scheme is open to individuals with a financial complaint against a Manx firm that the firm has been unable to resolve.

    In 2016, in an effort to attract more banking business to the island, the Manx government introduced the alternative banking regime (ABR). The regime is specifically designed to attract private banks, foreign bank branches and representative offices. To encourage this, the class 1 banking licence was divided into three types: