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 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:
- Class 1 (1) – for typical existing banks and those taking retail deposits.
- Class 1 (2) – for non-retail deposit takers, chiefly merchant and investment banks.
- Class 1 (3) – for representative offices of foreign banks which may not take deposits in the island.
Corporation tax on retail deposit-based banks is rated at 10%; for all other banking activities it is 0%.