IoM Issues New Alternative Banking Regime Documents
by Jason Gorringe, Lowtax.net, London
29 August, 2016
The Isle of Man has published legislative amendments, details of its licensing policy, and the relevant forms for its new Alternative Banking Regime, which was launched on August 1.
The Alternative Banking Regime creates two additional classes of banking license by splitting the existing Class 1 license into three sub-classes. According to the Government, the changes are intended to address a decline in traditional offshore banking by creating a "non-retail" banking regime to sit alongside existing retail deposit-takers.
The three new sub-classes of banking license are: a Class 1(1) license, which applies to licensees providing services to the full spectrum of customers (this class covers existing Class 1 license holders); a Class 1(2) license, which applies to those providing services to corporates and a very limited class of individuals (this class applies to wholesale, private, or merchant bank deposit takers); and a Class 1(3) license, which applies to representative offices of foreign banks (license holders in this class are not allowed to undertake any transactions).
In addition to the release of the new application forms and the licensing policy guidelines, the Isle of Man Financial Services Authority has updated its Deposit Taking Handbook.
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