Deposit Taking and Investment Business

We have extensive experience working within the financial services sector, and provide advice, counsel and legal support to our clients.

Financial services, especially deposit taking and investment business, is one of the largest economic sectors on the Isle of Man. The Island is well known as a leading international business centre. It has achieved through innovation, professionalism and most importantly the regulatory environment it has created and maintained across the diversity of the industry.

The activities of banking and investments in, or from, the Isle of Man (if undertaken by way of business) are regulated by the Isle of Man Financial Services Authority under the Regulated Activities Order 2011 (amended to 2019). The Regulated Activities Order 2011 can be viewed here: Download Document

Although there are other classes within the regulations, our main focus has been with Class 1 and 2  Deposit Taking and Investment Business licence-holders:

Class 1 | Deposit Taking

This takes three forms:

1. Existing holders of deposit-taking banking licences and to any institutions taking retail deposits.
2. An Isle of Man incorporated company which is part of a non-banking group, established and licensed to provide services to corporate organisations and to a restricted class of individuals.
3. Representative offices of banks operating and licensed outside the Isle of Man which are not able to take deposits in the island.

Class 2 | Investment Business

This encompasses dealing in investments as principal or agent; arranging deals; managing investments; providing administration and safeguarding of investments under a contractual relationship; advising a trustee or manager of a retirement benefits scheme. The regulations provide for a number of exclusions, among which are the issue of own shares or debentures; groups and joint enterprises; transactions with an overseas person who is authorised to conduct that activity by:

• An overseas regulator
• Venture capital
• Employees’ share schemes
• Providing corporate or trust services (which are regulated separately under Classes 4 and 5)
• Incidental professional services (legal, accountancy etc.)
• Advice given in the media
• Insurers
• Friendly societies
• Where the activity is carried out by a collective investment scheme for the scheme’s own account
• Investment based crowdfunding services (which are regulated separately under Class 6)

Talk to us today
If you need to talk to someone around banking and investments and any regulatory matters, then take the first step. You can email [email protected] or call us on 01624 639350 to arrange your free consultation with us today.

Back to MannBenham Advocates | Regulatory