Response of Isle of Man to introducing of new Basil Principles

02.08.2012

The Isle of Man Financial Services Commission begins a consultation on amendments to the Financial Services Act 2008 and the Collective Investment Schemes Act 2008. They are directed at supervising whether on the territory of the Isle adherence with revised Basel Core Principles for Effective Banking Supervision is achieved, in relation to which the banking sector will be assessed from September.

Amendments presented by the Financial Services (Miscellaneous Amendments) Bill change the definition of the “controller” in article 48 of the Financial Services Act 2008 in order to extend the powers of Commission not only over individuals but also on companies that control licenseholders. The revised definition will comply with definitions presented by legislation of Jersey and Guernsey where the “controller” is not limited to individuals.

The amendment is aimed particularly on achieving adherence of 1 and 12 Basel Core Principles that require supervision of banking groups and holding companies. Today the powers of Commission do not extend to banking groups and non-regulated holding companies.

The Bill has passed the first reading in the House of Keys* and will be considered in the next session of the Parliament (Tynwald) in autumn 2012.

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Expert’s opinion

For the Isle of Man as one of the most popular offshore jurisdictions it is crucially important to increase the reliability of the banking sector. The Commission explains that changes can strengthen supervision over licenseholders.  

Mainly it is achieved by complience with the common standards in the sphere of banking regulation developed by the Basel Committee on Banking Supervision. In addition, this Committee established at the Bank for International Settlements is the body with the world name that includes the Group of 10 (G10). That’s why the intention to improve the regulation of the banking sector for the Isle of Man is the keystone of increasing foreign capital inflow.  
It should be noticed that the Isle of Man has always been an attractive jurisdiction for opening of bank accounts both by residents and non-residents due to possibility of currency combination, account management through the Internet, small commission charges.

Consequently, in the light of described amendments we recommend You to draw special attention to enhancement of the Isle of Man’s banks prestige and reliability. Our consultants will help You in opening of bank account.

On the basis: http://www.fsc.gov.im/ConsultationDetail.gov?id=333

Julia Akhmetova ( Paralegal of Moscow office Honest & Bright Ltd)