Within the next couple of months the Isle of Man has announced that they will be introducing a new Alternative Banking Regime (ABR) to complement work on encouraging entrepreneurism and funding for new and expanding businesses.
After months of consultation and industry Collaboration the Island has developed the proposed ABR framework. When introduced, the ABR will expand the existing Class 1 (deposit taking) banking licence to include:
Class 1 (1) – for the typical existing bank and any taking retail deposits.
Class 1 (2) – for non-retail deposit takers – those that provide services to a very limited class of individuals, and corporates.
Class 1 (3) – for Representative Offices of Foreign banks, not able to take deposits in the Island.
The Class 1(2) non-retail (or wholesale) banks (including private/merchant banking) would comprise a new banking sector on the Isle of Man. Class 1(2) would only be available to corporate depositors and a very limited class of individuals (with a high minimum entry criteria, which is still being discussed).
A Discussion Paper, issued by the Isle of Man Financial Services Authority, has recently closed and is currently being reviewed. Subject to this process, it is anticipated the ABR will be in place in summer 2016.