Deposit Taking Handbook

Class 1 - Deposit takers Handbook - Link to Register of licenceholders

Contents

1. Introduction

The Deposit takers handbook is produced to provide licenceholders (those who are licensed by the Isle of Man Financial Services Authority (“the Authority”) to conduct deposit taking business in or from the Isle of Man), potential licenceholders and other interested parties with easy access to the legislation and guidance relating to deposit taking activities in or from the Isle of Man.

The handbook is only produced in an on-line format. However, copies of all statutory documents (original, un-amended, legislation) may be obtained from the Tynwald Library, by quoting the SD number shown at the top of each document.

In case of any query, please contact the Banking Supervision team at the Authority. See contact list here.

2. Legislation

2.1 The Primary legislation governing deposit taking activities in or from the Isle of Man is the Financial Services Act 2008.

The Secondary legislation is made under powers contained in the Financial Services Act 2008. The secondary legislation and supplemental guidance can be found on a central table here.

2.2 In addition to the above, the Payment Services Act 2015 and Payment Services Regulations 2015 (as amended 2019) apply to certain deposit takers, i.e. SEPA (Single Euro Payments Area) applicants, participants and payment transactions. Information in relation to SEPA can be found on the SEPA webpage of the European Commission’s website.

3. Guidance applicable to deposit taking activities

3.1 The Authority has issued detailed guidance notes relating to deposit takers. These cover the following matters:

• Financial flows guidance
• Quarterly Prudential Returns
• Liquidity Risk Management
• Large Exposures
• Credit risk, Arrears and Provisions Management
• Interest Rate Risk Management
• Foreign Exchange Risk Management
• Internal Capital Adequacy Assessment Process (ICAAP)
• ICAAP Summary Sheet
• Fiduciary Deposits
• OTC Derivatives and Structured Products
• Deposit Advertising
• Corporate Governance
• Operational Risk Management
• Recovery Planning

3.2 Guidance and forms (not included above) which relate to deposit taking activities:

• Application form for a Financial Services Licence
• Licenceholder contact sheet
• Emergency contact amendment sheet
• Emergency contact personal details
• Forms and Returns Page
• Guidance Notes - Choosing Your Company or Business Name
• Licenceholder emergency contact sheet
• Deposit-taking transfers - Independent auditors report
• Representative Office licence application form (Class 1(3) only) (Microsoft Word / Adobe PDF)
• Guidance for Class 1(3) licenceholders
• Guidance for Class 1(2) applicants
• Class 1(2) Standard Licence Conditions
• Domestic Systemically Important Banks

3.3 Disaster recovery/ business continuity

The use of facilities on the Island by regulated businesses from other jurisdictions for temporary business continuity purposes is addressed by Schedule 2 of the Financial Services (Exemptions) Regulations.

4. Guidance applicable to all licensable sectors/activities

Guidance on matters generic to all the Authority's icensable activities/ categories of business can be found here.

5. Sundry web links and other matters

5.1 The Bank for International Settlements web site is http://www.bis.org/.

The Basel Committee on Banking Supervision has issued the Core Principles for Effective Banking Supervision" ("The Core Principles"). The Authority endorses the Core Principles. The Core Principles Methodology can be viewed at http://www.bis.org/publ/bcbs230.htm.

The Basel Committee has also issued various papers on matters such as corporate governance, risk management, which are endorsed by the Authority.