Class 2 - Investment Business
A licence to carry on the Class 2 regulated activity of Investment business permits a business operating in or from the Isle of Man (within certain criteria and with specified exclusions) to:
- deal in investments;
- arrange deals in investments;
- manage investments belonging to another person;
- provide administration and safeguarding of investments; and
- advise on investments.
Businesses that provide services to Collective Investment Schemes will need to hold a Class 3 licence. Please see Class 3 – Collective Investment Schemes/Funds.
Full details of regulated activities, exclusions and exemptions from licensing may be found in the Investment Business handbook. A licenceholder under the Financial Services Act 2008 is obliged to comply with any licence conditions that have been imposed by the Isle of Man Financial Services Authority (“the Authority”) and which are shown on the licence.
The Investment Business handbook also contains links to other legislation relating to licenceholders, including the Financial Services Rule Book which contains the detailed rules to be complied with by all licenceholders. Guidance on rules and on other regulatory matters may also be found in the handbook.
The Authority issued an Explanatory Guide about Financial Advice on its expectations in respect of financial advice and suitability. Please also refer to Financial Advice – Sales & Advisory Guidance.
The Authority’s Licensing Policy for Regulated Activities under the Financial Services Act 2008 (“licensing policy”) provides guidance for licenceholders. A licenceholder and its key staff are required to be fit and proper persons. The Authority’s licensing policy is to apply a test of fitness and propriety in the key areas of integrity, competence and financial standing.
Licenceholders should also note the requirements of the anti-money laundering and countering the financing of terrorism legislation and handbook.