Class 6 - Crowdfunding
The Crowdfunding handbook is produced to provide licenceholders holding a Class 6 Permission under the Financial Services Act 2008 (those who are licensed by the Isle of Man Financial Services Authority (“the Authority”) to conduct equity or loan-based crowdfunding in or from the Isle of Man), such potential licenceholders and other interested parties with easy access to the legislation and guidance relating to the regulated activity of crowdfunding in or from the Isle of Man.
The handbook is produced in an on-line format only. However, copies of all statutory documents (original, un-amended, legislation) may be obtained from the website http://www.tynwald.org.im/links/tls/SD/Pages/default.aspx or from the Tynwald Library, by quoting the SD number shown at the top of each document.
Please find links below to the Financial Services Act 2008, secondary legislation and relevant pieces of guidance.
Guidance (and where applicable other legislation) relating to other Classes of Regulated Activities may be found in handbooks relating to other licensable activities: Deposit Taking, Investment Businesses, Collective Investment Schemes, Trust and Corporate Service Providers (“TCSPs”), and Management and Administration Services.
In case of any query, please contact the Banking Supervision team at the Authority, on +44 (0)1624 646000 (or your Relationship Manager if an existing licenceholder).
2.1 The Primary legislation governing Crowdfunding Platforms in or from the Isle of Man is the Financial Services Act 2008
The following secondary legislation is made under powers contained in the Financial Services Act 2008. Where these regulations and regulatory codes have been amended after they were made, the “as amended” version is shown:
- Financial Services Act 2008 (Appointed Day) Order 2008
- Regulated Activities Order 2011 (as amended 2018)
- Financial Services (Exemptions) Regulations (as amended 2018)
- Financial Services Rule Book 2016
- Financial Services (Civil Penalties) Regulations 2015
- Financial Services (Fees) Order 2017
- Financial Services (Register of Permitted Persons) Regulations 2011
- Financial Services (Appointment of a Manager) Order 2014
2.2 Regulatory requirements for Class 6 activity (Crowdfunding platforms) business will be applied by licence conditions initially, as detailed in the Authority’s consultations. This allows the requirements to be ‘tested’ in practice before they become secondary legislation in the Rule Book. Licence conditions may vary between entities and the conditions applicable to any particular licenceholder are shown on its licence. A list of licenceholders can be viewed here and each licenceholder’s name provides a link to its licence conditions. In a future update to the Rule Book, the standard licence conditions will become rules applicable to Class 6 regulated activity (Crowdfunding Platforms).
Here is a list of the standard licence conditions for Class 6.
3. Guidance applicable to Crowdfunding activities
3.1 Guidance and forms which relate to crowdfunding activities:
- Application form for a Financial Services Licence
- Interim Financial Returns Form
- Licenceholder contact sheet
- Forms and Reporting Page
3.2 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 (Exemption) Regulations.
4. Guidance applicable to all licensable sectors/activities under the Financial Services Act 2008
Guidance on matters generic to all IOMFSA-licensable activities/ categories of business:
- Anti-Money Laundering Handbook and Countering the Financing of Terrorism Handbook
- Business plans - rule 8.9 guidance
- Corporate Governance
- Licensing Policy
- Materiality of rule breaches – rule 8.17 guidance
- Outsourcing/Delegation of function
- Fitness & Propriety assessment forms
- Responsibilities and Duties of Directors under the laws of the Isle of Man
- Rule Book consent and notification summary table
- Rule Book obligations to keep registers
- Rule Book obligations to maintain policies
- Proforma subordinated loan agreement (N.B. This proforma agreement has been prepared specifically for use by applicants for and holders of a financial services licence under the Financial Services Act 2008. If you are not an applicant or licenceholder, you should not copy, circulate or in any other way use or rely on the wording contained in the agreement. Applicants and licenceholders may copy the proforma but must not rely on the wording of the proforma and should take their own legal advice as to the appropriateness of the wording and the document in their own circumstances.)
- Supervisory approach
- Training & Competence