Prospective applicants are encouraged to contact officers of the Isle of Man Financial Services Authority (“the Authority”) at an early stage to discuss their proposals for establishing and operating a regulated business in the Isle of Man. These discussions enable the Authority’s officers to give applicants any appropriate guidance where it is sought and to identify any foreseeable difficulties connected with the proposed operation. However the Authority does not give legal advice and, in cases of need applicants should seek appropriate legal advice from a firm of advocates in the Isle of Man.
On receipt of the application the staff of the Authority will process the application. This will include a review of the application form and supporting documents, and, if appropriate, discussion with other regulatory bodies.
The assessment process for applicants involves a thorough evaluation to ensure the Authority’s fitness and propriety criteria, including integrity, competence and financial standing, are met. Individuals that are intended to hold Controlled Functions, and who must therefore have their fitness and propriety assessed, will need to submit the appropriate F&P forms. Details of the Controlled Functions and which form is required may be found in Regulatory Guidance – Fitness and Propriety. The F&P forms are available here.
It should be noted that the onus is on the applicant and relevant persons connected with the applicant to satisfy the Authority that they are fit and proper, not on the Authority to prove that they are not.
On completion of all enquiries the processing staff will make a recommendation as to whether an authorisation should be granted and detailing any conditions that it may be appropriate to attach to the authorisation.
The Consideration of the Recommendation
Authorisations applications are considered by senior Authority staff(for this purpose referred to as “the decision making body”). The applicant will be notified of the recommendation by letter and will also receive a copy of the paper supplied by staff to the decision making body. Where a recommendation is for an authorisation to be granted, the applicant will not be invited to attend or make written representations. However, where a recommendation is for an authorisation to be refused, the applicant will be invited to make any representations it wishes in writing to the decision making body (oral representations are only as permitted by the decision making body).
The staff recommendation is purely that. The decision to approve an authorisation is made by the decision making body, which may accept, or reject, the recommendation of the processing staff.
When making the decision, the decision making body will hear the submissions of the staff in support of the recommendation, and where the recommendation is for an authorisation to be refused, the decision making body will consider any representations that may be made by the applicant.
The decision will be notified to the applicant subsequently in writing. Reasons will be provided for a negative decision and for the imposition of any conditions.
If an applicant is aggrieved by a decision of the Authority not to approve an authorisation or to attach conditions to an authorisation, it may seek a review by the Financial Services Tribunal.
This Tribunal is made up of individuals who are independent of both the Authority and applicant. The Financial Services Tribunal can confirm, vary or revoke the decision.
Any right of review (e.g. to the Financial Services Tribunal) will be explained to the applicant in the letter communicating the authorisation decision.