How to Apply for a licence
Introduction
The FSC is an independent statutory body responsible for the licensing and supervision of banks, building societies, investment businesses, collective investment schemes, corporate service providers and trust service providers in the Isle of Man.
The Authorisations team is responsible on a day-to-day basis for the initial processing of licence applications for all regulated activities and the vetting of all individuals who need to satisfy the Commission they are fit and proper for their proposed roles.
This process involves a thorough evaluation of the applicant’s business and all key individuals connected with it to ensure the applicant and all connected individuals (Key Persons) meet the Commission’s ‘fit & proper’ test in the three key areas of Integrity, Competence and Solvency.
This evaluation will be carried out in accordance with the Commission’s Licensing policy. The Licensing Policy is supported by the Training and Competency framework.
The application will be processed in accordance with the Commission’s Licensing Procedure.
To find out more about the Authorisations team please click below:
http://www.fsc.gov.im/about/structure/companies.xml
http://www.fsc.gov.im/lib/docs/fsc/structurechart.pdf
What type of licence do you need?
A separate licence is required for each class of regulated business undertaken. The classes of regulated business are: banking, investment business, corporate service providers and trust service providers. Each class of licence is further sub-divided into categories related to the particular regulated activities undertaken.
Licence Categories Table (Appendix 1 - Table A)
If you are unsure as to the exact class and category of licence (or licences) you require, the Authorisations Team would be happy to help.
Can you comply with the regulatory requirements?
It is important that potential new licenceholders understand the regulatory requirements that will apply to them once licensed. Therefore, before applying for a licence, you should review the following documents: -
1) The Commission’s Guidance Notes on Licensing policy, which explain how the Commission applies its “fit and proper” test and set out the general criteria the Commission will apply in assessing fitness and propriety;
2) The Commission’s Handbooks for the relevant licensed sector(s) (these include the legislation, regulatory codes and guidance on the application of the relevant legislation, codes etc.);
If you have any queries about any of the above documentation, the staff of the Commission are available to be consulted on a formal or an informal basis in the course of the preparation of the application for a licence.
How much will an application cost?
A non-refundable fee is payable when you apply for a licence to cover the Commission’s costs in processing the application. If a licence is issued to you, you must then pay an annual licence fee for each year you hold a licence. Details of the application fee and annual fees relevant to each class and category of licence can be found in the Handbooks.
How to apply for a licence
Complete the relevant Application form.
To assist you in completing the Application form please read the Guidance Notes within the Application form carefully.
Arrange for the completion of Personal Questionnaires, Personal Declarations and Bankers Questionnaires by all controllers, directors and key persons. Key persons are any other persons with significant powers or responsibilities with respect to any regulated activity undertaken by the applicant.
Additional supporting documentation also needs to be submitted with the application to demonstrate the fitness and propriety of the applicant (e.g. audited accounts, and a business plan). The supporting documentation varies depending on which category of licence you are applying for.
A full list of necessary supporting documentation is set out in the relevant application form.
It is acceptable to submit an application with certain items identified as “to follow”. For example, it is common for a potential start-up business to obtain a quote for professional indemnity insurance, but not place the business on cover until the Board of the Commission has considered the application. However, in general, the more complete the application, the simpler (and quicker) it is to process.
Please note that the onus is on the licence applicant and relevant individuals connected with the licence applicant to satisfy the Commission that they are fit and proper, not on the Commission to prove that they are not.
Please contact the Authorisations Team to arrange a meeting to discuss the application, Tel: 01624 689300.
What happens next ?
The application will be processed in accordance with the Commission’s Licensing Procedure.
How long will an application take?
The Commission’s current published service standard for processing an application, from receipt to a hearing by the Commissioners, is 3 months. This standard applies to an application with which there are no major difficulties concerning the applicant or people connected with the applicant.
You should also note that an application may take considerably longer than 3 months to process if the application is incomplete or if there are issues in relation to the applicant or any of its key persons that require further investigation before a recommendation can be made to the Board of Commissioners. To ensure your application is processed as quickly as possible, it is important that you arrange for all the necessary forms and documentation to be completed as accurately as possible and submitted in a timely manner.
During the processing of your application, two-way communication with the Authorisations Team is essential. This dialogue will allow the Authorisations Team to gain a better understanding of the business, which may speed up application process.
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