Tynwald has approved legislation which introduces a new Alternative Banking Regime (ABR) that provides for two additional types of banking licence in the Island.
The Department of Economic Development has worked closely with the Isle of Man Financial Services Authority (FSA) to develop this new legislation in order to encourage new banks to the Isle of Man and help to support the Island’s diverse banking needs.
The new legislation and associated guidance will come into effect on 1st August 2016.
The ABR framework is the result of months of consultation and industry collaboration. The ABR will widen the scope for banking opportunities on the Isle of Man bringing benefits to sectors that require niche banking facilities.
Laurence Skelly MHK, Minister for the Department of Economic Development, commented:
‘The new Alternative Banking Regime is a progressive initiative that is set to attract new banking operations to the Island. Our existing banks provide an excellent service, but the number of operators has fallen since 2008 and this initiative aims to increase the choice for businesses in the Isle of Man and internationally.’
Leonard Singer MHK, Department Member for Financial Services and Registries, commented:
‘We have worked very closely with the FSA to develop this new legislation which has been designed to attract potential new banking operations to the Island. In particular we are seeking to attract non-retail niche banking operations and also representative offices of foreign banks. We are already in talks with several such banks which have expressed interest in the ABR.’