Businesses on the Island regulated by the Financial Services Commission (FSC) will be aware that the Financial Services Act 2008 (FSA 2008) will come into force fully on 1 August 2008. The FSA 2008 brings within one Act of Tynwald the regulation in the Isle of Man of banking, investment business, corporate/trust and money transmission services and repeals from 1 August 2008 the Financial Supervision Commission Act 1984, the Investment Business Act 1991, the Banking Act 1998 and the Fiduciary Services Acts 2000 and 2005. However, the FSA 2008 also brings substantive changes which will affect regulated businesses.
The FSA 2008 refers to specified “financial services activities” which are stated to include deposit taking, investment business, services to a collective investment scheme, corporate and trustee services, money transmission services and any other financial service of a prescribed description carried on by way of business (“regulated activities”). A person must not carry on a regulated activity on the Island without a licence issued under the FSA 2008.
An application for a licence under FSA 2008 is made to the FSC which must be satisfied that the applicant, its directors, controllers and key persons are fit and proper persons and the applicant is managed and controlled on the Island.
The FSA 2008 allows the FSC to make rules concerning licence holders, regulated activities, the conduct of business by licence holders and various other matters. In exercise of this power, the FSC have made the Financial Services Rule Book 2008 which will apply to all holders of a licence under the FSA 2008.
Download the full article here: Financial Services Act 2008