Investment Business Fees

Fees

When the Commission was established in 1983, Tynwald expressed the view that the expenses of the Commission should be covered by licence fee income. The Commission therefore sets its licence fees with a view to balancing its budget, and also having regard to equivalent fees in other jurisdictions.

The fees for investment businesses (with effect from the 1 April 2007) are shown in the Investment Business (Fees) Regulations 2007 (SD 114/07). To summarize those applicable to Investment Businesses:

Category of Licence	Application Fee	Periodical Fee
Financial Adviser acting in either tied or independent capacity (category 1a & 1b)	£1,300	£1,050 per annum
Financial Adviser acting in either tied or independent capacity (category 2a)	£1,300	£3,400 per annum
Managed Managers (category 2b)	£1,300	£4,600 per annum
Portfolio Managers (category 3a)	£1,300	£3,400 per annum
Investment Managers with discretionary powers of investment (category 3b)	£1,300	£4,600 per annum
Isle of Man branch of firm of stockbrokers, which is authorised by the UK FSA (category 5a)	£1,550	£3,050 per annum
A firm of stockbrokers acting in the capacity of an agency broker, which is not authorised by the UK FSA (category 5b)	£1,550	£7,050 per annum
A firm of stockbrokers, other than an agency broker, acting in the capacity of a broad scope firm and which is not authorised by the UK FSA (category 5c)	£1,550	£14,050 per annum
Fee payable upon the issue and annual review date of an investment business licence for a category 3 (a) investment business which is administered by either a category 3 (b) or category 4 investment business licenceholder specifically permitted to undertake such activity, except in cases where the category 3 (a) investment business licenceholder acts as a manager of collective investment schemes.		£16,500

Civil Penalties

The Financial Supervision Commission was given power to impose penalties by Tynwald in the Fiduciary Services Act 2005. This Act added powers to the Banking Act 1998, Building Societies Act 1986, Corporate Service Providers (“CSP”) Act 2000 and the Investment Business Act 1991, allowing the Financial Supervision Commission to make regulations to impose such penalties on its licenceholders as it deemed appropriate subject to Tynwald’s approval.

The Investment Business (Civil Penalties) Regulations 2006 have been approved by Tynwald and come into operation on 1st November 2006. From that date regulatory “returns” (as defined within individual regulations) for all licenceholders will be covered by the Civil Penalties regulations.

To ensure that all sectors regulated by the Financial Supervision Commission are treated equally, Civil Penalties for banks, building societies, fiduciaries (including those CSPs and TSPs which are subject to the transitional arrangements) and investment businesses, will be subject to the same procedures.

It is the licenceholder’s responsibility to ensure their regulatory returns are submitted and received by the Financial Supervision Commission before the end of the submission period. Submission dates for the regulatory returns are detailed in the individual regulations.

For ease of reference a table detailing the reporting requirements for Investment Business can be found here.