Deposit Taking Handbook
Class 1 - Deposit takers Handbook
Contents
1. Introduction
The Deposit takers handbook is produced to provide licenceholders (those who are licensed by the Financial Supervision Commission to conduct deposit taking business in or from the Isle of Man), potential licenceholders and other interested parties with easy assess to the legislation and guidance relating to deposit taking activities in or from the Isle of Man.
The handbook is only produced in an on-line format. However, copies of all statutory documents (original, un-amended, legislation) may be obtained from the Tynwald Library, by quoting the SD number shown at the top of each document.
Please find links below to the Financial Services Act 2008, secondary legislation and relevant pieces of guidance.
Guidance (and where applicable other legislation) relating to other Classes of Regulated Activities may be found in handbooks relating to other licensable activities: Investment Businesses, Collective Investment Schemes, Corporate Service Providers, Trust Service Providers, Money transmission, and Management and Administration services.
In case of any query, please contact the Banking Supervision team at the Commission, on +44 (0)1624 689320.
2. Legislation
2.1 The Primary legislation governing deposit taking activities in or from the Isle of Man is the Financial Services Act 2008.
The following secondary legislation is made under powers contained in the Financial Services Act 2008. Where these regulations and regulatory codes have been amended after they were made, the “as amended” version is shown:
- Depositors’ Compensation Regulations 2010
- Financial Services Act 2008 (Appointed Day) Order 2008,
- Regulated Activities Order 2011,
- Financial Services (Exemption) Regulations 2011,
- Financial Services Rule Book 2011,
- Financial Services (Civil Penalties) Regulations 2011,
- Financial Services (Fees) Order 2011,
- Financial Services (Not fit and Proper) Regulations 2008,
- Financial Services (Register of Permitted Persons) Regulations 2011,
- Financial Services (Appointment of a Manager) Order 2008
2.2 Other legislation which may affect deposit takers but which is not made under the Financial Services Act 2008:
3. Guidance applicable to deposit taking activities
3.1 The Commission has issued detailed guidance notes relating to deposit takers. These cover the following matters:
- Quarterly Prudential Returns
- Liquidity Risk Management
- Large Exposures
- Credit risk, Arrears and Provisions Management
- Interest Rate Risk Management
- Foreign Exchange Risk Management
- Internal Capital Adequacy Assessment Process (ICAAP)
- Fiduciary Deposits
- OTC Derivatives and Structured Products
- Deposit Advertising
- Corporate Governance
3.2 Guidance and forms (not included above) which relate to deposit taking activities:
- Application form for a Deposit taking Licence
- Control of Banking Names
- Licenceholder contact sheet
- Emergency contact amendment sheet
- Emergency contact personal details
- Forms and Reporting Page
- Licenceholder emergency contact sheet
3.3 Disaster recovery/ business continuity
The use of facilities on the Island by regulated businesses from other jurisdictions for temporary business continuity purposes is addressed by Schedule 2 of the Financial Services (Exemptions) Regulations 2009.
4. Guidance applicable to all licensable sectors/activities Guidance on matters generic to all FSC-licensable activities/ categories of business:
- Anti Money Laundering
- Business Plans - rule 8.9 guidance
- Financial Returns Procedural Instructions
- Licensing Policy
- Materiality of rule breaches – rule 8.14 guidance
- Outsourcing/Delegation of function
- Vetting forms
- Responsibilities and Duties of Directors under the laws of the Isle of Man
- Rule Book consent and notification summary table
- Rule Book obligations to keep registers
- Rule Book obligations to maintain policies
- Proforma subordinated loan agreement (N.B. This proforma agreement has been prepared specifically for use by applicants for and holders of a financial services licence under the Financial Services Act 2008. If you are not an applicant or licenceholder, you should not copy, circulate or in any other way use or rely on the wording contained in the agreement. Applicants and licenceholders may copy the proforma but must not rely on the wording of the proforma and should take their own legal advice as to the appropriateness of the wording and the document in their own circumstances.)
- Supervisory approach
- Training & Competence
5. Sundry web links and other matters
5.1 The Bank for International Settlements web site is http://www.bis.org/.
The Basel Committee on Banking Supervision has issued the Core Principles for Effective Banking Supervision" ("The Core Principles"). The Commission endorses the Core Principles. The Core Principles Methodology can be viewed at http://www.bis.org/publ/bcbs61.htm (document No.61).
The Basel Committee has also issued various papers on matters such as corporate governance, risk management, which are endorsed by the Commission.
