Building Societies

Building societies operating in the Isle of Man are governed by the Industrial and Building Societies Acts 1892 to 1979 and the Building Societies Act 1986 (“the Act”).

Authorisations (rather than licences) are issued under section 2 of the Act, as applied by section 4A of that Act. Section 4A extends the provisions of sections 2 to 4 of the Act to a UK building society carrying on business in the Isle of Man. Section 2(2) enables the Commission to issue an authorisation subject to conditions. These may be standard authorisation conditions or conditions specific to one society.

"Authorisation" refers to the approval required for a building society to begin trading in the Isle of Man.

An existing building society (e.g. one authorised/incorporated in the UK) may establish a presence in the Isle of Man either:

(1) as a fully staffed branch of a building society, which will require an authorisation under the Building Societies Act 1986,; or

(2) by establishing a subsidiary company, which will require a banking licence – see Banking handbook.

Depositors Compensation Scheme

There is no provision for building societies to be participants in the Isle of Man’s Depositors Compensation Scheme at present.

The Commission’s Authorisation policy for Building Societies

The Commission’s General Licensing Policy provides guidance for building societies. A building society and its key staff are required to be fit and proper persons. The Commission’s licensing policy is to apply a test of fitness and properness in the key areas of integrity, competence and solvency.

Building societies are required to comply with the regulatory codes as detailed in the Building Societies Online Handbook.