Enforcement Overview

To be effective, a regulatory authority needs a pro-active and dedicated enforcement unit to ensure that unlicensed business activity does not take place, and to exercise powers of remedial action in appropriate cases. The Commission's Enforcement Division was commended by Mr Edwards in his 1998 report, and through effective investigation and co-operation has done much to enhance the reputation of the Commission internationally.

The Commission has important "gateways" to pass supervisory information and evidence to other supervisors. In particular the Banking Act 1998 introduced a new provision, under which the Commission can now provide mutual assistance to other regulatory agencies without any offence having being committed on the Island.

The Enforcement Division investigates cases of possible unlicensed business activity. Such cases are brought to the attention of the Commission through complaints from individuals and information passed to it by overseas authorities, together with pro-active monitoring of possible illegal activities on the Internet.

An Isle of Man incorporated company wishing to conduct investment, banking or fiduciary business (as defined by the Investment Business Act 1991, the Banking Act 1998 and the Corporate Service Providers Act 2000 as amended) must first be licensed by the Commission, no matter where in the world it is carrying out its business. The same applies to any foreign incorporated company that holds itself out as doing such business from the Isle of Man. "Holding out" can be the use of an Isle of Man address, fax number, telephone number, website or email address.

To carry out investment, banking or fiduciary business without the relevant licence from the Commission is a criminal offence, and the Commission has a history of taking robust and swift action against those who breach the legislation. Investigations can proceed in various ways, ranging from the issue of a warning letter to a full criminal investigation resulting in a criminal court case against the perpetrators of the illegal activity.

Before entering into any financial agreements with an Isle of Man incorporated company, or with any company holding itself out as operating from the Island, the Commission encourages all investors to consult the list of licenceholders on this website, or to contact Commission staff, who will be pleased to answer your queries.

If you believe you are currently dealing with a company that is conducting investment, banking or fiduciary business illegally, please contact the Enforcement Division immediately. To assist any investigation, please supply copies of any documentation and information relating to the company or individuals concerned.

Public Warnings

The Commission has powers under Section 22 of the Financial Supervision Act 1988 to publish information for the purposes of investor protection. Information is periodically received from members of the public, financial services companies, and other regulatory bodies, as well as being proactively obtained from the Internet. The Commission is committed to providing useful and relevant material for the information and education of those visiting our site, and to protect the reputation of the Isle of Man. The warnings issued by the Commission are normally of believed fraudulent entities and are intended to alert the public to the dangers of entering into a business arrangement with them. The Commission is continuing to link the public warnings to as many relevant international sites and/or bodies as possible. This is with a view to being more effective in warning the public globally of the associated dangers of dealing with these entities.

Please contact the Enforcement Division if you have any queries. Click here for details of current public warnings.