John Garland, Head of Corporate Financial Services, Department of Economic Development
The Isle of Man has changed in recent years – the evolution of our Island from a successful International Finance Centre to a successful International Business Centre is founded on a drive for diversity and innovation built on the foundations of a strong and robust Financial and Professional Services sector.
The Isle of Man is always looking forward. In 2016 alone the island launched a new Alternative Banking Regime, a new ‘Class 6’ licence and regulations for Debt & Investment Crowdfunding platforms to base their operations on island and the flagship £50million Enterprise Development Scheme (EDS).The Enterprise Development Scheme
Launched at the beginning of April the EDS provides grant, loan and equity investment for new start-ups, export focused existing expanding businesses and businesses wishing to relocate to the Island. There are three core support areas:
The Department of Economic Development appointed SPARK Impact, a Liverpool based Venture Capital firm, to manage the scheme. SPARK Impact’s proven track record and expertise in investing in small and medium enterprises means that the EDS has an experienced team managing the loan and equity elements of this key initiative.
Mark Borzomato, Director of SPARK Impact recently commented:
“We were very excited to get involved with the Government’s Enterprise Development Scheme as it offers a large degree of flexibility and opportunities for potential investee businesses. We have been working in partnership with Government on a number of deals already, with new businesses expected on-island by the end of the year”.
Since launching the scheme there has been a plethora of applications across a broad spectrum of industries from both on and off island. As a result, both the Department and SPARK Impact have been busy engaging with these potential opportunities. The two main objectives for the EDS are to create jobs on island and, for the loan and equity elements, a real return on the investment made.
To find out more about the Enterprise Development Scheme opportunities on offer visit: www.whereyoucan.com/edsCrowdfunding Regulations & Class 6 Licence
The Isle of Man Financial Services Authority, in close collaboration with the Department of Economic Development and local industry, has created a new regulatory regime for debt and investment based crowdfunding platforms to establish on the Isle of Man
Launched on 1st May 2016, these new regulations make the island the first International Business Centre in the world to create a regulatory framework and new licence class for businesses wishing to establish and operate crowdfunding platforms on the Isle of Man.
For more information about financial services products on the Isle of Man visit: www.whereyoucan.com/financeAn Alternative Banking Regime
Introduced by the Isle of Man Financial Services Authority in August 2016, the Alternative Banking Regime is an innovative new banking framework that introduces two new sub classes of licence, the FSA Class 1(2) & the FSA Class 1(3) licence, both designed to complement the existing Class 1(1) licence. Whilst the existing FSA Class 1(1) licence will remain for the retail deposit taking institutions on Island, the two new licences will offer an alternative opportunity for banks wishing to establish a presence on island.
FSA Class 1(2) – can also be owned by non-banking groups (e.g. Family Offices) who may only provide services to a limited class of individuals and corporates, with client deposits sitting outside of the existing Depositors Compensation Scheme.
FSA Class 1(3) – to create an office of a bank that wishes to have a presence on Island for marketing and business development. It is envisaged that a “Rep Office” would upgrade to higher class once established.
For more information about the Isle of Man’s Alternative Banking Regime please visit: www.whereyoucan.com/banking