Financial Resources Seminar
24th June 2008
Roxanne Oldham
Head of Policy & Legal Division
Financial Supervision Commission
Setting the Scene
 The Financial Services Act 2008
 Effective date of Rule Book compliance
for
existing licenceholders:
1/8/08 = AML part only
1/1/09 = the remaining parts including financial
resources
 Preparation for compliance up to 31/12/08
 New licence from 1/1/09
Shirley Corlett
Senior Adviser, Policy & Legal
Financial Supervision Commission
Agenda for Session
 Overview of financial resources
requirements
 Calculation of financial resources
 Break for coffee/tea
 Work through some examples
 Questions?
Classes of Regulated Activities
 Class 1 – Deposit Takers
 Class 2 – Investment Business
 Class 3 – Collective Investment Scheme
Service Providers
 Class 4 – Corporate Service Providers
 Class 5 – Trust Service Providers
 Class 6 – Money Transmission Services
 Class 7 – Management or Administration
Services
Overview of Financial Resources
Requirements
 Minimum Share Capital Requirement
(benchmark for entry)
 Minimum Net Tangible Asset Requirement
(ensures that the benchmark is maintained)
 Liquid Capital Requirement
(viability assessment – 3 months expenses)
 Where more than one class of regulated
activity undertaken - the highest level of
requirements apply (i.e. not cumulative)
Financial Resources Requirements
The following need to be prepared on a
quarterly basis to submit interim returns or
provide evidence that the financial position is
being monitored  Unconsolidated balance sheet
 Unconsolidated profit and loss account
(for the period – not cumulative)
 Financial resources statement (Schedule
2.3)
Investment Business (Class 2) and
CIS Service Providers (Class 3)
 Quarterly returns submitted electronically
 Except financial advisers and promoters
or where licenceholder is also licensed to
carry on Class 1 (Deposit Taking) activity
Corporate Service Providers (Class 4)
and Trust Service Providers (Class 5)
 Monitor compliance with requirements
quarterly – but no electronic submission
 Except professional officers or where
licenceholder is also licensed to carry on
Class 1 (Deposit Taking) activity
Requirements for Classes 2, 3, 4 and 5
 Annual return in paper form
 Designate one individual (plus deputy) to
submit returns plus keep the
Commission
informed of the names of the individuals
 IOM Resident Officers responsible for
completeness and accuracy of returns
Neil Duggan
Director
KPMG