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IA08
Year ended 31 March 2017
Section 33 – imposition of requirements
2
Section 29 – not fit and proper direction
1
Schedule 5 – information request
1
RBSA00
Year ended 31 March 2017
Section 19 – not fit and proper direction
1
The following table sets out remedial and other regulatory actions taken under the CISA08 during
the period:
Banking and Money Transmission Services
Over the period of this report, the team undertook
a series of annual business meetings with banking
and money transmission groups / licenceholders.
The team also undertook compliance visits
which were designed to focus on areas the
Authority believed were relevant to that particular
licenceholder. They covered such areas as AML/CFT,
corporate governance effectiveness and lending.
The team has been closely monitoring the winding
down of four licenceholders: Habib European
Bank (which surrendered its licence during 2016),
Nationwide Building Society, Duncan Lawrie (IOM)
Limited, and Zurich Bank International Limited. The
three latter banks are expected to surrender their
licences during 2017. The focus of the Authority’s
work in this respect is to make sure customers
are treated in a fair way and that the banks wind
down their businesses in a responsible and orderly
manner.
Additionally, the Island’s first credit union was
registered during the period.
The team also continued to work on a number of
initiatives. These include:
Basel III – capital and liquidity
New capital requirements for banks incorporated
in the Isle of Man come into effect from 1 July 2017,
which take into account Basel III principles. Banks
will also have to report a leverage ratio.
Proposals for changes to the liquidity framework,
following previous discussions with the sector, are
to be progressed through consultation during the
latter part of 2017 and into 2018.
Other changes to the risk weighted assets
framework being proposed by the Basel
Committee on Banking Supervision will also need
to be considered in the future.
A framework for Domestic Systemically
Important Banks in the Isle of Man (DSIBs)
A consultation on proposals for identifying and
supervising DSIBs was issued and following this a
draft policy statement was provided to banks; the
final policy was issued on 30 June 2017 and the first
round of assessments will take place later in 2017.
Improving data for supervisory purposes
Banks have been reporting detailed information
on their lending portfolios since March 2016 and,
following a period needed for data remediation
and consistency checks, aggregated information
will be published in 2017, most notably for
mortgage lending.
A new Annual Statistical Return for certain money
transmission licenceholders (those only conducting
bureau de change, cheque cashing and agency
business) was also implemented in the year,
providing us with desk-based information to help
formulate better risk assessments (including for
AML/CFT).
16 • Isle of Man Financial Services Authority Annual Report 2016/17