Authority seeking to raise awareness of licensing and registration requirements

Anyone who is considering starting a business or conducting a business or service in the Island that might be linked to financial services activity (including designated business activity) is urged to ensure they have the appropriate authorisations in place.

Firms planning to undertake financial services activity must hold the relevant licence issued under the Financial Services Act 2008 or authorisation/registration under the Insurance Act 2008, while those classed as a designated business are required to be registered under the Designated Businesses (Registration and Oversight) Act 2015 in order to trade.

Designated Non-Financial Businesses and Professions (“DNFBPs”) include accountants, bookkeepers, estate agents, payroll agents, moneylenders, tax advisers and virtual asset service providers (VASPs). The definition also applies to businesses dealing in goods or services of any description that involve cash transactions equivalent to €15,000 or more in any currency.

DNFBPs are registered and overseen by the Isle of Man Financial Services Authority for compliance with anti-money laundering and countering the financing of terrorism (“AML/CFT”) legislation.

Anyone who is unsure whether an activity falls under the definition of a designated business or financial services activity is encouraged to contact the Authority at the earliest opportunity. Information and guidance, including frequently asked questions, are available on the Authority’s website, while officers can assist applicants through the registration, authorisation or licensing process.

Businesses are also reminded that providing, or advertising as offering, certain services without first being registered as a DNFBP could result in a penalty of up to £5,000 or prosecution.  

Dan Johnson, Senior Manager in the Portfolio Supervision Division, said: ‘We are focused on working with relevant parties to ensure they have a thorough understanding of their licensing and registration requirements. People must not carry out or even start marketing a financial services or designated business activity without first being licensed or registered. If you are thinking of launching a new service and aren’t sure of your requirements, please talk to us or visit our website.’