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Financial Resources Seminar

Financial Resources Seminar. 24 th 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

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Financial Resources Seminar

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  1. Financial Resources Seminar 24th June 2008

  2. Roxanne Oldham Head of Policy & Legal DivisionFinancial Supervision Commission

  3. 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

  4. Shirley CorlettSenior Adviser, Policy & Legal Financial Supervision Commission

  5. Agenda for Session • Overview of financial resources requirements • Calculation of financial resources • Break for coffee/tea • Work through some examples • Questions?

  6. 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

  7. 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)

  8. 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)

  9. 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

  10. 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

  11. 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

  12. Neil DugganDirector KPMG

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