Regulatory Alerts2017-03-30
Isle of Man Financial Services Authority Guidance Note on Large Exposures for Deposit Takers
The Isle of Man Financial Services Authority issues this guidance to regulate large exposures for Class 1(1) and Class 1(2) deposit takers, establishing prudential limits to mitigate concentration risk. The document mandates a 25% single counterparty limit and an 800% aggregate limit relative to the Large Exposures Capital Base, while defining specific calculation methodologies for exposures and exempt categories. It further requires banks to implement robust monitoring systems, submit regular notifications via Large Exposures Cards, and maintain a Board-reviewed policy statement addressing country, sectoral, and counterparty risks.
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