Regulatory Alerts2017-03-30
Fiduciary Deposits Guidance Note for Deposit Takers
The Isle of Man Financial Services Authority issues this guidance to Class 1(1) and Class 1(2) licensed deposit takers regarding the provision of fiduciary deposit services. The document defines these products as off-balance-sheet arrangements where an agent bank invests customer funds with a recipient bank at the customer's sole risk, while outlining specific prudential reporting, liquidity risk management, and internal control requirements. It further clarifies the legal relationships between parties and details the limited protection available under the Isle of Man Depositors’ Compensation Scheme in the event of bank failure.
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