The global financial and professional services industry has undergone unprecedented change in the last few years. From technological disruption, new regulatory frameworks, increased media scrutiny, to issues with talent acquisition and retention, the sector faces numerous challenges and opportunities. And that’s without mentioning Brexit.
Against this backdrop, firms are looking towards international financial centres to help navigate the environment, overcome challenges and maximise opportunities. As a private/public partnership, Finance Isle of Man collaborates with local industry to understand and best represent the needs of our sector. We promote and develop the significant financial and professional services industry and ensure its recognition as an international financial centre of excellence, delivering long-term sustainable economic growth.
The Isle of Man has a long tradition in financial services, and a diverse sector encompassing banking, insurance, fiduciaries, funds and wealth management, pensions, and professional services. It is home to a wide range of firms and the sector remains an important economic contributor.
The financial and professional services industry’s continued growth can be attributed to its ability to innovate. For example, we introduced the Alternative Banking Regime (ABR) which provides two additional types of banking licenses and is designed to attract banking operations, particularly private banks, foreign bank branches and representative offices. In July 2018, Investec Bank (Channel Islands) was granted the first ABR license and this year CIB Limited, part of the Capital International group, was awarded a provisional Class 1 (2) license. There is also an opportunity for technology-based or other financial services businesses to explore a natural progression into the provision of banking services.
Furthermore, our financial services firms are committed to raising the bar for international best practice. This year the Conduct of Business Code was introduced for life insurance and wealth management companies, ensuring greater transparency and enhanced protection for customers.
As competition in the sector intensifies, financial services businesses need to transform and innovate to survive. Most firms have already diversified into new products and services and invested in technology to drive growth, improve client experience and achieve greater operational efficiencies. There is no doubt this trend will continue into 2020 and beyond.
As businesses transform, they will be drawn to international financial centres with innovative frameworks already in place to help them maximise opportunities. With a robust regulatory framework, long-standing heritage and politically and economically stable environment, the Isle of Man remains confident and optimistic for the future.
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