Views are being sought on the proposed introduction of a levy on banks to fund the operating costs of the Isle of Man’s Resolution Authority.
A consultation on the Bank (Recovery and Resolution) Act 2020 Administrative Levy Order 2022 has been published via the Government Engagement Hub.
The Financial Services Authority was established as the Resolution Authority for banks in the Island in 2020. In line with relevant international standards, the legislation allows a failing bank to be either resolved or wound up in an orderly fashion, without losses falling on the taxpayer.
The role of the Resolution Authority supports Our Island Plan’s commitment to meet global standards and maintain the Isle of Man’s reputation as an economically responsible and increasingly sustainable jurisdiction.
It is intended the operating costs of the Resolution Authority will be recovered through a levy on the banking industry. The legislation has been drafted following responses to a public consultation issued in February 2021. The Resolution Authority’s operating costs are separate from any resolution fund/costs that could arise in a crisis.
Feedback is now being invited on the content and timing of the draft Order, which will come into effect later this year, subject to Tynwald approval.
Comments can be emailed to ruth.baxendale@iomfsa.im or by post to Ruth Baxendale, Isle of Man Financial Services Authority, PO Box 58, Finch Hill House, Bucks Road, Douglas, IM99 1DT.
The deadline for submissions is Monday 18 April 2022.
