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The main advantages of obtaining a PI license in the Isle of Man:
According to the provisions of the Financial Services Act, 2008 (FSA), financial business is controlled by the Isle of Man Financial Services Authority (IoMFSA), and regulated activities require a license.
The provision of payment services in the Isle of Man is a regulated activity, and accordingly, the obtaining of a payment institution license is required. We will consider this and other issues related to licensing in our article.
Technically, the license itself is called the “8th class financial services license (for payment services (8(2)(a)))”, but hereinafter we will use the abbreviated designation (PI license).
Before starting the payment institution licensing procedure, the applicant must contact the IoMFSA representatives to discuss the formation of a licensed business in the Isle of Man territory. Thus, in the course of preliminary consultation, the regulator will provide the applicant with certain instructions and help him to identify potential difficulties. It is worth noting that IoMFSA does not provide legal advice, so it would be expediently to obtain reliable legal support early on the process.
The process of applying for obtaining a payment system license in the Isle of Man involves evaluation for compliance with certain IoMFSA criteria, including honesty, responsibility, and solvency. This assessment is performed according to the FSA under the Licensing Policy. In general, the applicant must convince the regulatory body that its characteristics meet the requirements for conducting selected type of activity.
In order to apply for obtaining a payment service provider license in the Isle of Man, you need to fill out a license application form and collect a package of documents, a full description of which is given in the application form (p.13). Among other things, the package of documents involves a business plan, which should include balanced and realistic financial forecasts for 3 years.
Demonstration of the financial viability of a licensed business is almost mandatory. In addition, the regulatory body requires evidence that the applicant complies with the requirements for initial capital and financial resources.
When the company submits the application, IoMFSA processes the application form and the attached documents, and, if necessary, consulted with other regulators, or requests additional information and documents from the applicant.
It must be emphasized that while preparing for ordering a PI license in the Isle of Man, you must pay attention to the details of the information provided to the regulator: the more accurate and complete the application, the easier it is to process it. Accordingly, the application will be considered faster, and it is more likely that the regulator will make an affirmative decision.
Application for obtaining a license for payment services in the Isle of Man is reviewed by IoMFSA for 3 months. It is worth noting that this standard is related to those applications that are correctly drawn up and do not present any difficulties for the regulator or an applicant. That is, if the application was submitted with an inaccurate indication of any information, probably it will be considered for more than 3 months.
We would like to draw the reader’s attention to the fact that this article was prepared and published for informative purposes, and should not be construed as legal advice.
If you are interested in resolving the issue of an electronic payment service company licensing process in the Isle of Man, IQD Consulting specialists are ready to offer their legal advice and support services for obtaining PI licenses and provide you with the following:
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