The Isle of Man Financial Services Commission (FSC) has granted its first licence for a trust servic...
The Isle of Man Financial Services Commission (FSC) has granted its first licence for a trust services provider (TSP) to be regulated under the Fiduciary Services Bill.
All TSPs had until the end of October to submit their application for a licence. If any failed to meet the application deadline then they would not be allowed to continue to operate. The licensing process began on 1 August 2005.
By 21 October, the FSC had received only 40 applications but it expected most to be submitted in the last week of before the deadline with expectations that it would receive between 130 and 150 applications for TSPs licences by 31 October.
The regulator would not name the first TSP to gain a licence.
The licensing of TSPs follows the regulation of corporate services providers (CSPs), which began in 2001. At present, 170 CSPs are regulated in the Isle of Man.
The regulation of TSPs has been a drawn out process, however. The Fiduciary Services Bill was expected to be passed in 2003 but was delayed because of a dispute between the trust industry and the FSC. After three consultations, the industry objected to aspects of the proposed legislation last year.
The FSC agreed to commission London law firm Stikeman Elliott to review the legislation and provide an independent judgement.
The trust industry has claimed a number of changes were made to the Fiduciary Services Bill following Stikeman Elliott's review to make it what was deemed workable, but the FSC has said there have been no substantial alterations.
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