Financial Assistance Scheme - Isle of Man Government Isle of Man Finance

Financial Assistance Scheme

The Financial Services (Inward Investment) Assistance Scheme 2004

The Isle of Man Treasury introduced the Financial Services (Inward Investment) Assistance Scheme 2004 on 1st August 2004. The Scheme was updated and amended by the Financial Services (Inward Investment) Assistance (Amendment) Scheme 2007.

This provides for the first time in the Isle of Man, grants of up to 50% for the setting up of a new financial institution in the Island, comprising a package which can include:

50% grant on one-off special start up costs
50% grant on any staff or equipment relocation costs
50% grant on office rent for up to 2 years

50% grant on IT systems/telecoms and installation
50% grant on external training costs
50% grant on marketing costs

The Scheme is directed at providing financial service businesses with financial assistance to establish a new physical presence on the Island and is initially being operated on a pilot basis.

It is aimed at assisting with certain elements of start up cost during the establishment period of the first two years.

Isle of Man Finance, is the Division of Treasury administering the Scheme and welcomes enquiries from potential applicants who believe they fulfil the eligibility criteria.

Email: enquiries@isleofmanfinance.com

Frequently Asked Questions

Q	What companies can apply for assistance under the Scheme?
A	To be eligible to apply for assistance the business must fulfil all of the following criteria: It must be a Financial Services Business which:- intends to establish a new financial services business on the Isle of Man whether as a branch or subsidiary of an off-Isle of Man concern; and will require a licence or authorisation to operate in the Isle of Man from either the Financial Supervision Commission or Insurance and Pensions Authority; and will directly employ its own staff in the Isle of Man. Note: other businesses of a non financial nature, eg manufacturing, may be eligible for financial assistance under a separate scheme operated by the Department of Trade and Industry.
Q	How is an application made?
A	Businesses looking at setting up on the Island are encouraged to enter into discussions with Isle of Man Finance about their eligibility and the mechanics of making an application at the earliest stage in their thinking. An application form, copy of the Scheme and these associated guidance notes will also assist potential applicants understand the full information requirements and mechanics of the process. Once an application has been completed and submitted with full supporting information to Isle of Man Finance, the application will be evaluated on its merits by a panel and the panel’s recommendation put to the Treasury Board for confirmation or rejection. The Treasury’s decision on an application will be final. The Treasury Board decision is in principle and invariably conditional, eg on the applicant also being successful in obtaining necessary regulatory approval, concluding the legal documentation etc. An offer of assistance made by the Treasury Board would be communicated in writing for the applicant’s acceptance. Note: it is anticipated that an applicant under this Scheme if it has not already done so may wish to advance its licence application to the Isle of Man regulator around the same time as it applies for financial assistance. Much of the background information required for each purpose will be similar so that in practice, the information required by the regulator in the form of a business plan may be copied for the purpose of the Financial Assistance Scheme. A delay in applying for the regulatory approval could potentially result in a delay in financial assistance becoming available under the Scheme since it is a standard condition that such a license must be first granted by the local regulator (FSC or IPA) before any payment of financial assistance will be made under this Scheme.
Q	What elements of expenditure connected with setting up business on the Isle of Man can be considered for financial assistance?
A	An applicant is expected to make one single application inclusive of all elements of support relevant to the applicant. The elements of expenditure which are covered by the Scheme and can be considered within an application could include one or more, or a package of all of the following items: external supply of consultancy costs of a one off nature associated with setting up business on the Island (first financial year); relocation costs of key staff and equipment (first financial year); office rent to be incurred on premises used by the business during the first two financial years; information technology (including telecommunications equipment), incurred during the first financial year; external training costs to be incurred during the first financial year (where not otherwise supported financially by Government); off-Island marketing costs to be incurred during the first financial year; other specific costs associated with setting up business on the Island in the first financial year to be incurred on external supplies made to the business may be taken into consideration for potential support at the invitation of the Department. (It is envisaged that any such items of cost would be the subject of discussion prior to application). Note: although not a condition of assistance under the Scheme, applicants are encouraged as far as possible to contract for their supplies and services within the Isle of Man.
Q	How much assistance is available under the Scheme?
A	The Scheme provides for a maximum payment of up to 50% of the cost of the items of expenditure mentioned in A3 above. It is possible that the full award may be reduced in certain circumstances either on the package of assistance as a whole or in respect of individual components of expenditure.
Q	Is the grant repayable?
A	Under normal circumstances no, but there is a requirement for the grant to be secured or guaranteed by the business during the early years of operation and all or part of the grant may become repayable within this period should the business be discontinued or the use of assisted assets be discontinued. (Please refer to the Scheme for full details).