The ABR licence means Investec Bank (Channel Islands) (IBCI) can now open a representative office on the island.
Part of South Africa-based Investec Bank, IBCI specialises in the provision of general banking and lending services to trust and corporate service providers licensed and regulated in its core offshore jurisdictions.
It also offers private banking for high net worth individuals and family offices.
Feet on the ground
IBCI’s representative on the Isle of Man will be Mark Beresford, who will be based in offices on Athol Street in the island’s capital, Douglas.
The Isle of Man office adds to the bank’s existing operations in Guernsey and Jersey.
“We are delighted to now be granted a licence to operate in the Isle of Man,” Beresford said.
“Investec has a strong brand and an excellent reputation for providing specialist banking and lending solutions to trust and fiduciary clients and we are looking forward to working closely with clients in the Isle of Man.”
Increasing awareness
Beresford said the licence provides the bank with an opportunity to increase awareness of the Investec brand in a new jurisdiction.
Laurence Skelly, minister for the Isle of Man department for enterprise, said: “It’s encouraging to see a household name like Investec taking advantage of the island’s Alternative Banking Regime.
“The diversification of our financial services economy is essential in ensuring Isle of Man businesses have the right environment and support needed to flourish,” Skelly said.
Two new licences
The Isle of Man government introduced the Alternative Banking Regime in 2016 to attract new banks to the island.
Two new licences were launched under the regime, with Investec receiving the second kind, known as class 1(3).
This class 1(3) licence is aimed at attracting foreign banks wishing to establish a “representative office” on the island to market their services. It is similar to licences offered to foreign banks in Australia and Canada.
In November 2017, International Adviser reported Capital International Group is looking to gain the first type of licence, known as a class 1(2).
A class 1(2) means a non-banking entity can apply for a banking licence to serve corporate clients and high net worth individuals with liquid assets over £500,000 (€559,915, $656,511).
