Banking and finance

Home About the Isle of Man Banking and finance

Many large, internationally-known banks are present in the Isle of Man. The nature of business in the Island means that many are familiar with international trade and business and various forms of financing.

The most common security for long term loans are mortgages on real property and fixed or floating charges over company assets.

Isle of Man publicly quoted companies are usually traded on the London Stock Exchange – either on the main market or on AIM (the Alternative Investments Market). The offer of shares to the public entails producing and filing (at the Companies Registry) a prospectus which complies with the relevant provisions of Isle of Man company law although again less prescriptive rules govern companies incorporated under the Isle of Man Companies Act 2006; if the shares or stock are to be listed on a stock exchange, the relevant listing rules will need to be complied with.

The Isle of Man is currently the leading offshore jurisdiction for company incorporations listed on London’s Alternative Investment Market (AIM). 44 of the non-UK countries of operation listed and 14 of the non-UK AIM 100 companies were incorporated in the Isle of Man.  The current market capital of non-UK AIM 100 companies registered in the Isle of Man stood at £4,626 million at May 2014.

Most finance companies offer financial leases. For tax and accounting purposes, there are distinctions between rentals and purchase by instalments. Some finance companies provide a secured financing called factoring, in which the debtor’s receivables are pledged as collateral.