by John Hunter, head of banking and fiduciary, Finance Isle of Man agency

The ABR, or Alternative Banking Regime, is an initiative created to attract more banking operations to the Isle of Man and increase accessibility to local businesses.

Last year the first licence was granted to Investec Bank (Channel Islands) Ltd who received a Class 1(3) licence under the Isle of Man’s new Alternative Banking Regime.

There is great potential for new operators via this Class 1(3) Representative Office option. One of the most important benefits of the ABR is that it creates a unique opportunity for banks to develop a new proposition. The ABR also offers the opportunity for technology based or other financial services businesses to explore a natural progression in to the provision of banking services in an environment that is both supportive and financially attractive.

Investec are a great example of a business that has fully embraced the benefits of the ABR. Having recently moved into purpose-built offices in the iconic Old Courthouse, I spoke with Mark Beresford of Investec about why they chose the Isle of Man to continue their success.

What does Investec do in the Isle of Man?

Investec’s Isle of Man Representative Office is part of Investec Bank (Channel Islands) Limited, which is a subsidiary of Investec Bank plc and has a significant reputation for delivering excellence in service and expertise from its teams across the Crown Dependencies.

Our teams specialise in providing general banking and lending services to trust and corporate service providers, as well as providing private banking for high net worth individuals and family offices in the Channel Islands.

Investec also has an asset finance business providing hire purchase, finance lease and commercial loan facilities along with aircraft and marine mortgages to retail, SME and corporate clients.

What attracted Investec to the Isle of Man?

We are very proud to have become the first bank to be granted a Class 1(3) Financial Services Licence under the new Alternative Banking Regime, enabling us to operate a representative office here. The Isle of Man provides a great opportunity to increase awareness of the Investec brand in a new jurisdiction and build on the success we have enjoyed in the Channel Islands.

We have been coming to the Isle of Man for a number of years having already established relationships with some trust and corporate service providers here and we know from feedback we have received from Trust and Corporate Service Providers in the Isle of Man that there is a strong demand for banking services to support the sector. The important factor was that we needed to have a real presence here in the Isle of Man, with local relationship managers that our clients know that they can speak to in person.

How easy was it to establish your business in the island?

Finance Isle of Man and the Isle of Man Financial Services Authority were both very supportive in helping Investec establish a presence here and have encouraged Investec’s growth aspirations over the medium to long term.

We have a very strong brand globally and many of our clients and intermediaries are already familiar with our credentials and our expertise. This has made it very easy for the business to establish a presence here and build our team.

Who is on the team?

The Isle of Man team is headed up by two very established and experienced relationship managers, Jon Wagstaffe and me.

I have worked in senior management roles for a UK building society and banking group. I moved to the Isle of Man with my family in 1999 and was managing director of the group’s offshore subsidiary, before I joined Investec in 2015.

Jon also has over 25 years’ experience in banking, having worked in London and across the UK before moving to the Isle of Man in 2009. He has experience in most aspects of the provision of banking services and is very well known in the local business community

Jon and I are the local points of contact for our trust and corporate clients. In addition we are well supported by our clients services team and by specialist banking and lending colleagues, who also spend time at our office in Douglas and can provide specialist technical knowledge.

How do you intend to grow your business?

Our initial focus here will be on providing banking services to trust and corporate service providers, but we also aim to expand our services to include private clients and family offices as the opportunities arise.

The financial services sector in the Isle of Man is well regulated, highly professional and technologically sophisticated and we are glad to be pioneers of the new banking licence.