More than 500 companies have been told to appoint a nominated officer of corporate service provider following the introduction of the Beneficial Ownership Act.

The act, which introduces a central database of beneficial ownership, has also removed exemptions from the beneficial ownership rules for a number of companies.

Economic Development Minister Laurence Skelly said: ’On June 1, the department wrote to 561 companies incorporated under the Companies Acts 1931 to 2004 to inform them that an exemption under the Companies (Beneficial Ownership) Act 2012 would no longer apply on the introduction of the Beneficial Ownership Act 2017.’

He added: ’The Isle of Man Government gave a commitment to have the beneficial ownership register operational by July 1.

’Due to the dedication and effort of those involved in drafting the legislation and guidance, the design, build and testing of the database, together with the online interface and the marketing campaign, the government was able to surpass this target and have the database operational and being populated on June 28.’

The act requires companies covered to appoint a ’nominated officer’ for inclusion on the central database.

In some instances, companies can use a corporate service provider to perform the role.

David Ashford (Douglas North) asked Mr Skelly what the impact had been on the 561 companies affected by the changes.

The minister said the department had heard from nearly 200 of the companies notified and ’we have not had any serious or adverse comments’.

’There are one or two teething issues which have been overcome now,’ he said, ’and we are working with individuals and organisations collectively there, but very minimal, considering the percentage of companies and organisations that were contacted.’

He said the teething difficulties were mainly technical and operational, relating to the introduction of the database, which was part of a commitment made to the UK Government.

The database contains details of the beneficial owners of the widest possible range of corporate and legal entities incorporated in the Isle of Man.

External intelligence and law enforcement agencies will be able to request information via the Financial Intelligence Unit, under the terms of an agreement with the UK.

The island is committed to respond to requests within 24 hours - or within as little as one hour for urgent requests.

Jason Moorhouse (Arbory, Castletown and Malew), who first raised the matter at this week’s sitting, called for a ’lighter touch’ approach to the implementation.