Andy Onchan Posted October 13, 2023 Share Posted October 13, 2023 Why can't we attract the above to IOM? Do we not have the right legislation in place to attract this type of business? Quote Link to comment Share on other sites More sharing options...
The Phantom Posted October 13, 2023 Share Posted October 13, 2023 1 minute ago, Andy Onchan said: Why can't we attract the above to IOM? Do we not have the right legislation in place to attract this type of business? A few have tried. Got screwed over by the FSA. I was involved in one. A mixture of hyper regulation together with FSA being unsure what regulations might apply and providing no clarity, other than 'if you get it wrong, we'll close you down and fine the pants off you'. A little over simplified, buy that was the gist. Still operations from UK can do it here, they just can't be based here. 2 Quote Link to comment Share on other sites More sharing options...
GD4ELI Posted October 13, 2023 Share Posted October 13, 2023 3 minutes ago, Andy Onchan said: Why can't we attract the above to IOM? Do we not have the right legislation in place to attract this type of business? Problem is you're not in you're customer's jurisdiction which doesn't help. There are plenty of good UK-based PSP already. Quote Link to comment Share on other sites More sharing options...
Andy Onchan Posted October 13, 2023 Author Share Posted October 13, 2023 1 minute ago, The Phantom said: A few have tried. Got screwed over by the FSA. I was involved in one. A mixture of hyper regulation together with FSA being unsure what regulations might apply and providing no clarity, other than 'if you get it wrong, we'll close you down and fine the pants off you'. A little over simplified, buy that was the gist. Still operations from UK can do it here, they just can't be based here. Each of my companies (one in IOM and the other in UK) have two multi-currency accounts operated by PSPs plus a 'standard' banking provider. Frankly I see no need for using a 'standard' current banking operation as PSPs do exactly the same and are infinitely cheaper. My guess is that it won't be long before the established banks go the same way the the PSPs out of necessity to compete (hence the mass closure of physical branch operations). Quote Link to comment Share on other sites More sharing options...
Andy Onchan Posted October 13, 2023 Author Share Posted October 13, 2023 12 minutes ago, GD4ELI said: Problem is you're not in you're customer's jurisdiction which doesn't help. Don't understand. Please explain. Quote Link to comment Share on other sites More sharing options...
NoTailT Posted October 13, 2023 Share Posted October 13, 2023 Isn’t this what AAO tried to do with TwentyOne and got fucked by the FSA? Quote Link to comment Share on other sites More sharing options...
The Phantom Posted October 13, 2023 Share Posted October 13, 2023 (edited) 54 minutes ago, Andy Onchan said: Don't understand. Please explain. I shouldn't just blame the FSA, the problem is also the local banks (who are limited due to the FSA). The issue is that unless you go down the crypto route, you'll ultimately need a traditional bank at the back end to clear the payments. The PSP basically negotiates a bulk processing discount with the bank and passes this onto the user. You'll probably never even be aware which bank this might be unless you do some digging, or they don't have a bespoke sort code. You realistically need this bank in the same place where the PSP is operating from and regulated within. Have you tried to open an account in the IOM for even a plain vanilla company? It literally takes half a year if you're lucky and they are super risk adverse now. Somehow we managed to get 2 banks to agree to play. However one would only do it under X licence and one would only do it under Y licence issued by the FSA. They however couldn't tell us which one was required. Admittedly this was about 4 years ago. Allegedly the FSA are a lot more open now and have set up a regulatory sandbox. However I don't trust a single fucking word that comes out of their mouths. 10 years ago, they were a pragmatic regulating partner. You could talk to them, get guidance, figure out problems. Then they became the Witchfinder General. Edited October 13, 2023 by The Phantom 3 2 Quote Link to comment Share on other sites More sharing options...
Andy Onchan Posted October 13, 2023 Author Share Posted October 13, 2023 1 minute ago, The Phantom said: I shouldn't just blame the FSA, the problem is also the local banks (who are limited due to the FSA). The issue is that unless you go down the crypto route, you'll ultimately need a traditional bank at the back end to clear the payments. The P2P basically negotiates a bulk processing discount with the bank and passes this onto the user. You'll probably never even be aware which bank this might be unless you do some digging, or they don't have a bespoke sort code. You realistically need this bank in the same place where the P2P is operating from and regulated within. Have you tried to open an account in the IOM for even a plain vanilla company? It literally takes half a year if you're lucky and they are super risk adverse now. Somehow we managed to get 2 banks to agree to play. However one would only do it under X licence and one would only do it under Y licence issued by the FSA. They however couldn't tell us which one was required. Admittedly this was about 4 years ago. Allegedly the FSA are a lot more open now and have set up a regulatory sandbox. However I don't trust a single fucking word that comes out of their mouths. 10 years ago, they were a pragmatic regulating partner. You could talk to them, get guidance, figure out problems. Then they became the Witchfinder General. I think PSPs are under an obligation to tell you which 'bank' the money passes through. I think the point is that all banks/PSPs in the future will have to use a single global payments platform so tha, amongst other things, costs are more transparent. Quote Link to comment Share on other sites More sharing options...
woolley Posted October 13, 2023 Share Posted October 13, 2023 1 hour ago, The Phantom said: Allegedly the FSA are a lot more open now and have set up a regulatory sandbox. Every day's a school day. I had to look that up. At first it looked like some government standard receptacle for the office cat to shit in. I'm sure the FSA could manage that. 1 Quote Link to comment Share on other sites More sharing options...
Amadeus Posted October 13, 2023 Share Posted October 13, 2023 There are a couple here but like Phantom said it can be tricky when it comes to regulations. Quote Link to comment Share on other sites More sharing options...
Cueey Lewis And The News Posted October 15, 2023 Share Posted October 15, 2023 On 10/13/2023 at 2:32 PM, Andy Onchan said: Why can't we attract the above to IOM? Do we not have the right legislation in place to attract this type of business? Regulation largely plus if you question the FSAs actions, as AO did, you don’t tend to last very long. 1 Quote Link to comment Share on other sites More sharing options...
Artyfarty Posted January 5 Share Posted January 5 Hi, can you advise on which PSPs you have successfully signed up for, for your Isle of Man-based business? I keep applying to them and keep getting rejected because they don't accept businesses from the IOM. Quote Link to comment Share on other sites More sharing options...
asitis Posted January 5 Share Posted January 5 FSA, the most over zealous , overbearing, make it up as you go along, bunch of unemployables in any private sphere ! The sooner someone there realises, not all businesses are run by crooks out to attract more crooks, and some are simply out to make a living. If private business treated their customers like the FSA treat private business, there wouldn't be any ! I am all for regulation and compliance etc etc, but not for the attitude of some at the FSA, which frankly stinks ! 1 Quote Link to comment Share on other sites More sharing options...
genericUserName Posted January 5 Share Posted January 5 24 minutes ago, asitis said: The sooner someone there realises, not all businesses are run by crooks out to attract more crooks, and some are simply out to make a living. Can you give a specific example of an FSA approach to regulation which has especially irritated or inconvenienced you? Quote Link to comment Share on other sites More sharing options...
asitis Posted January 5 Share Posted January 5 2 hours ago, genericUserName said: Can you give a specific example of an FSA approach to regulation which has especially irritated or inconvenienced you? Not without some confidentiality breach no ! I have witnessed changes of mind when challenged, and frankly dreadfully rude and adversarial behaviour by certain staff who appear to take pleasure in creating problems where frankly non exist. Believe me my views will not be alone in the business community. Quote Link to comment Share on other sites More sharing options...
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