Supplementary memorandum from the Isle
of Man Financial Services Commission
At the hearing of the Treasury Committee held
on 3 February 2009, there were two areas where we agreed to provide
The first of these related to an exchange of
correspondence with the FSA, in relation to our understanding
of some of the limits applied in respect of various exposures.
I enclose a copy of two letters of 21 May 2008 for your information
(the letter from the FSA does not have a letterhead because it
printed as a copy from a computer). Individuals' names have been
redacted for reasons of privacy.
On a second point, we were asked at the Committee
hearing about the Derbyshire Building Society. We were informed
that the Derbyshire kept the FSA informed of their planned disposal
of the Isle of Man subsidiary and that no objections were raised.
It is also our understanding that there was no formal regulatory
approval process to be followed in relation to the disposal from
the perspective of the FSA. Kaupthing Singer & Friedlander
(Isle of Man) Ltd, which was regulated by the FSA for mortgage
business only, also advised the FSA of the transaction under its
relevant obligations at the time.
13 February 2009
187 The letters have been published on the Committee's