Royal Bank of Canada Decamps to Guernsey
Tax-news.com
19 September 1999

Following the refusal of the Manx Financial Services Commission to approve the conversion of its IOM subsidiary company into a branch of its Jersey operation, the Royal Bank of Canada announced its decision to move its Manx office to Guernsey, where it could achieve its objective of creating a unified offshore-UK organisation headed from Jersey. The bank's IOM depositors would be offered account facilities in Jersey, including access to new Internet banking and call-centre facilities. The FSC decision was based on its rule that foreign banks on the island must have corporate form in order to protect depositors, and did not reflect on the standing of the Royal Bank of Canada. The Royal Bank of Canada may have have had particular reasons of its own for wanting to consolidate its offshore operations; however, other banks may have similar plans. At all events, the bank's departure is a blow to the Manx authorities, who are trying hard to encourage the development of e-commerce on the island.

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