A report in the Isle of Man press this week said that the Royal Bank of Canada (RBC) is to terminate its operations on the island in the spring. Having begun a process of downsizing last summer, RBC is now left with only seven employees out of 35, and the decision to close the branch completely follows a review of its global business.
The bank has had a presence in the Isle of Man since 1976, when the Royal Trust Company of Canada was established, later changing its name to Royal Trust Bank Isle of Man. It was taken over by Royal Bank of Canada in 1997.
Bearer of the bad news was Vice President of RBC Global Private Banking, Ansel Holder, who said: 'We spent a great deal of time reviewing the best course of action for our clients and for the people in our office in Athol Street. With our recent acquisition of the Ernst & Young Trust business in Germany and Jersey we now have a very substantial presence in the Channel Islands. It was not practical for us to maintain a presence in the Isle of Man as well'.
Mr Holder was quick to sing the praises of the Isle of Man as a venue for the offshore activities of a global bank. He stated: '‘The Isle of Man is a world class and well regulated jurisdiction. It has an excellent workforce, good infrastructure and a stable political and economic environment. It was a hard decision to leave. Unfortunately, it doesn’t make economic sense for us to remain here at this time'.
The Isle of Man Online newspaper quotes John Aspden, chief executive of the Financial Supervision Commission, as saying: 'Obviously it is disappointing to see RBC depart. However, the bank has traditionally had very much larger operations in the Channel Islands, and it is clear that the announcement does not in any way reflect adversely on the attractions of the Isle of Man as a centre of excellence'.
He continued: 'Our finance sector is growing healthily and the outlook remains very promising. There is strong demand for experienced personnel, and we continue to receive many enquiries from institutions wishing to set up new operations on the Island.'
RBC is expected to bid farewell to the Isle of Man in April or May 2001.
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