The Isle of Man Bank has announced that it will delay the introduction of fees for charitable organisations until 2022.
Its recent announcement that it will charge charities, clubs and societies for manual banking services was labelled ‘soulless’ by the Speaker of the House of Keys.
Since the announcement, Tynwald has voted to instruct the Treasury to explore introducing legislation that would require banks to provide basic banking services free of charge to all ‘small charities and other not for profit clubs, societies and associations’.
A spokesman for the Isle of Man Bank told Gef: ‘We have decided to suspend fees for manual banking services for Charities, Clubs and Societies for a second year until May 2022. We are committed to supporting every customer as they adjust to using digital banking services.
‘The majority of our customers have made the transition but a sizable minority have told us they need more time to get there as they emerge from the pandemic. We will work with those customers and their trade associations to help them get there. We are committed to supporting the government’s wider strategy of digital adoption but recognise the need to balance technological adoption with the capacity of society and people to adjust.’
Following today’s announcement by the Bank, Juan Watterson SHK said it was a ‘reprieve for charities’.
He added: ‘Whilst it is disappointing that these charges are still going to be introduced, at least people will be able to make informed choices in a less rushed timeframe. As I said to the FSA in requesting an enforced extension, many small charity boards only meet quarterly; add to this the time it takes to open a new account (which can easily be six months), and the two month initial time frame just seemed unreasonable.I hope that a longer lasting solution can still be found, recognising the valuable role small charities play in the fabric of our community, and am happy to work with Treasury in pursuit of this aim following the Tynwald motion at which they took on the lead role for this matter.’