The DCS was originally created in 1991.
In 2008 it was modified following the failure of KSFIOM.
The FSC General overview is HERE
The document itself can be found HERE
The guidance notes are HERE

Tynwald had been considering changing the DCS for some time and the FSC produced a paper
"Consultation with all banking licenceholders on
options for change to the Isle of Man’s
Depositors’ Compensation Scheme"
in March 2008.

The Isle of Man has a depositors’ compensation scheme (DCS). The DCS partially compensates you if a bank in which you have deposited money fails. To pay compensation, a DCS fund is created (when needed) from contributions made by other banks in the Isle of Man. A summary of the cover provided by the DCS is as can be found here.