The Isle of Man Financial Services Authority (“the Authority”) was established by the Transfer of Functions (Isle of Man Financial Services Authority) Order 2015, which was approved by Tynwald in March 2015, with the main provisions of the order coming into force on 1 November 2015. As well as establishing the Authority, the order transfers the functions of the Financial Supervision Commission and the Insurance and Pensions Authority to the Authority.
The regulatory objectives of the Authority are:
- securing an appropriate degree of protection for policyholders, members of retirement benefits schemes and the customers of persons carrying on a regulated activity;
- the reduction of financial crime; and
- the maintenance of confidence in the Island’s financial services, insurance and pensions industries through effective regulation, thereby supporting the Island’s economy and its development as an international financial centre.
The functions of the Authority are set out in the Financial Services Act 2008 and the Insurance Act 2008 and include —
- the regulation and supervision of persons undertaking regulated activities in respect of deposit taking, investment business, services to collective investment schemes, fiduciary services and money transmission services, in or from the Isle of Man;
- the regulation and supervision of persons undertaking regulated activities in respect of insurance and pensions, in or from the Isle of Man;
- the regulation and supervision of collective investment schemes within the meaning of the Collective Investment Schemes Act 2008;
- the regulation and supervision of retirement benefits schemes within the meaning of the Retirement Benefits Schemes Act 2000;
- the maintenance and development of the regulatory regime for all of the above;
- the conduct of investigations into any potential liability arising from breach of AML/CFT legislation by persons undertaking regulated activities;
- the oversight of directors and persons responsible for the management, administration or affairs of commercial entities;
- participation in consultative bodies, working groups and other arrangements;
The work of the Authority is overseen by not less than seven Members appointed by the Treasury, subject to the approval of Tynwald. The Chief Executive is also a Member.
In discharging its functions the Authority is required to have regard to the following: