This section of the Authority’s website provides an overview of current and future programmes of work to enhance the regulatory and supervisory frameworks applicable to the Island’s insurance and pensions sectors.
In addition the ‘International Standards’ page provides further information about the relevant international standards against which these supervisory frameworks are assessed by external evaluators such as the International Monetary Fund and MONEYVAL.
Why are these changes necessary?
As a responsible international financial centre it is essential that the Isle of Man retains the confidence of the investors and financial markets which it serves. The Authority is committed to implementing and maintaining a robust and up to date regulatory framework appropriate to insurance and pensions businesses.
The Island has a large, economically important insurance sector and its pensions sector also continues to grow. In order that this position is sustained, it is important that standards and business practices are up to date, creating an environment in which companies are able to compete and grow. The Island’s reputation as a well regulated and internationally responsible jurisdiction is of vital importance to that end.
International standards are currently undergoing a period of significant change and the extent of that change poses a challenge to all jurisdictions, including the Isle of Man.
The ICP Project – Updating the Island’s regulatory framework for insurance business
The international standards relevant to insurance businesses are the Insurance Core Principles (“ICPs”) issued by the International Association of Insurance Supervisors, as these are the standards against which the insurance regulatory framework of the Island is assessed by the IMF.
The ICP’s underwent a very significant update in 2011 and the Island is undertaking a project to amend its regulatory framework to take account of changes to those standards which are considered appropriate to the regulation of the Island’s insurance and general insurance intermediation businesses.
Further detailed background information and all public documents issued in respect of the ICP Project can be found on the Authority’s web page dedicated to this work.
Enhancing the regulatory framework for pensions business
We are pleased to note that enhancing the regulatory framework for pensions and pension providers continues to be a key commitment for the Isle of Man Financial Services Authority.
Work has commenced on the drafting of secondary legislation to bring pension providers within the scope of regulation under the Financial Services Act 2008 (‘FSA08’), and work is also underway in relation to the production of a Retirement Benefits Schemes (Amendment) Bill to amend the Retirement Benefits Schemes Act 2000 (‘RBSA00’) to facilitate the foregoing and to make various other changes to update that Act.
The proposed amendments to the RBSA00 include the introduction of new provisions to establish a flexible defined benefits scheme funding regime in the Island which will be broadly equivalent to the UK’s funding regime under Part 3 of the Pensions Act 2004 (of Parliament).
All of the draft legislation will be subject to a full public consultation in due course, and it is envisaged that we will also hold meetings with key stakeholders, such as the Isle of Man Association of Pension Scheme Providers, at key junctures during the project. Following the consultations and stakeholder engagement, the Authority will finalise the proposals taking into account the feedback it has received, and it is estimated that the main legislative changes should come into effect during 2021/22.
We would like to thank all who have been, and continue to be, involved in developing the Island’s regulatory framework for pensions and pension providers.
Work to take account of the revised FATF Recommendations
As a jurisdiction dedicated to attracting high quality business, the Isle of Man has an economic as well as an ethical interest in preventing its finance sector, and its reputation, from being undermined by criminals. It is in this spirit that the Isle of Man Government, together with the Island’s regulatory authorities, seeks to work with international bodies to maintain and further strengthen the Island’s reputation as a well regulated and internationally responsible jurisdiction.
The relevant international standards in the fight against financial crime are the Recommendations issued by the Financial Action Task Force (‘FATF’).
The FATF Recommendations were revised in 2012 to address new and emerging threats as well as clarifying and strengthening many of the existing standards. The FATF Recommendations have also been revised to strengthen the requirements for higher risk situations, and to allow countries to take a more focused approach in areas where high risks remain or implementation could be enhanced.
Further information, insofar as it affects the Insurance and Pensions sectors, about the Island’s efforts to continue to develop its legislative framework, building upon and further enhancing its level of compliance with the revised FATF Recommendations, is published on the AML/CFT pages of the Authority’s website.