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.
Reviewing the regulatory framework for pensions business
The Authority has also commenced work to review certain elements of its pensions regulatory framework. This work is not expected to be as extensive as the updating of the insurance framework, but it will still be important to ensure that the regulatory framework for this business takes account of developments in this area.
Further information will be shown on this page as this work develops.
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.