Enforcement Action

  • We intervene at an early justified stage in issues to help prevent unacceptable risks crystallising
  • We seek to understand, collaborate and follow a reasonable path of remediation to achieve the right outcomes.
  • Enforcement is pursued where proportionate, reasonable and appropriate.

Where a lack of fitness and propriety is demonstrated or where we have serious concerns about regulatory failings we will consider whether enforcement action is appropriate.

If an investigation by the Authority is commenced, this may lead to enforcement action being taken against regulated/designated entities or individuals. As part of its commitment to further develop its culture of constructive, open and transparent engagement with industry and other key stakeholders, the Authority has published its Enforcement Decision-Making Process (the “DMP”). The DMP clearly sets out the staged process which the Authority will follow in most enforcement cases. The specific enforcement powers to which the DMP applies are listed in the DMP document.

In addition to explaining the decision-making process, the DMP also introduces for the first time in a public document the concept of settlement in the Authority’s enforcement cases. The Authority encourages regulated entities and individuals to be open and honest when addressing regulatory failings.

The DMP is available to view here.

In taking any enforcement action, the Authority will always be mindful of its regulatory objectives which 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.

Discretionary Civil Penalties

Various Acts overseen by the Authority enable the Authority to require a current or former licenceholder to pay a penalty for any contravention of the Act or any prohibition or requirement imposed under the Act. The Financial Services (Civil Penalties) Regulations 2015 came into effect on 1 August 2015, regulation 5 of which provides a framework for the imposition of discretionary civil penalties upon current and former licenceholders for serious contraventions of the Act or any prohibition or requirement imposed under the Act.

A decision to impose a discretionary civil penalty will be made by the Authority in accordance with the DMP. The Authority has published a Guidance Note to provide additional information on the operation of the discretionary civil penalties regime.

Log of discretionary civil penalties

Name  Gross amount of penalty imposed Net amount of penalty imposed Press release Brief description Applicable legislation Applicable regulations
Apex Fund Services (IOM) Limited £130,974 £91,682 Yes See press release s.16 Financial Services Act 2008 Financial Services (Civil Penalties) Regulations 2015
Citadel Insurance Company Limited £3,100 £2,170 Yes See press release s.37 Insurance Act 2008 Not applicable

Fedelta Trust Limited

£73,644 £51,551 Yes See press release s.16 Financial Services Act 2008 Financial Services (Civil Penalties) Regulations 2015
Isle of Man Assurance Limited

 

£124,440 £87,108 Yes See press release s.37 Insurance Act 2008 Not applicable
Isle of Man Insurance Management Limited £11,099 £7,770 Yes See press release s.37 Insurance Act 2008 Not applicable
Kestrel Insurance Services Limited £82,753 £57,927 Yes See press release s.37 Insurance Act 2008 Not applicable
             

Prohibited Persons

Each of the Financial Services Act 2008, Insurance Act 2008 and Collective Investment Schemes Act 2008 include provisions that enable the Authority, where appropriate, to prohibit individuals from some or all roles within the financial services industry.

The Authority’s prohibition policy can be found here.

The list of persons currently is shown below:

Name: Richard Maurice Dixon

Previous names:

Date of Birth: 9 Mar 1958

Address (at date of the prohibition): Mount Auldyn House, Jurby Road, Ramsey, Isle of Man, IM8 3PF

Particulars of prohibition:  In relation to any body corporate carrying on, in or from the Isle of Man, any regulated activity as defined in section 3 of the Financial Services Act 2008, Mr Dixon is prohibited from acting as:

  • a director (as defined in section 48 of the FSA);
  • Isle of Man Resident Officer (as defined in Rule 8.21(2) of the Financial Services Rulebook 2013);
  • Money Laundering Reporting Officer or deputy Money Laundering Reporting Officer (as defined under paragraph 3 of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2015); or,
  • Compliance Officer (as referred to in Rule 8.18 of the Financial Services Rulebook 2013).

Public statement under Section 13 of the FSA: Yes

Date on which prohibition takes effect: 19 Apr 2017

Name: Brian Charles James Monk

Previous names:

Date of Birth: 10 Apr 1953

Address (at date of the prohibition): Windrift, Thornhill Park, Ramsey, Isle of man IM8 3NB

Particulars of prohibition: In relation to any body corporate carrying on, in or from the Isle of Man, any regulated activity as defined in section 3 of the Financial Services Act 2008, Mr Monk is prohibited from acting as:

  • a director (as defined in section 48 of the FSA);
  • Isle of Man Resident Officer (as defined in Rule 8.21(2) of the Financial Services Rulebook 2013);
  • Money Laundering Reporting Officer or deputy Money Laundering Reporting Officer (as defined under paragraph 3 of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2015); or,
  • Compliance Officer (as referred to in Rule 8.18 of the Financial Services Rulebook 2013).

Public statement under Section 13 of the FSA: Yes    

Date on which prohibition takes effect: 7 November 2017