FSA Consultations

The Draft Beneficial Ownership (Civil Penalties) Regulations 2018 For Contraventions Under The Beneficial Ownership Act 2017

Published on: 24 September 2018

The Isle of Man Financial Services Authority has issued a consultation paper CP18-05/T17. This paper is seeking views on the introduction of civil penalties for some contraventions of the Beneficial Ownership Act 2017, and invites interested parties to consider the draft Regulations set out within the paper.

The proposals may be of interest to relevant persons under the Act, especially nominated officers and the Authority welcomes feedback from interested parties.

5th Quantitative Impact Study for Non-Life Insurers

Published on: 13 July 2018

The Isle of Man Financial Service Authority (“Authority”) has today issued a consultation paper, CP18-03/T04, which sets out the Authority’s current thinking in respect of the assessment of the capital adequacy of insurers and reinsurers undertaking non-life insurance business, including the valuation of the assets and liabilities for solvency purposes. Together with the accompanying Technical Specifications it sets out the approach which the Authority requires Isle of Man non-life insurers and reinsurers to test in the fifth Quantitative Impact Study (QIS5).

Possible expansion of Class 6 Regulated Activity (Crowdfunding Platforms)

Published on: 23 August 2018

The Isle of Man Financial Services Authority has issued a consultation paper CP18-04/T16. This paper is seeking views on the possible expansion of Class 6 Regulated Activity (crowdfunding platforms) to include limited secondary trading facilities. The proposals may be of interest to all regulated entities, potential crowdfunders, professional advisors as well as the general public, being potential consumers of investment-based crowdfunding platforms. The Authority welcomes feedback from interested parties.

Insurance Intermediation – exemptions from registration and cross border business

Published on: 19 April 2018

Consultation Paper CP18-02/T08 sets out the Financial Services Authority’s proposals in relation to the current exemptions from registration as an insurance intermediary on the Isle of Man (‘IOM’) and the allowances for insurance intermediaries providing services on a cross border basis into the IOM from another jurisdiction.

In particular, it sets out the Authority’s proposals in relation to the exemption for insurance sold alongside other goods or services by a business that is not a registered as an insurance intermediary and in relation to overseas intermediaries providing services on a cross border basis.

It builds on the previous discussion paper (DP16-07) issued in October 2016 and the survey for businesses selling insurance alongside other goods and services which was carried out earlier this year.

Proposals to enhance the Island’s regulatory framework for private pensions and their providers

Published on: 05 March 2018

The Isle of Man Financial Services Authority has today issued a Discussion Paper DP18-02/T15. This paper is seeking views on proposals to enhance the regulatory framework for pension schemes and pension providers.

This Discussion Paper will be of particular interest to persons who act by way of business as a trustee and/or an administrator of retirement benefits schemes registered under the Retirement Benefits Schemes Act 2000. The Authority welcomes feedback from all interested parties.

Information on changes to fitness and propriety assessments for all regulated entities

Published on: 05 March 2018

The Isle of Man Financial Services Authority has today issued a consultation paper CP18-01/T12. This paper is seeking views on changes to the process for the assessment of individuals’ fitness and propriety in respect of all regulated entities. The paper also includes a formal consultation on resulting amendments to the Financial Services Rule Book 2016. The proposals are applicable to all regulated entities and the Authority welcomes feedback from interested parties.  

Survey for businesses selling insurance alongside other goods and services

Published on: 12 January 2018

This survey is for businesses that are not registered with the Financial Services Authority (FSA).

Many businesses sell insurance alongside their principal goods or services (ancillary insurance). This activity is not currently regulated by the FSA because there is an exemption in legislation.

The FSA is reviewing this exemption to consider whether it remains current and consistent with international standards. If this exemption was removed, those businesses arranging ancillary insurance alongside their principal business activity would be required to register with the FSA.

The discussion paper below sets out additional background information in relation to ancillary insurance and on the FSA's project to update the IOM's regulatory framework for insurance business.

Insurance Regulations 2018

Published on: 12 December 2017

Consultation paper CP17-14/T15 concerns new Insurance Regulations which will apply to all authorised insurers and permit holders. The Insurance Regulations 2018 will replace the Insurance Regulations 1986 and the Insurance (Supplementary Information) Regulations 2016.

The main purpose of the new regulations is to set out new and updated regulatory reporting requirements for all insurers authorised to carry on long-term insurance business in or from the Island, and regulatory reporting forms comprising the Regulatory Electronic Returns are therefore also attached to the consultation paper.

In addition, a number of incidental changes have been made where necessary to reflect developments since the Insurance Regulations 1986 were made.

Insurance (Long-Term Business Valuation and Solvency) Regulations 2018

Published on: 12 December 2017

Consultation paper CP17-15/T12 sets out new valuation and solvency regulations for insurers authorised to carry on long-term insurance business. The Insurance (Long-Term Business Valuation and Solvency) Regulations 2018 will replace the Insurance (Valuation of Long Term Liabilities) Regulations 2007. 

Conduct of Business Code for Non-Long Term Insurance

Published on: 14 November 2017

CP17-11/T01 sets out the Authority’s views on developing the Island’s existing regulatory framework to enhance the fair treatment of policyholders in relation to non-long term insurers through the issue of the draft Insurance (Conduct of Business) (Non-long Term Insurance) Code 2017 (“the Code”). 

The Code brings together the Authority’s work in this area and places conduct of business requirements on authorised insurers effecting non-long term contracts of insurance with third parties.

Regulatory Fees 2018

Published on: 17 November 2017

The Isle of Man Financial Services Authority has today published a Consultation Response (CR18-01/T14) following its recent consultation on proposed changes to regulatory fees from 1 April 2018. The response document provides a summary of responses to the consultation and outlines changes made and next steps. Subject to Treasury concurrence and consideration by Tynwald, the following legislation will commence on 1 April 2018:

1. Collective Investment Schemes (Fees) Order 2018
2. Financial Services (Fees) Order 2018
3. Insurance (Fees) Regulations 2018
4. Registered Schemes Administrators (Fees) Order 2018

The consultation response is relevant to all persons that are licensed, authorised or registered under the Financial Services Act 2008, Insurance Act 2008, Retirement Benefits Schemes Act 2000 or that have responsibility for collective investment schemes under the Collective Investment Schemes Act 2008. It is also relevant to advisers to those persons, or potential applicants for those permissions or their advisers.

Group supervision

Published on: 09 October 2017

The Isle of Man Financial Services Authority has today issued a consultation paper CP17-12/T13 in respect of proposed group supervision requirements for life insurance companies which belong to groups of which the Authority anticipates being the Group Supervisor. Although the paper is directly applicable to those companies, it may also be of general interest to all insurance companies which belong to groups and feedback is welcomed from any interested parties.

Corporate Governance Code of Practice for Insurers

Published on: 30 August 2017

The Isle of Man Financial Services Authority has today issued a consultation paper CP17-10/T11 in respect of the corporate governance of insurance companies. The paper sets out the Authority’s proposals to update its existing Corporate Governance Code of Practice for Regulated Insurance Entities (“CGC”) which was issued in 2010. The proposed updates are applicable to all insurers and the Authority welcomes feedback from interested parties. 

4th Quantitative Impact Study for Non-Life Insurers

Published on: 31 July 2017

The Isle of Man Financial Services Authority (“Authority”) has today issued a consultation paper, CP17-08/T09, which sets out the Authority’s current thinking in respect of the assessment of the capital adequacy of insurers and reinsurers undertaking non-life insurance business, including the valuation of the assets and liabilities for solvency purposes. Together with the accompanying Technical Specifications it sets out the approach which the Authority requires the Isle of Man’s non-life insurers and reinsurers to test in the fourth Quantitative Impact Study (QIS4). 

General Insurance Intermediaries Consultation Paper

Published on: 28 July 2017

The Isle of Man Financial Services Authority has today issued a consultation paper, CP17-07/T08, in respect of general insurance intermediation business. The paper builds on the feedback received in response to the Authority’s initial discussion paper on the work stream established to review developments in the supervision of general insurance intermediaries ('DP16-07'), and sets out in more detail proposals for changes to the Authority’s regulatory framework for general insurance intermediaries, including draft binding guidance and draft Regulations for further consideration.

Draft Amendments to the Regulated Activities Order 2011 and the Financial Services (Exemptions) Regulations 2011

Published on: 25 August 2017

The Isle of Man Financial Services Authority has today issued a Consultation Paper (CP17-09/T10) to obtain views in relation to draft amendments to the Regulated Activities Order 2011 and the Financial Services (Exemptions) Regulations 2011.

This consultation paper will be of particular interest to —

• Class 1 deposit takers participating in SEPA schemes;
• Class 2 (investment business) licenceholders advising on pension transfers, and pension providers transferring or receiving pension benefits;
• Class 2 licenceholders which operate nominee companies;
• Persons providing services to one exempt or exempt-type collective investment scheme;
• Persons taking advantage of the Class 4 domestic services exemption (exemption 4.7 of the Financial Services (Exemptions) Regulations 2011);
• Persons taking advantage of some exemptions under Class 8 (payment services); and
• Class 8 licenceholders undertaking payment services activity.

Information Gateways - Amend the exceptions from restrictions on Disclosure of Information under various acts

Published on: 13 June 2017

To obtain views in relation to three draft orders which amend the exceptions from restrictions on disclosure of information under:

• the Designated Businesses (Registration and Oversight) Act 2015
• the Financial Services Act 2008
• the Insurance Act 2008

The proposed changes to the Insurance Act 2008 will also apply to the Retirement Benefits Schemes Act 2000 by virtue of section 43 of the latter Act.

Draft Guidance Note - Governance of Collective Investment Schemes

Published on: 19 May 2017

The Authority has prepared a draft Guidance Note entitled ‘Governance of Collective Investment Schemes’ (‘Draft Guidance Note’), to assist members of governing bodies in performing their duties responsibly and within the laws of the Isle of Man. The Draft Guidance Note has been developed with reference to guidance issued by other jurisdictions and the Authority’s experience in supervising the Isle of Man’s funds sector. A copy of the Draft Guidance Note is attached to this Discussion Paper in Appendix B.

By way of example, IOSCO defines collective investment schemes governance as a “framework for the organisation and operation of a CIS that seeks to ensure that CIS are organised and operated efficiently and exclusively in the interest of their investors”. This illustrates that the govering body of a CIS therefore plays a key role in ensuring the interests of investors are upheld. The principles and recommendations detailed within the Draft Guidance Note are intended to promote strong and effective governance amongst those who act or intend to act as members of a governing body to CISs.

The Draft Guidance Note is neither exhaustive, nor prescriptive. It is the responsibility of the governing body to identify the most appropriate governance framework for the scheme.

Guidance is, by its nature, not law, however it is persuasive. Where a person follows guidance this would tend to indicate compliance with legislative provisions.

4th Quantitative Impact Study for Life Insurers

Published on: 07 April 2017

This paper sets out the timescales for the fourth Quantitative Impact Study (“QIS4”) exercise for life insurers and reinsurers, describes changes to the Standard Formula being tested in QIS4 compared with that for QIS3, and provides additional guidance on some aspects of the calculation in order to promote consistency of approach across respondents.

 

CP17-05/T06 - Conduct of Business Code for Long Term Insurance

Published on: 05 May 2017

CP17-05/T06 provides for consultation on the Draft Insurance (Conduct of Business) (Long Term Business) Code 2017 (“the Code”). 

Collective Investment Schemes

Published on: 28 April 2017

Closed-ended investment companies and other matters

This consultation is relevant to persons providing services to collective investment schemes, as well as to corporate service providers that provide services to closed-ended investment companies.

Credit Unions (Amendment) Bill 2017

Published on: 10 March 2017

In early 2015 a high level consultation was issued that outlined proposals to address perceived deficiencies in the Credit Unions Act 1993 (‘CUA’) and to develop a framework for regulating credit unions. Responses to the consultation evidenced considerable support for changes to the CUA that would facilitate credit unions in the IoM and so research began for drafting a Credit Unions (Amendment) Bill (‘Bill’). Simultaneously, work was under way to establish the IoM’s first credit union and this was incorporated in August 2016.

The point has now been reached where the Authority can consult on the Bill, which is at Appendix B to this paper. A Keeling Schedule (which shows the CUA as it would be following the changes proposed by the Bill) forms Appendix C to this paper (in a separate document).

Conduct of Business for non-life insurance

Published on: 31 January 2017

In June 2013 the Insurance and Pensions Authority ('IPA') published its Roadmap for updating the Isle of Man’s regulatory framework for insurance business ('the Roadmap') and through that document set out the objective to establish a project to enhance the Island’s regulatory framework to ensure that it remains up to date, proportionate and, where appropriate, consistent with the updated and revised Insurance Core Principles ('ICPs') issued by the International Association of Insurance Supervisors ('IAIS'). Since its issue the Roadmap has been updated annually to reflect progress made across the various work streams established under the project.

A key element of the developments proposed within the Roadmap is the enhancement of requirements in matters related to conduct of business. This consultation builds on the feedback received in response to DP14-052 in relation to the Authority’s proposals to enhance existing conduct of business requirements for non-life insurers. Proposals to enhance existing conduct of business requirements for long-term insurers have been consulted upon in CP15-02 and CP16-03.