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.