The Isle of Man Financial Services Authority Annual Report 2020/21
Robust regulatory environment supports economic recovery
Maintaining a robust regulatory environment and embracing innovation will help to support the Isle of Man’s continued economic recovery from the Covid-19 pandemic.
The Isle of Man Financial Services Authority Annual Report highlights how the organisation has worked with industry to respond to the challenges of the past 12 months.
The report also sets out the Authority’s plans to tailor its approach to meet an increased demand for more data-driven and digital ways of working.
The impact of Covid-19 in the Isle of Man has underlined the need for people and businesses to be resilient, agile and open to change.
This is reflected in the Authority’s annual report for 2020-21, which carries the theme of being ‘fit for the future’.
The report captures the progress that is being achieved in respect of protecting consumers, reducing financial crime, and maintaining confidence in the financial services sector through effective regulation.
It explains the actions taken by the Authority to develop its oversight, supervision and enforcement activities, and how ensuring compliance with international standards enhances the Island’s reputation as a well-regulated and forward-thinking financial services centre.
Lillian Boyle, Chair of the Financial Services Authority Board, said: ‘The period covered in the annual report was punctuated by further lockdowns and disruption to business and family life. Against this backdrop of uncertainty, the Authority has continued to carry out its core functions. Maintaining the integrity of our regulatory system adds value to the Island’s overall proposition and plays an important part in efforts to attract new business and jobs.’
The Authority took on new responsibilities during the reporting period, including bank recovery and resolution, and strengthened its focus on innovation to keep pace with advances in areas such as digital banking and crypto assets.
The annual report also provides an update on what is described as ‘one of the biggest cultural and financial changes for the regulatory environment in the Isle of Man’. The Authority, which acts as the gatekeeper to businesses operating in the financial services sector, is committed to reducing its level of financial support from the Government. This will result in additional funding being provided by industry.
The transition will be managed over the coming years, with full consultation, discussion and engagement taking place with industry representatives.
Colin Manley, Interim Chief Executive Officer at the FSA, said: ‘The move towards a new funding model represents a major step-change and the Authority will keep its stakeholders informed at every step of the journey. Listening to industry is fundamental to how we work and our future plans will be informed by the feedback we receive. In a rapidly evolving industry, the Authority remains focused on providing a world-class regulatory environment to support our businesses and consumers.’
Lillian Boyle, Chair of the Authority Board, and Colin Manley, Interim Chief Executive, introduce the annual report in this short video.
The Isle of Man Financial Services Authority annual report for 2020-21 is available to view on the website here.