Feedback sought on fees legislation
Feedback is being invited on the legislation that will implement the Isle of Man Financial Services Authority’s proposed new fees structure.
A public consultation on the draft Fees Orders and Regulations 2023 has been published online, with a closing date for comments of Tuesday 29 November 2022. The consultation is relevant to all the Authority’s stakeholders and fee payers.
The secondary legislation will support the introduction of a new funding model and fees structure for the regulation and oversight of the Island’s finance industry.
The Authority is seeking to put in place a more sustainable approach that aligns with international best practice, while being mindful of the Island’s competitive position.
The transition to a predominantly industry-funded model follows the announcement made by Treasury in the 2020-21 Budget to reduce the level of financial support provided to the Authority. The Island’s frameworks for regulation and oversight have historically received a significant level of taxpayer funding.
As highlighted in previous discussion papers and consultations, the intention is to implement the changes to fees in three phases in order to allow time for fee payers to adjust to the new funding model.
The draft legislation sets out the annual fees for each type of activity in Year 1 (2023-24), Year 2 (2024-25) and Year 3 (2025-26). Application fees are shown at their target amount from 1 April 2023, with a 2% adjustment in subsequent years in line with typical annual budget increases.
The legislation also covers some of the more administrative and practical elements of the funding structure, such as when fees are payable and when data necessary for the calculation of fees is collected.
Subject to any changes made in response to the consultation feedback, the draft legislation will be finalised before being submitted to Tynwald for approval ahead of the scheduled implementation date of 1 April 2023.
The proposed new fees structure will help to fund the Authority’s work to achieve its regulatory objectives of protecting consumers, reducing financial crime, and maintaining the integrity of the Island’s financial services sector.
Having in place a robust regulatory framework also contributes to the Island’s positive international reputation and to Our Island Plan’s ambitions for a vibrant and diverse economy.
Written responses should be emailed to Policy@iomfsa.im or submitted to Andrew Kniveton, Isle of Man Financial Services Authority, PO Box 58, Finch Hill House, Bucks Road, Douglas, IM99 1DT.