Proposed changes to funding model following consultation responses
Feedback to a public consultation will help to inform changes to the proposed new model for funding the regulation and oversight of the Island’s finance sector.
The Isle of Man Financial Services Authority recently invited comments on the draft fees structure and next steps in the transition to a predominantly industry-funded model.
The consultation attracted a total of 39 submissions, including from industry associations and bodies. The summary of responses and corresponding changes has been published online today at www.iomfsa.im and at consult.gov.im.
As a result of the feedback, the Authority proposes: a new fee band for designated businesses with only two employees; revised fee bands for non-life commercial insurers; revised fees for bureau de change, payment services as agent and cheque cashing businesses; revised fees for collective investment schemes; and more bandings for certain transaction fees.
Bettina Roth, Chief Executive Officer of the Authority, said: ‘We have listened to the financial services sector throughout this process and given full consideration to the responses to our latest consultation. Clear themes emerged, including in respect of the proposed fees for some of our smaller businesses, and we are proposing a number of changes to address those issues. We will also maintain a firm focus on transparency and governance and keep our stakeholders updated on progress.’
The move to a new funding model follows the announcement made by Treasury in 2020 to reduce the level of financial support provided to the Authority by the Isle of Man Government. This subvention is currently passed on to firms in the form of reduced fees.
The intention is to put in place a more sustainable approach that aligns with international best practice, while being mindful of the Island’s competitive position.
It is recognised that the impact of an industry-funded model will be felt differently by firms depending on factors such as their business model, size, and client base. With this in mind, the Authority is proposing to introduce the changes on a phased basis from 1 April 2023 to 1 April 2025 to provide as much certainty as possible and allow businesses time to plan.
The next step in the process will see the publication in October of a public consultation on the Fees Orders and Regulations 2023.