Publication of new Beneficial Ownership guidance

The Beneficial Ownership Act 2017 (“the Act”) came into effect on 21 June 2017.

The Isle of Man Financial Services Authority (“the Authority”) issued guidance (“the 2017 Guidance”) on 29 June 2017 in accordance with section 4(4) of the Act, having laid the guidance before Tynwald on 20 June 2017.

The Authority wishes to raise awareness that, having been laid before Tynwald on 10 December 2024, new guidance (“the 2024 Guidance”) has been issued in accordance with section 4(4) of the Act.  Going forward, stakeholders should refer to the 2024 Guidance rather than the 2017 document in order to ensure compliance with the requirements of the Act. The 2017 Guidance is revoked and replaced.

The Authority commenced an ongoing programme of proactive outreach and oversight inspections in 2023, which has continued into 2024, with the aim of supporting and testing relevant persons’ understanding of, and compliance with, the Act.

The 2023/2024 inspection programme has provided valuable insight into how the requirements and expectations of the Act have been interpreted in the years since the Act came into effect. Throughout this engagement with ‘nominated officers’ the Authority has continually sought feedback from relevant persons regarding the areas in which the Guidance could be improved or supplemented to ensure relevant persons have a sufficient understanding of their obligations.

That feedback is reflected in the 2024 Guidance, which aims to strengthen and clarify areas where the Authority has observed areas of non-compliance or misinterpretation.

The 2024 Guidance includes further examples, containing a greater level of detail, additional context, and a wider variety of scenarios for relevant persons to refer to. The 2024 Guidance also groups together the responsibilities and duties of the different relevant persons under the Act for easy reference. It is hoped that this section will be of particular benefit to non-CSP managed entities in understanding the distinct roles and responsibilities of each ‘relevant person’ under the Act.

The Authority issues guidance for various purposes, including:

• • To illustrate best practice;
  • To assist persons in complying with legislation; and
  • To provide examples or illustrations.

When determining legal obligations, relevant persons must make direct reference to the Act in the first instance. While the 2024 Guidance is not law it is persuasive, and section 4(5) of the Act requires regard to be had to the Guidance in interpreting references in the Act. References to ‘guidance’ within the Act shall, from this point, have the meaning of the 2024 Guidance.

A link to the 2024 Guidance can be found here.

Should relevant persons have any queries about their obligations under the Act, the Authority welcomes questions or feedback at beneficial.ownership@iomfsa.im.