Discretionary civil penalties and staff pay awards

The Isle of Man Financial Services Authority does not set targets in terms of income from discretionary civil penalties.

Additionally, the Authority does not operate any staff bonus or performance-related incentive schemes that are linked to its enforcement action or the issuance of discretionary civil penalties.

All members of staff at the Authority are employed on individual contracts that do not include any set provision for bonus payments or performance-related pay (“PRP”) schemes. Information confirming this approach was published on 27 February 2025 as part of a written answer to a Tynwald question.

As a Statutory Board of Tynwald, the Authority’s compensation strategy is determined by its Board working in line with the financial parameters set by the Isle of Man Government. This ensures the Authority retains the flexibility to attract and develop the requisite talent to discharge its regulatory duties.

The compensation strategy is reviewed annually by the Board’s Human Resources and Compensation Committee (“HRCC”). Any proposals recommended by the HRCC must be approved by the Board and must be funded from within the budget constraints set by Treasury.

As stated, the Authority does not operate a contractual bonus or PRP scheme. It was agreed that pay awards for the 2023/24 and 2024/25 financial years would include a small element of non-consolidated performance-related incentive (“PRI”) to recognise and incentivise continuing high performance. A total of £72,892 was distributed among 55 employees across all grades in 2023/24, and £130,225 among 78 employees in 2024/25.

There is no commitment, contractual or otherwise, to make PRI payments. The Authority’s compensation strategy is reviewed afresh each year and operates within budgetary constraints.