Financial Resources Reporting thematic findings published

The Isle of Man Financial Services Authority has published a report setting out the key findings of a thematic review involving low impact firms based in the Island.

The report, which can be accessed online, highlights the results of a questionnaire and desk-based inspections conducted by the Authority’s Portfolio Supervision Division.

Phase One of the review saw a total of 15 licenceholders across the 2, 3, 4, 5 and 7 classes of licence respond to a questionnaire covering topics on Financial Resources Reporting (“FRR”). Areas of focus included the management and oversight of the process for FRRs; Board oversight and review; data retention periods; qualifying subordinated loans; and any breaches identified.

Four firms were then selected for the Phase Two desk-based inspections, which comprised a review of supplementary documentation provided by the firms. The report captures examples of best practice and topics for improvement, along with the Authority’s insights into the data.

The findings will further enhance the Authority’s understanding of the FRR processes adopted by firms and inform future outreach and engagement. Firms are encouraged to read the report and consider any action necessary to ensure their own processes and procedures are effective, up-to-date and properly documented.

Samantha Crookall, Senior Manager of the Portfolio Supervision Division, said: ‘Thematic reviews play a key role in how the Authority supervises firms and sectors. They provide a focused and efficient method for assessing risk, gathering key data and helping to build a clearer understanding across both individual firms and the wider industry.  This insight directly contributes to our overarching goals of safeguarding consumers, tackling financial crime, and reinforcing trust in the financial system through robust regulation.’

She added: ‘We greatly appreciate the cooperation shown by firms involved in the thematic process. It was observed throughout that all firms’ interactions and submissions were made within the requisite timeframes and that engagement with the Authority’s officers throughout was positive and in the spirit of Rule 8.30 (relations with the Regulator) of the Financial Services Rulebook. I would like to extend our thanks to the firms, their directors, and staff for their continued engagement and collaboration in these important regulatory efforts.’