The Isle of Man Financial Services Authority is progressing an ambitious programme of reform as part of its drive to future-proof the Island’s regulatory environment.
Significant changes continue to be implemented at the Authority, with the aim of enhancing its core supervision, oversight and enforcement functions.
The theme of ‘transformation’ is captured in the Annual Report for 2022/23, which sets out how the regulator is evolving in order to better position itself for the future.
Central to its plans has been the introduction of a more risk and impact-led approach to supervision. The new framework is aimed at achieving better outcomes by delivering a consistent, proactive, and value-added model of engagement.
A further step change highlighted in the report concerns the transition to a more sustainable funding model for the regulation and oversight of the finance industry. The phased introduction of a new fee structure for Island firms was approved by Tynwald in March following a reduction in the level of Government funding provided to the Authority.
The annual report, which covers the period 1 April 2022 to 31 March 2023, also reflects the Authority’s progress in meeting its objectives of protecting consumers, reducing financial crime, and maintaining confidence in the financial services sector through effective regulation.
Updates are provided on a range of initiatives, including the focus on ensuring compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) legislation.
AML/CFT supervision will remain a priority in the time ahead, with thematic reviews and inspections helping to inform the Authority’s picture of risk across different sectors of the economy.
The report also explains how the Authority is continuing to embrace fintech innovation with a view to generating efficiencies, streamlining processes, and supporting new opportunities.
Lillian Boyle, Chair of the Authority’s Board, said: “Our annual report reflects a further period of considerable change, both in the regulatory environment and wider financial world. It is essential to take a critical look at ourselves to ensure that we are providing a suitable level of coverage across the different sectors within our remit and setting appropriate regulatory standards to meet the needs of the Isle of Man as an international financial centre.”
Bettina Roth, Chief Executive Officer, added: “Maintaining a robust regulatory system is essential to the Island’s reputation as an excellent place to do business. The Authority’s work makes an important contribution to Our Island Plan’s vision for a vibrant and sustainable Manx economy. Collaboration is the key to our future success and we will continue to work with Government and industry in the best interests of the Isle of Man.”
The report is available to view on the Publications section of the Authority’s website.