IoM FSC Publishes Briefing Document On New Financial Services Bill

by Jason Gorringe, Tax-News.com, London

13 June 2008

The Isle of Man's Financial Supervision Commission on Monday issued a briefing document on the implementation of the new Financial Services Bill and associated secondary legislation.

Comments are welcome from interested parties until 14th July, the Commission announced, although it pointed out that the publication is primarily a briefing document rather than a consultation.

In the document, the FSC explained that:

"The Financial Services Act 2008 has now completed its passage through Tynwald and is awaiting Royal Assent. Following Royal Assent, secondary legislation will be laid before Tynwald to bring the new Act into effect from 1 August 2008."

"The Financial Services Act 2008 (Appointed Day) Order 2008 will bring the Act and all secondary legislation, including the Rule Book, into effect for new licenceholders from 1 August 2008."

"Under transitional arrangements, existing licenceholders will continue to carry on regulated activities under their current licences and in accordance with the Regulatory Codes until 1 January 2009. Additionally the Antimoney laundering Part of the new Rule Book will also apply to existing licenceholders from 1 August 2008."

"From 1 January 2009 existing licenceholders will receive their new licences and at that time the new Rule Book will apply in full. This is in line with the proposals outlined at the Manx Museum in January 2008."

It continued:

"The Rule Book is currently available on the Commission’s website in draft form, with the final version to be published before 1 August. The Commission is currently working on the accessibility of the Rule Book in order to allow licenceholders to filter those rules that apply to the specific class(es) of licence that they hold. Guidance is also being drafted to accompany the rules."

"The Commission has asked a number of practitioners to join an informal “CAROL Implementation Group” which is acting as a sounding board for proposals, and contributing its own suggestions, for example on where guidance would be useful. By doing this, the Commission aims to identify potential difficulties for practitioners
at an early stage and to smooth the implementation process."

The briefing document outlined the Commission's plans for:

• Issuing licences under the new Act to existing licenceholders;
• Dealing with exceptions and modification of rules when issuing licences;
• Registers of licences; and
• Annual compliance returns.

The Commission revealed that it intends to brief its licenceholders via its website on implementation as the project progresses and further briefing documents will be issued in the Summer and Autumn.

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