IoM Reviews Financial Services Legislation

by Phillip Morton, Investors Offshore.com

07 July 2011

The Isle of Man Financial Services Commission has announced several new proposed amendments to the legislation governing certain regulatory requirements placed on licenceholders.

Draft amendments, which can be viewed on the Commission website, have been proposed to –

• The Rule Book (the Financial Services Rule Book 2009, as amended);
• The RAO (The Regulated Activities Order 2009, as amended);
• The ERegs (The Financial Services (Exemptions) Regulations 2009, as amended);

New legislation, the Financial Services (Fees) Order 2011; and the Collective Investment Schemes (Fees) Order 2011, has also been drafted.

While the amendments affect all entities subject to oversight from the Commission, the authority urged Class 6 and Class 8 entities (those providing e-money services and providing money transmission services, respectively) to be particularly alert to the changes.

In particular, the Commission drew attention to fees for 2012, which are to remain the same with the exception of the fees for Class 8(2)(b) – payment services as agent – which have been aligned with the fees set for Class 8(1) and 8(3) entities. This change has been legislated for in the Financial Services (Fees) Order, to apply from January 2012.

The Commission has also taken the opportunity to address an anomaly with the Collective Investment Schemes (Fees) Order 2009 and clarify that, whilst the fees are payable by the scheme, the Commission invoices the appropriate Isle of Man functionary. This is legislated in the new Collective Investment Schemes Order.

Changes in respect of other classes are minimal and are mainly to provide clarity or relax, where appropriate, existing requirements, the Commission said.

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