Isle Of Man Seeks To Modernise Financial Services Legislation

by Jason Gorringe, Tax-News.com, London

15 March 2006

The Isle of Man's Financial Supervision Commission (FSC) has issued a consultative paper on the planned modernisation of the financial services regulatory legislation which the Manx government is hoping will further enhance the Island’s reputation as a modern international finance centre.

The reforms will aim at simplifying laws by consolidating and streamlining the regulatory requirements relating to banking, investment business and fiduciaries under one Financial Services Act.

After discussion between the FSC and the Treasury, it is proposed that the legislation will also seek to introduce new mechanisms and procedures to ensure that the Commission is fully accountable and that its performance can be measured against its objectives.

The proposals will also enhance the transparency under which the Commission operates and give the industry a clear stake in the setting of regulatory strategy.

In addition, the opportunity will be taken to embrace developments in the finance sector and introduce a regulatory regime for e-money providers.

Commenting on the launch of this consultation, the Chief Executive, John Aspden, explained that:

"The Commission has assembled a strong and experienced team to take forward the consolidation and review of the financial services legislation. Co-operation in developing regulatory legislation that is both meaningful and workable is key, and we look forward to working closely with the Legislative Liaison Group as well as inviting our usual open consultation with all those affected.

Mr Aspden went on to add that:

"The document contains very important proposals on how, working with Treasury, a regulatory body can be put onto a more accountable and transparent footing, with a direct involvement of industry in the setting of regulatory strategy."

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