The Commission’s Corporate Governance Arrangements
The Commission is a Statutory Board. The role and responsibilities of a Statutory Board and its members are set out in various Acts passed by Tynwald and in Council of Ministers guidance.
Routine meetings of the Board are held monthly, generally on the last Thursday of a calendar month. In addition a quorum of the Board meets monthly as necessary to hear licence applications. The Board additionally meets on an ad hoc basis as required.
The Commission’s Board has the following functions:
- To oversee the adoption and implementation of appropriate regulatory and supervisory standards
- Within its powers, to make decisions under the regulatory legislation, including on all licensing and disciplinary matters
- To oversee the effective operation of the Companies Registry
- To oversee the internal operation of the Commission with particular regard to:
- Personnel matters, recruitment and retention
- Resources Financial controls and reporting
- Planning
- Corporate governance and risk management matters
As a regulator the Commission is subject to challenge in carrying out its functions, and is financed out of public funds. These factors impose a strong responsibility on the Commission to demonstrate that it is acting properly at all times, in the same way that the Commission expects a similar behaviour from its licenceholders.
The Commission operates under its own Corporate Governance Framework. This framework also incorporates the requirements of the Isle of Man Government Corporate Governance Principles and Code of Conduct. The Commission is reports annually on its compliance with the Government’s Code of Conduct, in the form of a Statement of Internal Control signed by the Chief Executive and submitted to the Chief Financial Officer.
The Board has established a Risk and Internal Control Committee (Terms of reference for the RICC). The Committee meets at least 4 times each year. Through the Committee the Board receives regular reports on internal risk and control matters.
Appointment of Members of the Commission
Appointments to the Board of Commissioners are approved by Tynwald.
At the time of a national election, all Commissioners as Members of a Statutory Board automatically retire. New Commissioners, which may include those previously appointed, are then chosen. On the last occasion and following a new procedure, the Government issued a public invitation for persons to apply to be appointed as Members of Statutory Boards including the Commission. The remuneration paid to Members of Statutory Boards is set down by Order.
The Board of Commissioners currently comprises a Non-Executive Chairman and Non-Executive Deputy Chairman, the Chief Executive and a further four Non-Executive Commissioners.
The quorum of the Board is a minimum of three persons.
The Board has established a Sub-Committee on Employment and Remuneration. This provides a forum in which salary and other employment recommendations can be considered before consideration by the full Board.
The Commission is accountable and subject to scrutiny in the following areas:
- Tynwald: appointment of Commissioners, Corporate Plan, new legislation
- Government and Treasury: strategic objectives, legislative policy and proposals, budgeting and funding, establishment headcount
- Industry: consultation on regulatory and supervisory proposals
- Home regulators of licensed institutions
In addition the Commission’s regulatory and supervisory approach is subject to ongoing review by standard-setting organisations including the International Monetary Fund and the FATF. The Island’s designated territory status (which effectively permits the distribution of Isle of Man authorised funds within the UK) is also subject to ongoing review by HM Treasury in the UK.
Risk and Internal Control Committee
The Commission has established a Risk & Internal Control Committee which is an advisory committee comprised of 3 non executive board members.
The Risk & Internal Control Committee aims to meet on at least 4 occasions during the year. The Risk & Internal Control Committee reports its findings to the full Board.
The Commission operates within a budget agreed with Treasury, and within a headcount restriction set down centrally within Government. The Commission’s revenue and expenditure is audited annually by the Government’s external auditors, and the Commission is subject to review by the Government’s internal audit department.
The Commission publishes its financial statements each year as part of its Annual Report.
The Board has delegated certain powers to the Chief Executive. These include:-
- Changes in licence conditions attached to a licence
- Extensions to licences to include new schemes etc.
- Surrender of lapsed licences
- Restructure of organisations/sale or merger of licenceholders
- Approving recognition of schemes under Section 13 of the Financial Supervision Act 1988
The Chief Executive in turn delegates certain matters within the Executive.
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