Future Developments

The role of Policy & Legal Division in developing proposals for the future

The main objective of the Policy & Legal Division is to develop proposals which take account of international standards, secure an appropriate degree of protection for customers of financial services businesses and, at the same time, support the Island’s economy and its development as an international financial centre

The Policy & Legal Division is therefore required to monitor international developments in regulation and best practice, and to identify any areas for regulatory change. In this way the Division assists in sustaining the Island’s reputation as a well-regulated and premier jurisdiction in or from which to do business.

In developing proposals the Division involves the finance industry as well as other interested parties, and undertakes consultation with such bodies in order to produce workable and considered proposals. Additionally, the Division is responsible for drafting any necessary secondary legislation, or instructing the legislative drafters for primary legislation, when this is necessary.

Details of current consultations can be found by clicking here.

Some on-going and forthcoming projects and consultations are as follows:

• Regulatory legislation made under Financial Services Act 2008 – Some secondary legislation made under the Financial Services Act 2008 (including the Financial Services Rulebook and Regulated Activities Order) has been revised with effect from 1st January 2011.

  Users are requested to notify any problems or suggestions with the legislation to the Commission on fsc@gov.im, so that they can be considered in any subsequent revision.

• International matters - A watching brief is maintained on international developments. Any matters that need to be addressed and that are within the remit of the Commission are considered.
• SEPA – The Council of Ministers has set up a working group to prepare a submission to the European Payments Council for the Island to be admitted to SEPA – the Single European Payments Area. Division staff are part of this working group.
• Alternative Investment Fund Managers Directive ("AIFMD") is a major new development for European institutional funds which was developed in response to calls for greater regulation of alternative investment fund managers.

  Under the AIFMD a harmonised regulatory framework should provide the opportunity for eligible funds, including suitable funds from third countries such as the Isle of Man, to be passported to professional and institutional investors across the EU. In addition, the European Parliament has confirmed that national private placement regimes for third country alternative investment funds and managers will continue in place for at least five years after the implementation of the AIFMD in 2013.

  The Commission and the Isle of Man Fund Management Association are working together to ensure the Island’s regulatory regime is ready for the implementation of the AIFMD from 2013 onwards.