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 industry bodies in order to produce workable and considered proposals. Additionally, the Division is responsible for drafting 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:
- The draft DNFBP Bill is now being finalised following the consultation process and, in due course it will place responsibility on the Commission to oversee the adherence of certain non-licenceholders to the Island’s anti-money laundering legislation.
- Civil penalties - Following initial consultation in early 2013, the Division is currently developing the policy for enhancement of the civil penalties framework, which will apply to material and significant regulatory failings and serious matters of non-compliance. The Division intends to include detailed policy, draft guidance and draft Regulations in a second consultation later in 2013.
- 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. Matters being considered at present include:
- SEPA – Division staff continue to be part of the Council of Ministers’ working group on SEPA – the Single European Payments Area.
- Alternative Investment Fund Managers Directive ("AIFMD"), which relates to regulation of alternative investment fund managers and the marketing of funds into Europe. This involves the Division working with ESMA (the Europeans Securities and Markets Authority) and has resulted in the signing of a number of co-operation agreements with EU Member States ready for implementation of the AIFMD from July 2013. .
- MIFID/MIFIR2, proposals from the EU for a new Directive and Regulation are under review, especially with regard to the potential changes for third country access to EU business.
- FATCA - The Division continues to contribute to the Government’s working party on FATCA.
- The biennial revision of regulatory legislation made under the Financial Services Act 2008 is now in progress and changes are planned to come into effect on 1 January 2014. Users are requested to notify any specific issues they have regarding the secondary legislation to the Commission on firstname.lastname@example.org.