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 Financial Services (Miscellaneous Amendments) Bill 2012, which will make changes to the Financial Services Act 2008 and the Collective Investment Schemes Act 2008, is currently being considered in the House of Keys.
- Instructing the draftsman in order to prepare a draft DNPBP Bill (“designated non-financial businesses and professions) – which would place responsibility on the Commission to oversee the adherence to Anti-money laundering requirements of certain DNFBPs.
- 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) with regards to signing necessary co-operation agreements with EU Member States in order to be ready for the implementation of the AIFMD from 2013 onwards.
- 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.
- Potential changes to regulatory legislation made under the Financial Services Act 2008 and the Collective Investment Schemes Act2008 are being considered now, for inclusion in a revised Rule Book etc that will be consulted upon later in 2013 and come into effect from January 2014. As a result, users are requested to notify any specific issues they have with the secondary legislation to the Commission on firstname.lastname@example.org now.