The Isle of Man Financial Services Authority has initiated a consultation exercise, 'Call for Input', to determine whether it should impose registration and oversight regulations on family office-type services for the first time.
In a statement on 16 May, the island's regulator said it would be inviting feedback regarding "the provision of Family Office-type services for ultra-high-net-worth families".
The intention is to gain a clearer picture of the number of Family Office-type services that are being managed in or from the Island, as well as the nature and extent of the activities, it said.
The 'Call for Input' was published on the Government Engagement Hub on Wednesday 15 May 2024, where it also seeks views on the possible future treatment of such activities.
Three high-level options are set out in the document to gauge opinion on whether this type of activity should continue to sit outside the regulatory perimeter, or if it should be subject to registration and oversight requirements, or regulatory and supervision requirements.
In addition to informing an upcoming standalone risk assessment of Legal Persons/Legal Arrangements, the responses to the Call for Input will feed into the Isle of Man’s updated National Risk Assessment (NRA).
The NRA is currently being conducted as part of the Island’s anti-money laundering and countering the financing of terrorism (AML/CFT) long-term effectiveness programme.
Lucy Hendy, Senior Manager AML/CFT Supervision Division, said: ‘The Authority plays a leading role in the collection of data to inform AML/CFT risk across different sectors. I would encourage people to submit their views about Family Office-type services to enhance understanding of this important area and to shape our potential next steps.
"The gathering and analysis of data helps us to strengthen the effectiveness of our AML/CFT regime and ensure the Island continues to meet international standards.’
The primary purpose of the 'Call for Input' would be to establish a clearer picture of the number of Family Office type services which are managed in or from the Island and also the extent of the activities, including whether such offices are operating by way of business.
It is relevant to persons who may be offering Family Office type services in or from the Island by way of business. It is also relevant to persons carrying on regulated activity under the Financial Services Act 2008.
