The Isle of Man Financial Services Authority has confirmed the phased implementation of a new fee structure for firms regulated or overseen by the Authority will take effect from 1 April 2023.
Tynwald Members approved the Fees Orders and Regulations 2023 on Tuesday 21 March 2023, marking what the IoM FSA germed "a key milestone in the transition to an updated funding approach for the Island's finance industry".
The statement continued: "The legislation sets out the revised fees for regulated entities and designated businesses in 2023/24, 2024/25, and 2025/26. Changes are being introduced over three years to allow fee payers time to adjust."
"Work to put in place the predominantly industry-funded model started in 2020 following the announcement made by Treasury to reduce the level of financial support the Authority receives from the Isle of Man Government.
"Extensive engagement has taken place in order to develop a simplified, proportionate and more sustainable funding model that aligns with international best practice, while being mindful of the Island's competitive position.
"A range of factors has been considered, including input from independent advisers, the views of industry bodies, and feedback to three public consultations."
Fees have not shifted in line with costs, according to the consultation, which is why the Authority said that in future its fees will "better reflect the nature and scale of activities being carried out by regulated entities and designated businesses".
Alex Allinson, Treasury Minister, said: "Most independent financial regulators are funded by industry and these changes will bring the Isle of Man in line with that model. Recent events have intensified the pressure on public finances, so it is considered appropriate for businesses to contribute more towards the cost of their financial regulation and oversight."
Bettina Roth, the Authority's Chief Executive Officer, said: "The updated fee structure has been calculated to replace the taxpayer subvention. It will not generate any additional revenue. While the way the Authority is funded may be changing, we will continue to focus on providing value for money and maintaining standards of excellence in support of the Island's financial services sector."
