IoM seeks feedback on legislation proposing new FSA fees

The Isle of Man has started a public consultation on the draft Fees Orders and Regulations 2023 legislation that proposes to implement the Financial Services Authority's new fees structure.

The consultation closes for comments on Tuesday 29 November 2022. It has been billed as relevant to all the Authority's stakeholders and fee payers.

Technically defined as secondary legislation, it will support the introduction of a new funding model and fees structure for the regulation and oversight of the Island's finance industry.

The Authority says it aims to "put in place a more sustainable approach that aligns with international best practice, while being mindful of the Island's competitive position."

The proposed change is significant as the Authority historically relied heavily on taxpayer funding. This will now shift to an industry-funded model, implemented over three phases to allow fee payers time to adjust to the new model.

According to a statement:

• The draft legislation sets out the annual fees for each type of activity in Year 1 (2023-24), Year 2 (2024-25) and Year 3 (2025-26). Application fees are shown at their target amount from 1 April 2023, with a 2% adjustment in subsequent years in line with typical annual budget increases.
• The legislation also covers some of the more administrative and practical elements of the funding structure, such as when fees are payable and when data necessary for the calculation of fees is collected.
• Subject to any changes made in response to the consultation feedback, the draft legislation will be finalised before being submitted to Tynwald for approval ahead of the scheduled implementation date of 1 April 2023.

The IoM FSA works to key regulatory objectives, including protecting consumers, reducing financial crime, and maintaining the integrity of the Island's financial services sector.

The consultation documents in respect of the Fees Orders and Regulations 2023 are available to view on the Authority's website and via the Government Consultation Hub.

Written responses should be emailed to [email protected] or submitted to Andrew Kniveton, Isle of Man Financial Services Authority, PO Box 58, Finch Hill House, Bucks Road, Douglas, IM99 1DT.