Future Developments

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 such bodies in order to produce workable and considered proposals. Additionally, the Division is responsible for drafting any necessary 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 is proposed to make changes to the Financial Services Act 2008 and the Collective Investment Schemes Act 2008. A consultation at the start of 2012 will lead a final draft Bill later in the year.

• 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, involves the Division working together with the industry to ensure the Island’s regulatory regime will 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 is considering the potential impact of FATCA on its licenceholders, whilst other bodies are looking at others aspects of this wide-reaching U.S. legislation.

• In addition, the Division continually monitors potential changes required to regulatory legislation made under the Financial Services Act 2008 and the Collective Investment Schemes Act 2008 in preparation for any future revision(s). As a result, users are requested to notify any problems or suggestions with the legislation to the Commission on fsc@gov.im, so that they can be considered in any subsequent revision.