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Isle of Man Insurance and Pensions Authority |
Website: www.gov.im/ipa
14th March 2000
The Isle of Man Insurance and Pensions Authority is pleased to announce that the Retirement Benefits Schemes Bill 2000 has succeeded in passing the clauses stage in the House of Keys. This stage involved detailed examination of each clause, consideration of any objections raised and approval by a majority vote.
Members of the House of Keys ("MHKs") gave their support to fifty-five of the fifty-six clauses on Tuesday 7th March. Reflecting the island's desire not to be in conflict with evolving human rights issues, Clause 49 was accepted with an amendment tabled by Sir Miles Walker. Details of this amendment and the Bill itself can be viewed at the Government website address noted below.
The Next Stage
The Bill will enjoy its Third Reading in the House of Keys on Tuesday 14th March. The third reading includes a re-examination of the principles and objectives of the Bill. The next stage led by Norman Radcliffe MLC will be the reading of the Bill in the Legislative Council. It is anticipated this will commence on the 28th March 2000.
The Honourable Richard Corkill, Treasury Minister, said:
"I am delighted that such an important piece of legislation has passed this crucial stage in the political process. This legislation reflects the importance with which the Government regards pension provision and its desire to further diversify the financial sector. Personally I was very pleased with the debate and the contributions of Members which were vigorous and well informed.
Once again the Isle of Man can be seen to be championing the cause of the consumer and setting international standards by example."
Dr Bill Hastings, Chief Executive of the IPA commented:
"There is little evidence of poor management of pension schemes in the Isle of Man, however there is no doubt that, as the size and importance of the pensions market continues to grow, the potential for problems will increase. This legislation is therefore another an example of prudent planning.
In an international environment, the Island must continue to strive to consolidate its enviable position in the top flight of international financial centres. The Retirement Benefits Schemes Bill 2000 will be an invaluable tool in this regard. The Bill will encourage international companies to centralise their pension arrangements in the Isle of Man safe in the knowledge that those managing the schemes are of the highest quality and are supervised by an active regulator.
I am in no doubt that the level of support this Bill enjoyed in the House of Keys yesterday is a tribute to the research and development effort made by the Government, Treasury, the Authority and the market. This is a great opportunity for the Isle of Man."
Overview
The Retirement Benefit Schemes Bill paves the way for a regulatory framework which attributes distinct personalities. First to 'international' schemes (with membership outside of the island) and second to 'domestic' schemes (that is those with membership in the Island). However although regulations to be made will differ between domestic and international schemes, the underlying principles of both are the same, in that the Bill gives the Insurance and Pensions Authority responsibility for managing the regulatory framework and accordingly grants the Authority appropriate powers. These powers extend to include that
Reflecting the Authority's desire to differentiate the two discrete markets through the secondary legislation, it will issue in early course its third consultation document. This will be on the subject of the regulations but only insofar as they apply to international schemes. Further consultation, this time on the domestic regulations, will be published shortly thereafter.
In the interim period, the Bill and the amendment can be viewed by following the link below.
Amended Retirement Benefits Schemes Bill (127KB)
( The amended Clause 49 can be found on page 58 of the Bill )
To view 'Adobe Acrobat' files you will need Adobe Acrobat or the Adobe Acrobat viewer.
For further information, please contact:
Ian Foster, Pensions Executive
Tel: +44 (0)1624 646000
e-mail: Ifoster@ipa.gov.im
