The Isle of Man Financial Services Authority (IoMFSA) has said that the phased implementation of a new fee structure for firms regulated or overseen by the watchdog will take effect from 1 April 2023.
The newly created fee structure was first discussed in 2020 following the announcement made by Isle of Man Treasury to reduce the level of financial support the IoMFSA receives from the Isle of Man Government.
Tynwald Members approved the Fees Orders and Regulations 2023 on 21 March 2023 marking a “key milestone” in the transition to an updated funding approach for the island’s finance industry, the IoMFSA said.
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.
In future, the fees charged by the regulator “will better reflect the nature and scale of activities being carried out by regulated entities and designated businesses”, the IoMFSA added.
Isle of Man treasury minister Alex Allinson MHK 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, IoMFSA chief executive, added: “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.”