The Isle of Man Financial Services Authority (FSA) has recently released a document outlining their updated approach to supervising the Island’s finance sector.
The Supervisory Methodology Framework aims to concentrate resources on the most significant threats, focusing on consumer protection, financial crime reduction, and maintaining confidence in the financial services sector through effective regulation.
SolutionsHub appreciates the FSA’s efforts to create a more targeted supervisory approach. By making supervisory activity more proportionate to a firm’s impact—considering size, the type of activities conducted, and potential disruption to the financial system—SolutionsHub believes this framework will enable a more efficient allocation of resources, while ensuring the continued growth and stability of the Island’s financial services sector.
Additionally, the updated framework aligns Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) supervision for all firms, including regulated firms and designated businesses, based on the level of money laundering or terrorist financing risk exposure.
SolutionsHub commends this risk-based approach, as it ensures a more comprehensive and targeted response to potential financial crimes.
To view the full document and learn more about the updated Supervisory Methodology Framework, here.