The Isle of Man Financial Services Authority (IoMFSA) has released a consultation paper to discuss its latest fees proposal.
It wants to increase all fees payable by all regulated entities and designated businesses from 1 April 2020 in line with inflation, which was calculated for the year to October 2019 at 0.9%.
The authority last consulted on changes to fees in late 2018 / early 2019, which resulted in a 3.5% increase to all fees in line with inflation based on Consumer Price Index (CPI).
IoMFSA is asking firms to answer if they have any comments on the proposed fee increases and any other comments in relation to fees that they would like to make.
The closing date for comments is 10 January 2020.
The consultation paper has been sent to different financial planning and life insurance associations, including the Manx Insurance Authority.
“The increase in regulatory fees is not unexpected and is line with inflationary increases,” Mike Foy, chief executive of Utmost Group Isle of Man, told International Adviser.
“We are obviously supportive of a robust regulatory regime, wherever we operate, and recognise that such regulatory frameworks have to be adequately funded.”
No significant impact
The regulator said: “The proposed increases to fees payable from 1 April 2020 are based on the cost of inflation over the past year and are intended to help maintain the authority’s income at a constant level until the wider review of fees has been completed.
“These changes are not expected to have a significant impact on regulated entities and the nature of the increases means that small firms should not be disproportionately affected.
“The authority is aware of the cost of regulation to regulated entities and seeks to satisfy its regulatory objectives with the least impact.
“The Authority continues with its programme to review its key processes to help ensure that resources continue to be used in an efficient and economic way.”
Following closure of the consultation period, the watchdog will review the responses received and publish a consultation response document on the authority’s website and the Isle of Man Government’s consultation hub.
Subject to any changes to the proposals, it is intended that the draft legislation will be finalised for laying before the Isle of Man Government for approval at the March 2020 sitting for commencement in April 2020.
IoMFSA expenditure is covered by a combination of fee income and a contribution from the Isle of Man Government.
Fee income therefore contributes towards the carrying out of the IoMFSA’s functions, maintenance and development of the Island’s regulatory framework for financial services.