Consolidation and Review of Financial Services Legislation (“ CAROL ”) Jane D N Bates Head of...
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![Page 1: Consolidation and Review of Financial Services Legislation (“ CAROL ”) Jane D N Bates Head of Policy and Legal Unit Financial Supervision Commission 21.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649ed35503460f94be3f23/html5/thumbnails/1.jpg)
Consolidation and Review of Financial Services
Legislation(“CAROL”)
Jane D N BatesHead of Policy and Legal Unit
Financial Supervision Commission
21st March 2006
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Objectives
Consolidate FSC legislation into one Act and -
Modernise the regulatory framework
Review FSC mandate & remit– Opportunities and Risks – Joined-up Regulation
Benchmark against other jurisdictions
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Benefits
Streamlined & up to date framework which is:– Easy to use & understand– Less bureaucratic
Enhanced international respect through: – Taking account of international standards– Facilitating appropriate international
cooperation (MOUs)
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Benefits (2)
Appropriate effective consistent regulation, which:– Underpins the “Can Do Economy”– Supports existing business streams
(market access)– Creates new opportunities for quality
business
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The First Stage
Consultation Paper issued 6 March 2006Published on our website (www.fsc.gov.im/library)Shape of proposed legislative frameworkThe Commission’s remit and accountabilitiesProposed changes to existing regulatory legislationInteractive questions: e- responses encouragedComments by 28 April 2006 please
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Proposed new framework
One Financial Services ActOne Regulated Activities Order- detailing all the activities to be regulated and relevant exclusions (i.e. activities outside the scope of the Act)Exemption Regulations
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Proposed new framework (2)
One Combined Regulatory Code (or Rulebook) which has sections covering the various topics e.g. Conduct of Business, Financial Resources etc.An improved user-friendly, on-line Handbook
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The Wider Picture
Overriding Government Regulatory StrategyCreating and implementing the Regulatory FrameworkFSC RemitFSC Accountability
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Proposals for an Overriding Government
Regulatory StrategyIOM committed to level playing field IOM will adhere to principles of regulation accepted in leading international financial centres IOM will take cognisance of aspirational standards of standard-setting bodies
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Creation and Implementation of the Regulatory FrameworkTynwald
Scrutiny and approval of the legislation
Treasury/Government Changes to Overriding Government Regulatory Strategy Proposals for policy changesConsideration and approval of detailed policy propositions
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Creation and Implementation of the
Regulatory Framework (2)FSC
Initiation and development of policy propositionsConsultation with industry and Treasury Formulating rules (Legislation and Guidance)Implementation of policy and legislation
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Creation and Implementation of the
Regulatory Framework (3)Industry
Suggestions for policy changeAdvice on potential or proposed changes – existing fora and Industry Advisory GroupComment upon policy propositionsContribute to the detailed assessment of proposals and the practical impact of implementation
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The FSC’s Remit
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Clarification of the FSC’s Remit
The FSC seeks a formal, statutory remit to
Provide a clear transparent statement of its roleProperly empower it to carry out all aspects of that roleFacilitate effective regulation whilst safeguarding the rights of licenceholders and the publicAssist understanding of what the Commission can do – and what it cannot!
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FSC’s Accountability
Operational Independence – Setting objectives & responsibilities– Conduct of licensing & supervision
Improved accountability mechanisms– Reporting & Audit– Corporate Governance– Communication with Government &
Tynwald
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CAROL Legislative Liaison Group
Representatives from Industry Associations and Professional BodiesRole
Discuss proposals (pre consultation)Feedback to their organisationsSeek comments on specific issuesHelp to consider consultation responses
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Proposed regulatory changes
Regulated Activities, Exclusions and Exemptions to be reviewed
New areas – e-money and e-environment
Update of existing areas – e.g. Definition of Banking Business, Funds etc
Generally issues that are already identified
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Proposed regulatory changes (2)
Conduct of Business and related matters
Treating Customers Fairly
Impact of MiFID
Review Enforcement /Disciplinary Powers
Summary of proposed changes in consultation document
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Consultation TimetableShape of framework and FSC
Current
Regulated Activities & Exemptions
Q2 2006
Draft Financial Services Bill Q3 2006
Client Money/ Assets & Custody
Q3 2006
Conduct of Business & Advertising
Q4 2006
Financial Resources, Audit & General Requirements
Q4 2006
Ancillary Matters, Fees and Forms
2007
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Any Questions?