Isle of Man: Legislation Update

Last Updated: 2 May 2018
Article by Robyn Wood

Primary legislation

Central Registry Bill 2018: this will provide for the creation of a Central Registry, combining the registry and public records functions of the General Registry with the Companies Registry functions. The Bill had its third reading in the House of Keys on 27 March 2018.

Credit Unions (Amendment) Bill 2017: amends the Credit Unions Act 1993 (the 1993 Act) to impose a requirement for credit unions to be licensed by the Isle of Man Financial Services Authority (IOMFSA) and subject to regulation under the Financial Services Act 2008. The amendments will make the IOMFSA's regulatory framework to be implemented for credit unions as it is for various other financial services sectors, which will be implemented via secondary legislation.

Data Protection Bill 2018: this is the legislation intended to implement the EU General Data Protection Regulation. It allows for:

  • the Council of Ministers to, by way of Order, apply any EU instrument relating to the protection of personal data to the law of the Island;
  • the Council of Ministers to make regulations for the purpose of implementing any EU instrument applied to the Island under an Order; and
  • references to EU instruments in Orders or regulations.

The Bill had its third reading in the Legislative Council on 27 March 2018.

Freedom of Information (Amendment) Bill 2017: this amendment Bill is intended to support the purpose of the Freedom of Information Act by:

  • Making provision to enable the Information Commissioner to be listed as a public authority, within Schedule 1 to the Act, in accordance with the intention of the Council of Ministers and Tynwald;
  • Recognising that policy is not just made by Government Departments, but also by Statutory Boards; and
  • Making certain stylistic amendments to remove the potential for any ambiguity in the application of exemptions and other provisions.

Bill was signed 16 January 2018. Awaits Royal Assent and Appointed Day Order.

Anti-Money Laundering and Other Financial Crime (Miscellaneous Amendments) Bill 2018: this Bill addresses several recommendations made within the MONEYVAL Mutual Evaluation Report of the Isle of Man, as well as addressing other matters identified by various authorities in relation to anti-money laundering and the effective prosecution of financial crime.

The amendments include:

  • an explicit power to prosecute predicate cases domestically where parts of the offence(s) were committed abroad;
  • amendments to the penalties for offences of failing to disclose information in paragraph 1(6) of Schedule 6 to the Anti-Terrorism and Crime Act 2003, section 20(5) of the Financial Intelligence Unit Act 2016 and sections 163A and 176 of the Proceeds of Crime Act 2008, to bring the penalties in line with section 41(1) of the Financial Services Act 2008;
  • amending the Gambling (Amendment) Act 2006 by include a new subsection to confirm that decisions made or taken by the Commissioners under the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Act 2018 as a decision that is subject to appeal, as well as other minor amendments;
  • amendments to the Partnership Act 1909, Companies Acts 1931 and 2006, the Limited Liability Companies Act 1996 and the Foundations Act 2011, to insert a new clause which clarifies that the registrar is not liable for the accuracy of information submitted for inclusion on any register or index for registration under those Acts, as well as giving powers to the Registrar to make such enquiries as appropriate to determine the accuracy of any such information; and
  • amends the Financial Services Act 2008 to amend the persons that the Isle of Man Financial Services Authority may conduct an investigation into in relation to liability arising from a breach of AML/CFT legislation.

The Bill had its third reading in the House of Keys on 27 March 2018.

Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Act 2018: the remaining provisions of this Act came in operation on 13 February 2018. It aims to address deficiencies in the current legislation identified by the AML/CFT National Risk Assessment (published March 2016) and the MONEYVAL Mutual Evaluation Report (published January 2017). These identified that the Gambling Supervision Commission (GSC) did not have clear powers in primary law to conduct AML/CFT oversight and that the GSC had limited sanctioning powers.

The Act addresses these deficiencies by:

  • providing the GSC with powers to conduct supervisory oversight of gambling operators with AML/CFT legislation;
  • providing the GSC with a wider range of administrative sanctions designed to dissuade licensees from failing to comply with AML/CFT legislation;
  • requiring operators to submit AML/CFT returns to the GSC;
  • allowing persons from the GSC to conduct on-site inspections of premises in which gambling is conducted;
  • empowering the GSC to impose sanctions for non-compliance with AML/CFT legislation and impose restrictions on the holders of permits/licences; and
  • enabling the GSC to add to or amend operator's licence conditions for AML/CFT reasons.

 Secondary legislation

Financial Services (Exemptions) (Contracts of Insurance) Regulations 2018 revokes the Financial Services (Exemptions) (Contracts of Insurance) Regulations 2014 (the 2014 Regulations). The 2014 Regulations exempt authorised insurers from the requirements of section 4 of the Financial Services Act 2008 when conducting regulated activity specified in the Regulated Activities (Contracts of Insurance) Order 2014 (the 2014 Order). As the 2014 Order is now being revoked, the 2014 Regulations are no longer necessary and are therefore being revoked.

Regulated Activities (Contracts of Insurance) Order 2018 revokes the Regulated Activities (Contracts of Insurance) Order 2014 (the 2014 Order), which brought contracts of insurance within the scope of section 47 the Financial Services Act 2008. Section 47 clarified that no contract to which it applies shall be void or unenforceable by reason of section 40 of the Gaming, Betting and Lotteries Act 1988.

This 2014 Order can be revoked as the Insurance (Amendment) Act 2017 introduces a new section into the Insurance Act 2008 that addresses this matter. The Order was laid before Tynwald on 17 April 2018, and will come into operation on 1 May 2018.

The Casino (Amendment) Act 2018 (Appointed Day) Order 2018 brings sections 4 to 6 of the Casino (Amendment) Act 2018 (the Act) into operation. The Act amends the Casino Act 1986 (1986 Act). These sections amend the 1986 Act to:

  • permit the revocation of a casino licence in case of non-compliance with AML and CFT legislation (this includes Anti-Terrorism and Crime Act 2003, Part 3 of the Proceeds of Crime Act 2008 and Terrorism and Other Crime (Financial Restrictions) Act 2014);
  • confer new powers upon the GSC to require that a holder of a licence to satisfy it that the holder has complied with new money laundering obligations; and
  • permit the premises in which casinos are located and the facilities provided under casino licenses to be varied (with approval of the Council of Ministers).

The Order (and so the Act) came into operation on 24 January 2018.

Insurance (Amendment) Act 2017 (Appointed Day) (No.1) Order 2018: brought into operation a number of provisions of the Insurance Amendment Act 2017 (and the related amendments to the Insurance Act 2008) with effect from 1 February 2018. This includes:

  • sections 21(1), (2), (3) and (4) – inserts a requirement into the 2008 Act to serve notice when a principal control officer is appointed/ceases to be appointed;
  • section 23 inserts a definition of principal control officer into the 2008 Act;
  • section 24 and 25 – amends the 2008 Act to require notice to be served when a company secretary is appointed/ceases to be appointed;
  • section 47(1), (2)(c), (3) – inserts permission into the 2008 Act for foreign insurers to carry on non-insurance business away from the island;
  • section 51 – inserts a new section into the 2008 Act to state that no contract of insurance is to be regarded as gaming or wagering contracts and therefore void or unenforceable;
  • section 54 – amends the 2008 Act definition of insurance business;
  • section 57 – minor amendments to the 2008 Acts prescribed powers of the Authority to make regulations;
  • section 58 – amend the 2008 Act procedure for regulations, inserting the requirement to gain the approval of Tynwald before the regulations come in to effect;
  • sections 59 and 60 – inserts the definition of person in both the 2008 Act and Financial Services Act 2008 respectively; and
  • section 61 – amends the continuation and discontinuation of insurance companies schedule 4 of the 2008 Act to insert a new paragraph to ensure that any references to 'the Department' are construed as 'the Authority'; and
  • Other minor and consequential amendments.

Beneficial Ownership (Access to Database) (Amendment) Order 2018: in force 21 February 2018 and amends section 26(2)(c) of the Beneficial Ownership Act 2017 to allow access to the beneficial ownership database for the purposes of maintaining the database and the related website to employees of the Cabinet Office and any person authorised in writing for that purpose by the Minister for the Cabinet Office.

Value Added Tax Act 1996 (Amendment) Order 2018: The Isle of Man VAT regime is required to be in line with the UK regime. This Order makes amendments to the Value Added Tax Act 1996 to correspond with recent amendments made to UK legislation (Value Added Tax Act 1994). These amendments include, amongst other things:

  • new sections inserted into article 3 of the Act to introduce a new and more effective penalty against the participation in VAT fraud. The new penalty will be a fixed rate of 30% which will apply to businesses and company officers when they knew or should have known that the transactions were connected to VAT fraud, and give the Treasury option to name those who participate in the fraud; and
  • amendments to schedule 12 of the Act to give the Treasury power to make regulations to require businesses that a registered for VAT or liable to be registered, to use digital tools and to keep records and to provide information and VAT returns through the use of digital tools, and also allows for regulations to provide for exemptions to those obligations (note: regulations providing for digital record keeping cannot come into operation before 1 April 2019);

This Order came into operation on 1 March 2018.

Freedom of Information Act (Amendment of Schedule 1) Order 2018: this Order came into operation on 1 March 2018 and amends Schedule 1 of the Freedom of Information Act 2015 to add the Information Commissioner to the list of public authorities subject to the Act, which means that the Information Commissioner must respond to freedom of information requests using existing resources.

Insurance (Fees) Regulations 2018: application and annual fees payable increased from 1 April 2018 in respect of authorisations, permits and registrations under the Insurance Act 2008 by 3.3% (with amounts rounded up to the nearest £1).

Financial Services (Fees) Order 2018: application and annual fees payable increased from 1 April 2018 in respect of the licensing of regulated activities under the Financial Services Act 2008 by 3.3% (with amounts rounded up to the nearest £1).

Collective Investment Schemes (Fees) Order 2018: application and annual fees payable increased from 1 April 2018 in respect of authorisations, permits and registrations under the Collective Investment Schemes Act 2008 by 3.3% (with amounts rounded up to the nearest £1).

Gambling Appeals Tribunal Rules 2018: rules to introduce a new framework to govern the practice and procedure of the Gambling Appeals Tribunal, which is due to be established pursuant to the Gambling (Amendment) Act 2006 (Appointed Day) No.2) Order 2017. These rules came into effect on 20 March 2018.

Electronic Transactions (General) (Amendment) Regulations 2018: these regulations, in effect on 21 March 2018, extend the operation of certain exemptions under the Electronic Exemptions Act until 31 March 2020, as well as updates and amendments to the list of certain electronic transactions that can be accepted by public authorities.

Financial Intelligence Unit (Tipping Off) Regulations 2018: the Regulations introduce tipping off offences for those who have been approached for additional information under section 18(4) of the Financial Intelligence Unit Act 2006. The offence is punishable upon summary conviction to a fine not exceeding level 5 on the standard scale.

The Regulations also make provisions for professional legal advisers who have been approached for additional information, highlighting it is not tipping off for a legal adviser to give legal advice to their client (or a representative of the client) in connection with the provision of legal advice, or to any person in contemplation of or in connection with legal proceedings and for the purpose of those proceedings. The exception does not apply in relation to any information which is disclosed with a view to furthering any criminal purpose.

The Regulations replace the previous Financial Intelligence Unit (Tipping Off) Regulations 2017, which are to be revoked, as they did not make a provision for a defence. It is now a defence when it can be proven that the person did not know or suspect that the disclosure would be prejudicial in the way set out in the Regulations.

The Regulations came into operation on 1 March 2018.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions