The Group of International Finance Centre Supervisors (GIFCS) adopted, on 18 January, a further evaluation of the Isle of Man's compliance with its Standard on the Regulation of Trust and Company Service Providers (TCSPs).
The Isle of Man Financial Services Authority (IOMFSA) achieved the highest 'compliant' rating in nine of the 10 key areas assessed, with a 'largely compliant' rating in the other.
The GIFCS promotes the adoption of international regulatory standards in the banking, securities and fiduciary sectors. Its on-site evaluation in May 2022 covered areas such as licensing and authorisations, corporate governance, anti-money laundering and countering the financing of terrorism (AML/CFT), and financial crime.
The nine compliant ratings reflect a positive overall view of the FSA's regulatory and supervisory regime in respect of TCSPs. The single 'largely compliant' rating was awarded due to an exception to prudential requirements that permitted smaller TCSPs with turnover below £250,000 to be exempt from producing audited annual financial statements.
Since the on-site evaluation, the IOMFSA announced that the seven in-scope licence holders had had their audit exceptions revoked and were therefore required to have their financial statements audited.
The IOMFSA has also put an internal action plan in place to respond to other matters identified by the GIFCS supervisors for further consideration.
The TCSP sector is an important part of the Island's economy, with significant activity including 12,135 trusts and 19,651 companies under management, 219 partnerships, and 199 foundations. According to figures for 2021/22, the sector directly employed a total of 1,322 people.
IOMFSA chief executive Bettina Roth said: 'The strong ratings reflect the Authority's long-standing policy of positive engagement with international standards and its efforts over many years to enhance levels of compliance within the TCSP sector. We continue to work collaboratively with firms and wish to thank the TCSPs and members of the ACSP for their contribution to the GIFCS evaluation."
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