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Insurance
The Authority’s on-site visit programme within this
sector complements its desk-based analysis, and
may take the format of a routine visit or may focus
on a specific area of interest, policy or procedure,
including that of compliance with applicable
AML/CFT legislation. Such visits assess the
individual businesses, their corporate and
management structure, and the activities and the
risks to which the company is exposed and are
undertaken by supervisory staff.
As many of the larger insurers in the Island are
part of wider insurance or financial services
groups, bilateral meetings with other regulators
or participation within supervisory colleges form
an important aspect of understanding how these
entities fit within the wider group. Supervisory
colleges also consider the intra-group risks
and dependencies that may arise from these
relationships.
Over the period of this report, the team undertook
a series of review meetings with insurers and
insurance managers. The insurance team, in
conjunction with the ICP project team, conducted
two thematic reviews. The first of these reviews
considered the liquidity risk management
frameworks of long-term insurers. The second
thematic, again aimed at long-term insurers,
considered investment-linked asset matching. The
results of these thematic reviews will be published
in the upcoming year and insights from the
exercises will also inform elements of the insurance
framework that is currently being updated by
the ICP Project team. The insurance team also
conducted an on-site visit programme with one of
the insurance managers that looked through to a
number of managed captive insurers. This on-site
programme focused on corporate governance and
AML/CFT.
Pensions
The Authority’s on-site visit programme within this
sector complements its desk-based analysis, and
may take the format of a routine visit or may focus
on a specific area of interest, policy or procedure,
including that of compliance with applicable AML/
CFT legislation.
Over the period of this report, the team held
a number of review meetings with pension
administrators. There was also a continuation of
the AML/CFT thematic review that the team had
started in the previous period.
Occasionally third parties may be commissioned
to undertake a review of work that the Authority
has required of a company (i.e. remedial action or
to justify a position). The cost of such work would
ordinarily be met by the company concerned. That
power has been used in this period to address the
Authority’s concerns regarding the effectiveness
of the governance and control environment of a
pension administrator and its compliance with
statutory requirements.
Fiduciary Services
Over the period of this report, the team undertook
annual business meetings with corporate and trust
service providers, and the on-site visit programme
concentrated on addressing issues facing particular
licenceholders.
A briefing was provided to the industry on
implementation of the new Clients Assets Report,
which should enhance protection of client money,
and on changes to the Financial Services Rule Book
that were introduced in January 2017.
The Group of International Finance Centre
Supervisors is continuing to build upon its
Standard on the Regulation of Trust and Corporate
Service Providers. Measures adopted by the Group
during the year include agreeing to commence a
programme of mutual assessments, and forming
“colleges” to help regulators build a common
approach towards groups with a presence in
various jurisdictions. This is a first step towards
the types of group supervision that are available
to regulators in other sectors of the industry. The
Authority will contribute to the mutual evaluation
programme.
18 • Isle of Man Financial Services Authority Annual Report 2016/17