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28 • Isle of Man Financial Services Authority Annual Report 2016/17
BUS INESS CHANGE
The merger of the two predecessor organisations to form the Authority
in November 2015 provided an excellent opportunity to consider the
reasonable expectations of stakeholders, how the Authority delivers its
work and what kind of regulator the Authority wants to be.
At the beginning of the period of this report the Authority created a new Business Change Division to
assist in this work. The Division’s remit is to analyse the existing processes and procedures adopted by
the separate teams of the Authority, to identify aspects that add value to the supervisory process as well
as those which require refinement, with a view to adopting a common set of risk-sensitive supervisory
methodologies and approach.
To this end, the Authority is currently working towards refining the existing risk assessment
methodologies utilised by each supervisory team with a view to the introduction of an over-arching
risk assessment framework that allows for comparability of risk between regulated entity types. This
methodology is an integral component to the development of an Authority-wide supervisory approach
and this work continues into the forthcoming period.
Another important element of the Division’s work is the development of a new IT system to support
the efficient supervision of entities, using common methodologies of approach as well as supporting
the operations of the Authority. A key benefit arising from this is that the new supervisory support
system will enable more regulated entities to submit information electronically to the Authority. The
system is intended to enable the validation and storage of information received in such a way that it
can be analysed efficiently, so leading to more effective supervision and also bringing some efficiencies
to regulated entities in their reporting process. Work is ongoing, with planned implementation
commencing in 2018.