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APPENDIX E
7. Loan Charge
At the end of the prior period an amount of £200K was ring-fenced within Government’s
central funding for future draw downs in respect of merger related costs. It was agreed with
Treasury that this would be on a repayment basis - to be repaid over a period of 10 years
with interest to be paid at a rate of 1.5% for 17/18, uplifted to 2% for 18/19 onwards.
8. Bad Debts
A total of £115,797 was written off to bad debts at the year end, including £113,525 paid in
legal expenses on behalf of an Isle of Man based fund (notes 3 and 6).
9. Contingency Fund
At the end of the period, the Authority has transferred £173K of unused budget to the Isle of
Man Government contingency fund. Treasury has agreed to ring fence these funds for the
Authority to draw down over a period of two years commencing from the date of the first
draw down request. The agreement to the carry forward is to assist the Authority to meet
resource needs for some additional responsibilities and increased workload in some areas of
the Authority’s work.
10. Operating Commitments
The Authority pays an annual fee to the Isle of Man Government for the use of the building
on a non-lease basis.
11. Segmental Reporting
No segmental analysis has been provided as the Authority has only one business activity
and operates in only one geographical area, being the regulation of relevant entities in the
Isle of Man.
12. Related Party Disclosures
There were no related party transactions requiring disclosure in the Accounts as the
Authority is exempt from this disclosure as the Central Government publish their financial
statements and disclose the relevant transactions.
Some Members of the Authority’s Board may also act as Directors of licenceholders. All
licenceholder fees are charged in accordance with the Financial Services (Fees) Order;
Insurance (Fees) Regulations; Collective Investment Schemes (Fees) Order; and the
Registered Schemes Administrators (Fees) Order. The total fees generated, from entities
where members are directors, were £89,360. No comparative figure is included; annual
fees are payable prior to 1 November, which was the start date of the period covered by the
Authority’s previous accounts.
13. Government Grant
As per note 1(a), any deficit or surplus generated by the Authority during the financial year
forms part of the general revenue and any surplus is not retained by the Authority. The Isle
of Man Government is committed to funding any shortfall of the Authority on an on-going
basis, in accordance with section 52(1) of the Financial Services Act 2008.
A budgetary grant was approved by Tynwald at its February 2016 sitting, and published in
the same month within the Isle of Man Government’s “Budget Report and Estimates 2016-17”.
This grant secured the provision of up to £2,779,212 to cover any shortfall.
58 • Isle of Man Financial Services Authority Annual Report 2016/17