Manx Regulators Plan To Merge Next Year
by Jason Gorringe, Lowtax.net, London
26 November, 2014
The Isle of Man has confirmed approval for a "strategically important" merger between the island's Insurance and Pensions Authority and the Financial Supervision Commission next year.
The Government said, "Integrated financial regulators are the norm around the world, and this move will remove uncertainty about the island's regulatory structure which, in one form or another, has existed since the two organizations separated in 1984. The island's regulatory framework can now be developed with complete focus on future regulatory challenges and the evolving needs of the economy."
The two organizations are already located in the same office building, and the Government has said the merger is expected to lead to a number of benefits, including:
- Eliminating any areas of regulatory overlap, gaps, or arbitrage, and enhancing the coordinated supervision of the license-holders of both organizations that are members of a group or which hold a dual license;
- Bringing together experience and expertise in many areas, and improving the regulators' capacity to respond to crises, such as a bank run or default;
- More concentrated strategic and operational work on anti-money laundering and countering the financing of terrorism; and
- Cost savings.
The Government said that, after the completion of the merger, there will also be a discussion about the combined regulator's responsibility and independence from the Government.
The island's Treasury Minister, Eddie Teare, said, "I have asked both organizations to prepare a plan for achieving the merger, which will take account of the interests of all key stakeholders, and which will have a provisional completion date of March 31, 2015."
"With the support of the Boards and staff of the IPA and the FSC, and of our business community, we will build a new regulator which can be proud of the heritage of its predecessors whilst being ready to address the future needs of our economy and maintain our excellent international reputation."
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