A Manx insurance firm has been fined nearly £90,000 for systemic and long-standing failings.

The Financial Services Authority has fined Isle of Man Assurance Limited £87,108 under section 37 of the Insurance Act 2008.

In July 2018, IOMA was the subject of a routine supervisory inspection by the FSA in accordance with its statutory powers under Schedule 5 of the Act, which includes the power to investigate compliance with AML/CFT requirements within the meaning of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2015 and the Corporate Governance Code of Practice for Regulated Insurance Entities (CGC).

After identifying certain issues in relation to IOMA’s compliance with both the 2015 code and the CGC, the FSA decided to formally investigate whether IOMA was ’fit and proper’.

The FSA said that it was ’able to establish’ that IOMA:

â?¢ Was unable to evidence that it had been undertaking customer risk assessments for large periods of time and that those in more recent times were inadequately documented

â?¢ Failed to undertake a formal technological risk assessment

â?¢ Failed to evidence appropriate arrangements to effectively monitor customer and business relationships on an ongoing basis

â?¢ Failed to evidence that it was operating appropriate procedures and controls in respect of or monitoring higher risk clients and/or clients who were/are politically exposed persons

â?¢ The absence of suitable arrangements detailed above further constitutes a number of breaches of the regulatory requirements imposed on regulated insurance entities by way of the CGC

In a statement, the FSA said: ’The matters above were aggravated due to the long-standing period of time over which noncompliance occurred and because a number of the matters identified by the authority had previously been reported to IOMA by its control functions.

’Notwithstanding these findings, the authority has concluded that, in all the circumstances, apart from the civil penalty, no further regulatory sanction is necessary and therefore IOMA remains authorised to carry on undertaking regulated insurance business.

’The authority is satisfied that the imposition of the civil penalty to IOMA reflects the serious nature of the regulatory failings identified and that this public statement will encourage others to comply with the legal and regulatory requirements and obligations that are fundamental to the conduct of business in the regulated insurance sector.

’In accordance with the DMP (Decision Making Process), IOMA entered into settlement discussions with the authority and, having accepted the investigation conclusions, sought to finalise matters expeditiously.

’The authority acknowledges and welcomes IOMA’s co-operative approach and believes that this is a further positive endorsement of the DMP.’

The Isle of Man Examiner approached IOMA but it declined to comment.