The Isle of Man Financial Services Authority has set out the next steps in its plans to modernise the Isle of Man’s pensions regulatory framework.

A Feedback Statement published online highlights the submissions to a consultation on the Retirement Benefits Schemes (Amendment) Bill.

Key themes are captured in the document along with the Douglas-based authority’s responses and a breakdown of the post-consultation changes.

Detailed feedback received from pension service providers, insurers and law firms has informed a number of revisions to the draft Bill, which seeks to provide the foundations for an effective and more risk-based regulatory approach.

Further detail, including on matters relating to licensing and enabling powers for exemptions, a defined benefits funding regime, regulatory safeguards and governance requirements, will be developed in the secondary legislation and subject to a separate consultation.

Updating the regulatory framework will strengthen consumer protection and align with international standards, as well as support the competitiveness of the pensions services sector.

The intention is to enhance the authority’s ability to regulate pension schemes and pension providers while maintaining proportionality.

The revised Bill, which will update the Retirement Benefits Schemes Act 2000 and make consequential amendments to the Financial Services Act 2008 and Insurance Act 2008, is scheduled to be introduced into the branches of Tynwald in March.

The Authority will continue to work with industry representatives as the framework evolves, with particular focus on the secondary legislation, associated guidance and transitional arrangements. Subject to Tynwald approval, it is proposed to bring the new provisions into effect on a phased basis.

Bettina Roth, chief executive officer, said: ‘The authority wishes to thank everyone who provided constructive feedback on the draft Bill.

‘There was broad agreement on the need to update the legislative framework and introduce a licensing regime for pension providers.

‘The development of flexible primary legislation will enable the authority to tailor regulatory requirements to reflect the risk profile and complexity of different pension schemes. Our aim is to support efficient, risk-based regulation while minimising unnecessary administrative burdens for island firms.’

She added: ‘We recognise that our stakeholders are keen to see more detail about the proposals and look forward to working collaboratively with industry to further shape the framework to ensure it is proportionate, effective and workable in practice.’

Progress is also being achieved in relation to post-consultation changes to the Financial Services (Miscellaneous Provisions) Bill, with a view to publishing the Feeback Statement, revised Bill and next steps at the beginning of March.

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