The island’s financial watchdog says it’s undergoing reforms as it charges companies more in fees.

The Isle of Man Financial Services Authority says they are ambitious and are designed to ‘future-proof’ the island’s regulatory environment.

Central to its plans has been the introduction of what it says is a more risk- and impact-led approach to supervision.

A further change concerns the move to a ‘more sustainable’ funding model for the regulation and oversight of the finance industry.

The phased introduction of a new fee structure for island firms was approved by Tynwald in March following a reduction in the level of government funding provided to the authority.

The authority’s annual report, which covers the period April 1, 2022, to March 31, 2023, details progress in meeting its objectives of protecting consumers, reducing financial crime, and maintaining confidence in the financial services sector through effective regulation.

Updates are provided on a range of initiatives, including the focus on ensuring compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) .

AML/CFT supervision will remain a priority, with regular reviews and inspections to identify risk across different sectors of the economy. The report also explains how the authority is continuing to embrace technical innovation with a view to generating efficiencies, streamlining processes and ‘supporting new opportunities’.

Lillian Boyle, chair of the authority’s board, said: ‘Our annual report reflects a further period of considerable change, both in the regulatory environment and wider financial world.

‘It is essential to take a critical look at ourselves to ensure that we are providing a suitable level of coverage across the different sectors within our remit and setting appropriate regulatory standards to meet the needs of the Isle of Man as an international financial centre.’

Bettina Roth, chief executive officer, added: ‘Maintaining a robust regulatory system is essential to the island’s reputation as an excellent place to do business.

‘The authority’s work makes an important contribution to Our Island Plan’s vision for a vibrant and sustainable Manx economy. Collaboration is the key to our future success and we will continue to work with government and industry in the best interests of the Isle of Man.’

The report is available to view on the Publications section of the authority’s website.