Legislation aimed at updating the Isle of Man’s pensions regulatory framework has completed its third reading in the House of Keys and will now move to the Legislative Council for further scrutiny.

The Retirement Benefits Schemes (Amendment) Bill was introduced by the Isle of Man Financial Services Authority (FSA) and seeks to strengthen consumer protection while aligning the island’s pensions sector with international standards.

The legislation updates the Retirement Benefits Schemes Act 2000 and will bring pension providers within the scope of the Financial Services Act 2008.

It also aims to provide greater flexibility in how pension schemes can be established, with the government hoping the changes will help support the competitiveness of the island’s financial services sector.

Treasury Minister Chris Thomas, who guided the Bill through the House of Keys, said the legislation would help maintain confidence in the island’s pensions industry while supporting future growth.

He said: ‘Proportionate, risk-based regulation is central to maintaining confidence in the island’s pensions industry.

‘I am delighted that the framework the Bill establishes can accommodate international pension products offered in places where trusts are not recognised, potentially supporting further growth of the island’s financial services sector.’

Once the Bill has completed the legislative process through the branches of Tynwald, the Financial Services Authority will begin working with industry representatives on the development of secondary legislation and supporting guidance.

That work is expected to continue throughout the remainder of 2026 and into 2027.

The updated regulatory framework is currently scheduled to come into effect towards the end of 2027 or early 2028.

The Isle of Man Government has previously said maintaining international regulatory standards remains an important part of supporting the island’s reputation as an international finance centre.