There are no targets for the number of fines we issue, insists the head of enforcement at the island’s financial services regulator.

The Financial Services Authority (FSA) has come under fire for being widely perceived to have taken an ‘unfair and draconian’ approach to imposing civil penalties on regulated businesses in recent years.

Matt Touzel, the FSA’s head on enforcement and intelligence, told representatives of the island’s business community that just 2.7% of inspections in the last financial year resulted in referral to a possible fine.

He was speaking at a Chamber of Commerce-organised event on the island’s preparations for next year’s MoneyVal inspection.

Of the 725 inspections carried out in 2023-24, only five went to enforcement and in 2024-25, there were 296 inspections of which eight went to enforcement.

Mr Touzel said this does not mean that every single one of those eight were adopted or progressed to any form of sanction.

He insisted: ‘There are no targets in respect of the number of investigations I need to adopt. There are no targets in respect of the number of sanctions I need to issue.

‘Everything is taken on a case-by-case basis. We only look to do what is reasonable, appropriate and proportionate in the circumstances.’

He said it was ‘just not the case’ that the authority was ‘over-reaching’. ‘It’s around significant material contraventions,’ he said.

Mr Touzel said there were checks and measures in place for a case to even reach his department before it looks at any potential suitable outcomes.

He added: ‘We're getting better at what we do. My team is building, the team that I inherited 18 months ago, on size let alone capability and capacity, is very different.’

Efficiencies had been implemented, increasing the speed of investigation, but ‘not to the detriment of the quality and depth required’, he said.

Public statements issued by the FSA were not there to name and shame, he said, but added: ‘Enforcement activity has to be a credible deterrent.’

The FSA has been consulting on proposals that would enable it to impose fines not just on regulated businesses but also on those who hold or have held key roles with them, where there is evidence of misconduct or regulatory failings.

Appleby has written to Ministers and other politicians to express its ‘deep concern’ over what it says are ‘onerous’ proposals.

George Pearmain, who headed the delegation for Jersey’s recent MoneyVal evaluation and has been brought in as external adviser to the Manx Government, said it was understandable there was nervousness at the plan.

He said it was instructive to look at other jurisdictions that introduced the measure. Jersey has not actually fined an individual yet.

‘One of the cases in Guernsey is incredibly egregious,’ he said.

‘When you read that case it will become very clear why the fine was definitely proportionate and necessary. In Cayman the fine is relatively low, it’s £14,700 Cayman dollars but the individual deliberately provided false and misleading information to the authority and the reason for the fine was obvious.’