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International Standards（https://www.iomfsa.im/about/regulatory-developments/international-standards/）
International Standards
It is the Isle of Man Government’s stated policy, that the Island’s regulatory frameworks for financial services continue to be able to demonstrate a high degree of compliance with applicable international standards.
In order that it is able to demonstrate such compliance the Isle of Man Government welcomes the periodic independent evaluation of the Island’s regulatory framework by the International Monetary Fund (IMF) under the Financial Sector Assessment Programme（http://www.imf.org/external/np/fsap/fssa.aspx）(“FSAP”).
External assessment by the IMF under the FSAP
Whilst further information of the FSAP is available from the IMF website（http://www.imf.org/external/index.htm）, a brief summary of the work undertaken by the IMF in their assessments is reproduced here:
"The focus of FSAP assessments is twofold: to gauge the stability of the financial sector and to assess its potential contribution to growth and development.
Work undertaken to assess the stability of the financial sector
FSAP teams examine the soundness of the banking and other financial sectors;
conduct stress tests;
rate the quality of bank, insurance, and financial market supervision against accepted international standards; and
evaluate the ability of supervisors, policymakers, and financial safety nets to respond effectively in case of systemic stress.
While FSAPs do not evaluate the health of individual financial institutions and cannot predict or prevent financial crises, they identify the main vulnerabilities that could trigger one.
Work undertaken to assess the development aspects of the financial sector
FSAPs examine the quality of the legal framework and of financial infrastructure, such as the payments and settlements system;
identify obstacles to the competitiveness and efficiency of the sector; and
examine its contribution to economic growth and development.
Issues related to access to banking services and the development of domestic capital markets are particularly important in low-income countries."
The ‘accepted international standards’ referenced in the work undertaken by the FSAP to assess the stability of the financial sector consider in relation to insurance supervision, the Insurance Core Principles (ICPs) issued by the International Association of Insurance Supervisors (IAIS) in relation to insurance supervision.
The Basel Core Principles for Effective Banking Supervision for the banking sector and the Principles of Securities Regulations issued by the International Organisation of Securities Commissions, the relevant international standards for the Island’s banking and securities sectors.
In addition, the FSAP reviews the regulatory and legal framework in place to combat money laundering and prevent terrorist financing against the Recommendations of the Financial Actions Task Force (the ‘FATF Recommendations’).
Most recent FSAP assessment by the IMF
The most recent independent evaluation of the Island’s regulatory framework against applicable international standards was conducted by the IMF under the FSAP programme in 2008. The FSAP also covered stress testing in respect of both the banking and insurance sectors.
The report concludes that "the IOM has maintained and improved on the generally high standard of compliance with the ICP, which was noted in the previous assessment. The IPA is commended for its proactive stance in establishing and enforcing high standards for supervision, which have contributed to the maintenance of the IOM’s good reputation as an international financial centre." .
The report also noted that “the Isle of Man authorities take their responsibilities in the area of international co-operation seriously” , citing supervisory co-operation, mutual legal assistance and tax information exchange agreements. The Isle of Man continues to develop its legislative framework to build upon and further enhance its level of compliance with international standards in this regard.
Copies of the IMF reports are available from the IMF website or by following the relevant link below: