The Isle of Man Financial Services Authority has made some minor updates to its Regulatory Guidance – Fitness and Propriety. The updates apply with immediate effect.
The updates are in two areas:
- The Controlled Functions of R1 and R2 (both being different classifications of individual controllers of regulated entities) have been amalgamated into one classification (R1), as the separation was not necessary and clearly a cause of confusion.
- The term ‘independence’ has been clarified in a new Appendix 10, predominantly connected with the independence of non-executive directors.
Regulated entities do not need to take any action regarding current Controlled Function holders. All individuals in R2 Controlled Functions have been automatically placed into the all-encompassing R1 Controlled Function. All independent non-executive directors remain so.
Regulated entities should, however, bear the updated guidance in mind for future appointments.
Updated versions of relevant F&P forms, reflecting the above, are now available online. They should be used for new appointments, but any older versions of forms currently in progress do not have to be resubmitted or recompleted.