The Isle of Man Financial Services Authority has published an 18-month progress report on its banking and insurance supervisory programme for 1 April 2025 to 31 March 2027. The update tracks delivery of the previously outlined programme across governance and risk management, financial and operational resilience, and supervisory data quality. Work completed has informed updated risk assessments for all high and medium impact banks and insurers, alongside sector assessments. Capacity constraints have prompted the reprioritisation of some reviews. Internal audit reviews covering two sets of regulatory returns across 11 banks identified weaknesses in some banks’ data quality, integrity and control frameworks, particularly for financial flows returns. Overall, the audits nevertheless provided independent assurance that the data could support financial crime risk assessments. Banks have been asked to improve data accuracy, governance and controls, with follow-up planned from the first quarter of 2027. A separate review of banks’ cyber and operational resilience is complete, with sector feedback planned for the fourth quarter of 2026 or first quarter of 2027 and updated guidance likely after March 2027. Consumer protection work has advanced to discussions on a payment fraud reimbursement framework with industry and other Crown Dependency regulators. Reviews of life insurers’ unit-linked matching and suspended assets have also resulted in guidance and feedback. Further work on life insurance commissions and fees, and deeper reviews of overseas branch governance, will be considered in future planning. The assessments also identified gaps in the Authority’s understanding of how life insurers manage client asset risks. Initial outreach on life insurers’ recovery planning is planned, but further thematic work is not expected until after March 2027. Outreach on solvent exit planning for insurers in run-off is scheduled for the fourth quarter of 2026 or first quarter of 2027. Discussions on draft statistical returns for banks and insurance managers have been postponed until after March 2027 because of other data requests.
Isle of Man Financial Services Authority updates banking and insurance supervisory priorities, highlighting data weaknesses and deferred reviews
The Isle of Man Financial Services Authority’s 18-month supervisory update reports revised risk assessments across all high and medium impact banks and insurers, while highlighting bank reporting weaknesses requiring further action. Completed cyber and operational resilience reviews will inform sector feedback, while payment fraud reimbursement work continues. Capacity constraints have pushed some life insurance reviews into future planning, and discussions on draft statistical returns are not expected until after March 2027.