The Isle of Man Financial Services Authority has published a Feedback Statement on its consultation on the Financial Services (Miscellaneous Provisions) Bill 2026, setting out how it has revised the Bill following industry submissions. The Authority proposes a package of changes that removes or defers some measures and narrows the scope of others, with the revised Bill prepared with HM Attorney General’s Chambers for introduction into Tynwald on 31 March 2026. A central change is to the proposed enabling power for civil penalties for individuals. The revised approach would allow civil penalties to apply to regulated entities or designated businesses, individuals in controlled function roles (or equivalent) at regulated firms or designated businesses such as controllers, directors and key persons, and persons breaching general prohibitions by carrying on regulated activity or designated business without the required licence, authorisation or registration. Individuals would only be in scope where a contravention was committed or caused to a significant and material extent and involved the individual’s consent or connivance, or was attributable to the individual’s neglect; the power would apply prospectively with a six-year time limit, and where conduct is also a criminal offence civil penalties could only be used as an alternative to prosecution with immunity from prosecution for the same offence. The Authority also removed proposed extensions of warning notice powers and removed proposals on guidance provisions and appeal rights to the Financial Services Tribunal for some directions. Secondary legislation will be needed before any new civil penalty powers can be enforced, with a further consultation planned later in 2026 ahead of Tynwald approval.

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