Oversight of designated business
| Authority | Isle of Man Financial Services Authority |
|---|---|
| Date received | 2018-09-03 |
| Outcome | Some information sent but not all held |
| Outcome date | 2018-09-25 |
| Case ID | 589933 |
Summary
A request was made for statistical data regarding on-site inspections and reporting under the Designated Business (Registration and Oversight) Act 2015 for the periods of 2017 and 2018. The Isle of Man Financial Services Authority responded with a partial disclosure, stating that some information was sent but not all was held.
Key Facts
- The request targeted the Isle of Man Financial Services Authority (FSA) regarding oversight of designated business.
- The FSA has been subject to the Freedom of Information Act 2015 since 1 July 2017.
- The Designated Business (Registration and Oversight) Act 2015 came into force on 26 October 2015.
- The request sought statistics on inspections under Section 14(1) and reports under Section 25(1) of the Act.
- The outcome of the request was that some information was sent but not all was held by the authority.
Data Disclosed
- 2018-09-03
- 2018-09-25
- 1 July 2017
- 26 October 2015
- 589933
- 5 pages
- 1 document
Original Request
The Financial Services Authority (the 'FSA') is a statutory board to which the Freedom of information Act 2015 (the 'FOI Act') has applied since 1 July 2017. It is a matter of general public importance that persons doing business in the Isle of Man may have access to sufficient information as to provide them with confidence that the Financial Services Authority (the 'FSA') is carrying out its statutory functions with due propriety and in accordance with applicable legislation and policy. The Designated Business (Registration and Oversight) Act 2015 (the 'Act') came into force on 26 October 2015. Under Section 14(1) of the Act, the FSA may carry out inspections and investigations at a registered person's premises to assess the extent to which the registered person meets the requirements of the Act, AML/CFT legislation and its own procedures for compliance with them. Under Section 25(1) of the Act, the FSA may make a report of its findings resulting from an on-site inspection under Section 14(1) of the Act. Under Section 25(2) of the Act, such a report may specify: (a) any failure to meet the requirements of the Act, AML/CFT legislation or the registered person's own procedures; (b) any action the registered person must take to rectify the failure; and (c) the timescale for the taking of such action. This request is for the following statistical information: 1. the number of registered persons in respect of which the FSA has carried out on-site inspections under Section 14(1) of the Act; 2. the number of registered persons which have been subject to one or more further on-site inspections by the FSA under Section 14(1) of the Act without publication to the registered person of a report under Section 25(1) of the Act relating to the original on-site inspection; 3. the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act; 4. the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act but in respect of which the FSA has elected to withhold the report rather than disclose it to the relevant registered person; 5. the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act but in respect of which the FSA has elected to withhold the report rather than disclose it to the relevant registered person, having previously represented to the registered person that such a report would be provided to the registered person; and 6. the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act, which report has identified failures (under Section 25(2)(a) of the Act) and which has indicated any action the registered person must take (under Section 25(2)(b) of the Act) and a timescale for doing so (under Section 25(2)(c) of the Act). The statistics should be broken up into the following periods: A. 2017 (after the application of the FOI Act to the FSA); and B. 2018 (to the date of the FSA's response to this request). This request is limited to the actions of the FSA and does not seek information regarding the actions of any professional body to whom the FSA has delegated its oversight powers in accordance with Section 6(1) of the Act.
Data Tables (8)
| Information Requested | Response - 01/07/2017 - 31/12/2017 | Response - 01/01/2018 - 19/09/2018 | |||
|---|---|---|---|---|---|
| This request is limited to the actions of the FSA and does not seek information regarding the actions of any professional body to whom the FSA has delegated its oversight powers in accordance with Section 6(1) of the Act. The statistics should be broken up into the following periods: A. 2017 (after the application of the FOI Act to the FSA); and B. 2018 (to the date of the FSA's response to this request). | |||||
| 1 | the number of registered persons in respect of which the | 17 | 23 | ||
| FSA has carried out on-site inspections under Section 14(1) | |||||
| of the Act |
| Response - |
|---|
| 01/07/2017 |
| - |
| 31/12/2017 |
| Response - | |
|---|---|
| 01/01/2018 | |
| - | |
| 19/09/2018 | |
| This request is limited to the actions of the FSA and does not seek information | |
| regarding the actions of any professional body to whom the FSA has delegated its | |
| oversight powers in accordance with Section 6(1) of the Act. | |
| The statistics should be broken up into the following periods: | |
| A. 2017 (after the application of the FOI Act to the FSA); and | |
| B. 2018 (to the date of the FSA's response to this request). |
| 2 | the number of registered persons which have been subject to one or more further on-site inspections by the FSA under Section 14(1) of the Act without publication to the registered person of a report under Section 25(1) of the Act relating to the original on-site inspection | 0 | 0 | ||
|---|---|---|---|---|---|
| 3 | the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act | 17 | 23 | ||
| 4 | the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act but in respect of which the FSA has elected to withhold the report rather than disclose it to the relevant registered person | 0 | 0 | ||
| the number of such on-site inspections which have led to | |||||
| the preparation of a report under Section 25(1) of the Act | |||||
| but in respect of which the FSA has elected to withhold the | |||||
| report rather than disclose it to the relevant registered | |||||
| person | |||||
| 5 | the number of such on-site inspections which have led to | 0 | 0 | ||
| the preparation of a report under Section 25(1) of the Act | |||||
| but in respect of which the FSA has elected to withhold the | |||||
| report rather than disclose it to the relevant registered | |||||
| person, having previously represented to the registered | |||||
| person that such a report would be provided to the | |||||
| registered person | |||||
| 6 | the number of such on-site inspections which have led to | 25(1)17 25(2)(a)15 25(2)(b)15 25(2)(c)N/A | 25(1)23 25(2)(a)21 25(2)(b)21 25(2)(c)N/A | ||
| the preparation of a report under Section 25(1) of the Act, | |||||
| which report has identified failures (under Section 25(2)(a) | |||||
| of the Act) and which has indicated any action the | |||||
| registered person must take (under Section 25(2)(b) of the | |||||
| Act) and a timescale for doing so (under Section 25(2)(c) of | |||||
| the Act) |
| the number of registered persons which have been subject |
|---|
| to one or more further on-site inspections by the FSA under |
| Section 14(1) of the Act without publication to the |
| registered person of a report under Section 25(1) of the Act |
| relating to the original on-site inspection |
| the number of such on-site inspections which have led to |
|---|
| the preparation of a report under Section 25(1) of the Act |
| 25(1)17 |
| 25(2)(a)15 |
| 25(2)(b)15 |
| 25(2)(c)N/A |
| 25(1)23 |
|---|
| 25(2)(a)21 |
| 25(2)(b)21 |
| 25(2)(c)N/A |
Full Response Text
xxxx
xxxx
xxxx
xxxx
xxxx
Isle of Man Financial Services Authority
PO Box 58, Finch Hill House,
Bucks Road, Douglas,
Isle of Man, IM99 1DT
Tel: +44 (0)1624 646000
Website: www.iomfsa.im
Our ref: 589933 25 September 2018
Dear xxxx
We write further to your request which was received on 3 September 2018 and which states:
"The Financial Services Authority (the 'FSA') is a statutory board to which the Freedom of information Act 2015 (the 'FOI Act') has applied since 1 July 2017.
It is a matter of general public importance that persons doing business in the Isle of Man may have access to sufficient information as to provide them with confidence that the Financial Services Authority (the 'FSA') is carrying out its statutory functions with due propriety and in accordance with applicable legislation and policy.
The Designated Business (Registration and Oversight) Act 2015 (the 'Act') came into force on 26 October 2015.
Under Section 14(1) of the Act, the FSA may carry out inspections and investigations at a registered person's premises to assess the extent to which the registered person meets the requirements of the Act, AML/CFT legislation and its own procedures for compliance with them.
Under Section 25(1) of the Act, the FSA may make a report of its findings resulting from an on-site inspection under Section 14(1) of the Act. Under Section 25(2) of the Act, such a report may specify:
(a) any failure to meet the requirements of the Act, AML/CFT legislation or the registered person's own procedures;
(b) any action the registered person must take to rectify the failure; and
(c) the timescale for the taking of such action.
This request is for the following statistical information:
-
the number of registered persons in respect of which the FSA has carried out on-site inspections under Section 14(1) of the Act;
-
the number of registered persons which have been subject to one or more further
on-site inspections by the FSA under Section 14(1) of the Act without publication to the registered person of a report under Section 25(1) of the Act relating to the original on-site inspection;
-
the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act;
-
the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act but in respect of which the FSA has elected to withhold the report rather than disclose it to the relevant registered person;
-
the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act but in respect of which the FSA has elected to withhold the report rather than disclose it to the relevant registered person, having previously represented to the registered person that such a report would be provided to the registered person; and
-
the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act, which report has identified failures (under Section 25(2)(a) of the Act) and which has indicated any action the registered person must take (under Section 25(2)(b) of the Act) and a timescale for doing so (under Section 25(2)(c) of the Act).
The statistics should be broken up into the following periods:
A. 2017 (after the application of the FOI Act to the FSA); and
B. 2018 (to the date of the FSA's response to this request).
This request is limited to the actions of the FSA and does not seek information regarding the actions of any professional body to whom the FSA has delegated its oversight powers in accordance with Section 6(1) of the Act."
While our aim is to provide information whenever possible, in this instance the public authority does not hold or cannot, after taking reasonable steps to do so, find some of the information that you have requested because part of the request is for timescales in reports, but timescales do not necessarily form part of the reports I have detailed below the information that is held.
The Designated Businesses (Registration and Oversight) Act 2015 (“DBRO”) came into force on 26th October 2015, its purpose being; “to require the Isle of man Financial Services Authority to monitor compliance on the part of certain non-financial businesses and professions with anti-money laundering and countering the financing of terrorism (AML/CFT) legislation; to make minor amendments to other enactments; and for connected purposes." Section 5 of the DBRO defines the functions of the Authority under the act as:
“Without limiting its functions under any other enactment, the Authority is responsible for —
(a) assessing compliance with AML/CFT legislation in relation to any designated businesses; and (b) where any breach of that legislation is found, conducting investigations into any potential criminal liability arising from that breach.”
Section 14 of the DBRO allows the Authority to undertake inspections of a registered person. Undertaking an inspection involves the examination of procedures, the sampling of the books and records as well as interviewing staff and officers to assess the extent to which a ‘registered person’ meets the requirements of the DBRO, the relevant AML/CFT legislation and associated guidance. Inspections are normally held at frequencies of between one and six years, depending upon, the risk rating of the business, whether there are remedial actions arising from previous inspections; and whether there is any adverse information, intelligence or evidence suggesting the business is not in compliance with the DBRO or relevant AML/CFT legislation.
A Designated Business selected for inspection would normally be sent an inspection notification letter which includes the scope of the upcoming inspection. The letter also sets out the information to be provided to the Authority prior to the inspection, and information to be made available when the Authority team is on site. At the conclusion of an inspection, the Inspection Team considers their initial findings. Where appropriate, there is then a close out meeting held with those charged with the governance of the business to highlight findings to them. Following an inspection, the Authority may prepare a report of its findings as prescribed in Section 25 of the DBRO. If a report is prepared, it may be issued to the designated business, although in some cases it may not be and simply form part of a record for the Authority.
On occasion a second inspection may be necessary before a report is issued. The responsibility for complying with AML/CFT requirements remains with the registered person irrespective of whether a report is issued or not.
Please see response to the information requested through the Freedom of Information Act 2015 below:
Information Requested Response - 01/07/2017 - 31/12/2017 Response - 01/01/2018 - 19/09/2018
This request is limited to the actions of the FSA and does not seek information
regarding the actions of any professional body to whom the FSA has delegated its
oversight powers in accordance with Section 6(1) of the Act.
The statistics should be broken up into the following periods:
A. 2017 (after the application of the FOI Act to the FSA); and
B. 2018 (to the date of the FSA's response to this request).
1 the number of registered persons in respect of which the
FSA has carried out on-site inspections under Section 14(1)
of the Act
17
23
2 the number of registered persons which have been subject to one or more further on-site inspections by the FSA under Section 14(1) of the Act without publication to the registered person of a report under Section 25(1) of the Act relating to the original on-site inspection 0 0 3 the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act 17 23 4 the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act but in respect of which the FSA has elected to withhold the report rather than disclose it to the relevant registered person 0 0 5 the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act but in respect of which the FSA has elected to withhold the report rather than disclose it to the relevant registered person, having previously represented to the registered person that such a report would be provided to the registered person 0 0 6 the number of such on-site inspections which have led to the preparation of a report under Section 25(1) of the Act, which report has identified failures (under Section 25(2)(a) of the Act) and which has indicated any action the registered person must take (under Section 25(2)(b) of the Act) and a timescale for doing so (under Section 25(2)(c) of the Act)
25(1)17 25(2)(a)15 25(2)(b)15 25(2)(c)N/A
25(1)23 25(2)(a)21 25(2)(b)21 25(2)(c)N/A
*N/A responses are because timescales do not necessarily form part of the reports. The timescales are agreed and discussed with the registered person separate from the reports via correspondence.
Please quote the reference number 589933 in any future communications.
Your right to request a review
If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.
An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review. If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.
If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on;
- Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or
- Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi.
I will now close your request as of this date.
Yours sincerely
xxxx