The Isle of Man Financial Services Authority (FSA) has set out its two-year programme of supervisory engagement for regulated firms.

The authority’s programme will be delivered by its Prudential, Portfolio, and High and Medium Impact (HMI) divisions, with the supervisory priorities for 2025-27 coming under three broad themes.

These themes are: culture, governance and risk management; financial and operational resilience; and quality of supervisory data.

This will look to support the FSA’s ongoing supervision at firm and sector level, with work ongoing in line with the engagement model published as part of the Supervisory Methodology Framework.

The Supervisory Priorities 2025-27 paper includes a continuation of existing projects alongside further development of areas that have been previously highlighted to firms on the Isle of Man, and communications will be sent to all firms to provide further information about the planned workstreams.

Work will be delivered through a range of supervisory activities including engagement meetings, inspections, thematic reviews, data requests and other stakeholder communication.

The three themes outlined by the authority link to the frameworks and infrastructure pillars of its Strategic Plan 2024-27, covering topics including: consumer value; fairness and outcomes; quality of oversight and assurance; managing financial pressures and shock; and ensuring continuity of services.

“The Isle of Man is home to a large and diverse population of firms and the authority’s supervisory divisions work closely to deliver a risk and impact-led programme of engagement,” commented FSA head of prudential supervision, Andrew Kermode.

“We expect firms to embed the right culture to effectively manage conduct risk. This includes having robust governance and risk management structures in place and ensuring that consumers obtain fair value, and do not suffer from poor outcomes.

“We will also continue to monitor firms’ financial resilience and health and seek to enhance the quality and integrity of supervisory data that informs our understanding of risk at firm and sector level.”

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