The final draft of the Isle of Man Conduct of Business Code was published last month and included revisions following industry feedback.
Under the current Code, broad commission disclosure will come into force worldwide for IoM-based life companies on 1 January 2018 and policyholder specific commission levels a year later.
However, industry sources told International Adviser that the Isle of Man Financial Services Authority (IoMFSA) is likely to drop broad commission disclosure requirements and implement policyholder-specific key information documents (KIDs) at the later date of 1 January 2019.
The change is likely to be announced in response to industry feedback to the consultation on the latest draft, which ends 16 June 2017.
Speaking to IA, Karen Badgerow, chief executive of IoMFSA, said the regulator will only make changes to the deadline for its commission proposals once the consultation has closed.
“We haven’t made any decision on that at all because it’s still out for live consultation. It may be desirous for the industry. We’ll wait and hear what they have to say officially to us but we’re looking at this.
“We may or may not look at those timeframes we’ve set up in terms of commission disclosure 2019 and more generic key information documents 2018, but that’s subject to the consultation process still,” she said.
Proposal amended
The IoMFSA has already made a number of changes since it first announced, in July 2016, a wide-sweeping commission disclosure rule for life companies based on the Island.
In May, the watchdog amended the latest draft of the Code of Business Conduct to mean insurers would only have to issue a policyholder-specific KID when a sale is made.
The change was made in response to industry feedback that details around commissions may only be finalised at the point of sale when terms are agreed, rather than earlier in discussions with policyholders.
