Members of the FSA are expected to have knowledge and experience of the financial services industry.
However, the watchdog acknowledges that may mean “it is possible that, through their employment history, existing roles or other associations, members have private interests which could result in a potential conflict of interest in matters to be considered or determined by the authority”, reports local newspaper IOMToday.
No fewer than seven members, which includes the chief executive, are appointed by the Isle of Man Treasury to the FSA.
According to the watchdog’s website, there are currently six members plus the chief executive, chair and deputy chair.
Treasury minister Alfred Cannan said the FSA decided it should “produce and publish a comprehensive code of conduct on the disclosure and management of its members’ interests”.
Completed this year
Responding to a question from a local politician, Cannan added that the FSA agreed that “the approach to the management of conflicts will include public disclosure, through its website, of members’ direct interests in entities, or in groups with entities, that are regulated by the Isle of Man Financial Services Authority, whether this interest arises from an ownership interest or appointment to a role”.
“The publishing of the code of conduct and of members’ interests in regulated entities will be completed during 2017.”
Under conflict of interest rules, members are required to complete a disclosure form upon appointment to record any personal interests, or interests of any closely related parties, that could lead to a potential conflict of interest for that member in discharging their duties for the authority.
Those interests are currently recorded on a register – reviewed annually – that is available to authority members, the board secretary, senior staff, auditors and Tynwald members.
When a conflict of interests arises on the agenda for a meeting, information on that matter is not supplied to the authority member concerned. Each meeting also allows for previously unidentified conflicts of interest to be disclosed.
Even after a conflict of interest ceases to exist, a member would not be involved in any relevant discussions for another six months.
In response to another question from the same political, Cannan said: “Both members and employees of the Isle of Man Financial Services Authority are allowed to own an interest in an entity regulated by the authority.
“However, that interest must be disclosed in a prescribed manner and there are restrictions that arise from the interest.”