Douglas-based Isle of Man Assurance Limited (Ioma) has been fined £87,108 ($114,543, €96,766) by the local watchdog for a number of regulatory failings.
Ioma was issued a discretionary civil penalty of £124,440, however it was discounted by 30% for the firm’s co-operation and agreed settlement at an early stage.
Inspection
In July 2018, Ioma was the subject of a routine supervisory inspection by the Isle of Man Financial Services Authority (IoMFSA) in accordance with its statutory powers, which includes the power to investigate compliance with anti-money laundering and counter-terrorism financing requirements.
Subsequently, the authority decided to formally investigate whether Ioma was “fit and proper” to be authorised.
It identified a range of issues in relation to Ioma’s compliance with both anti-money laundering regulations and the corporate governance code which “brought into question Ioma’s fitness and propriety”.
Failings
The IoMFSA found that the firm was “unable to evidence” that it had carried out customer risk assessments for large periods of time and recent assessments were “inadequately documented”.
Ioma “failed” to undertake a formal technological risk assessment, evidence appropriate arrangements to effectively monitor customer and business relationships on an ongoing basis.
The firm also failed to “evidence that it was operating appropriate procedures and controls in respect of or monitoring higher risk clients and/or clients who were/are politically exposed persons”.
Serious nature
The IoMFSA said in a statement: “The authority is satisfied that the imposition of the civil penalty to Ioma reflects the serious nature of the regulatory failings identified and that this public statement will encourage others to comply with the legal and regulatory requirements and obligations that are fundamental to the conduct of business in the regulated insurance sector.
“In accordance with the decision-making process, Ioma entered into settlement discussions with the Authority and, having accepted the investigation conclusions, sought to finalise matters expeditiously.
“The authority acknowledges and welcomes Ioma’s co-operative approach and believes that this is a further positive endorsement of the decision-making process.”
Remediation
Ioma has commenced a review of its procedures in relation to all of its client, implemented new procedures which addressed the failings found in the investigation and brought in a third-party to undertake a review.
The report will be provided to the Isle of Man regulator.
International Adviser has contacted the firm for a comment, but it did not reply in time for publication.
