The Retirement Benefit Schemes Amendment Bill has moved to the next stage in the Keys after members voted to suspend standing orders to allow its second reading.
The legislation seeks to modernise the regulatory framework for pension providers on the island, bringing them within scope of conduct and prudential regulation under the Financial Services Act 2008.
Treasury Minister Chris Thomas said the bill aimed to “strengthen consumer protection” and “support the future growth of the island’s pension centre by enabling greater flexibility in how schemes are established”.
Dr Michelle Haywood raised questions about the transfer of regulatory powers to the Financial Services Authority. “The bill is really asking us to approve a framework now, while leaving a great deal of the real world impact to secondary regulations that are to follow,” she said.
Lawrie Hooper also questioned the bill, comparing it to recent gambling legislation.
He said: “Why is it that powers that the government, only a week or two ago was telling us needed to sit in the hands of politicians in the Treasury.
“They are now saying similar powers shouldn’t sit in the hands of the Treasury. They should actually sit with the regulator. I’d like to understand why those two positions are almost entirely at odds with each other over two bills that are very similar in nature.”
Responding, Mr Thomas confirmed secondary legislation would be consulted on during 2026 and 2027, with commencement expected beyond 2028.
He said 97% of schemes on the island were already managed by licensed providers familiar with such regulation.