The Isle of Man Financial Services Authority has published guidance to raise awareness within the regulated sector of climate and nature loss risks.
The guidance provides further clarity around the expectations of the Authority in respect of these risks.
The FSA says this “represents a significant first step in the Authority’s work to support the ambitions highlighted in the Isle of Man Sustainable Finance Roadmap“.
New Guidance
This guidance note is applicable to entities regulated under the Financial Services Act 2008, the Insurance Act 2008 and the Collective Investment Scheme Act 2008.
It aims to give a high-level understanding of how climate and nature loss risks can create financial and other risks, as well as the expectations that the Authority has of firms that identify a material risk.
The document focusses on how these risk management expectations sit within the existing regulatory frameworks, with no new requirements for firms.
Another key focus area within the document is that of proportionality and materiality. The majority of the guidance is applicable only for business that have identified a material climate or nature risk as part of their risk assessment processes.
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