The FSC has also introduced a licensing and supervisory regime for corporate service providers. The Companies Registry Department of Government has also be merged with the Commission.

Established in 1983, the remit given to the Commission by Tynwald is to "take such steps as appear to it to be necessary or expedient for the effective supervision of the private financial and commercial sector in the Island", with the exception of the insurance industry which is supervised by the Insurance and Pensions Authority.

The work of the Commission is overseen by seven Commissioners appointed by the Treasury, subject to the approval of Tynwald. The Chairman is a member of Treasury. The Chief Executive is also a Commissioner.

Supervision
Supervision covers the licensing and supervision of all institutions. Licensing involves a thorough evaluation of applicants, their fitness and properness to be authorised and their future business plans. In supervising licenceholders the Commission analyses the ongoing business, examines how it is directed and controlled and monitors compliance with the regulations. The work involves both off and onsite reviews and investigations, and liaison with auditors.

Enforcement
The Island's reputation as a sound and well regulated financial centre depends critically on an effective enforcement function. The Commission is vigilant for unauthorised investment or banking activity and investigates possible breaches of the law. The Commission's enforcement function has an international profile, including the gathering of intelligence, the prevention of money laundering, the seeking of remedial action against miscreants, and the recovery of funds for investors.

Policy
It is vital that the Island's supervisory regime meets international standards. The Policy function ensures this and is responsible for preparing policy recommendations across all areas of supervised activities. It keeps pace with developments through active contact with the Basle Supervisors Committee, IOSCO, and regulators overseas.