--

Statement of Intent Concerning 

Mutual Assistance and Co-operation Arrangements 

between the 

Isle of Man 

Financial Supervision Commission 

and the 

United States Commodity Futures Trading 

Commission 
TABLE OF CONTENTS /) 

• 

r. INTRODUCTION 

2. DEANmONS 

3. SCOPE AND INTENTION 

4. REQUESTS FOR ASSISTANCE 

5. UNSOLICITED INFORMATION 

6. PERMISSIBLE USES OF INFORMATION 

7. CONFIDENTIALITY 

8. RIGHTS OF REQUESTED AUTHORITY 

9. CONSULTATION 

10. COSTS OF INVESTIGATION 

II. EFFECTIVE DATE AND TERMINA TJON OF STATEMENT. 

APPENDIX A DESIGNATED CONTACT OFACERS 

2 
INTRODUCTION 

I .I The Isle of Man Financial Supervision Commission ("FSC") and the United States 

Commodity Futures Trading Commission ("CFTC") acknowledge the importance of 

international regulatory co-operation and share the goal of promoting market and financial 

integrity and investor protection. These arrangements are intended to enhance the · 

Authorities' working relationship. 

1.2 The FSC was established in 1983 and has regulatory responsibility for Banks and Building 

Societies, Investment Businesses, Collective·lnvestmenf Schemes and Corporate Service 

Pr~viders. It is also responsible for the operation of the Isle of Man Companies Registry. 

The FSC's mission is to protect investors' and depositors' intere~ts, promote financial 

stability of financial institutions, promote the highest standards of competence, protect the 

integrity of the financial community and protect the reputation of the Isle of Man." 

To achieve this, the FSC undertakes supervisory monitoring of licenceholders through a 

combination of on-site (i.e. visits to licenceholders) and off-site (i.e. desk-based) supervision 

and takes steps to investigate and where appropriate prosecute those engaged in 

unlicensed business. The FSC cooperates with other regulators around the globe in order 

to play a full part in the development of inte~national regulatory standards. 

1.3 The CFTC was created by US Congress in 197 4 as an independent· agency with the 

mandate to regulate commodity futures and option markets in the United States. The . · 

agency's mandate has been renewed and expanded several times since then, most recently 

by the Commodity Futures Modernization Act of 2000. Today, the CFTC assures the 

economic utility of the futures markets by encouraging their competitiveness and efficiency, 

ensuring their integrity, protecting market participants against manipulation, abusive trading 

practices, and fraud, and ensuring the financial integrity of the clearing process. Through 

effective oversight, the CFTC enables the futures markets to serve the important function 

of providing a means for price discovery.and offsetting price risk.· 

The mission of the CFTC is to protect market users and the public from fraud, 

manipulation, and abusive practices reJated to the sale of commodity and financial futures 

and options, and to foster open, competitive, and financially sound futures and option 

markets. 

2. DEFINITIONS 

.. Authorities'' means the CFTC and the FSC; 

"CFTC"' means the United States Commodity Futures Trading Commission; 

"FSC'" means the Isle of Man Financial Supervision Commission; 

uFutures Contract" means a futures or ~ptions transaction regulated or subject to 

regulation by the authorities whether transacted over-the-counter or on or subject to the 

rules of an exchange or market. 

3 

L 

, 
"Jurisdiction" means the country, state or territory in which the CFTC.or the FSC have 

legal authority, power and/or jurisdiction; 

. "Laws, Regulations, and/or Requirements'' means the provisions of the laws of the 

United States and/or the Isle of Man, the regulations promulgated thereunder, and other 

regulatory requirements that fall within the jurisdiction of the Authorities concerning 

Futures Contracts. 

"Licensed Entity, means any person carrying out activities requiring licensing, 

authorisation and/or registration by the Authorities and who is subject to the operative· 

legislation within the respective jurisdiction; 

"Statement., means this .. Statement of Intent Concerning Mutual Assistance and 

Co-operation ArrangementS'' which is issued under Sl7 of the ·tsle of Man Investment 

Business Act 1991 ; 

"Person" means a natural person, body corporate, partnership, unincorporated 

association, or trust; 

••Requested Authority" means the Authority receiving a request under paragraph 4; 

"Requ~sting Authority' means the Authority making a request under paragraph 4. 

3. SCOPE AND INTENTION 

3.1 This Statement sets forth the Authorities' intent with regard to mutual asSistance and the 

exchange of information for the purpose. of enforcing and securing compliance with the 

respective laws, Regulations and/or Requirements of the jurisdictions of the Authorities. · 

The provis_ions of this Statement are not intended to create legally binding obligations or 

supersede domestic laws. 

3.2 This Statement will promote the integrity, efficiency and financial soundness of licensed 

entities by improving effective regulation, enhancing the supervision of cross-border 

transactions, and creating an environment conducive to the prevention of frauduler:-t and 

other prohibited practices in the Isle of Man and the United States. 

3.3 .The Authorities will assist each other to the full extent permitted by the laws, Regulations 

and/or Rules of their respective jurisdictions. Such assistance will not be limited to 

information concerning institutions authorised. licensed. registered or recognised in the 

United States and/or the Isle of Man. Assistance will indude:-

a) enforcement of Laws. Regulations and/or Requirements pertaining to the respective 

functions of the Authorities; 

b) regulation and supervision of Ucensed Entities; and 

c) any matters agreed upon between the Authorities from time to time as evidenced 

in writing. 
4.. REQUESTS FOR ASSISTANCE 

4.1 To fudlitate communication and ensure continuity, each Authority will designate contact 

officers to whom requests for mistance _will normally be addres~ed. The initial contact 

officers are set out in Appendix A 

4.2 A request for assistance will include the following:-

a) a general description of the subject matter of the request and the purpose for 

which the assistance or information is sought; 

b) a general description of the assistance, documents or information sought; 

c) any information in the possession of the Requ~sting Authority that might assist in 

identifying the persons. bodies or entities which they believe possess the 

information sought. or the places where_ the Requested Authority may obtain such 

information; 

d) the legal provisions or a brief d~cription thereof concerning the matter that is the 

_subject matter of the request; 

. e) whether any other Authority. governmental or non-governmental, is co-operating 

with the Requesting Authority or seeking information from the conftdential files of 

_the Requesting Authority and to whom onward disdo~ui-e of information is likely 

to be necessary; and 

f) the urgency of the request and the desired period of time for the reply. 

·4.3 In urgent circumstances. the Requested Authority will accept a request for assistance 

by ·electronic mail or facsimile. Such urgent communications must be confirmed in 

writing within five business days. 

S. UNSOLICITED INFORMATION 

To the extent permitted by Laws. Regulations. a~or Requirements of its respective 

jurisdiction, each Authority will use reasonable efforts to provide the other Authority with 

any information it discovers that gives rise to a suspicion of a breaCh or an anticipated 

breach of the Laws, Regulations. and/or Requirements applicable in the jurisdiction of the 

other Authority. 

6. PERMISSIBLE USES OF INFORMATION 

6.1 The Requesting Authority may use non-public information and non-public documents 

furnished in response to a request for assistance under this Statement solely for: 

a) 

b) 

the purposes set forth in the request for assistance. including ensuring compliance 

with the Laws. Regulations and/or Requirements related to the request; and 

a purpose within the generaf framework of the use stated in the request for 

assistance, including conducting a civil or administrative enforcement proceeding. 

5 
assisting in a criminal prosecution, or conduCting any i!lveStigation ·for ·any general 

charge applicable to the violation of the· provision spedfted in the request where 

such general charge pertains to a violation· of the laws. Regulations and/or 

Requirements administered by the Requesting Authority. This use may include 

enforcement proceedings which are public. 

6.2 If a Requesting Authority intends to use information furnished undf?r this Statement for any 

· purpose other than those stated in Paragraph 6. I, it must obtain the consent of the 

Requested Authority. 

7. CONFIDENTIALITY 

7.1 Each Authority will keep confidential requests made under this Statement, ~e contents of 

such requests, and any matters arising under this Statement, including consultations 

between or among the Authorities, and unsolicited assistance. After consultation with the 

Requesting Authority; the Requested Authority mar disclose the ~ct that the Requesting 

Authority has made the request if such disclosure is required to carry out the request. 

7.2 · The Requesting Authority will not disclose non1>ublic documents and information received 

under this Statement, except as contemplated by paragraph. 6 or in response to a legally 

enforceable demand. In the event of a legally enforceable demand, the Requesting 

Authority will notify the Requested Authority p.;or to complying with the demand, and will 

assert such appropriate legal exemptions or privileges with respect to such information as 

may be available. The Requesting Authority will use its best efforts to protect the 

confidentiaUty of non-public documents and information received under this Statement. 

8. RIGHTS OF REQUESTED AUTHORITY 

8.1 The Requested Authority may deny requests for assistance under the Statementa) where the request would require the Requested Authority to act in a way that 

would violate the laws of the·jurisdiction of the Requested Authority; 

b) where the request is not in accordance with this Statement; or 

. c) on grounds of public interest or essential national interest. 

8.2 Where the Requested Authority denies or opposes a request for assistance, 0.. where 

assistance is not available under the law of the jurisdiction. the Requested Authority will 

provide the reasons why it is not granting the assistance. 

8.3 The Authorities recognise that this Statement does not limit or enhance ~ respective 

powers to investigate or gather information or take other measures. 
9. CONSULTATION 

9 .I ~e Authorities will consult -each other on an on-going basis to enhance regulatory cooperation, improve the operation of the Statement and resolve any matters that arise. The 

Authorities will" inform one another· of the adoption of domestic measures that may affect 

their respectiv.e Authority's ability to provide assistan~e under this Statement. 

9.2 · The Authorities may take practical measures necessary to facilitate the implementation of 

the Statement. As such, the Authorities ·may by agreement ir"' writing amend, relax or 

waive any of the terms. of the Statement. 

10~ COSTS OF INVESTIGATION 

If the cost of fulfilling a request is likely to be substantial, the Requested Authority may, as 

a conaltion of agreeing to give assistance under this MOU, require the Requesting 

Authority to make a contribution to costs. 

II. EFFECTIVE DATE AND TERMINATION 

11.1 Cooperation in accordance with this Statement will begin on the date of its signing by the 

· Authorities. 

11.2 Coopera~on and assistance in accordance with this Statement will continue until the 

expira~n of 30 days after any Authority gives written notice to the other Authority of its 

intention to di~contiriue cooperation and assistance hereunder. If any authority gives a 

· termination notice, cooperation and assistance in accordance with this Statement of Intent 

will continue with respect to all requests for assistance that were made or information 

provided before ·the effective ·date of notification {as indicated in the notice but no earlier 

than the date the not:ice is sent) until the· Requesting Authority terminated the matter for 

which assistance was requested. The provisions · of this Statement concerning 

confidentiality will continue thereafter with respect to information in the possession of the 

Requesting Authority. 

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SIGNED on this 12 dayof {rw(l 2005 

FOR THE ISLE OF MAN FINANCIAL SUPERVISION COMMISSION 

SIGNED on this 8(!,_ 

j'---

LJ......rl/ day of 'TT 2005 

FOR THE COMMODITY FUTURES TRADING COMMISSION 

Sharon Brown-Hruska .- Acting Chairman 

8 

-) 
DESIGNATED CONTACT OFFICERS 

Isle of Man Financial Supervision Commission 

POBox 58 

Finch Hill House 

APPENDIX A 

Bucks Road Tel : +44 1624 689300 

Douglas Fax : .+44 01624 689398 

. Isle of Man IM99 lOT Email : www.fsc~gov.im 

For. all enforcement activities: 

Pa~l Heckles., Head of Enforcement paul.heckles@fsc.gov.im 

For all supervision purposes: 

Michael Weldon, Head of Supervision michael.weldon@fsc.gov.im 

For all authorisation and companies purposes: 

Jane Bates. Head of Companies jane.bates@fsc.gov.im 

US Commodity Futures Trading Com~ission 

Division of Enforcement 

II 55 21st Street, NW 

Washington. DC 20581 

Director of Enforcement 

Gregory G. Mocek 

Telephone: +I 202 418 5378 

Fax: +I 202 4.18 5519 

email: gmocek@cftc.gov· 

Chief Counsel - Enforcement 

Phyllis .J. Cela 

Telephone: +I 202 418 5374 

Fax: +I 202 418 5519 

email: pcela@cftc.gov 

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+44 1624 6893 I 0 

+44 J 624 689318 

+44 1624 689334