2023 Fees Consultation (July 2022)

Summary

This is a consultation paper issued by the Guernsey Financial Services Commission (GFSC) in July 2022 setting out proposals for 2023 fee rates and administrative penalties. It is a draft consultation document, not yet in force, inviting industry feedback before final fees are set to take effect from 1 January 2023.

• Overall fee increase: A proposed 9% across the board increase in fees for licensed and registered entities, linked to inflation and the Commission's cost base.
• Lending, Credit and Finance sector: New application and annual fees for firms licensed under the incoming Lending, Credit and Finance (Bailiwick of Guernsey) Law 2022, including credit providers, platforms, financial firm businesses, and virtual asset service providers.
• PCC/ICC incorporation consent fee: A new £500 fee for consent requests to incorporate a non-regulated Protected Cell Company or Incorporated Cell Company not connected to a licence application.
• Fast track fund fees: New fast track fees proposed for additional elements added to open-ended fast track funds.
• Late filing penalties: Proposal to update and expand the scope of returns subject to existing late filing penalties (£125/£250/£375 per month escalating).
• Inaccurate filing penalty regime: Proposal to create a new explicit administrative penalty regime for returns submitted to the Commission that are materially inaccurate, with different penalty levels depending on whether the error is identified by the firm or by the Commission.

The Commission requested feedback on these proposals by 14 September 2022 via its Consultation Hub, after which it intended to consult with the States of Guernsey and publish final fee rates to apply from 1 January 2023 (with Lending, Credit and Finance annual fees applying from 1 July 2023, and the inaccurate filing penalty regime proposed to start 1 January 2023). As a draft consultation, this document itself creates no binding obligations, but signals forthcoming fee and penalty changes affecting all licensees, registered entities, authorised entities and applicants.

Applies to

licensees under the Supervisory Laws, registered entities, authorised entities, applicants for licensing, registration or authorisation, collective investment schemes, Lending, Credit and Finance firms (credit providers, platforms, financial firm businesses, virtual asset service providers), Prescribed Businesses, Non-Regulated Financial Services Businesses, Protected Cell Companies and Incorporated Cell Companies seeking incorporation consent

Deadlines

• 14 September 2022: Deadline for responses/feedback on the Consultation Paper
• 1 January 2023: Proposed date for new/updated fee rates and the new inaccurate filing penalty regime to take effect
• 1 July 2023: Full implementation date for the Lending, Credit and Finance (Bailiwick of Guernsey) Law 2022, and start of annual fees for Lending, Credit and Finance firms
• 28 February 2023: Deadline to receive Lending, Credit and Finance licence applications in order to qualify for a 50% discount on the application fee