Commission consults on Fees for 2017 (2016-07-20)

Summary

This is a consultation paper issued by the Guernsey Financial Services Commission (GFSC) setting out proposed regulatory fee rates for 2017. It applies to all licensees, collective investment schemes, registered businesses, individuals, and applicants for licences or registration across the banking, insurance, fiduciary and investment sectors, as well as non-regulated financial services businesses and prescribed businesses. The Commission is seeking industry feedback before finalising fees with the States of Guernsey.

• Overall increase: A blended 2% rise in fees across sectors is proposed for 2017, plus targeted anomaly corrections.
• Fiduciary sector: Phase II of the 2015 re-banding is implemented: Band 3 annual licence fee rises from £12,500 to £15,000; Band 7 from £35,000 to £40,000; Band 8 from £40,000 to £50,000. Personal Fiduciary Licence and Non-Regulated Financial Services Business fees increase by 2%.
• Insurance sector: Proposed restructuring shifts fee burden toward category 3 and 4 insurers/reinsurers (fees up approximately 50%) and reduces fees for category 6 Insurance Linked Securities (ILS) cells (down approximately 50%), intended to be revenue neutral.
• Application fees: Application fees across all sectors proposed to rise by 2%.
• New de QIFing fee: A new £2,500 fee is proposed for Qualifying Investor Funds applying to remove the Qualified Investor restriction (Investment sector only).
• Late payment of annual fees: A new sliding-scale fee for late payment of annual fees is proposed: £125 for the first month, £250 for the second month, £375 for the third and subsequent months, across all sectors.
• Administrative penalty fees: A 25% increase to late filing administrative penalty fees is proposed (from £100/£200/£300 to £125/£250/£375), and the Commission intends to charge these periodically while returns remain outstanding rather than only once returns are filed.

The consultation period ran from 20 July to 31 August 2016, with comments invited from industry bodies and the public. If agreed between the Commission and the States of Guernsey, the revised fees would take effect on 1 January 2017. As a draft consultation, none of the proposed fee changes are yet binding.

Applies to

banks, insurance managers, insurers and reinsurers, protected and incorporated cell companies, fiduciary licensees (Full and Personal Fiduciary Licence holders), collective investment schemes (open-ended and closed-ended), investment licensees and investment exchanges, non-regulated financial services businesses, prescribed businesses, applicants for licences or registration

Deadlines

• 20 July to 31 August 2016: Consultation period during which industry feedback on the 2017 fee proposals is sought.
• 31 August 2016: Deadline for comments on the consultation document to reach the Commission.
• 1 January 2017: Proposed date on which any agreed new fees would come into force.