Feedback Paper on Consultation for Fee Rates for 2023 (2022-11-11)

Summary

This is a Feedback Paper issued by the Guernsey Financial Services Commission responding to its July 2022 consultation on fee rates and administrative penalties for 2023. It sets out the Commission's final decisions on fee increases and new fee structures, most of which take effect from 1 January 2023.

• Overall fee increase: The Commission reduces the originally proposed 9% overall fee increase to 8%, effective from 1 January 2023, partly to rebate excess enforcement penalty income to industry.
• Lending, Credit and Finance fees: New application and annual fees confirmed for the Lending, Credit and Finance regime, including a reduced fee of £95,000 for Virtual Asset Service Provider (VASP) Exchanges and Stablecoin Issuers, £25,000 for other VASPs, and a new tiered fee structure for Services Ancillary to Credit (including small consumer credit brokers and motor traders).
• PCC/ICC incorporation consent fee: A new £500 fee is introduced for applications for consent to incorporate a non-regulated Protected Cell Company or Incorporated Cell Company, effective 1 January 2023.
• Prospectus registration fee: A £500 fee is confirmed for review of a prospectus registration not connected to a wider registered fund application.
• Fast track fund fees: New fast track fees apply for additional elements added to open-ended fast track funds.
• Late filing penalties: The scope of returns subject to Late Filing Penalties is updated, with penalty amounts unchanged from 2022 levels.
• Inaccurate filing penalty regime: A new explicit administrative penalty regime for materially inaccurate returns takes effect from 1 January 2023, with different penalty levels depending on whether the error is identified by the firm or by the Commission.
• Application fee discount: A 50% discount applies to Lending, Credit and Finance licence application fees where the application is received by 28 February 2023.

The paper also confirms the timing for pro-rating new annual fees: Non-Regulated Financial Services Businesses are charged for the six months from 1 January to 30 June 2023, while Lending, Credit and Finance firms (including VASPs) are charged annual fees from 1 July 2023 to 31 December 2023. Full fee tables for all sectors are set out in the appendices to the document.

Key obligations

• All licensees and regulated firms must pay the revised fees, reflecting an overall 8% increase, from 1 January 2023.
• Lending, Credit and Finance firms, including VASPs, credit providers, services ancillary to credit, platforms and financial firm businesses, must pay the new application and annual fees set out in Appendix A.6, with annual fees applying from 1 July 2023.
• Applicants seeking consent to incorporate a non-regulated PCC or ICC must pay a £500 application fee from 1 January 2023.
• Firms applying for prospectus registration not connected to a fund application must pay a £500 fee.
• Firms must pay Late Filing Penalties for returns now brought into scope, per the specified monthly penalty schedule.
• Firms that submit materially inaccurate returns must pay an Inaccurate Filing Penalty from 1 January 2023, with the amount depending on whether the Commission or the firm identifies the error.
• Non-Regulated Financial Services Businesses must pay annual fees pro-rated for the period 1 January to 30 June 2023.
• Firms seeking a discount on Lending, Credit and Finance application fees must submit their application by 28 February 2023.

Applies to

banks, insurers, fiduciary sector licensees, investment sector licensees, Non-Regulated Financial Services Businesses (NRFSBs), Lending, Credit and Finance firms, Virtual Asset Service Providers (Exchanges and Stablecoin Issuers, and Non-Exchanges), credit providers (home finance and consumer credit), services ancillary to credit providers, platforms, financial firm businesses, Prescribed Businesses, applicants for PCC or ICC incorporation consent

Deadlines

• 1 January 2023: Effective date for the overall 8% fee increase, new Lending, Credit and Finance fees, PCC/ICC incorporation consent fee, prospectus registration fee, and new Inaccurate Filing Penalty regime.
• 28 February 2023: Deadline for Lending, Credit and Finance licence applications to receive a 50% discount on the application fee.
• 1 January 2023 to 30 June 2023: Period for which Non-Regulated Financial Services Businesses annual fees are pro-rated.
• 1 July 2023 to 31 December 2023: Period for which Lending, Credit and Finance Firms annual fees are pro-rated, with annual fees applying from 1 July 2023.