Consultation No. 10 2021 - Consultation on General Insurance Mediation Business and Money Service Business fees

Summary

This is a JFSC consultation paper proposing increased fee rates for General Insurance Mediation Business (GIMB) and Money Service Business (MSB) registrants under the Financial Services (Jersey) Law 1998. It sets out draft fees notices (Appendices B and C) reflecting an 8.5 percent increase in application and annual fees, driven by Jersey RPI plus 5 percent, and invites feedback before finalisation.

• Who is affected: All persons registered under the FSJL to conduct GIMB and/or MSB, and any persons issued a registration certificate for such business on or after 1 January 2022.
• Fee increase: Proposed 8.5 percent increase (RPI plus 5 percent, rounded to nearest £5) in GIMB and MSB application and annual fees for 2022.
• Revenue targets: JFSC aims to raise approximately £163k from GIMB and £25k from MSB fees in 2022, an overall 5 percent above RPI increase.
• Draft GIMB fees notice: Sets application fees (£120 to £7,190 depending on class), annual fees tiered by brokerage income, a due date of 29 February for annual fees, a 5 percent monthly late payment surcharge, a £200 monthly administration fee for missing fee information, and £100 per month late filing fees.
• Draft MSB fees notice: Sets a flat £3,110 application fee and £3,110 annual fee, due 29 February (or on registration if newly registered), with the same 5 percent monthly late payment surcharge and £100 per month late filing fee.
• Process: Consultation responses may be sent directly to JFSC or coordinated via Jersey Finance; JFSC will publish feedback and the final fees notice is expected to take effect on or before 1 January 2022.

As a consultation document, none of the proposed fee changes are yet binding; they represent proposals open for comment. Firms should review the draft fee schedules to understand potential cost impacts and respond if they wish to influence the final rates.

Key obligations

• Interested parties must submit comments on the consultation proposals to the JFSC or to Jersey Finance (coordinating responses) no later than 24 December 2021.
• If adopted as proposed, GIMB and MSB registrants would need to pay annual fees by the due date of 29 February each year.
• If adopted as proposed, registered persons failing to file required documents or supervisory risk data by their due date would incur a £100 per month late filing fee.
• If adopted as proposed, GIMB firms failing to supply information needed to calculate their registration fee by the due date would incur a £200 per month administration fee in addition to late payment fees.
• If adopted as proposed, unpaid annual fees would accrue a 5 percent per month late payment surcharge from the day after the due date.

Applies to

General insurance mediation business (GIMB) registrants, Money service business (MSB) registrants

Deadlines

• 24 December 2021: Deadline for interested parties to submit consultation responses to JFSC or Jersey Finance.
• 1 January 2022: Date on or before which the final GIMB and MSB fees notice is expected to take effect; also the date from which new registrants become subject to the amended fees.
• 29 February: Annual due date for JFSC to receive the annual GIMB and MSB fees under the draft fees notices.