Consultation No. 11 2022 - Banking Business (Jersey) Law 1991: Deposit-taking fees

Summary

This is a JFSC consultation paper proposing changes to the fees charged to deposit-taking businesses registered under Article 9 of the Banking Business (Jersey) Law 1991. It sets out a proposed 15.4% overall fee rate increase and includes, as Appendix B, a draft Deposit-Taking Business Fees Notice that would take effect on or before 30 November 2022. Comments on the proposals are invited before the fees are finalised.

• Who is affected: Any person applying for, or already holding, a registration to carry on deposit-taking business under Article 9 of the Banking Business (Jersey) Law 1991.
• Fee increase: Proposed combined fee rate increase of 15.4%, comprising 10.4% linked to Jersey RPI and an additional 5% contribution toward the JFSC's financial resilience objectives.
• Penalty offset: Two civil financial penalties levied on banking sector entities will reduce invoiced fees for individual banks by approximately 24%.
• Draft fees notice (Appendix B): Sets application fee of £28,500 plus an annual fee calculated from components based on overseas operations, subsidiary structure, and Consolidated Income bands (from £81,200 up to £135,800 depending on income).
• Payment timing: Annual fee is payable by 31 October each year for registered persons, or on grant of application for new applicants; fees administered via myJFSC accounts with an emailed invoice notification.
• Late payment/filing fees: Late payment attracts a 5% surcharge on unpaid principal, applied the day after the due date and on the first of each following month; late filing of required documents attracts a £100 fee per complete month or part thereof unless the JFSC has agreed in writing to a later date.
• Reduced fees for business continuity: Registrations obtained solely for business continuity purposes qualify for a 50% reduction in the application fee and the relevant part of the annual fee, though the balance becomes payable once continuity operations actually begin.

This is a draft consultation, not yet final; the fee rates and notice terms may change following feedback before the notice takes effect.

Key obligations

• Registered persons must pay the annual deposit-taking fee, calculated per the components in the draft Fees Notice, by 31 October each year
• Applicants for registration under Article 9 of the BBJL must pay a £28,500 application fee plus the annual fee once the application is granted
• Registered persons must notify the JFSC of a revised annual fee calculation if a new overseas operation increases a relevant fee component before the end of the annual fee period
• Registered persons failing to pay a fee by its due date must pay an additional 5% late payment fee, recurring monthly on unpaid amounts
• Registered persons failing to file or deliver required documents by the due date must pay a £100 late filing fee per month or part thereof unless the JFSC has agreed in writing to a later filing date
• Interested parties wishing to comment on the proposed fee changes must submit responses to Jersey Finance Limited or the JFSC Finance team by 22 November 2022

Applies to

deposit-taking businesses registered under Article 9 of the Banking Business (Jersey) Law 1991, applicants for deposit-taking registration, banks

Deadlines

• 22 November 2022: Deadline for interested parties to submit consultation responses to Jersey Finance Limited or the JFSC Finance team
• on or before 30 November 2022: Date by which the final Deposit-Taking Business Fees Notice will take effect
• 31 October in each year: Annual fee due date for registered persons
• 28 days after publication of the report (per Article 15(3) of the Commission Law): Minimum comment period the JFSC must allow before introducing a new fee