Consultation No. 11 2023 - GIMB and MSB Fees

Summary

This is a JFSC consultation paper proposing to increase annual and application fees for General Insurance Mediation Business (GIMB) and Money Service Business (MSB) registrants under the Financial Services (Jersey) Law 1998. The JFSC proposes a fee increase in line with RPI (10.1%), intended to raise approximately £230k from the GIMB sector and £32k from the MSB sector. Draft fee notices setting out the specific proposed fee amounts are included as Appendix B (GIMB) and Appendix C (MSB).

• Who is affected: All persons registered under the Financial Services (Jersey) Law 1998 to conduct GIMB and/or MSB, and any person issued a registration certificate for such business on or after 1 January 2024.
• Fee increase: Proposed increase of 10.1% (RPI as at September 2023), below the 2% above RPI contemplated in the 2023 Business Plan; no penalty income has reduced the proposed fees.
• Draft GIMB fees notice: Sets out application fees (£155 to £9,140 depending on class) and annual fees banded by brokerage income (from £95 up to £15,415), plus late payment (5% per month), late filing (£100 per month) and administration fees (£200 per month for missing brokerage income data).
• Draft MSB fees notice: Sets a flat £3,950 application fee and £3,950 annual fee, with the same 5% late payment surcharge and £100 per month late filing fee.
• Consultation process: Comments are invited and must be submitted to Jersey Finance Limited or directly to the JFSC by 15 December 2023; the JFSC will then publish feedback and a final fees notice.

If adopted as drafted, the final fees notice is intended to take effect on or before 1 January 2024, covering the period 1 January to 31 December 2024, with fees administered through businesses' myJFSC accounts.

Key obligations

• Interested parties must submit comments on the proposed GIMB and MSB fee increases to Jersey Finance Limited or the JFSC by 15 December 2023
• If adopted, GIMB and MSB registered persons would be required to pay the annual fee by the due date of 29 February each year (or on registration for new MSB registrants)
• If adopted, registered persons failing to pay the annual fee by the due date would incur an additional late payment fee of 5% of the unpaid amount, repeating monthly
• If adopted, registered persons failing to file or deliver required documents (including supervisory risk data) by their due date would incur a £100 fee per month of delay
• If adopted, GIMB registrants failing to supply information needed to calculate their fee by the due date would incur a £200 administration fee per month until the information is supplied

Applies to

general insurance mediation business (GIMB) registrants, money service business (MSB) registrants

Deadlines

• 15 December 2023: Deadline for interested parties to submit comments on the consultation to Jersey Finance Limited or the JFSC
• 1 January 2024: Proposed date on or before which the final fees notice will take effect
• 1 January - 31 December 2024: Period for which the draft GIMB and MSB fees notices would be effective
• 29 February (annually): Proposed due date for the JFSC to receive the annual fee from GIMB and MSB registrants