Consultation No. 15 2022: Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 - Fees for registered persons

Summary

This is a JFSC consultation seeking comment on proposed fee increases for persons registered under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008. It sets out draft Fees Notices for two groups of Schedule 2 businesses and invites feedback before the fees are finalised and take effect on or before 1 January 2023.

• Who is affected: All persons registered under the Supervisory Bodies Law, including firms of accountants and firms of lawyers (Appendix B) and other specified Schedule 2 businesses such as estate agency services and lending (Appendix C), plus anyone who becomes registered on or after 1 January 2023.
• Proposed fee increase: A combined 15.4% fee rate rise (10.4% Jersey RPI plus a 5% contribution to JFSC financial resilience objectives), intended to raise £890k from specified Schedule 2 businesses.
• Draft annual fee structure: Sole traders pay a flat £500; other firms of accountants/lawyers pay a £2,130 base fee and other Schedule 2 firms a £1,060 base fee, plus £235 per relevant employee (averaged over relevant dates), all capped at £46,160.
• Draft ancillary fees: Application fees of £185 (sole trader) or £500 (other applicants); amendment fees of £185 or £500 for name/condition changes; late payment fee of 5% of unpaid principal per month; £100 administration fee for missing fee-calculation information; and £100 per month for late filing of any required document.
• How to respond: Comments can be sent via Jersey Finance Limited or directly to the JFSC Finance team, addressing in particular whether respondents have concerns about the proposed fee levels.

As a consultation document, none of these fee terms are yet binding; they represent proposals on which the JFSC is seeking industry input before publishing final Fees Notices effective for the 2023 fee year.

Key obligations

• Interested parties must submit comments on the proposed fee changes to Jersey Finance Limited or the JFSC Finance team by 28 December 2022
• Under the proposed Fees Notices, registered firms of accountants and lawyers, and other specified Schedule 2 registered persons, would be required to pay their annual fee in full on or before 31 March each year
• Registered persons who fail to supply information needed to calculate their fee by 31 March would be liable for a £100 administration fee from 1 April, recurring monthly while outstanding
• Late payment of the annual fee would incur a 5% late payment fee on the unpaid amount, applied the day after the due date and monthly thereafter
• Failure to file or deliver any required document by its due date would incur a £100 fee per month or part month until filed
• Applicants seeking registration would need to pay an application fee of £185 (sole trader) or £500 (other applicants) at the time of application
• Registered persons applying to alter their registration (e.g. name change or condition changes) would need to pay an amendment fee of £185 (sole trader) or £500 (other)

Applies to

firms of accountants, firms of lawyers, registered persons under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, specified Schedule 2 businesses including estate agency services and lending, DNFBPs

Deadlines

• 28 December 2022: Deadline for interested parties to submit comments on the consultation to Jersey Finance Limited or the JFSC Finance team
• 1 January 2023: Proposed commencement/effective date of the final Fees Notices, covering the period 1 January to 31 December 2023
• 31 March: Proposed due date each year for payment in full of the annual fee under the draft Fees Notices
• 1 April: Proposed date an administration fee of £100 begins to apply if required fee-calculation information has not been supplied, recurring monthly