Consultation No. 5 2021: Insurance Business Fees

Summary

This is a JFSC consultation paper proposing a 4.0 percent increase to fees under the Insurance Business (Jersey) Law 1996, comprising a 3.5 percent RPI adjustment and a 0.5 percent contribution toward the Commission's financial resilience objectives. It invites feedback from anyone applying for, or already holding, a permit to carry on insurance business in Jersey, and includes a draft Fees Notice showing the proposed new fee structure.

• Scope: Applies to any person applying for, or already holding, a permit to undertake insurance business under the Insurance Business (Jersey) Law 1996.
• Fee increase: Proposed overall 4.0 percent increase in application and annual fees (RPI 3.5 percent plus 0.5 percent for financial resilience); net revenue impact expected to be 2.2 percent due to changes in permit category mix.
• Application and annual fees: Draft Schedule sets specific application and annual fee amounts by permit category (Category A and Category B, including cell company and cell variations), ranging from £2,180 to £15,270.
• Annual fee timing: Draft notice states the annual fee is payable by permit holders on 1 October each year, with a due date of 31 October the same year.
• Registration change and transfer fees: Draft fees of £2,180 or £2,070 apply where a permit holder changes registration type (e.g. limited company to cell company); a £8,150 fee applies for a Transfer of Insurance Business, payable on submission of draft transfer documentation.
• Late payment and late filing: Draft notice proposes a 5 percent late payment surcharge on unpaid annual fees, and a £100 per month late filing fee for documents not filed by their due date.

The consultation seeks comments by 20 September 2021, after which the JFSC intends to publish feedback and finalise the Fees Notice, with proposed fees taking effect from 1 October 2021. As a consultation, the fee amounts and provisions described are proposals only and not yet in force.

Key obligations

• Respondents wishing to comment must submit responses to Jersey Finance Limited or the JFSC by 20 September 2021
• Under the draft Fees Notice, a permit holder must pay an application fee when applying for a permit to carry on insurance business, per the amounts set out in Schedule 1
• Under the draft Fees Notice, a permit holder must pay an annual fee on 1 October each year, due by 31 October the same year, per Schedule 2
• Under the draft Fees Notice, a permit holder changing registration type (e.g. to or from a cell company or cell) must pay the applicable registration change fee
• Under the draft Fees Notice, a permit holder undergoing a Transfer of Insurance Business must pay a £8,150 fee at the time of submitting draft transfer documentation, in advance of the Direction Hearing
• Under the draft Fees Notice, a permit holder must pay a £100 per complete month late filing fee for any document not filed or delivered to the JFSC by its due date, unless the JFSC has agreed in writing to a later date

Applies to

insurance permit applicants, insurance permit holders, Category A permit holders, Category B permit holders, cell companies and cells carrying on insurance business

Deadlines

• 20 September 2021: Deadline for comments on the consultation to be sent to Jersey Finance Limited or directly to the JFSC
• 1 October 2021: Proposed commencement date for the fees set out in the draft Insurance Business Fees Notice
• 1 October of each year: Draft notice states the annual fee is payable by permit holders on this date
• 31 October in the same year: Draft notice states this is the due date for payment of the annual fee