Consultation No. 6 2021 - 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 under Article 9 of the Banking Business (Jersey) Law 1991. It sets out proposed fee rate increases for 2021 and invites feedback from the banking industry before the fees are finalised.

• Who is affected: Any person applying for, or already holding, a registration to undertake deposit-taking business under Article 9 of the Banking Business (Jersey) Law 1991.
• Proposed net increase: A net fee increase of 12% for 2021, made up of a 13% structural increase due to fewer but not smaller licence holders, plus 3.5% RPI, less a one off 4.5% reduction reflecting a civil financial penalty collected from the sector.
• Fees affected: Application fees, branch/subsidiary fees, and income tiered annual fees (for income bands 0 to 5m, 5 to 10m, 10 to 20m, and 20m plus), with illustrative 2021 rates shown against 2019 and 2020 figures, representing roughly a 16.5% year on year and 25% cumulative 2019 to 2021 increase.
• Jersey Resolution Authority: No fees for the JRA are included in this consultation; separate funding communications for 2022 will follow once the JRA is established.
• Consultation basis: Issued under Articles 8(3) and 15(3) to (4) of the Financial Services Commission (Jersey) Law 1998, with the Jersey Bankers Association treated as the representative body for the banking industry.

The JFSC states that if agreement on the fee cannot be reached with the representative body, it may ask the Bailiff to appoint three Jurats to assess reasonableness. Following consultation, a final fees notice is expected to take effect on or before 30 November, with fees administered and invoiced through firms' myJFSC accounts.

Key obligations

• Interested parties should submit comments on the proposed fee changes to Jersey Finance Limited or the JFSC Finance team by 26 November 2021.
• Once finalised, affected deposit-taking businesses will need to pay revised fees via invoices issued through their myJFSC accounts.

Applies to

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

Deadlines

• 26 November 2021: Deadline for interested parties to submit comments on the consultation to Jersey Finance Limited or the JFSC Finance team.
• on or before 30 November: Expected effective date of the final fees notice following the consultation.