Consultation No. 6 2023: Insurance Business Fees

Summary

This is a JFSC consultation paper proposing an increase to fees payable under the Insurance Business (Jersey) Law 1996. It sets out a draft Insurance Business Fees Notice with revised application, annual, registration change, transfer, and late payment/filing fees, and invites industry comment before the fees are finalised.

• Who is affected: Any person applying for, or already holding, a permit to carry on insurance business under the Insurance Business (Jersey) Law 1996.
• Proposed increase: Application and annual fees would rise by RPI (10.9%, as recorded June 2023), intended to raise £1.15m from the insurance sector in 2023.
• Draft fee schedule: Appendix A sets out proposed application fees (Schedule 1) and annual fees (Schedule 2) by permit category (A and B, including cell companies/cells), plus a £2,730 or £2,595 registration change fee and a £10,945 transfer of insurance business fee.
• Payment and filing rules: Draft notice would fix the annual fee as payable on 1 October each year with a due date of 31 October, a late payment surcharge of 5% of unpaid principal per month, and a late filing fee of £100 per month for undelivered required documents.
• Effective date: The draft fees notice states the fees are intended to take effect from 1 October 2023, subject to the consultation outcome.

The JFSC is seeking written comments on the proposed RPI-linked fee increase and will publish feedback and the final fees notice in September 2023. Fees will continue to be administered through the myJFSC portal with email invoice notifications.

Key obligations

• Interested parties (permit holders and applicants) should submit written comments on the proposed fee increase to Jersey Finance Limited or the JFSC by 15 September 2023
• If the proposals are adopted, permit holders would be required to pay the annual fee by 31 October each year, with a 5% per month late payment surcharge for non-payment by the due date
• If adopted, permit holders would be liable for a £100 per month late filing fee for any document not filed or delivered by its due date under the Law, unless the JFSC has agreed in writing to a later filing date
• A registration change fee (£2,730 or £2,595 depending on direction of change) would be payable where an insurer or partnership changes registration to or from a cell company/cell structure
• A £10,945 fee would be payable by a permit holder undertaking a transfer of insurance business, due at submission of draft transfer documentation ahead of the Direction Hearing

Applies to

insurance permit holders, applicants for insurance business permits, cell companies and cells, limited companies, limited liability partnerships

Deadlines

• 15 September 2023: Deadline for interested parties to submit written comments on the proposed fee increase, to Jersey Finance Limited or directly to the JFSC
• 1 October 2023: Proposed commencement/effective date of the revised Insurance Business Fees Notice, and the date on which the annual fee becomes payable each year
• 31 October (annually, same year): Due date for payment of the annual fee under the draft notice