Consultation No. 8 2023 - 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 (banks) registered or applying for registration under Article 9 of the Banking Business (Jersey) Law 1991. It seeks views on a proposed 10.1% fee increase (in line with September 2023 RPI) and includes a draft Deposit-taking Business Fees Notice setting out the full fee structure at Appendix B.

• Purpose: JFSC needs to raise 3 million pounds in fees from the banking sector in 2023 and proposes an RPI-linked fee increase of 10.1%, below the 2% above RPI flagged in the 2023 Business Plan.
• Application fee: Draft notice sets the application fee for registration under the Law at 31,400 pounds, plus the annual fee once registration is granted.
• Annual fee components: Annual fee is built from per-country/subsidiary components (31,400 pounds each) plus a Consolidated Income based band ranging from 89,400 pounds up to 149,500 pounds.
• Reductions: 50% reductions apply to application and annual fees where registration is solely for business continuity purposes, subject to conditions.
• Late payment and filing: Draft notice sets a 5% late payment surcharge on unpaid fees (recurring monthly) and a 100 pound per month late filing fee for undelivered documents.
• Consultation question: JFSC specifically asks respondents whether they agree with the proposed RPI fee increase of 10.1%.

Comments were invited via Jersey Finance Limited or directly to the JFSC by 24 November 2023. The JFSC stated that, following consultation, a final fees notice would take effect on or before 30 November 2023, with fees administered through businesses' myJFSC accounts.

Key obligations

• Interested parties wishing to comment must submit responses to Jersey Finance Limited or the JFSC by 24 November 2023.
• Under the draft Fees Notice, a registered person must pay the annual fee by 31 October in each year, or as and when an application is granted for new registrants.
• Under the draft Fees Notice, a registered person who fails to pay a fee by the due date becomes liable for an additional 5% late payment fee, applied on the day after the due date and on the first day of each subsequent month.
• Under the draft Fees Notice, a registered person who fails to file or deliver a required document by its due date becomes liable for a 100 pound fee per complete month or part month of delay, unless the JFSC has agreed in writing to a later date.
• Under the draft Fees Notice, a registered person whose relevant factors (e.g. overseas operations) increase during the annual fee period must calculate a revised annual fee and notify the JFSC accordingly.

Applies to

deposit-taking businesses registered under Article 9 of the Banking Business (Jersey) Law 1991, persons applying for registration to undertake deposit-taking business, banks, Jersey Bankers Association (as representative body)

Deadlines

• 24 November 2023: Deadline for interested parties to submit consultation responses to Jersey Finance Limited or directly to the JFSC.
• on or before 30 November 2023: JFSC stated the final fees notice would take effect by this date, following the consultation.
• 30 November 2023: Commencement date stated in the draft Deposit-taking Business Fees Notice (Appendix B) for the fees set out therein.
• 31 October in each year: Draft Fees Notice deadline for registered persons to pay the annual fee.
• at least 28 days after publication of the report: Minimum comment period required under Article 15(3) of the Commission Law before the JFSC may introduce a new fee.