Consultation on Investment Business Fees (No. 2 of 2023)

Summary

This is a JFSC consultation paper proposing changes to fee rates and structures for Investment Business (IB) registrants under the Financial Services (Jersey) Law 1998. It sets out the rationale for a fee increase, invites comment, and attaches a draft Investment Business Fees Notice (Appendix B) that would take effect from 1 May 2023.

• Who is affected: All persons registered under the Financial Services (Jersey) Law 1998 to conduct investment business, and persons issued a registration certificate on or after 1 May 2023.
• Proposed increase: JFSC proposes to increase IB fee rates by 12.7 percent, the most recently published Jersey RPI, rounded to the nearest 5 pounds, to raise approximately 1.8 million pounds from the IB sector in 2023.
• Draft fees notice contents: Application, annual, change of control, alteration, late payment and late filing fees, plus a schedule of fees by investment business class (A, B, C, D and E).
• Key dates in draft notice: Fees effective 1 May 2023 to 30 April 2024; investment employee data due 15 June 2023; annual fee due 30 days from invoice date (or on grant of application for new registrants).
• Late payment consequences: 5 percent late payment surcharge on unpaid principal, plus a 200 pound administration fee for late submission of employee data, and 100 pounds per month for late filing of required documents.

This document is a consultation draft, not yet final. Comments are sought from IB registrants and representative bodies (Chartered Institute for Securities and Investment, Channel Islands Wealth Management Association, Jersey Bankers Association, Personal Finance Society) either directly to the JFSC or via Jersey Finance, by 28 April 2023. The final notice, once published, is intended to take effect from 1 May 2023.

Key obligations

• Interested parties wishing to comment must submit responses to the JFSC or via Jersey Finance no later than 28 April 2023.
• Under the draft notice, registered persons must pay an annual fee within 30 days of the invoice date (or on grant of application if newly registered).
• Under the draft notice, registered persons must submit investment employee data to the JFSC by 15 June 2023.
• Under the draft notice, registered persons must pay application, change of control, or alteration fees as applicable when seeking registration, change of control, or licence alteration.
• Under the draft notice, registered persons must file documents required under the Law or related Orders by their due date or notify the JFSC in advance and obtain agreement to a later date, to avoid late filing fees.

Applies to

persons registered to carry on investment business under the Financial Services (Jersey) Law 1998, Class A, B, C, D and E investment business registrants, representative bodies for the investment business sector

Deadlines

• 28 April 2023: Deadline for interested parties to submit consultation responses to Jersey Finance or directly to the JFSC.
• 1 May 2023: Proposed commencement date of the final Investment Business Fees Notice and start of the fee period (to 30 April 2024).
• 15 June 2023: Due date under the draft notice for registered persons to provide investment employee data to the JFSC.
• 30 days from the invoice date: Due date under the draft notice for payment of the annual fee for firms already registered on 1 May 2023.
• the date an application is granted: Due date under the draft notice for payment of the annual fee for newly registered firms.