Consultation Paper No.1 2017: Investment Business Fees

Summary

This is a JFSC consultation paper (Consultation No.1 2017) proposing changes to the fee rates charged to investment business (IB) registrants under the Financial Services (Jersey) Law 1998. It sets out proposed across the board fee rises and structural changes to how fees scale with staff numbers, and includes a draft Investment Business Fees Notice at Appendix B showing how the new fees, late payment fees and late filing fees would operate if adopted.

• Who is affected: All persons registered under the Financial Services (Jersey) Law 1998 to conduct investment business, and anyone issued a registration certificate on or after 1 May 2017 (Class A to E licence holders).
• Proposed fee increase: IB fee rates, including application fees, would rise by just under 3% across the board.
• Widened employee bands: For Class A to D licensees, the band covering the first 10 investment employees would widen to the first 15, and the next band would widen from 20 to 25 employees, raising the maximum chargeable investment employees from 30 to 40.
• Maximum fee: The proposed maximum IB annual fee for firms with 40 or more investment employees (licence classes A to C) would be £56,004.
• Draft notice mechanics: The draft Fees Notice would apply for the period 1 May 2017 to 30 April 2018, with application fees, annual fees (halved if registration occurs after 31 December 2017), a 5% per month late payment fee, and a £100 per month late filing fee for undelivered documents.

The JFSC is inviting comments on whether respondents agree with the proposed fee structure and rates. Following the consultation, the JFSC intends to publish feedback and a final fees notice, with firms notified of invoices or information requirements via the myJFSC portal.

Key obligations

• Registered investment business persons would be required to pay the revised application and annual fees set out in the draft Schedule if the proposal is adopted.
• Under the draft notice, a registered person failing to pay a fee by its due date would be liable for an additional late payment fee of 5% of the unpaid amount for each complete month it remains unpaid, with the due date being 30 days from the invoice date.
• Under the draft notice, a registered person failing to file or deliver a required document by its due date would be liable for a late filing fee of £100 for each complete month or part month the document remains unfiled, unless the JFSC has agreed in writing to a later date.
• Interested parties wishing to comment must submit responses to Jersey Finance Limited or directly to the JFSC by 21 April 2017.

Applies to

persons registered under the Financial Services (Jersey) Law 1998 to carry on investment business, Class A investment business licensees, Class B investment business licensees, Class C investment business licensees, Class D investment business licensees, Class E investment business licensees

Deadlines

• 21 April 2017: Deadline for interested parties to submit comments on the consultation paper to Jersey Finance Limited or the JFSC.
• 1 May 2017 to 30 April 2018: Proposed effective period for the fees set out in the draft Investment Business Fees Notice and Schedule.
• second quarter of 2017: JFSC intends to publish consultation feedback and the final fees notice.
• 30 days from the date of the invoice: Due date for payment of fees under the draft notice, after which late payment fees accrue.
• after 31 December 2017: If a person registers after this date, the annual fee payable on registration is halved.