Consultation Paper No. 10 2016 - Consultation on proposals to increase fees under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008

Summary

This is a JFSC consultation paper proposing a 13.6 percent increase in the annual AML/CFT supervision fees charged under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008. The increase is intended to restore the fee rates to their real 2011 value after inflation, not to raise them beyond that. It attaches draft Fees Notices for accountants/lawyers and for other Schedule 2 registered persons (including estate agency services and lending) that would apply from 1 January 2017.

• Who is affected: All persons registered under the Supervisory Bodies Law, and persons who become registered on or after 1 January 2017, including firms of accountants, firms of lawyers, and other Schedule 2 businesses such as estate agency services and lenders.
• Proposed fee change: Fee rates would rise by 13.6% across the board; the sole trader annual fee would increase by £27 to £227, and the maximum fee payable by any registered person would rise to £11,360.
• Draft fee structure (accountants/lawyers): Base fee of £908 for firms (£227 for sole traders) plus £113 per relevant employee, capped at £11,360.
• Draft fee structure (other Schedule 2 business): Base fee of £454 for firms (£227 for sole traders) plus £113 per relevant employee, capped at £11,360.
• Payment mechanics (proposed): Fees would be administered via the myJFSC portal; firms would pay by 31 March 2017 or in four instalments (31 March, 30 June, 29 September, 29 December 2017); cheques would not be accepted.

The JFSC is inviting comments on whether respondents agree with the proposed inflation-only fee increase. This is a consultation exercise, not a final rule; the JFSC states it will publish feedback and the final fees notice in the first quarter of 2017, and firms should not make payments until formally notified.

Key obligations

• Interested parties wishing to comment must submit responses to Jersey Finance Limited or directly to the JFSC no later than 31 January 2017.
• Under the draft Fees Notices, once finalised, registered firms of accountants and lawyers would be required to pay an annual fee (base fee plus £113 per relevant employee, capped at £11,360) by 31 March 2017 or in four instalments by 31 March, 30 June, 29 September and 29 December 2017.
• Under the draft Fees Notice for other Schedule 2 registered persons (including estate agency services and lending), the same annual fee payment structure and deadlines would apply once finalised.
• Firms would need to calculate their number of relevant employees as at the relevant date (the last working day of the preceding calendar year) using the prescribed hourly bandings, once the fees notice is finalised.
• Firms should not make fee payments until notified via the myJFSC portal that an invoice is ready or that employee information is required.

Applies to

firms of accountants, firms of lawyers, registered persons under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, Schedule 2 businesses including estate agency services and lending, sole traders engaged in accountancy or legal practice or other Schedule 2 business

Deadlines

• 31 January 2017: Deadline for submitting comments on the consultation to Jersey Finance Limited or the JFSC.
• 1 January 2017: Proposed new fees would affect persons already registered and any newly registered on or after this date; draft fees notices are effective for the period 1 January to 31 December 2017.
• 31 March 2017: Proposed deadline for payment of the annual fee in full, or first instalment if paying by instalments.
• 30 June 2017: Proposed second instalment payment deadline under the draft fees notices.
• 29 September 2017: Proposed third instalment payment deadline under the draft fees notices.
• 29 December 2017: Proposed fourth instalment payment deadline under the draft fees notices.
• first quarter of 2017: JFSC stated it will publish consultation feedback and the final fees notice.