Consultation Paper No. 10 2017: Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 - fees for registered persons

Summary

This is a JFSC consultation paper proposing changes to fees charged under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, which covers designated non financial businesses and professions (DNFBPs) registered with the JFSC, such as accountants, lawyers, estate agents and lenders. It seeks comments on a proposed 27.1% increase in annual fee rates for 2018, driven mainly by the phased withdrawal of a Jersey Government subsidy, plus several other proposed fee mechanism changes. Draft fee notices are attached as appendices showing how the new fees, caps and payment terms would operate if adopted.

• Fee rate increase: Proposed 27.1% increase in annual fee rates for 2018 (3.1% for inflation plus 24% to replace the withdrawn Government contribution); sole trader fee would rise from £227 to £289 and the fee cap from £11,360 to £14,440.
• New application fee: Proposal to introduce a £100, non-refundable application fee for persons applying to be registered under the Law, payable at the time of application.
• Instalments restricted: Proposal to remove the ability to pay fees by instalments where the annual fee due is less than £1,000; larger fees could still be paid in four equal instalments.
• Late payment and late information charges: Proposal to introduce interest/late payment charges (5% of unpaid principal, applied monthly) where fees are not paid on time, and a £100 monthly administration fee where a firm fails to supply information needed to calculate its fee.
• Draft fee notice mechanics (Appendices B and C): Sets out how 'relevant employees' are counted (including part time and fixed term staff banding), base fees (£289 for sole traders, £577 for other firms plus £144 per relevant employee), and a fee cap of £14,440.

As a consultation paper, none of these proposals are yet in force; the JFSC invited written comments by 1 December 2017 and indicated it would publish feedback and final fee notices by the end of 2017, ahead of the fees applying for the 2018 fee year (1 January to 31 December 2018). The document itself is not a binding notice, but the appended draft notices indicate the intended obligations if adopted as proposed.

Key obligations

• Under the draft fee notice, registered persons would be required to pay the annual fee in full on or before 31 March 2018, or in four equal instalments (31 March, 30 June, 30 September and 31 December 2018) if the fee due is at least £1,000 and instalment payment is elected
• Under the draft fee notice, firms would need to supply information required to calculate their fee by 31 March 2018 or face a £100 monthly administration fee
• Under the draft fee notice, an application fee of £100 would be payable at the time of application for registration under the Law, and is non-refundable
• Under the draft fee notice, late payment of the annual fee or an instalment would incur an additional 5% late payment fee on the unpaid principal, applied on the day after the due date and monthly thereafter
• Interested parties are invited to submit written comments on the proposed fee changes to Jersey Finance Limited or the JFSC by 1 December 2017

Applies to

persons registered under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 (DNFBPs), firms of accountants, firms of lawyers, estate agency businesses, lenders, sole traders registered under the Law

Deadlines

• 1 December 2017: Deadline for interested parties to submit written comments on the consultation paper to Jersey Finance Limited or directly to the JFSC
• by the end of the year (2017): JFSC's stated intention to publish consultation feedback and final fees notices
• 1 January 2018: Proposed application fee of £100 and new fee rates would apply to persons registered on or after this date
• 31 March 2018: Draft fee notice deadline for full payment of the annual fee, or first instalment if paying by instalments, and deadline for submitting fee-calculation information before administration fees apply
• 30 June 2018, 30 September 2018, 31 December 2018: Draft fee notice instalment payment deadlines for firms paying the annual fee in four instalments