Consultation Paper No. 10 2020 - Trust Company Business Fees

Summary

This is a JFSC consultation paper seeking industry views on proposed changes to fee rates and fee structures for Trust Company Business (TCB) registered under the Financial Services (Jersey) Law 1998. It does not itself impose binding requirements; it sets out proposals and strategic options and invites comments before any final fees notice is issued.

• Who is affected: Any person applying for, or already holding, a registration to carry on trust company business under the FSJL, including affiliation leaders and participating members.
• 2021 funding target: The JFSC proposes to raise approximately £3.5m in fees from the TCB sector in 2021, described as broadly stable compared to 2020 rather than an overall increase.
• New fee for change of control: Proposal to introduce a fee (at the level of existing registration application fees) for transactions where a registered person becomes, ceases to be, or merges with an Affiliation Leader or Participating Member, with a £1,000 premium for those in heightened supervision or enforcement.
• New fee for alterations: Proposal to charge a £400 fee for applications to change a registered person's name, or to add, alter or remove licence conditions or classes.
• Civil Financial Penalty offset: TCBs that have paid Civil Financial Penalties would receive an approximate 3% reduction in their next annual Trust Company fee.
• Strategic fee structure options: Five strategic options are presented for discussion: (1) increase fee rates within the current mechanism, (2) desensitise employee and licence number metrics, (3) eliminate the employee metric and use a five year rolling average of licence numbers, (4) introduce new fee bands replacing the current mechanism, and (5) blended or alternative approaches.

The paper asks specific consultation questions on the change of control fee, the alterations fee, and which strategic option industry favours, and notes that firms facing Covid-19 related financial constraints should contact their supervisors. Following the consultation, the JFSC will publish feedback and the final fees notice is expected to take effect on or before 1 January, with firms notified to use the myJFSC portal for invoices.

Applies to

trust company business (TCB) registrants under the Financial Services (Jersey) Law 1998, affiliation leaders, participating members

Deadlines

• 17 December 2020: Deadline stated for responses coordinated via Jersey Finance (or sent directly to the JFSC).
• 18 December 2020: Deadline stated elsewhere in the paper for comments to be received by JFL or the JFSC.
• on or before 1 January: The final TCB fees notice is expected to take effect on or before this date, following the consultation.