Consultation Paper No. 11 2016: General Insurance Mediation Business Fees

Summary

This is a Jersey Financial Services Commission (JFSC) consultation paper proposing a 15% increase in fees for General Insurance Mediation Business (GIMB) registrants under the Financial Services (Jersey) Law 1998. It sets out the JFSC's rationale (fees have not risen since January 2010, while inflation has been 16.2%), invites comments, and includes a draft Fees Notice with revised application and annual fee schedules intended to take effect for 2017.

• Who is affected: All persons registered under the Financial Services (Jersey) Law 1998 to conduct general insurance mediation business (GIMB), including those registered on or after 1 January 2017.
• Proposed change: A 15% increase to both GIMB application fees and annual fees (classes P, Q, R and S), set out in the draft Notice's Schedules 1 and 2.
• Fee administration: Fees continue to be administered via firms' myJFSC portal accounts; firms must supply brokerage income data or await invoice notification before paying, and cheques are not accepted.
• Late payment/filing fees: The draft Notice retains a 5% per month late payment fee on unpaid registration fees and a £100 per month late filing fee for documents not filed on time (unless the JFSC agrees otherwise in writing).
• Consultation process: Comments on the proposed 15% increase were invited from GIMB registrants and representative bodies (Chartered Insurance Institute Jersey branch, Jersey Finance, Jersey International Insurance Association), to be sent to Jersey Finance Limited or directly to the JFSC by 31 January 2017.

As a consultation paper, this document is not itself binding; it previews a draft Fees Notice that the JFSC intended to finalise and publish, along with feedback, in the first quarter of 2017, with the new fees applying for the period 1 January to 31 December 2017.

Key obligations

• Registered GIMB persons must pay the annual fee within 30 days from the issue of the relevant invoice (per the draft Notice).
• A registered person who fails to pay a fee by its due date is liable for an additional late payment fee of 5% of the unpaid amount per complete month of non-payment.
• A registered person who fails to file or deliver a required document by its due date is liable for a late filing fee of £100 per complete month or part month of delay, unless the Commission has agreed in writing to a later date.
• Firms must supply brokerage income information via the myJFSC portal when notified, and should not make payments until instructed.

Applies to

General Insurance Mediation Business (GIMB) registrants under the Financial Services (Jersey) Law 1998

Deadlines

• 31 January 2017: Deadline for interested parties to submit comments on the proposed 15% fee increase, to Jersey Finance Limited or directly to the JFSC.
• 1 January 2017: Persons issued a GIMB registration certificate on or after this date are affected by the proposed fee changes.
• 1 January 2017 to 31 December 2017: Period for which the fees in the draft Fees Notice (Appendix B) are proposed to be effective.
• 30 days from issue of invoice: Annual fee payment deadline for registered persons under the draft Notice.
• first quarter of 2017: JFSC's planned timing for publishing consultation feedback and the final fees notice.