Consultation Paper No. 11 2020 - GIMB and MSB Fees

Summary

This is a JFSC consultation paper (No. 11, 2020) proposing changes to the fees charged to persons registered under the Financial Services (Jersey) Law 1998 to carry on General Insurance Mediation Business (GIMB) or Money Service Business (MSB). It sets out draft fees notices for 2021 and invites industry comment before the rates are finalised.

• Who is affected: All persons registered under the FSJL to conduct GIMB and/or MSB, and any persons issued a registration certificate for such business on or after 1 January 2021.
• Fee rate increase: GIMB and MSB annual/application fee rates are proposed to increase by 0.9 percent (Jersey RPI), rounded to the nearest 5 pounds.
• New alteration fee: A new 400 pound fee is proposed for registered persons applying to change their registered name or to add, amend or remove licence conditions, which previously incurred no fee.
• MSB fees: Draft notice sets MSB application and annual fee at 2,865 pounds.
• Late payment and filing fees (draft notices): Annual fee due 29 February; unpaid fees attract a 5 percent monthly late payment surcharge; failure to supply fee-calculation information attracts a 200 pound monthly administration fee; late filing of any required document attracts a 100 pound fee per month or part-month outstanding.
• Budget context: JFSC aims to raise roughly 150,000 pounds from GIMB and 23,000 pounds from MSB fees in 2021, broadly stable versus 2020; no civil financial penalties have reduced these fees.

The consultation seeks views on the GIMB and MSB fee proposals and on the proposed alteration fee. Responses were due by 17 December 2020, either directly to the JFSC or via Jersey Finance's coordinated response process. If adopted, the final fees notices are intended to take effect on or before 1 January 2021, with firms notified separately about using the myJFSC portal for invoicing.

Key obligations

• Interested parties wishing to comment on the GIMB and MSB fee proposals must submit responses to the JFSC or to Jersey Finance by 17 December 2020
• If the draft fees notices are adopted, GIMB and MSB registered persons would need to pay the annual fee by the due date of 29 February each year
• If adopted, registered persons failing to pay the annual fee by the due date would incur an additional 5 percent late payment fee, applied monthly until paid
• If adopted, registered persons failing to supply information needed to calculate their fee by the due date would incur a 200 pound monthly administration fee
• If adopted, registered persons failing to file or deliver required documents (including supervisory risk data) by the due date would incur a 100 pound fee per month or part-month of delay
• If adopted, a registered person applying for a change of name or amendment/addition/removal of licence conditions would need to pay a proposed 400 pound alteration fee

Applies to

General Insurance Mediation Business (GIMB) registered persons, Money Service Business (MSB) registered persons

Deadlines

• 17 December 2020: Deadline for interested parties to submit consultation responses to the JFSC or Jersey Finance
• 1 January 2021: Proposed commencement/effective date of the final GIMB and MSB fees notices, and date from which new registrants are affected
• 29 February: Due date each year for the JFSC to receive the annual GIMB or MSB fee, under the draft fees notices