Consultation Paper No. 4 2017: Insurance Business Fees

Summary

This is a JFSC consultation paper proposing changes to fee rates under the Insurance Business (Jersey) Law 1996. It seeks views on an 18.1% inflation-linked increase to existing application and annual fees, and on introducing a new flat fee for insurance business transfer schemes. A draft Insurance Business Fees Notice is annexed showing the proposed fee structure in full.

• Fee rate increase: Proposed 18.1% increase to Category A and Category B application and annual fees, intended to keep pace with inflation since rates were last set in 2008.
• New transfer scheme fee: Proposed introduction of a flat £5,000 fee payable by a permit holder undergoing a transfer of insurance business, payable at submission of draft transfer documentation.
• Registration change fee: Draft notice retains a £1,595 fee where an insurer changes registration type (e.g. limited company to cell company or vice versa).
• Late payment and late filing fees: Draft notice proposes a 5% per month late payment fee on unpaid fees and a £100 per month late filing fee for documents not filed on time, unless the JFSC agrees otherwise in writing.
• Annual fee timing: Draft notice specifies the annual fee is payable by permit holders on 1 October of each year.

The proposals are set out as a consultation report required under Article 15(3) of the Financial Services Commission (Jersey) Law 1998; nothing in this paper is yet in force. The JFSC intends to publish feedback and a final fees notice in Q3 2017, with the notice's proposed commencement date of 1 October 2017.

Key obligations

• Interested parties must submit written comments on the proposed fee changes to Jersey Finance Limited or the JFSC by 14 July 2017
• If adopted as drafted, permit holders would be required to pay the annual fee on 1 October of each year
• If adopted as drafted, a permit holder undertaking a transfer of insurance business would be required to pay a £5,000 fee at the time draft transfer documentation is submitted, in advance of the Direction Hearing
• If adopted as drafted, a permit holder failing to pay a fee by its due date would be liable for an additional late payment fee of 5% of the unpaid amount for each complete month it remains unpaid
• If adopted as drafted, a permit holder failing to file or deliver a required document by its due date would be liable for a £100 fee for each complete month or part month the document remains unfiled, unless the JFSC has agreed in writing to a later date

Applies to

insurance business permit holders, applicants for a permit to carry on insurance business, Category A permit holders, Category B permit holders, cell companies and cells carrying on insurance business

Deadlines

• 14 July 2017: Deadline for interested parties to submit comments on the consultation paper to Jersey Finance Limited or directly to the JFSC
• third quarter of 2017: JFSC intends to publish feedback on the consultation and the final Insurance Business Fees Notice
• 1 October 2017: Proposed commencement date for the fees set out in the draft Insurance Business Fees Notice
• 1 October of each year: Draft notice proposes the annual fee is payable by permit holders on this date each year