Consultation Paper No. 5 2016: Banking Business (Jersey) Law 1991 - Deposit-Taking Annual Registration Fees

Summary

This is a JFSC consultation paper proposing an increase in the annual registration fees charged to deposit takers under the Banking Business (Jersey) Law 1991. It sets out a proposed 19% overall increase in the banking sector's regulatory fee tariff, to be phased in over three fee periods, and includes a draft Deposit-Taking Business Fees Notice (Appendix B) showing how fees, late payment charges and refunds would work if adopted.

• Who is affected: Any person applying for registration to conduct deposit-taking business under Article 9 of the Banking Business (Jersey) Law 1991, and existing registered deposit-takers.
• Fee increase: Proposes an overall 19% increase in the regulatory fee tariff for deposit-takers, phased over the next three fee periods, aiming to raise the banking sector's contribution to Commission costs by about £220,500 by 2019.
• Operational changes: The Commission has introduced a new web portal for data submission and fee collection and will no longer accept cheques; fees must be paid by bank transfer using the details provided.
• Draft Fees Notice provisions (Appendix B): Sets out proposed rules including a 50% reduced fee for business-continuity registrations, refunds of annual fees where an application is refused or withdrawn, annual fee due by 31 October preceding the re-registration date, a 5% per month late payment fee, and a £100 per month late filing fee for undelivered documents.

As a consultation, the document does not itself impose binding fee obligations; it invites comments and indicates that, subject to feedback, the new fee tariff would take effect from 1 October 2016 for the annual registration period commencing 1 February 2017.

Key obligations

• Interested parties must submit written comments on the consultation to Jersey Finance Limited or the Commission by 12 August 2016
• Under the proposed Fees Notice, registered deposit takers would need to pay the annual fee by 31 October in the year preceding the date of re-registration
• Under the proposed Fees Notice, a registered person who fails 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, unless otherwise agreed by the Commission
• Under the proposed Fees Notice, a registered person who fails to file or deliver a required document by its due date would be liable for a late filing fee of £100 for each complete month or part month the document remains outstanding, unless prior written agreement for late filing has been obtained
• Fees must be paid by bank transfer quoting the invoice and/or licence number, as cheques will no longer be accepted

Applies to

deposit-takers, persons applying for registration under Article 9 of the Banking Business (Jersey) Law 1991

Deadlines

• 12 August 2016: Deadline for submitting consultation responses to Jersey Finance Limited or directly to the Commission
• 1 October 2016: Proposed effective date for the new fee tariff changes
• 1 February 2017: Start of the annual registration period to which the new fee tariff would first apply
• 31 October (annually, preceding re-registration): Proposed due date for payment of the annual registration fee by already-registered deposit-takers