Consultation Paper No. 5 2017 - Banking Business (Jersey) Law 1991: deposit-taking fees

Summary

This is a JFSC consultation paper proposing a 19% increase (on a simple, non-compound basis) in fee rates charged under the Banking Business (Jersey) Law 1991 for deposit-taking business, covering both the initial registration fee and the annual fee. It applies to any person applying for, or already holding, a registration to conduct deposit-taking business under Article 9 of the BBJL. The paper includes a draft Deposit-Taking Business Fees Notice (Appendix B) setting out the full proposed fee structure and administrative rules.

• Fee increase: Proposed 19% increase in fee rates for the annual fee period covering February 2018 to January 2019, equating to a 38% increase over 2016/17 rates on a simple basis.
• Application fee: The same 38% simple increase is proposed to apply to the licence application fee (previously left unchanged).
• Fee components: Draft notice sets out annual fee components based on overseas offices, subsidiaries where JFSC is home supervisor, and a Consolidated Income banding (from £39,900 up to £66,650 depending on income tier).
• Administration: Fees continue to be administered and invoiced via firms' myJFSC portal accounts.
• Late payment and filing: Draft notice proposes a 5% per month late payment fee on unpaid fees and a £100 per month late filing fee for overdue documents.
• Business continuity reduction: Registrations held solely for business continuity purposes qualify for a 50% reduction in the application and annual fee, subject to conditions.

This is a consultation, not yet final law or notice; the JFSC sought comments by 14 July 2017 and intended to publish feedback and the final fees notice in Q3 2017, with new rates taking effect from 1 October 2017. The obligations in the draft notice (fee amounts, payment deadlines, late fee penalties) are proposals only until finalised.

Key obligations

• Interested parties must submit written comments on the proposed fee changes to Jersey Finance Limited or the JFSC by 14 July 2017.
• Under the draft notice, a registered person must pay the annual deposit-taking business fee by 31 October each year.
• Under the draft notice, a person applying for registration must pay the prescribed application fee of £13,800 plus the annual fee once the application is granted.
• Under the draft notice, a registered person whose relevant fee-calculation factors increase during the year must calculate a revised annual fee and notify the JFSC accordingly.
• Under the draft notice, late payment of fees incurs an additional late payment fee of 5% of the unpaid amount per complete month outstanding.
• Under the draft notice, failure to file or deliver required documents on time incurs a late filing fee of £100 per complete month or part thereof.

Applies to

deposit-taking businesses, persons registered or applying for registration under Article 9 of the Banking Business (Jersey) Law 1991, banks

Deadlines

• 14 July 2017: Deadline for interested parties to submit comments on the consultation to Jersey Finance Limited or the JFSC.
• 1 October 2017: Date from which the new fee rates set out in the draft Deposit-Taking Business Fees Notice are proposed to take effect.
• 31 October (annually): Under the draft notice, the annual fee is payable by 31 October each year for registered persons.
• third quarter of 2017: Period in which the JFSC intended to publish consultation feedback and the final fees notice.