Consultation Paper No.5 2018 - Insurance Business Fees

Summary

This is a JFSC consultation paper proposing a 5% increase to insurance business fee rates under the Insurance Business (Jersey) Law 1996, together with a wording change to how late payment interest is calculated. It applies to anyone applying for, or already holding, a permit to carry on insurance business in Jersey. A draft fees notice (Appendix B) sets out the proposed new fee structure and is intended to take effect from 1 October 2018 if adopted.

• Fee increase: Proposes raising all insurance business fee rates by 5%, continuing a multi-year programme to bring regulatory fee income to about 15% above 2015 levels by 2019.
• Late payment wording: Amends the fees notice so that interest on unpaid annual fees is expressly payable from the due date, aligning insurance business wording with other JFSC fee notices.
• Draft fee schedule: Sets out draft application, annual, registration change, transfer, late payment and late filing fees for Category A and Category B permit holders (including cell companies and cells) in Appendix B.
• Administration: Confirms fees will continue to be invoiced and administered through the myJFSC portal.

As a consultation, the paper does not itself impose binding obligations beyond inviting comments; any fee changes would only take legal effect once the final fees notice is published following feedback.

Key obligations

• Interested parties wishing to comment must submit responses to Jersey Finance Limited or directly to the JFSC no later than 7 September 2018.
• If adopted as drafted, permit holders would be required to pay the annual fee by 1 October each year, with the due date being 31 October and late payment interest of 5% of the unpaid principal applying from the day after the due date.
• If adopted as drafted, permit holders would be liable for a late filing fee of £100 per complete month or part month for any document not filed or delivered by its due date, 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

• 7 September 2018: Deadline for interested parties to submit comments on the consultation paper to Jersey Finance Limited or the JFSC.
• 1 October 2018: Proposed commencement date for the fees set out in the draft Insurance Business Fees Notice, if adopted.
• 31 October (annually): Proposed due date for payment of the annual fee under the draft fees notice.