Consultation Paper No. 6 2018: Banking Business (Jersey) Law 1991 - Deposit-taking fees

Summary

This is a Jersey Financial Services Commission consultation paper proposing a 19% increase (on 2015 fee levels) to fees charged under the Banking Business (Jersey) Law 1991 for deposit-taking business. It follows a multi-year fee strategy set out in Consultation Papers No.5 2016 and No.5 2017, and includes a draft Deposit-Taking Business Fees Notice as Appendix B setting out the revised fee structure, calculation methodology and late payment/filing penalties.

• Who is affected: Any person applying for, or already holding, a registration to carry on deposit-taking business under Article 9 of the Banking Business (Jersey) Law 1991.
• Fee increase: A 19% increase in fee rates over 2015 levels (a cumulative 57% increase on a simple basis over three years), applied to both the application fee and the annual fee.
• Application fee: Draft notice sets the application fee at £15,900, plus the annual fee once registration is granted.
• Annual fee components: Annual fee is built from components for overseas offices/subsidiaries (£15,900 each, where JFSC is home supervisor) plus a Consolidated Income based component ranging from £45,400 to £75,850 depending on income tier.
• Business continuity discount: 50% reduction in application and annual fee where registration is solely for business continuity purposes, with the balance becoming payable if disruption actually occurs and continuity operations begin.
• Late fees: Draft notice proposes a 5% late payment surcharge on unpaid fees (applied monthly) and a £100 per month late filing fee for documents not filed or delivered on time.

The JFSC invited written comments on the proposal by 14 September 2018, via Jersey Finance Limited or directly to the JFSC. Feedback and the final fees notice were expected in Q3 2018, with new fee rates intended to take effect from 1 October, administered through firms' myJFSC portal accounts.

Key obligations

• Registered persons and applicants would be liable to pay the increased application fee (£15,900) and annual fee once the final fees notice takes effect.
• Registered persons must pay the annual fee by 31 October each year (as proposed in the draft notice).
• Registered persons must notify the JFSC of a revised annual fee calculation if a relevant factor (e.g. new overseas operation) increases before the end of the annual fee period.
• Failure to pay a fee by its due date incurs an additional late payment fee of 5% of the unpaid amount, applied monthly.
• Failure to file or deliver a required document on time incurs a late filing fee of £100 per month or part month until filed, unless the JFSC agrees in writing to a later date.
• Interested parties were invited to submit written comments on the proposed fee changes to Jersey Finance Limited or the JFSC by 14 September 2018.

Applies to

persons applying for registration to carry on deposit-taking business, registered deposit-taking businesses (banks) under the Banking Business (Jersey) Law 1991

Deadlines

• 14 September 2018: Deadline for interested parties to submit written comments on the consultation, to Jersey Finance Limited or directly to the JFSC.
• 1 October: Date from which the new fee rates were proposed to take effect (draft notice states effective from 1 October 2018).
• 31 October (annually): Proposed due date each year for registered persons to pay the annual fee.
• third quarter of 2018: Period in which the JFSC intended to publish consultation feedback and the final fees notice.