Consultation Paper No.6 2020: Insurance Business Fees

Summary

This is a JFSC consultation paper proposing to increase fees under the Insurance Business (Jersey) Law 1996. It seeks views on a 12.5% increase to annual and application fee rates and a larger increase to the transfer of insurance business fee, and includes a draft fees notice that would take effect from 1 October 2020 if adopted.

• Who is affected: Any person applying for, or already holding, a permit to carry on insurance business in Jersey (Category A and Category B permit holders, including cell companies and cells).
• Proposed fee increase: Annual and application fee rates increase by 12.5% (rounded to the nearest £10), made up of 0.5% RPI and 12% for financial crime work, risk/data/workflow capacity and technology investment.
• Transfer of insurance business fee: Proposed increase of £2,000 (34%) to reflect work associated with the Direction Hearing, bringing the draft fee to £7,840.
• Other draft notice provisions: Draft fees notice sets annual fee due date as 31 October (payable from 1 October each year), a 5% late payment fee accruing monthly, and a £100 per month late filing fee for undelivered documents.
• Covid-19 flexibility: Firms facing financial constraints due to Covid-19 that cannot pay increased fees when due are encouraged to contact their supervisors.

The JFSC invited written comments on the proposed 12.5% fee increase, to be sent to Jersey Finance Limited or directly to the JFSC by 29 September 2020. Following consultation, the JFSC intended to publish feedback and a final fees notice, with firms notified when to use the myJFSC portal for invoices.

Key obligations

• Interested parties wishing to comment must submit responses to Jersey Finance Limited or the JFSC by 29 September 2020.
• Once finalised, permit holders would be required to pay the annual fee by the due date of 31 October each year.
• Permit holders undergoing a Transfer of Insurance Business would need to pay the transfer fee at the time of submitting draft transfer documentation, in advance of the Direction Hearing.
• Permit holders failing to file required documents on time would be liable for late filing fees of £100 per month or part month until filed.
• Firms unable to pay increased fees due to Covid-19 financial constraints are encouraged to contact their supervisors at the earliest opportunity.

Applies to

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

Deadlines

• 29 September 2020: Deadline for submitting written comments on the consultation paper to Jersey Finance Limited or the JFSC.
• 1 October 2020: Proposed commencement date for the fees set out in the draft Insurance Business Fees Notice (Appendix B).
• 31 October (annually): Draft notice due date for payment of the annual fee, payable by permit holders on 1 October of each year.