Consultation Paper No. 8 2018: Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 - Fees for registered persons

Summary

This is a Jersey Financial Services Commission consultation paper seeking industry comment on proposed changes to the annual fees charged to persons registered under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, i.e. DNFBPs such as accountants, lawyers, estate agents and lenders. It sets out draft fee notices (Appendices B and C) that would take effect from 1 January 2019, and invites feedback on the proposed fee increase and a new late filing fee before the proposals are finalised.

• Fee rate increase: Proposes an overall 21.8% increase in Schedule 2 fee rates and the fee cap for 2019 (4.3% inflation plus 17.5% to offset withdrawal of Government subsidy), taking the sole trader fee to £352 and the fee cap to £17,590.
• New late filing fee: Proposes introducing a £100 per month late filing fee for DNFBP firms that fail to file required documents by their due date, aligning them with other JFSC-regulated sectors.
• Draft fees notices: Includes draft Accountants and Lawyers Fees Notice (Appendix B) and draft Registered Persons Fees Notice (Appendix C), covering annual fee calculation, relevant employee bandings, payment/instalment schedules, application fees and late payment/administration fees.
• Consultation questions: Asks respondents whether they agree with the proposed DNFBP fee rate change (Question 1) and the proposed introduction of late filing fees (Question 2).

This is a draft consultation only; the fee rates and late filing fee provisions described are proposals, not yet finalised rules, and the JFSC states it will publish feedback and final fees notices in December 2018 following the consultation.

Key obligations

• Interested parties wishing to comment must submit written comments to the JFSC or to Jersey Finance Limited by 30 November 2018.
• Industry bodies or associations responding should also provide a summary of the individuals and/or institutions they represent.
• Under the draft fees notices, firms of accountants, firms of lawyers and other registered persons would be required to pay an annual fee in full by 31 March 2019, or in four equal instalments by 31 March, 30 June, 30 September and 31 December 2019 if the fee is at least £1,000.
• Firms would be required to supply the information needed to calculate their fee by 31 March 2019 or face a £100 administration fee accruing monthly.
• Registered persons would be liable for a £100 per month late filing fee for any document not filed or delivered to the JFSC by its due date, unless prior written agreement for a later date is obtained.
• An application fee of £100 would be payable at the time of application for registration under the Supervisory Bodies Law, and is non-refundable.

Applies to

Persons registered under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 (DNFBPs), firms of accountants, firms of lawyers, registered persons carrying on Schedule 2 business (including estate agents and lenders)

Deadlines

• 30 November 2018: Deadline for interested parties to submit written comments on the consultation to the JFSC or Jersey Finance Limited.
• 1 January 2019: Proposed new fee rates and fees notices take effect (also affects persons who become registered on or after this date).
• 31 March 2019: Deadline for firms to pay the annual fee in full (or first instalment) and to supply information required to calculate the fee, under the draft fees notices.
• 30 June 2019: Second instalment payment deadline under the draft fees notices for firms paying by instalments.
• 30 September 2019: Third instalment payment deadline under the draft fees notices for firms paying by instalments.
• 31 December 2019: Fourth and final instalment payment deadline under the draft fees notices for firms paying by instalments.
• December 2018: JFSC expects to publish consultation feedback and final fees notices following this consultation.