Consultation Paper No. 9 2017: TCB, GIMB and MSB Fee Rates

Summary

This is a JFSC consultation paper proposing changes to annual and application fee rates for 2018, plus changes to late payment and late filing charges, for three registered business types: Trust Company Business (TCB), General Insurance Mediation Business (GIMB) and Money Service Business (MSB). It applies to all persons registered under the Financial Services (Jersey) Law 1998 to conduct TCB, GIMB and/or MSB, and to anyone issued a registration certificate for such business on or after 1 January 2018. The JFSC invited written comments by 1 December 2017; this is a draft proposal, not yet in force.

• TCB proposals: Increase fee rates by 4.5% for 2018, remove the charging limit above 200 employees (rate for employees 101-200 applies above 200 too), increase the firm fee cap monetary level by 4.5% and raise the cap percentage from 75% to 80%, amend the definition of trust company business employee, and change late payment/late information charges.
• GIMB proposals: Increase the flat £46 fee to £51, increase fee rates for the lowest charging bands by 5%, increase all other GIMB fee rates (including application fees) by 10%, and change late payment/late information charges.
• MSB proposals: Increase fee rates (including application fees) by 3.1% for 2018, and amend late payment rules so interest accrues immediately on unpaid amounts after the due date.
• Common late payment change: For TCB and GIMB, fees are due 31 January 2018 with interest accruing immediately if unpaid, and a flat rate monthly charge applies if fee-calculation information is not supplied by 31 January 2018 (in addition to interest).
• Compliance link: Failure to comply with the JFSC's fees process may be treated as a breach of Principle 6 of the Codes of Practice (Principle 5 for MSB), which requires dealing with the JFSC in an open and co-operative manner.

Draft fees notices for TCB, GIMB and MSB (Appendices B-D) set out the detailed fee schedules and late payment/filing charge mechanics that would take effect for the period 1 January to 31 December 2018 if adopted following the consultation.

Key obligations

• Registered TCB, GIMB and MSB persons must submit relevant fee information and pay registration/annual fees by 31 January 2018 or additional charges will apply.
• Where fees remain unpaid after the due date, interest accrues immediately on the outstanding amount.
• If fee-calculation information is not supplied by 31 January 2018 (TCB and GIMB), a flat rate charge is imposed and repeated on the 1st of each subsequent month the information remains outstanding, in addition to interest on overdue payments.
• Under the draft MSB notice, a person registered to carry on money service business must pay an annual fee, due 31 January 2018 if already registered, or on registration if newly registered; late payment triggers a 5% late payment fee applied on the day after the due date and on the 1st of each subsequent month.
• Under the draft MSB notice, failure to file or deliver any required document by its due date incurs a £100 fee per complete month or part thereof the document remains outstanding, unless the JFSC has agreed in writing to a later date.
• Interested parties wishing to respond must submit comments to Jersey Finance Limited or the JFSC no later than 1 December 2017.

Applies to

Trust Company Business (TCB) registered persons, General Insurance Mediation Business (GIMB) registered persons, Money Service Business (MSB) registered persons

Deadlines

• 1 December 2017: Deadline for interested parties to submit written comments on the consultation paper to Jersey Finance Limited or the JFSC.
• 31 January 2018: Deadline for registered TCB, GIMB and MSB persons to submit relevant fee-calculation information and pay registration/annual fees, after which additional charges (interest and/or flat rate charges) apply.
• 1 January 2018: Date from which the amendments affect persons issued a registration certificate for TCB, GIMB or MSB.
• 1 January 2018 to 31 December 2018: Period for which the proposed fees set out in the draft TCB, GIMB and MSB fees notices would be effective.