Feedback on Consultation No. 10 2021: General Insurance Mediation Business and Money Service Business Fees

Summary

This is JFSC's feedback on Consultation No. 10 2021, which proposed increased fee rates for General Insurance Mediation Business (GIMB) and Money Service Business (MSB) registrants. No responses were received to the consultation, so the JFSC proceeded to implement the fee changes as originally proposed, set out in the attached Fees Notices (Appendix A for GIMB, Appendix B for MSB).

• GIMB application fees: Prescribed application fees vary by class: Class P £7,190, Class Q £3,595, Class R £3,595, Class S £120.
• GIMB annual fees: Annual fees for Classes P, Q and R are tiered by brokerage income band (from £575 up to £12,130 depending on class and income); Class S pays a flat £75 annual fee; certain exempted persons under Table 2 pay £75.
• MSB fees: Application fee for MSB registration is £3,110; annual fee for any person registered to carry on money service business during the calendar year is also £3,110.
• Late payment fee: A late payment fee of 5% of the unpaid principal is applied the day after the due date and on the first day of each subsequent month until paid (applies to both GIMB and MSB annual fees).
• Late information/administration fee (GIMB only): If a GIMB business fails to supply information needed to calculate its fee by the due date, a £200 administration fee is charged the day after the due date and on the first of each subsequent month while outstanding, in addition to the late payment fee once calculated.
• Late filing fee: A registered person (GIMB or MSB) who fails to file or deliver any required document to the JFSC by its due date is liable for a £100 fee per complete month or part thereof the document remains outstanding, unless the JFSC has agreed in writing to a later filing date.

The fees notices state they are effective for the period 1 January to 31 December 2022, although the executive summary separately states the revised fees take effect from 1 January 2021; readers should check the current fees notice on the JFSC website for the applicable year. Affected firms are notified via myJFSC when an invoice is ready or when they need to submit data for fee calculation.

Key obligations

• GIMB and MSB registered persons must pay their annual fee by the due date of 28 February each year (or on registration for new MSB registrants registering after 1 January).
• Applicants for GIMB or MSB registration must pay the prescribed application fee specified for their class at the time of application.
• If the annual fee is not received by the due date, the registered person is liable for an additional 5% late payment fee applied monthly until paid.
• GIMB registrants who fail to supply information needed to calculate their annual fee by the due date must pay a £200 administration fee, applied monthly while outstanding, in addition to any late payment fee.
• Registered persons who fail to file or deliver any required document to the JFSC by its due date must pay a £100 fee per month (or part) the document remains outstanding, unless the JFSC has agreed in writing to a later date.

Applies to

General Insurance Mediation Business registrants, Money Service Business registrants

Deadlines

• 28 February: Due date for payment of the GIMB and MSB annual fee (for businesses already registered on 1 January).
• 1 January - 31 December 2022: Period for which the fees set out in the GIMB and MSB Fees Notices are stated to be effective.
• 1 January 2021: Date stated in the Executive Summary (Next Steps) as when the revised fees become effective, though this appears inconsistent with the 2022 effective period stated in the appended Fees Notices.