Feedback on Consultation No.11 2023

Summary

This document reports the JFSC's feedback on Consultation No. 11 2023, which proposed a 10.1% increase in annual fees for General Insurance Mediation Business (GIMB) and Money Service Business (MSB). Following the single response received, the JFSC reduced the increase to 6% and confirms the finalised fee notices for both business types, effective for the 2024 fee year.

• Fee increase: A 6% increase (reduced from the proposed 10.1%) applies to GIMB and MSB annual fees, effective from 1 January 2024 to 31 December 2024.
• GIMB fees notice (Appendix A): Sets out application fees (classes P, Q, R, S) and annual fees tiered by brokerage income, plus late payment and late filing fee rules.
• MSB fees notice (Appendix B): Sets a flat application fee of £3,805 and a flat annual fee of £3,805 for any person registered to carry on money service business during the calendar year, plus late payment and late filing fee rules.
• Notification process: Firms will be notified via myJFSC that an invoice is available or that they need to submit data for their fee to be calculated.
• Late payment/late filing fees: Unpaid annual fees attract a 5% late payment surcharge per month; firms failing to supply fee-calculation data by 24 May 2024 face a £200 monthly administration fee; late filing of any required document attracts a £100 per month fee.

The JFSC also notes it has appointed KPMG to review its funding model, the output of which will shape future fee structures.

Key obligations

• GIMB and MSB firms must pay the applicable annual fee set out in the relevant fees notice for the 2024 registration year.
• Firms required to provide data for fee calculation must submit it to the JFSC no later than 24 May 2024, or incur a £200 monthly administration fee.
• Annual fees are due within four weeks of receipt of the invoice (for MSB firms already registered on 1 January) or on registration otherwise.
• Failure to pay the annual fee by the due date incurs an additional late payment fee of 5% of the unpaid principal, applied on the day after the due date and on the first day of each subsequent month.
• Failure to file or deliver any required document (including supervisory risk data) by its due date incurs a £100 fee per complete month or part thereof that it remains outstanding, unless the JFSC has agreed in writing to a later date.
• New applicants for GIMB or MSB registration must pay the prescribed application fee (varying by GIMB class, or £3,805 for MSB) accompanying their application.

Applies to

General Insurance Mediation Business (GIMB), Money Service Business (MSB)

Deadlines

• 1 January 2024: Revised (6%) fee increase and the new GIMB/MSB fee notices become effective.
• 24 May 2024: Deadline for firms to provide data needed by the JFSC to calculate their annual fee, after which a £200 monthly administration fee applies.
• four weeks from receipt of invoice: Due date for payment of the annual fee under both the GIMB and MSB fees notices.
• 1 January to 31 December 2024: Period for which the fees set out in the GIMB and MSB fees notices are effective.