Feedback on Consultation No. 13 2022 - General Insurance Mediation Business and Money Service Business Fees

Summary

This is the JFSC's feedback paper on Consultation No. 13 2022, which proposed changes to the fee rates charged to General Insurance Mediation Business (GIMB) and Money Service Business (MSB) registrants. Only one consolidated response was received. The JFSC confirms it is proceeding with the fee changes as consulted on, with the revised Notices of Fees (Appendices B and C) taking effect from 1 January 2023.

• Effective date: Revised GIMB and MSB fee rates apply for the period 1 January to 31 December 2023.
• Rationale: The JFSC states the fee increase reflects the rising cost of regulation, including an expanding regulatory remit and increased staffing levels.
• Notification: Affected businesses will be notified via the myJFSC portal when an invoice is ready.
• GIMB fees: Application fees vary by class (P £8,300, Q £4,150, R £4,150, S £140); annual fees vary by class and brokerage income band, set out in Schedule 2.
• MSB fees: Application fee of £3,590 and annual fee of £3,590 for any person registered to carry on money service business during the calendar year.
• Late payment: Annual fees are due by 29 February (GIMB) or 29 February/on registration (MSB); late payment incurs a 5% surcharge on the unpaid amount, added monthly.
• Late information/filing: Failure to supply information needed to calculate the fee incurs a £200 monthly administration fee (GIMB); failure to file any required document, including supervisory risk data, incurs a £100 fee per month until filed, for both GIMB and MSB registrants.

Key obligations

• GIMB and MSB registrants must pay the prescribed application fee when applying for registration (GIMB fees vary by class; MSB fee is £3,590).
• GIMB and MSB registrants must pay their annual fee by the due date of 29 February each year (or on registration for MSB firms registering after 1 January).
• If the annual fee is not paid by the due date, registrants are liable for a 5% late payment surcharge on the unpaid amount, applied on the day after the due date and on the first day of each subsequent month.
• GIMB registrants who fail to supply information needed to calculate their registration fee by the due date must pay a £200 administration fee, charged monthly until the information is supplied.
• Registered persons who fail to file or deliver any required document, including supervisory risk data, by its due date must pay a £100 fee for each complete month or part month the document remains outstanding, unless the JFSC has agreed in writing to a later filing date.

Applies to

General insurance mediation business registrants, Money service business registrants

Deadlines

• 1 January 2023: Revised GIMB and MSB fee rates become effective.
• 1 January - 31 December 2023: Period for which the fees set out in the GIMB and MSB fee notices apply.
• 29 February: Due date for JFSC to receive the annual fee from GIMB registrants and from MSB registrants already registered on 1 January.