Feedback on Consultation No. 14 2022 - Trust Company Business Fees

Summary

This is the JFSC's feedback paper on Consultation No. 14 2022, which proposed changes to fee rates for Trust Company Business (TCB). The JFSC received six responses (including a consolidated response from Jersey Finance Limited) and confirms it is proceeding with the fee changes as originally consulted on, effective 1 January 2023. The paper attaches, as Appendix B, the final Draft TCB Fees Notice setting out the full fee schedule.

• Overall increase: Fees rise in line with the proposal (an increase of 5% above RPI assessed against cost base), though the increase is offset by a c.20% reduction relating to two civil financial penalties imposed in the TCB sector, leaving fees roughly 4% below prior-year levels.
• Application fees: Set fees apply for registering a non-affiliated person, an affiliation leader, or a participating member, varying by class of trust company business (including Class O and natural persons carrying on a single class).
• Registration fees: Calculated using a base amount plus a per-class charge and a tiered per-employee charge based on average trust company business employees over relevant dates.
• Change of control fee: Payable when a person becomes, ceases to be, or merges with an affiliation leader or participating member, or when a shareholder controller's interest reaches/exceeds 20%, 33% or 50%; an extra £1,155 applies for firms under heightened supervision or enforcement.
• Alteration fee: A £460 fee applies for changes such as a name change, or addition/alteration/removal of licence conditions or classes (not payable alongside a change of control fee).
• Late payment and late filing fees: A 5% late payment surcharge applies from the day after the due date (and monthly thereafter); a £200 administration fee applies if required fee-calculation information is not supplied on time; a £100 per month fee applies for late filing or delivery of required documents.

Registered TCB firms are notified of invoices via the myJFSC portal. The notice took effect for the period 1 January to 31 December 2023.

Key obligations

• Registered persons must pay the registration fee by 28 February if already registered on 1 January, or otherwise on registration.
• Persons registering after 1 July but before the following 1 January pay half the standard registration fee.
• Firms must supply information required to calculate their registration fee by the due date or incur a £200 administration fee (recurring monthly if still outstanding).
• Any unpaid fee after the due date incurs a 5% late payment fee, reapplied on the 1st of each subsequent month until paid.
• A registered person that fails to file or deliver a required document by its due date must pay £100 for each complete month or part thereof it remains unfiled, unless the JFSC has agreed in writing to a later date.
• A registered person applying for a change of control (becoming/ceasing to be/merging with an affiliation leader or participating member, or a shareholder controller crossing 20%/33%/50% thresholds) must pay the applicable change of control fee.
• A registered person applying for an alteration (name change, licence condition change, or removal of a class of licence) must pay a £460 alteration fee, unless a change of control fee is also payable.

Applies to

Trust company business registrants, applicants for registration to carry on trust company business, affiliation leaders, participating members, non-affiliated persons, natural persons carrying on a single class of trust company business

Deadlines

• 1 January 2023: Effective date from which the revised TCB fees apply (notice covers 1 January to 31 December 2023).
• 28 February: Due date for registration fee payment where the firm is already registered on 1 January.
• day after the due date, and 1st day of each calendar month thereafter: Late payment fee of 5% of unpaid principal applies from this point until paid.
• day after the due date, and 1st day of each calendar month thereafter: £200 administration fee applies if required fee-calculation information is not supplied by the due date.
• each complete month or part thereof after the document becomes due: £100 late filing fee accrues per month for documents not filed or delivered on time.