Feedback on Consultation No.2 2023 (Investment Business Fees)

Summary

This is the JFSC's feedback paper on Consultation No.2 2023, which proposed changes to fee rates for investment business firms. The JFSC received one response (coordinated anonymously via Jersey Finance Limited) and, having considered it, confirmed it will proceed with the fee changes as originally consulted on, effective 1 May 2023. The paper attaches, as Appendix A, the final Investment Business Fees Notice setting out the revised fee structure.

Fees notice contents

• Application fee: Payable on registration to carry on investment business; amount varies by class (A/B/C, D, or E) as set out in the Schedule.
• Annual fee: Payable by all persons registered to carry on investment business during 1 May 2023 to 30 April 2024, calculated per the Schedule (base fee plus per investment employee or per fund charges depending on class); halved if registered after 31 December 2023.
• Change of control fee: Payable when a Registered Person merges, becomes, or ceases being a Registered Person, or when a shareholder controller crosses 20 percent, 33 percent or 50 percent thresholds; pro rated to the proportion acquired, with an extra 1,230 pounds if the firm is under heightened supervision or enforcement.
• Alteration fee: 490 pounds for a change of name, addition or alteration or removal of a licence condition, or removal of a licence class (not payable if a change of control fee is also due).
• Late payment and late filing fees: 5 percent of any unpaid annual fee added monthly after the due date; 200 pounds administration fee if investment employee data is not supplied on time; 100 pounds per month for any document filed late with the JFSC.

The revised fees run for the period 1 May 2023 to 30 April 2024. Firms will be notified via the myJFSC portal when an invoice is ready or when investment employee data is needed to generate one.

Key obligations

• Registered persons must supply investment employee data needed to calculate the annual fee by 15 June 2023 (or on notification, if applicable)
• Registered persons must pay the annual fee within 30 days of the invoice date if already registered on 1 May 2023, or by the date an application is granted if newly registered
• Registered persons applying for registration must pay the application fee specified for their business class
• A Registered Person merging with, becoming, or ceasing to be a Registered Person, or a shareholder controller crossing the 20 percent, 33 percent or 50 percent ownership thresholds, must pay a change of control fee
• A Registered Person applying to alter its name, licence conditions, or licence class must pay a 490 pound alteration fee (unless a change of control fee is also due)
• Firms that fail to pay the annual fee by the due date incur a 5 percent late payment fee, applied monthly until paid
• Firms that fail to supply required fee-calculation information by the due date incur a 200 pound administration fee, charged on the day after the due date and on the fifteenth of each subsequent month until supplied
• Registered persons who fail to file or deliver any required document by its due date incur a 100 pound late filing fee for each month or part month the document remains outstanding, unless the JFSC has agreed in writing to a later date

Applies to

Registered Persons (persons registered under the Law to carry on investment business), Investment business firms (Class A, B, C, D and E)

Deadlines

• 1 May 2023: Revised investment business fees become effective, running through 30 April 2024
• 15 June 2023: Due date for firms to provide investment employee data needed to generate an annual fee invoice
• 30 days from the invoice date: Due date for payment of the annual fee for firms already registered on 1 May 2023
• 31 December 2023: Registration after this date results in the annual fee payable on registration being halved