Feedback on Consultation No. 5 2021: Insurance Business Fees

Summary

This is the JFSC's feedback report on Consultation No. 5 2021, which proposed changes to fee rates for insurance businesses under the Insurance Business (Jersey) Law 1996. No responses were received to the consultation, so the JFSC proceeded to implement the proposed fee changes as set out in the attached Insurance Business Fees Notice, effective 1 October 2021.

• Application fees: Set out in Schedule 1, varying by permit category (A or B) and whether long-term or general business, and whether the applicant is a cell company or cell.
• Annual fees: Set out in Schedule 2 on the same categorised basis; payable by permit holders on 1 October each year, due by 31 October.
• Registration change fees: £2,180 where a category B permit holder changes registration from a limited company or LLP to a cell company or cell; £2,070 for the reverse change.
• Transfer of insurance business fee: £8,150 payable when a permit holder undertakes a transfer of insurance business, due at submission of draft documentation ahead of the Direction Hearing.
• Late payment fee: 5% of unpaid principal applied the day after the due date and on the first day of each subsequent month if the annual fee is not paid on time.
• Late filing fee: £100 per complete month or part thereof that a required document remains unfiled or undelivered, unless the JFSC has agreed in writing to a later filing date.

The notice applies to permit holders and applicants under the Insurance Business (Jersey) Law 1996, including category A and category B permit holders, cell companies and cells, limited companies and limited liability partnerships carrying on insurance business in Jersey.

Key obligations

• Permit holders must pay the annual fee (per Schedule 2) on 1 October each year, with the due date being 31 October of the same year.
• Applicants for a permit to carry on insurance business must pay the application fee set out in Schedule 1 with their application.
• Permit holders changing registration type (e.g. from limited company/LLP to cell company/cell, or vice versa) must pay the applicable registration change fee (£2,180 or £2,070).
• A permit holder undergoing a transfer of insurance business must pay a £8,150 fee to the JFSC at the time of submission of draft transfer documentation, in advance of the Direction Hearing.
• If the annual fee is not paid by the due date, the permit holder must pay an additional late payment fee of 5% of the unpaid principal, accruing monthly.
• A permit holder that fails to file or deliver a required document by its due date must pay a late filing fee of £100 per complete month or part thereof unless the JFSC has agreed in writing to a later filing date.

Applies to

permit holders under the Insurance Business (Jersey) Law 1996, category A permit holders, category B permit holders, cell companies and cells, limited companies, limited liability partnerships, insurance business applicants

Deadlines

• 1 October 2021: Revised Insurance Business Fees Notice and new fee rates take effect.
• 1 October of each year: Annual fee becomes payable by permit holders.
• 31 October of the same year: Due date for payment of the annual fee.