Feedback on Consultation No.6 2021 – Banking Business (Jersey) Law 1991: Deposit-taking fees

Summary

This is a feedback paper published by the Jersey Financial Services Commission (JFSC) summarising responses to Consultation No.6 2021, which proposed changes to deposit-taking (banking) fee rates under the Banking Business (Jersey) Law 1991. The JFSC received two responses, including a consolidated response coordinated by the Jersey Bankers Association (JBA), both supporting the proposed budgeted income of 2.21 million for 2022. The JFSC confirms it is proceeding with the fee changes as consulted on, effective 30 November 2021, and sets out the final Deposit-taking Business Fees Notice as Appendix A.

• Fee changes: Revised deposit-taking fee rates take effect from 30 November 2021, as set out in the attached Fees Notice.
• Application fee: A person applying to be registered under the Law pays 24,700 pounds on application, plus the annual fee once registration is granted.
• Annual fee components: The annual fee combines charges for overseas offices and subsidiaries (24,700 pounds each, where JFSC is home supervisor) plus a Consolidated Income based component ranging from 70,400 to 117,700 pounds depending on income band.
• Business continuity discount: Registrations made solely for business continuity purposes qualify for a 50 percent reduction in the application or annual fee, subject to conditions.
• Late payment and filing fees: Unpaid annual fees attract a 5 percent monthly late payment charge; undelivered required documents attract a 100 pound fee per month or part month late.
• Next steps: The JFSC will continue dialogue with the JBA and the banking sector during 2022 on developing a longer-term, more predictable fees methodology.

Relevant registered businesses are notified of invoices via myJFSC. The document is primarily a fee notice affecting deposit-taking (banking) businesses registered under the Banking Business (Jersey) Law 1991, rather than a policy change affecting supervisory requirements generally.

Key obligations

• Registered deposit-taking businesses must pay the annual fee (calculated per the Fees Notice formula) by 31 October in each year.
• A person applying for registration under the Law must pay a 24,700 pound application fee, plus the annual fee once the application is granted.
• Registered persons must notify the JFSC and calculate a revised annual fee if a new overseas operation increases a relevant fee component before the end of the annual fee period.
• A registered person that fails to pay a fee by its due date must pay an additional late payment fee of 5 percent of the unpaid amount, applied on the day after the due date and on the first day of each subsequent month.
• A registered person that fails to file or deliver a required document by its due date must pay a late filing fee of 100 pounds for each complete or partial month the document remains outstanding, unless the JFSC has agreed in writing to a later date.
• Persons registered solely for business continuity purposes must pay the balance of the annual fee if disruption actually occurs and they begin operating in Jersey for that purpose.

Applies to

deposit-taking businesses, registered persons under the Banking Business (Jersey) Law 1991, banks, Jersey Bankers Association members

Deadlines

• 30 November 2021: Revised deposit-taking fee rates take effect.
• 31 October in each year: Annual fee payment due date for persons registered under the Law.