Feedback on Consultation No.8 2023 - Deposit-taking fees

Summary

This is a JFSC feedback paper on Consultation No.8 2023, which proposed changes to deposit-taking fees under the Banking Business (Jersey) Law 1991. The JFSC received one response, from the Jersey Bankers Association, and confirms it is proceeding with the fee changes as originally consulted on, effective 30 November 2023. Appendix A sets out the final Deposit-Taking Business Fees Notice in full, which is the legally operative part of the document.

• Application fee: A person applying to be registered under the Law must pay £31,400 on application, plus the annual fee once the application is granted.
• Annual fee structure: The annual fee is the sum of components based on overseas offices, overseas subsidiaries and sub-subsidiaries carrying on deposit-taking business (each £31,400 per relevant country/entity where JFSC is home supervisor), plus a Consolidated Income based component ranging from £89,400 to £149,500 depending on income band.
• Advanced approaches surcharge: Jersey-incorporated registered persons that adopt advanced approaches to credit risk may be subject to an additional fee component set by the JFSC to cover related costs.
• Partial year and business continuity reductions: Applications spanning less than a year get a pro rata reduced annual fee; applicants or registrants whose registration is solely for business continuity purposes get a 50 percent reduction on the relevant fee, subject to reinstatement if continuity operations actually commence.
• Payment timing and penalties: The annual fee is payable on grant of application (for new registrants) or by 31 October each year (for existing registered persons); late payment triggers a 5 percent monthly penalty on unpaid amounts, and late filing of any required document triggers a £100 per month fee.

The JFSC also clarified, in response to JBA queries, that the fee increase reflects overall rising JFSC costs (not solely salary-linked RPI increases) and that future disclosures will explain differences between Business Plan (accrual basis) and Consultation (cashflow basis) funding figures.

Key obligations

• Persons applying for registration under the Banking Business (Jersey) Law 1991 must pay £31,400 on application, plus the annual fee once registration is granted.
• Registered persons must pay the annual fee, calculated per the components in the Notice (overseas operations and Consolidated Income), by 31 October each year.
• Registered persons must notify the JFSC and calculate a revised (incremental) annual fee if a new overseas operation increases a relevant fee factor before the end of the annual fee period.
• Registered persons who fail 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 of each subsequent month.
• Registered persons who fail to file or deliver a required document on time must pay a late filing fee of £100 for each complete or partial month the document remains outstanding, unless the JFSC has agreed in writing to a later date.
• Registered persons whose registration is solely for business continuity but who actually begin continuity operations in Jersey must pay the balance of the annual fee for that period.

Applies to

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

Deadlines

• 30 November 2023: Revised deposit-taking fees under the Notice take effect from this date.
• by 31 October in each year: Annual fee is payable by registered persons each year.
• 24 November 2023: Closing date of the consultation period (historical, no ongoing action required).