Feedback on Consultation Paper No. 11 2020: GIMB and MSB Fees

Summary

This is the JFSC's feedback paper on Consultation Paper No. 11 2020, which proposed increased fee rates for General Insurance Mediation Business (GIMB) and Money Service Business (MSB) registrants. No responses were received to the consultation, so the JFSC proceeded to implement the fee changes exactly as consulted on. The revised GIMB and MSB Fees Notices are attached as appendices and take effect from 1 January 2021, covering the period 1 January to 31 December 2021.

• GIMB application fees: New application fees apply by class: Class P £6,625, Class Q £3,315, Class R £3,315, Class S £110.
• GIMB annual fees: Annual fees for classes P, Q, R scale with brokerage income bands (from about £0 to £49,999 up to £5,000,000 or more); Class S pays a flat £70 annual fee, as does a person exempted under Table 2 of Schedule 2.
• MSB application and annual fees: The application fee to register as a money service business is £2,865; the annual fee for MSB registrants is also £2,865.
• Late payment fees: For both GIMB and MSB, a 5% late payment fee on the unpaid principal applies if the annual fee is not received by the due date, and again on the first day of each subsequent calendar month.
• Late information / administration fee (GIMB only): If a GIMB firm fails to supply information needed to calculate its fee by the due date, a £200 administration fee applies from the day after the due date and on the first of each following month, in addition to the late payment fee once calculated.
• Late filing fees: Any registered person (GIMB or MSB) who fails to file or deliver a required document by its due date is liable for a £100 fee per complete month or part month the document remains outstanding, unless the JFSC has agreed in writing to a later filing date.
• Notification: Relevant firms will be notified via the myJFSC portal that an invoice is ready or that they need to submit data for their fee to be calculated.

Key obligations

• GIMB registered persons in classes P, Q or R must pay an annual fee determined by their brokerage income band, due by 29 February each year.
• GIMB registered persons in class S (or Table 2 exempted persons) must pay a flat £70 annual fee, due by 29 February.
• MSB registered persons must pay an annual fee of £2,865, due by 29 February if already registered on 1 January, or otherwise on registration.
• Applicants for GIMB registration must pay the applicable class application fee (£6,625, £3,315 or £110) when applying.
• Applicants for MSB registration must pay an application fee of £2,865.
• GIMB firms that fail to supply fee-calculation information by the due date must pay a £200 administration fee, recurring monthly until supplied, plus applicable late payment fees.
• Any GIMB or MSB registered person that fails to file or deliver a required document by its due date must pay a £100 fee for each complete or partial month it remains outstanding, unless the JFSC has agreed in writing to a later date.
• Firms must pay a 5% late payment fee on unpaid annual fee principal if not paid by the due date, recurring on the first of each subsequent month until paid.

Applies to

General Insurance Mediation Business (GIMB) registered persons, Money Service Business (MSB) registered persons

Deadlines

• 1 January 2021: Revised GIMB and MSB fees notices become effective, covering the period 1 January to 31 December 2021.
• 29 February: Due date for the JFSC to receive the GIMB and MSB annual fee (for MSB, only if already registered on 1 January; otherwise due on registration).