Feedback on Consultation Paper No.3 2024 (Fees)

Summary

This is the JFSC's feedback paper on Fee Consultation No.3 2024, confirming that a fee cycle alignment to the calendar year and a 6% increase in fee rates will proceed for investment business, fund services business, insurance business, AIFs, CIFs, JPFs, CoBOs and QSMAs. It includes the final fees notices as appendices, setting out application fees, annual fees, and late payment or late filing fees for each sector.

• Fee cycle alignment: Fees are aligned to the calendar year rather than the previous licensing anniversary cycle, with annual fees pro rated accordingly; one off fees are not pro rated.
• 6% fee increase: A 6% increase applies across investment business, fund services business, insurance business, AIF/AIFSB, CIF, CoBO and QSMA fees, effective for the periods stated in each appendix through 31 December 2024.
• Payment terms: Annual fees are due 30 days from the invoice date (or from grant of application if newly registered); late payment triggers a 5% surcharge on unpaid amounts, repeating monthly.
• Late filing fees: Failure to file or deliver required documents by their due date incurs 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.
• Investment business specifics: Firms must supply investment employee data by 15 June 2024 to allow calculation of annual fees; failure to do so incurs a £200 administration fee, applied on the day after the due date and again on the 15th of each subsequent month information remains outstanding.
• Insurance business specifics: Additional one off fees apply for changes in registration status (e.g. cell company conversions) and for a Transfer of Insurance Business (£11,602), payable at submission of draft transfer documentation.

The paper also records that three consultation responses were received and addresses two questions: alignment to calendar year fees (agreed, with a request for more advance notice that the JFSC said it could not commit to) and the 6% increase (agreed, though one respondent favoured using the March RPI figure instead).

Key obligations

• Registered persons/permit holders must pay annual fees within 30 days of receipt of invoice (or from grant of application if newly registered).
• Investment business firms must provide investment employee data to the JFSC by 15 June 2024 to enable fee calculation.
• Firms failing to file required documents by their due date must pay a £100 late filing fee for each complete month or part month of delay.
• Firms failing to submit required fee calculation information incur a £200 administration fee, recurring monthly until submitted.
• Permit holders undergoing a Transfer of Insurance Business must pay an £11,602 fee at the time of submitting draft transfer documentation.
• Late payment of annual fees incurs a 5% surcharge on the unpaid amount, applied on the day after the due date and monthly thereafter.

Applies to

investment businesses, fund services businesses, insurance businesses, Alternative Investment Funds (AIFs), AIF services businesses, Collective Investment Funds (CIFs), Jersey Private Funds (JPFs), Control of Borrowing Order (CoBO) registered entities, Qualifying Segregated Managed Accounts (QSMA) registrants, recognised fund functionaries, permit holders under insurance business law

Deadlines

• 15 June 2024: Due date for investment businesses to provide investment employee data to the JFSC for annual fee calculation.
• 1 May 2024 to 31 December 2024: Period for which revised Investment Business fees are effective.
• 1 July 2024 to 31 December 2024: Period for which revised AIF/AIFSB and CIF fees are effective.
• 30 days from receipt of invoice: Due date for payment of annual fees.
• 31 December 2024: End date of the current fee cycle before further alignment/changes.