Feedback on Consultation Paper No. 5 2019 - Insurance Business Fees (2019-10)

Summary

This is the JFSC's feedback paper on Consultation Paper No. 5 2019, which proposed changes to insurance business fees under the Insurance Business (Jersey) Law 1996. No responses were received to the consultation, so the JFSC proceeded to implement the fee changes as originally proposed. The final Insurance Business Fees Notice, reproduced as Appendix A, sets out the revised application fees, annual fees, registration change fees, transfer fees, and late payment/filing fees, effective from 1 October 2019.

• Application fees: New fees apply for permits under Category A and Category B (cell and non-cell applicants), varying by whether long-term or general business is included, set out in Schedule 1.
• Annual fees: Permit holders pay an annual fee per Schedule 2; the fee is payable on 1 October each year with a due date of 31 October the same year.
• Registration change fees: A fee of 1,860 pounds applies where an insurer or partnership converts to a cell company or cell structure; a fee of 1,770 pounds applies for conversion from a cell structure to a limited company or LLP.
• Transfer of insurance business fee: A fee of 5,840 pounds is payable for a scheme to transfer insurance business, due at the earlier of the court sanction hearing or submission of draft transfer documentation to the JFSC.
• Late payment fee: A 5 percent late payment fee on the unpaid principal applies if the annual fee is not paid by the due date, reapplied on the first day of each subsequent calendar month.
• Late filing fee: A fee of 100 pounds per complete month or part month applies for failure to file or deliver required documents on time, unless the JFSC has agreed in writing to a later date.

The notice took effect from 1 October 2019, and affected firms were notified via the myJFSC portal when invoices became available.

Key obligations

• Permit holders must pay the annual fee set out in Schedule 2 on 1 October each year, with payment due by 31 October the same year.
• Permit holders undergoing a transfer of insurance business must pay a 5,840 pound fee at the earlier of the court hearing date or submission of draft transfer documentation to the JFSC.
• Permit holders who fail to file or deliver required documents on time must pay a 100 pound fee per complete month or part thereof of delay, unless the JFSC has agreed in writing to accept a later filing date.
• Permit holders who miss the annual fee due date incur a 5 percent late payment fee on the unpaid amount, reapplied monthly.
• Applicants converting registration between limited company/LLP and cell company/cell structures must pay the applicable registration change fee (1,860 pounds or 1,770 pounds).

Applies to

insurance permit holders, insurance companies, cell companies, cells, limited liability partnerships carrying on insurance business, applicants for insurance business permits

Deadlines

• 1 October 2019: Revised Insurance Business Fees Notice takes effect / commencement date of new fees.
• 1 October of each year: Annual fee for permit holders becomes payable.
• 31 October in the same year: Due date for payment of the annual fee.