Feedback on Consultation Paper No. 5 2019 – Insurance Business Fees

Summary

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

• Application fee: Payable when applying for a permit to carry on insurance business; amount varies by category (A or B) and whether long-term business is included, per Schedule 1 (e.g. Category A: £7,440 or £3,730; Category B non-cell: £13,030 or £6,520; Category B cell: £6,520, £3,730 or £1,860).
• Annual fee: Payable by permit holders on 1 October each year, with a due date of 31 October the same year; amounts set out in Schedule 2 mirror the application fee categories.
• Registration change fee: £1,860 where an insurer converts from a limited company or LLP to a cell company/cell structure; £1,770 for the reverse conversion; credit given against related category B permit applications in specified circumstances.
• Transfer of insurance business fee: £5,840 payable by a permit holder undergoing a transfer of insurance business, due at the earlier of the court sanction hearing or submission of draft transfer documentation to the JFSC.
• Late payment fee: An additional 5% of the unpaid annual fee is charged if not paid by the due date, reapplied on the first day of each subsequent calendar month the fee remains unpaid.
• Late filing fee: £100 per complete month or part thereof that a required document remains unfiled or undelivered past its due date, unless the JFSC has agreed in writing to a later filing date.

Firms are notified of invoices via the myJFSC portal. The notice applies to all permit holders under the Insurance Business (Jersey) Law 1996, including category A and B permit holders, cell companies, cells, limited companies and limited liability partnerships carrying on insurance business.

Key obligations

• Permit holders must pay the annual fee (per Schedule 2) on 1 October each year, with payment due by 31 October of that year.
• An applicant for a permit to carry on insurance business must pay the application fee set out in Schedule 1 with the application.
• A permit holder undergoing a transfer of insurance business must pay a £5,840 fee at the earlier of the court sanction hearing or submission of draft transfer documentation to the JFSC.
• A permit holder that fails to file or deliver a required document by its due date must pay £100 per complete month or part thereof the document remains outstanding, unless the JFSC has agreed in writing to a later date.
• If the annual fee is not paid by the due date, the permit holder becomes liable for an additional late payment fee of 5% of the unpaid amount, reapplied monthly.
• Insurers or partnerships changing their registration structure (e.g. to or from a cell company/cell) must pay the applicable registration change fee (£1,860 or £1,770).

Applies to

insurance permit holders, category A insurance permit holders, category B insurance permit holders, cell companies, cells, limited companies carrying on insurance business, limited liability partnerships carrying on insurance business

Deadlines

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