Feedback on Consultation Paper No.7 2020 – Deposit-taking fees (November 2020)

Summary

This is a feedback paper reporting on JFSC Consultation Paper No.7 2020, which sought industry views on changing deposit-taking fees under the Banking Business (Jersey) Law 1991. It summarises responses received from banks, the Jersey Bankers Association and Jersey Finance Limited, sets out the JFSC's decisions on which fee option to adopt, and attaches the final Deposit-taking Business Fees Notice as Appendix A.

• Option adopted: The JFSC will use Option 1 (increasing fee rates within the existing fee mechanism) for the current fees cycle, based on consensus support from respondents.
• Revised 2020 increase: The proposed 18% fee increase for 2020 has been reduced to 10%, reflecting revised expectations about banking licence cessations.
• Possible 2021 increase: If no alternative fee mechanism is agreed during 2021, a further 13% uplift (rather than the originally consulted 5.3%) would apply for 2021 fees.
• Future dialogue: The JFSC commits to continued engagement with the JBA and individual banks during 2021 to develop a more sustainable, proportionate future fees mechanism.
• Fees Notice (Appendix A): Sets out the annual fee calculation, reduced fees for business continuity registrations, pro rata fees for partial-year applications, and late payment/late filing fee provisions.

The revised fees took effect from 30 November 2020, and affected firms are notified via the myJFSC portal when an invoice is ready. The underlying Fees Notice also restates ongoing payment and filing obligations that continue to apply to registered deposit-taking businesses.

Key obligations

• Registered deposit-taking businesses must pay the annual fee by 31 October in each year.
• A registered person who fails to pay a fee by its due date must pay an additional late payment fee of 5% of the unpaid amount, applied the day after the due date and on the first day of each subsequent calendar month until paid.
• A registered person who fails to file or deliver a required document by its due date must pay a late filing fee of £100 for each complete month or part month the document remains outstanding, unless the JFSC has agreed in writing to a later date.
• Firms applying for registration for business continuity purposes may have the application fee reduced by 50%, and the annual fee reduced by 50%, subject to conditions in the Fees Notice.
• Firms must pay the new fee rates set out in the Fees Notice from 30 November 2020 onward.

Applies to

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

Deadlines

• 30 November 2020: Revised deposit-taking fee rates under Option 1 take effect.
• 31 October (each year): Annual fee is payable by registered deposit-taking businesses.
• during 2021: JFSC and industry to continue dialogue on a future fees mechanism; if no alternative is agreed, a further 13% fee uplift would apply for 2021.