Feedback on Consultation Paper No. 9 2019: Fees for registered persons (DNFBPs)

Summary

This is a feedback paper from the Jersey Financial Services Commission (JFSC) responding to Consultation Paper No. 9 2019, which proposed changes to fee rates for registered persons (DNFBPs) under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008. It confirms the final fee changes, including a revised fee cap, and sets out the finalised Fees Notices attached as appendices.

• Who is affected: Firms of accountants, firms of lawyers, and other Schedule 2/DNFBP registered persons (including estate agency services and lending businesses) registered under the Supervisory Bodies Law.
• Fee rate increase: Revised DNFBP fee rates take effect from 1 January 2020, as consulted on.
• Fee cap change: Following feedback, the JFSC set the fee cap at £22,000 (a 25% increase) rather than the originally proposed £25,000 (42% increase).
• Fee structure: Base fee of £425 for sole traders, or £850 plus £210 per relevant employee for other firms, subject to the £22,000 cap.
• Payment terms: Annual fees are due in full by 31 March 2020, or in four equal instalments (31 March, 30 June, 30 September, 31 December 2020) if the total fee is at least £1,000.
• Late payment/administration fees: A 5% late payment fee applies to unpaid amounts from the day after the due date, recurring monthly; a £100 administration fee applies monthly if fee-calculation information is not supplied by 31 March 2020.
• Application and late filing fees: A £100 non-refundable application fee applies to new registration applications; a £100 per month fee applies for late filing or delivery of required documents to the JFSC.

The JFSC indicates it will consult further during 2020 on future funding approaches across all industry sectors, including possible risk-based fee structuring, but this paper itself only finalises the DNFBP fee changes and payment/administration obligations described above.

Key obligations

• Firms of accountants and firms of lawyers must pay the annual fee in full by 31 March 2020, or by instalments on 31 March, 30 June, 30 September and 31 December 2020 if the total fee is at least £1,000.
• Registered persons must supply the information required to calculate their fee by 31 March 2020 or incur a recurring £100 administration fee.
• Registered persons must pay a £100 application fee at the time of applying for registration.
• Registered persons must pay a £100 per month fee for any document required under the Supervisory Bodies Law that is filed or delivered late, unless the JFSC has agreed in writing to a later date.
• Firms must calculate their number of relevant employees as at the relevant date (last working day of the preceding calendar year) using the specified hourly bandings to determine their annual fee.

Applies to

DNFBPs/Schedule 2 firms, firms of accountants, firms of lawyers, registered persons providing estate agency services, registered persons providing lending business

Deadlines

• 1 January 2020: Revised DNFBP fee rates and the new £22,000 fee cap become effective.
• 31 March 2020: Due date for payment of the annual fee in full, or the first instalment if paying by instalments; also the deadline to supply information needed to calculate the fee before an administration fee applies.
• 30 June 2020: Second instalment payment due for firms paying the annual fee by instalments.
• 30 September 2020: Third instalment payment due for firms paying the annual fee by instalments.
• 31 December 2020: Fourth and final instalment payment due for firms paying the annual fee by instalments.