Feedback on Consultation Paper No. 9 2020: DNFBP Fees under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008

Summary

This is the JFSC's feedback paper on Consultation Paper No. 9 2020, which proposed changes to the fees payable by designated non-financial businesses and professions (DNFBPs) registered under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008. It explains which proposals were adopted following industry responses and sets out the finalised fees notices (attached as appendices) that took effect from 1 January 2021.

• Fees cap increase and phase-out: The annual fee cap rises to £30,000 for 2021, then £40,000 in 2022 and £50,000 in 2023, before being removed entirely from 2024 onward.
• Employee calculation method: The JFSC moves to a five-year rolling average of relevant employee numbers when calculating the employee-based element of the annual fee.
• New fees introduced: An alteration fee (£150 for sole traders, £400 for other firms) and a change of control fee are introduced; application fees are increased (£150 for sole traders, £400 for other firms).
• Base fees largely unchanged: Base fees remain £1,700 for accountants and lawyers and £850 for other firms; the sole trader fee reduces to £400 and the per-employee fee reduces to £190.
• Payment and filing rules: Annual fees are due by 31 March, payable in full or, where the fee is at least £1,000, in four quarterly instalments (31 March, 30 June, 30 September, 31 December); late payment attracts a 5% monthly surcharge and late filing of required documents attracts a £100 per month fee.

The changes apply to firms of accountants, firms of lawyers, and other Schedule 2 registered persons (including estate agency and lending businesses) supervised under the Supervisory Bodies Law. The JFSC also notes it will continue engaging with industry during 2021 on longer-term, risk-based approaches to fee calculation.

Key obligations

• Registered persons must pay their annual fee in full on or before 31 March, or in four equal instalments (31 March, 30 June, 30 September, 31 December) where the annual fee due is at least £1,000.
• Firms must supply the information needed to calculate their fee by 31 March or incur a £100 administration fee, repeated monthly while outstanding, in addition to any late payment fee.
• An application fee (£150 for sole traders, £400 for other applicants) is due at the time of application and is non-refundable.
• An alteration fee (£150 for sole traders, £400 for other registered persons) must be paid when applying to change the registered person's name or vary conditions.
• Registered persons that fail to file or deliver any required document by its due date are liable for a £100 fee for each complete month or part month the document remains outstanding, unless the JFSC has agreed in writing to a later date.
• Firms must calculate relevant employee numbers using the prescribed hourly bandings and the five-year rolling average method set out in the notice.

Applies to

Firms of accountants, Firms of lawyers, DNFBP/Schedule 2 registered persons (including estate agency services and lending businesses)

Deadlines

• 1 January 2021: New/revised DNFBP fee rates under the fees notices become effective.
• 31 March: Annual fee (or first instalment, and fee calculation information) due each year.
• 30 June: Second instalment payment due where annual fee is paid in instalments.
• 30 September: Third instalment payment due where annual fee is paid in instalments.
• 31 December: Fourth instalment payment due where annual fee is paid in instalments.
• 2021: Fees cap set at £30,000.
• 2022: Fees cap increases to £40,000.
• 2023: Fees cap increases to £50,000.
• 2024: Fees cap removed entirely.