Feedback on Investment Business Fees Consultation No. 2 2022

Summary

This is JFSC feedback on Consultation Paper No.2 2022, which proposed changes to fee rates for the investment business sector. No responses were received to the consultation, so the JFSC proceeded to implement the fee changes as originally proposed, effective 1 May 2022. The document includes the final Investment Business Fees Notice as Appendix A.

• Application fee: Payable when applying for registration to carry on investment business, at rates set out in the Schedule (varies by class of business).
• Annual fee: Payable by any person registered to carry on investment business during 1 May 2022 to 30 April 2023, calculated per the Schedule; halved if registered after 31 December 2022.
• Change of control fee: Payable where a registered person merges, ceases, or where a shareholder controller's interest reaches or exceeds 20 percent, 33 percent or 50 percent thresholds; pro rated and subject to an additional £1,090 for firms under heightened supervision.
• Alteration fee: A £435 fee applies for changes of name, licence condition amendments, or removal of a licence class (not payable alongside a change of control fee).
• Late payment and late filing fees: Late payment incurs a 5 percent monthly fee on unpaid amounts; late submission of investment employee data incurs a £200 administration fee; late filing of any required document incurs £100 per month or part month outstanding.

Registered persons should expect invoicing via myJFSC and must supply investment employee data where required to allow an invoice to be generated. Firms experiencing payment difficulties are advised to contact their supervisor before the due date.

Key obligations

• Registered persons must pay the application fee set out in the Schedule when applying for registration to carry on investment business.
• Registered persons must pay the annual fee for the period 1 May 2022 to 30 April 2023 as calculated under the Schedule.
• Firms must supply investment employee data needed to calculate their annual fee by 15 June 2022.
• Payment of the annual fee is due 30 days from the invoice date (for firms already registered on 1 May 2022) or on the date an application is granted (for new registrants).
• Registered persons must pay a change of control fee when applying to become, cease being, or merge with another registered person, or when a shareholder controller's interest crosses 20 percent, 33 percent or 50 percent thresholds.
• Registered persons must pay a £435 alteration fee when applying for a change of name, licence condition change, or removal of a licence class (unless a change of control fee is also payable).
• Registered persons must pay a late filing fee of £100 per month or part month for any document not filed or delivered by its due date, unless prior written agreement for late filing has been obtained.
• Firms failing to pay the annual fee by the due date must pay an additional late payment fee of 5 percent of the unpaid amount, applied monthly.
• Firms failing to supply required investment employee data by the due date must pay a £200 administration fee, applied monthly while outstanding.

Applies to

registered persons carrying on investment business, investment business firms (Class A, B, C, D or E)

Deadlines

• 1 May 2022: Revised investment business fees become effective.
• 15 June 2022: Due date for firms to provide investment employee data needed to generate an annual fee invoice.
• 30 days from the invoice date: Due date for payment of the annual fee for firms already registered on 1 May 2022.
• 1 May 2022 to 30 April 2023: Period for which the fees notice and schedule are effective.
• 31 December 2022: Cut-off date after which the annual fee payable on registration is halved.