Feedback on proposals to change insurance business fees (Consultation Paper No. 6 2020) (2020-10)

Summary

This is JFSC's feedback paper on Consultation Paper No. 6 2020, which proposed changes to fees under the Insurance Business (Jersey) Law 1996. No responses were received to the consultation, so the JFSC proceeded to implement the fee changes exactly as proposed, effective 1 October 2020. The revised Insurance Business Fees Notice is set out in Appendix A and governs application fees, annual fees, registration change fees, transfer fees, and late payment/late filing fees for permit holders.

• Application fees: New fee amounts (set out in Schedule 1) apply to applications for Category A and Category B insurance business permits, varying by whether long-term business is included and whether the applicant is a cell company or cell.
• Annual fees: New annual fee amounts (Schedule 2) apply to permit holders based on permit category and business type, payable each year on 1 October with a due date of 31 October.
• Registration change fee: A fee of £2,100 applies when a limited company or limited liability partnership converts to a cell company/cell structure; a fee of £1,990 applies on conversion back to a limited company or LLP.
• Transfer of insurance business fee: A £7,840 fee applies to a permit holder undertaking a transfer of insurance business, payable at the earlier of the court sanction hearing or submission of draft transfer documentation.
• Late payment fee: A 5% surcharge on unpaid annual fee principal applies the day after the due date and again on the first day of each subsequent month.
• Late filing fee: A £100 fee per complete month or part thereof applies for failing to file or deliver required documents on time, unless the JFSC has agreed in writing to a later filing date.

Affected firms will be notified of invoices through the myJFSC portal rather than by separate paper notice.

Key obligations

• Permit holders must pay the annual fee (per Schedule 2) which becomes payable on 1 October each year, with a due date of 31 October the same year.
• If the annual fee is not paid by the due date, the permit holder becomes liable for an additional 5% late payment fee on the unpaid principal, reapplied on the first day of each subsequent month of non-payment.
• A permit holder must pay a £100 late filing fee for each complete month or part thereof that a required document remains unfiled or undelivered, unless the JFSC has agreed in writing to a later filing date.
• An applicant for a permit to carry on insurance business must pay the application fee set out in Schedule 1 when applying.
• A permit holder undertaking a transfer of insurance business must pay a £7,840 fee, due at the earlier of the court sanction hearing or submission of draft transfer documentation to the JFSC.
• An insurance company or partnership changing registration to or from a cell company/cell structure must pay the applicable registration change fee (£2,100 or £1,990).

Applies to

insurance permit holders, insurance companies, cell companies and cells carrying on insurance business, limited liability partnerships carrying on insurance business, applicants for insurance business permits

Deadlines

• 1 October 2020: 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.