JFSC Consultation Paper No. 6 2019: Banking Business (Jersey) Law 1991 - Deposit-taking fees

Summary

This is a JFSC consultation paper proposing a 21% increase in the fees payable by deposit-taking businesses under the Banking Business (Jersey) Law 1991. It sets out the rationale for the increase and includes a draft Deposit-Taking Business Fees Notice (Appendix B) showing how the new fees, late payment charges and late filing charges would work if adopted.

• Who is affected: Any person applying for, or already holding, registration to carry on deposit-taking business under Article 9 of the Banking Business (Jersey) Law 1991 (i.e. banks).
• Proposed increase: Fee rates would rise by 21% (rounded to the nearest £50), comprising 2.8% RPI plus 18.2% attributed to sector consolidation, enhanced financial crime supervision, rebuilding JFSC reserves, and data analytics investment.
• Additional question: The JFSC also invites views on a further optional 1.5% increase to fund a dedicated banking policy development resource.
• Resolution authority costs: Not included in this proposal, but a further ~12% increase may be consulted on separately if the JFSC is appointed as the Jersey Resolution Authority (possibly early 2020).
• Draft fee mechanics: Appendix B sets out application and annual fee calculations (including per-country/subsidiary components based on £19,250), pro-rated fees for partial years, 50% discounts for business-continuity-only registrations, and administration via the myJFSC portal.
• Late payment/filing charges: The draft notice proposes a 5% monthly late payment surcharge on unpaid fees and a £100 per month late filing fee for overdue documents.

Responses to the consultation were due by 3 October 2019, and the JFSC indicated the new fees, if adopted, were likely to take effect from 11 October 2019, with firms notified separately when to use the myJFSC portal for invoicing.

Key obligations

• Interested parties must submit written comments on the proposed fee changes to Jersey Finance Limited or the JFSC by 3 October 2019.
• If adopted, registered deposit-taking businesses would be required to pay the annual fee by 31 October each year.
• If adopted, a registered person failing to pay a fee on time would incur a 5% late payment surcharge on the unpaid amount, applied on the day after the due date and on the first of each subsequent month.
• If adopted, a registered person failing to file or deliver a required document on time would incur 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.

Applies to

deposit-taking businesses (banks) registered or applying for registration under Article 9 of the Banking Business (Jersey) Law 1991

Deadlines

• 3 October 2019: Deadline for submitting written comments on the consultation paper to Jersey Finance Limited or the JFSC.
• 11 October 2019: Proposed effective date for the new fee rates under the draft Deposit-Taking Business Fees Notice.
• 31 October (annually): Proposed due date each year for payment of the annual fee by registered deposit-taking businesses, under the draft notice.