JFSC Feedback on Consultation No.12 2023

Summary

This document is the JFSC's feedback report on Consultation No.12 2023, which proposed a 10.1% increase in Schedule 2 fees payable by persons registered under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008. Following industry feedback and a fall in RPI, the JFSC confirmed it will instead apply a 6% fee increase, effective from 1 January 2024, and published final fee notices (attached as appendices) covering application, annual, amendment and late fees for registered persons.

• Fee increase reduced: The originally proposed 10.1% RPI-linked increase has been reduced to a 6% increase in Schedule 2 fees, effective 1 January 2024.
• Director fees waived for 2024: No annual fee will be charged to natural person Schedule 2 Directors for 2024, reversing the proposed £150 annual fee, given supervision of directors does not commence until 1 October 2024.
• AMLSP employee-based fee removed: The employee-based fee element for Schedule 2 businesses using an Anti-Money Laundering Service Provider (AMLSP) has been dropped, except for accountants and lawyers, whose fee basis is unchanged.
• Term sheet wording removed: References to 'term sheet' in the fee criteria for ICC/PCC Security Issuer Platforms have been removed to avoid ambiguity.
• Payment mechanics confirmed: Annual fees are due four weeks from receipt of invoice; late payment triggers a 5% surcharge on unpaid amounts, applied on the due date and monthly thereafter.
• Data submission requirement: Firms whose fees are calculated from data (rather than a direct invoice) must submit that data to the JFSC by 24 May 2024, or face a £100 monthly administration fee.

The finalised fee notices (Appendices B and C) set out application, annual, amendment and late filing fees for Schedule 2 registered persons, including financial institutions, DNFBPs (accountants, lawyers and other designated non-financial businesses and professions), virtual asset service providers, natural person directors, and ICC/PCC Security Issuer Platforms, distinguishing between direct registrations and those made via an AMLSP.

Key obligations

• Registered persons must pay their annual Schedule 2 fee within four weeks of receipt of an invoice from the JFSC.
• Firms required to have their fee calculated from submitted data must provide that data to the JFSC no later than 24 May 2024.
• Registered persons must pay a late payment fee of 5% of any unpaid fee amount if not paid by the due date, reapplied on the first day of each subsequent month while unpaid.
• Firms that fail to supply required fee-calculation data by 24 May 2024 must pay a £100 administration fee, reapplied monthly until the information is submitted.
• Registered persons must pay an amendment fee (per Schedule 4) when applying to change their registered name or alter/add/remove registration conditions.
• Registered persons that fail to file or deliver any required document under the Supervisory Bodies Law by its due date must pay a £100 late filing fee for each complete month or part-month the document remains outstanding, unless the JFSC has agreed in writing to a later filing date.

Applies to

Registered persons under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, Financial institutions (Schedule 2, Part 2), DNFBPs including firms of accountants and firms of lawyers (Schedule 2, Part 3), Virtual Asset Service Providers (Schedule 2, Part 4), Natural person Schedule 2 Directors, Anti-Money Laundering Service Providers (AMLSPs), ICC/PCC Security Issuer Platforms/Schemes

Deadlines

• 1 January 2024: Revised Schedule 2 fees (6% increase) take effect.
• 24 May 2024: Deadline for firms to provide data needed for the JFSC to calculate their fees; late submission triggers a £100 monthly administration fee.
• four weeks from receipt of an invoice: Due date for payment of annual Schedule 2 fees; late payment triggers a 5% surcharge.
• 1 October 2024: Date supervision of Schedule 2 Directors comes into effect (no annual director fee charged for 2024).