Jersey Revises Proposals For Calculating Fees
by Jason Gorringe, Lowtax.net, London
16 June, 2016
Jersey's financial services regulator, the Jersey Financial Services Commission, has revised the proposals in its October 2015 Funding Review Consultation Paper relating to the calculation and levying of fees paid by regulated businesses.
The Commission has decided that it will not proceed with the proposed higher application fee for "complex applications." A "complex application" is one in which the administrative and other costs, fees, and expenses would exceed the standard application fee.
The proposal to use "relevant income" as the basis for calculating the amount of the annual licence fee payable by a regulated business will be implemented. However, fund services businesses, trust company businesses (TCB), and captive insurance companies will continue to be subject to the current fee calculation method.
The existing metrics - rather than "relevant income" - will continue to be used to determine the annual fees payable by Collective Investment Funds, Recognized Auditors, designated non-financial businesses, and professions (being, principally, accountants, estate agents, lawyers, and lenders) and persons utilizing the Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption) (Jersey) Order 2014.
New businesses will be required to submit a projected figure for the relevant fee metric on which its initial annual licence fee will be based (rather than, as was proposed in the Consultation Paper, be given a "holiday" from the annual fee in the first year of trading and, instead, be charged a higher application fee).
For the banking sector, the Commission intends to introduce a differential into the annual licence fee structure to reflect the fact that the supervisory effort required for a locally incorporated bank is greater than that for a locally hosted branch.
The proposal to extend the range of discrete fees will be implemented with the following modifications: the proposal for three pricing points, depending on the complexity of the relevant task, will not be implemented. Each discrete task will instead attract a flat fee.
A differential fee structure for processing a Personal Questionnaire form (PQ) will be introduced with a higher flat fee for processing a "brand new" PQ, and a lower flat fee for processing a PQ where the person involved has an extant "no objection" confirmation from the Commission to act as a principal person or key person.
The fee tariffs under the new arrangements will apply from January 2018.
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