JFSC TCB Fees 15.4% increase explained [To note:- the 20% FINE discount is still to be added]
In November 2022, the JFSC asked Industry for feedback on proposed changes to our fees for the Trust Company Business (TCB),
The JFSC received several responses, including a consolidated response from the Jersey Association of Trust Companies.
In light of the feedback received, the JFSC is now proceeding with the 15.4% increase in fee rates which takes effect from 1 January 2023.
- The JFSC state the 15.4% increase doesn't take into account the civil financial penalty discount of approximately 20%,
- The 20% will reduce invoiced fees for Trust Companies
Relevant businesses will receive notification via myJFSC that an invoice is ready for them.
THE CONSULTATION FEEDBACK FOLLOWS:-
- One respondent felt the fee increase was not representative of the engagement experience with the JFSC to date. The respondent felt there was not enough engagement between the JFSC and the class G community.
- There has been, and continues to be, increased engagement across all Industries, specifically in relation to consultations; however, the JFSC acknowledges the request for an increase in Industry with regard to the setting or amendment to fees.
- A few respondents were concerned with staff resources available and whether staffing challenges were the root cause for the increase in fees.
- As acknowledged across Jersey, staff resources are a challenge for everyone.
- While the JFSC endeavour to mitigate the increase in our staff costs, the need to remain competitive on staff remuneration while ensuring appropriate levels of staff are deployed against the increasing regulatory remit is a core driver of the increase in costs and, therefore, fees.
- The increase in the regulatory remit is the key driver for the rise in staff levels which are projected by the end of 2023 to have doubled in numbers from 2017 when the JFSC was 133 staff; this will place us at a comparable level to our peers.
- Two respondents raised concerns about the size of the proposed increase and whether it was proportionate for the increase to be as much as proposed.
- While an increase of 5% above RPI has been consulted on, the increase as a whole was assessed against the cost base and key changes in this.
- Given our expanded remit within the TCB sector and the above points, the overall increase was assessed as appropriate.
- One respondent queried whether the increase in fees was to facilitate the supervision of emerging sectors and, if so, whether this burden should be the responsibility of the Government.
- The JFSC can confirm that fees are not utilised to fund emerging sectors, and where appropriate, discussions are held with Government on funding.
- Two respondents queried whether the 15.4% was to be reduced by c20% due to the imposition of two civil financial penalties in the TCB sector.
- In answer to this, yes, Fees following the 15.4% increase will be reduced by c20%.
- This will mean fees are likely to be approximately 4% below the prior year's levels; exact levels will be confirmed on the invoices.
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