JER JFSC is aligning fee billing periods of applicants, registered persons and recognized funds (together fee payers) with annual budget that runs Jan. 1 to Dec. 31 each year.
This follows a request from industry and other stakeholders for more transparency and clearer demonstration of the links between JER JFSC's fee income and its spending.
Comments are welcome on whether approach taken in consultation responds to this.
Proposals
As a result of the alignment in billing period, JER JFSC is now consulting on the fees to be applied to all fee payers in Jersey for the period Jan. 1 to Dec. 31, 2025.
In 2024, except for banks, it set fee rates and invoiced relevant fee payers for the period until Dec. 31, 2024, consultation feedback paper noted that it had received no objections to proceeding with the alignment of fee and budget periods in this way.
JER JFSC also consults on its proposed registry fees which will impact some fee payers and members of the public who use, or may wish to use, registry services.
In 2024 JER JFSC commissioned a review of the international competitiveness of its fee structure and rates, will examine ways to improve how it sets fees, structure in 2025.
Proposed Fees for 2025
Consultation focuses on arrangements for 2025, sets out main budget components and proposed impact of fees levels, feedback received will inform the fees set for 2025.
For 2025 currently forecasts an increase in overall budgeted expenditure of 2.9% compared to 2024 budget, compares to most recent Jersey retail prices index of 5%.
JER JFSC 2025 projections show an increase in costs as a result of: maintaining appropriate salary provision, adequate resourcing levels and investment in skills.
Maintaining its regulatory framework in line with domestic and international regulatory requirements; investment in systems and technology to improve efficiency and service.
Increases in 2025 partially offset by reductions in project costs, in use of contractors and improvement in HR operating costs e.g. lower agency spend for recruitment.
However, needs to accumulate a financial reserve to smooth out impact on fees of future investment, such as costs associated with a planned move to a new building.
Proposes to accumulate reserve gradually, taking this into account proposes increase in fees of 2% in 2025 to cover annual operational funding requirement, build reserves.
Effectiveness
The closing date for the submission of responses to the consultation is Nov. 15, 2024.
Feedback consultation and final fee notices will be published in Dec. 2024.
In light of feedback received, JER JFSC will implement fees as consulted on, to be effective either from Jan. 1, 2025, or the dates otherwise advised on the fee notices.
