2022 Fees Consultation

Closes 8 Sep 2021

Opened 16 Jul 2021

Overview

INTRODUCTION

 

Purpose of the Consultation Paper

Fees consultation

The aim of this consultation is to detail the Commission’s fee rate proposals for 2022 and to solicit feedback and comments from industry.  The consultation will be open for an 7-week period.  After this and following appropriate consideration of the consultation responses, new fees will come into force on the 1st January 2022.

The Commission issues this consultation document in accordance with Section 8(2)(b) of the Financial Services Commission (Bailiwick of Guernsey) Law, 1987, as amended, under which the Commission; “may, in connection with the carrying out of its general functions …. consult and seek the advice of such persons or bodies as it considers appropriate.”  The powers to set fees are detailed within the laws laid out on the first page of this consultation paper.  For some of these, we are consulting in advance of their proposed commencement on the 1st November 2021.

This consultation will affect all licensees, collective investment schemes, registered businesses, registered individuals and applications for licences or registration, in accordance with the applicable laws and regulations.

Approach to Fees

The Commission’s approach to setting fees is based upon the principle that, as far as reasonably practicable, they should be fair, proportionate and broadly aligned with the costs of regulation.  With respect to the firms we supervise, this is reflected by our use of bandings for charging fees so that, for most sectors, the larger firms or licensees pay a higher fee, reflecting the additional resources the Commission focuses on them.  For authorisations, this principle is reflected by the fact that individuals, firms and licensees which are requesting a service such as a new licence or a discretionary exemption, pay for it.  The overriding principle is that the ‘user pays’.  This approach reduces cross-subsidisation between firm types, activity levels and sectors.

Taking into account the Commission’s current and forecast financial position, changes to the regulatory laws being implemented on the 1st November 2021 and feedback from industry, the Commission is consulting on four main changes to its fees. These are:

  • an overall fee increase for all sectors;
  • a restructuring of fees for the investment sector;
  • changes arising from the update to most of the sectors’ laws following the Revision of Laws project; and
  • creating a cap for pension scheme fees.

Whilst some of these proposals will impact all sectors, others are only relevant to a single sector and therefore, in line with our normal consultation process, specific questions have been asked regarding each individual proposal as set out below.

There are also several areas where the Commission has been prompted to consider whether an amendment to its fees should be considered to address anomalies or to ensure fairness between firms and sectors.  Whilst insufficient evidence has been identified to justify any such change at this time, we note these areas in the final section of this consultation paper in order to provide industry an opportunity to give their views on these areas in advance of any future consultations.

Revision of Laws Implementation Project

In light of the planned changes to the laws and rules under which the Commission operates, the Commission’s fees regulations have also been reviewed and will be amended to ensure that all references to legislation, the laws, regulations, and rules, continue to be effective when the new laws are brought into force on the 1st November 2021.  In line with the previous “Revision of Laws Implementation Project Consultation Papers”, issued earlier this year, those amendments make no fundamental changes to the meaning of the regulations and they do not change the way in which they operate.  Those amendments are made to ensure that users can refer to the correct enabling laws and the correct underlying regulations and rules.

All proposed fees are detailed within Appendix 1 of the Fees Consultation Paper. 

For reference, the Fees Consultation Paper can be found in the Legislation & Guidance section, under the Consultations tab, of each Industry Sector on the Commission's website. 

 

Responses to this Consultation Paper are sought by the 8th September 2021.

 

This consultation document has been shared with;

  • States of Guernsey Policy and Resources Committee
  • States of Guernsey Committee for Economic Development
  • States of Alderney Policy and Finance Committee
  • Chief Pleas of Sark Policy and Performance Committee
  • Guernsey International Business Association
  • Association of Guernsey Banks
  • Guernsey Investment and Funds Association
  • Guernsey International Insurance Association
  • Guernsey Association of Trustees
  • Guernsey Association of Pension Providers
  • Institute of Directors
  • NED Forum
  • Commercial Bar Association
  • Guernsey Society of Chartered and Certified Accountants
  • Guernsey Association of Compliance Officers
  • Guernsey Bar Council

Give us your views

Audiences

  • Financial Advisor
  • Financial Services Business
  • Lending, Credit & Finance Business
  • NRFSB
  • Prescribed Business
  • Lenders
  • Banks