Fees paid under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008
Friday 22 September 15:02
Shortly the JFSC will be issuing its consultation paper to set fee rates for registered persons under the above statute for the 2018 calendar year.
Last year the JFSC noted that these fee rates had been unchanged since 2011, and implemented an increase in fee rates for 2017 to bring them back to their 2011 level in real terms (i.e. an increase just in line with the rate of inflation).
In addition to the fees collected directly from industry, the Government of Jersey currently pays the JFSC a sum of £249k as a contribution towards the regulation of this sector1.
In the JFSC’s funding review consultation2, it was asked whether it was appropriate for the Government payment to continue given that no other firms have their regulatory costs subsidised in this way. Of 14 responses, 13 were in favour of the payment ending. In the feedback statement3, the JFSC said:
The Commission proposes to discuss the matter with the Government. If, as seems likely, the Government agrees that its funding should be withdrawn, the Commission will recommend that a phased withdrawal be implemented in order to spread the financial impact on DNFBPs over a period of several years.
Having undertaken those discussions, the Government has told us that it is of the provisional opinion of proceeding to withdraw its funding, however this will be phased over three years on a straightline basis – that is, only 66% of the current Government payment (£166k) will be made to the JFSC in 2018, 33% (£83k) in 2019, and nothing from 2020 onwards.