The Commission has confirmed that it will increase fees in 2015 for all sectors by an average of 1.33%.
It will also continue with the implementation of the second year of a two-year approach to address certain anomalies in its fee structure which is aimed at providing some rebalancing where the cost of supervision of certain firms in the banking, insurance and fiduciary sectors, has moved materially out of line with their associated fees.
The blended rate of increase including all anomalies is just under 2%.
However, in response to the views it received following publication of its consultation paper, the Commission has decided to reduce the planned increases for fiduciary licences as follows: -
- Fiduciary personal licence application – 2014 fee £880; initial proposed fee £1,760; revised new fee £970.
- Fiduciary full licence application – 2014 fee £1,986; initial proposed fee £6,030; revised new fee £2,205.
While the underpinning rationale for the increases remains valid, the Commission believes its original proposals for increases in fiduciary licence fees would be more appropriately phased in over several years.
In addition, in order to more adequately reflect the costs associated with the registration and ongoing supervision of Non-Regulated Financial Services Businesses (NRFSBs) for the purposes of anti-money laundering and counter terrorist financing, the NRFSB application fee will be increased to £3,675.
At the same time the Commission is dropping the staged fee of up to £5,000, which was introduced at the beginning of this year, for progressing new, innovative and complex NRFSB applications.
What that means in practice is that new and innovative NRFSB proposals will be progressed by the Commission, in consultation with the applicant, at no charge right up to the point where a formal application is made when the fee will be charged. In the Commission’s experience, the cost of getting to that point significantly exceeds the planned fee however, by taking this approach and also given the Commission’s ongoing discussions with the States of Guernsey about reviewing the NRFSB legislative framework, the Commission is sending out an important message that it welcomes innovative businesses.