The Commission has historically consulted annually with industry on proposals for increasing the fees which it charges licensees. Those fees represent the Commission’s principal method of funding its operational costs including any capital expenditure.
However, after careful consideration, the Commission has decided not to seek any increase in the current level of its fees for the next two years. This is possible because recent changes to the accounting treatment of the Commission’s former pension liabilities together with past operational surpluses have ensured that the Commission does not currently need to set fees with a view to accumulating reserves to cope with contingencies.
Commenting on this decision, the Commission’s Chairman, Cees Schrauwers, said:
"For the past five years the Commission has returned operational surpluses whilst regulating thoughtfully with integrity and proportionality. At the same time, we have limited our fee increases and controlled our costs effectively."
Drs Schrauwers continued:
"We aim to maintain a balanced budget on a long-term basis but we think that our finances are robust enough at present to allow us to freeze fees at current rates for 2019 and 2020 and thus share with industry the benefit of our recently improved balance sheet position."
In light of the Commission’s decision, no formal consultation paper will be issued this year.
Vice-President of the Policy & Resources Committee, Deputy Lyndon Trott said:
"In July, the Policy & Resources Committee asked the Commission to consider how it might appropriately use its robust levels of reserves for the benefit of the jurisdiction. It is important to have good regulation delivered efficiently and I welcome the Commission’s decision to use some of its reserves to keep costs down for industry. By putting in place a stable fee agreement for the remainder of the term for this States, the financial services sector will see regulatory fees fall in real terms over the next two years".