Industry update

Fees reform update

Background 

At the JFSC we support our activities through fees charged to regulated financial services businesses, individuals, and Registry users. These fees are set by us in line with provisions in legislation and any changes to fees are subject to consultation with industry stakeholders and Registry users. The fees charged in Jersey differ to those in other jurisdictions due to differences in size and responsibilities, the make up of industry, legislative requirements and, in some cases, the level of government support.  

In February 2024 we appointed KPMG to provide independent review and advice on the JFSC funding model and structure, focused on four specific areas: 

  • jurisdictional comparison  
  • elasticity of fee levels 
  • sector views on the current fee structures 
  • market trends, including expectations of future consolidation/growth/decline. 

While their report was written and intended only for internal JFSC consideration, KPMG has consented to the executive summary of the report being published. The executive summary has been published on the JFSC website at the same time as this response and can be accessed here: Executive summary: Targeted review of the JFSC’s funding and fee model.

This document has been prepared by KPMG and includes a covering note linking to the report. This link will not work in browser view. To access the report, please download the PDF and open it from your desktop. 

We are grateful to KPMG for their report and to all stakeholders who engaged in its creation.  

The report concludes that, in the round, Jersey is not the most expensive jurisdiction, although fees vary by sector, ranging from mid-range to expensive when compared with international competitors. Moreover, the level of our fees is one element in commercial decision-making and was not observed to directly impact decisions around where to locate or how to structure business. The report also highlights that the JFSC’s fee model is not as transparent as some other jurisdictions’ models and could be reformed to create appropriate incentives across sectors. Stakeholders also raised concerns that service levels, including response times, did not appear to have improved in line with fee increases in recent years.  

Next steps 

We are committed to reform of our fees and funding model with specific resource now in place and dedicated to delivering this. The findings provided in KPMG’s report will help inform our work, focusing on the key themes of enhancing transparency and simplifying our funding regime: 

  • Transparency: We will provide greater transparency on the work of the JFSC – and how it is funded – through our fees consultations, the business plan, annual report and wider outreach. We aim to promote a better understanding among fee payers about where our funding comes from and what it pays for. 
  • Simplification: We will improve the consistency of our approach across sectors, examine ways to simplify the regime to lower the administrative costs associated with fee collection, and integrate KPMG’s findings on international competitiveness into our fee structures.   

This project will move forward in line with our wider work to improve the quality of our service provision to financial services businesses and Registry users. This includes supporting further digitisation of user experiences, delivering internal efficiencies to achieve future savings, and to refine the information we provide to stakeholders about the financial services industry in Jersey. 

The reforms to our budgeting process have already started with fees for all sectors aligned to the calendar year and increased transparency provided on our activities and budgeting process. We will engage with trade bodies and stakeholders throughout 2025 and will publish regular updates, including formal consultation documents where relevant.