JFSC Fees reform update including KPMG feedback report

In February 2024, the JFSC 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 and can be accessed here: 

• Executive summary: Targeted review of the JFSC’s funding and fee model.
• https://www.jerseyfsc.org/media/7963/kpmg-independent-review-jfsc-funding-model-and-fees.pdf
  This document has been prepared by KPMG and includes a covering note linking to the report.  . 

The JFSC says 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.
• 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 

THE JFSC SAYS

1. The findings provided in KPMG’s report will help inform the JFSC work, focusing on the key themes of enhancing transparency and simplifying the JFSC funding regime: 
1. Transparency: The JFSC will provide greater transparency on the work of the JFSC – and how it is funded – through the JFSC fees consultations, the business plan, annual report and wider outreach. The JFSC aim to promote a better understanding among fee payers about where the JFSC funding comes from and what it pays for. 
2. Simplification: The JFSC will improve the consistency of the JFSC 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 the JFSC fee structures.   
2. This project will move forward in line with the JFSC wider work to improve the quality of the JFSC 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 the JFSC provide to stakeholders about the financial services industry in Jersey. 
3. The reforms to the JFSC budgeting process have already started with fees for all sectors aligned to the calendar year and increased transparency provided on the JFSC activities and budgeting process. The JFSC will engage with trade bodies and stakeholders throughout 2025 and will publish regular updates, including formal consultation documents where relevant.  

Source

 Fees reform update — Jersey Financial Services Commission = https://www.jerseyfsc.org/news-and-events/fees-reform-update/