Government of Jersey

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (01/08/2008) regarding: Draft Companies (Annual Returns - Additional Charge (Jersey) Regulations 200-.

Decision Reference: MD-E-2008-0154
Decision Summary Title :	Draft Companies (Annual Returns – Additional Charge (Jersey) Regulations 200-		Date of Decision Summary:	30 July 2008
Decision Summary Author:	James Mews Finance Industry Development		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Draft Companies (Annual Returns – Additional Charge (Jersey) Regulations 200-		Date of Written Report:	30 July 2008
Written Report Author:	James Mews Finance Industry Development		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Approval of the Draft Companies (Annual Returns – Additional Charge (Jersey) Regulations 200- (“the Regulations”) for lodging.
Decision(s): The Minister approved the draft Regulations, the attached report and for the documents to be lodged au Greffe by 4 August 2008 so as to be debated by the States on 16 September 2008.
Reason(s) for Decision: The Regulations are required as a result of a change in the law in order to maintain existing income to the Treasurer of States from the Jersey Financial Services Commission. These Regulations specify the amount (£115) of the annual return fee that is to be paid by a company, collected by the Jersey Financial Services Commission and remitted to the Treasurer of the States.
Resource Implications: It is not intended that there be any financial cost for the States. However because the method of collection is based on an estimation of the number of companies in existence in 2009 provided by the Financial Services Commission, the amount remitted will vary depending on the actual number of companies and may be positive or negative. It is intended that this will be reviewed in 2009 once more knowledge about the impact of the 0/10 regime is known and the fees reviewed in consultation with industry. There are no manpower implications for the States.
Action required: To approve the Regulations and the attached report and for the documents to be lodged au Greffe so as to be debated by the States on 16 September 2008.
Signature: Senator P.F.C.Ozouf		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Draft Companies (Annual Returns - Additional Charge (Jersey) Regulations 200-.

DRAFT COMPANIES (ANNUAL RETURNS – ADDITIONAL CHARGE (JERSEY) REGULATIONS 200- (“THE REGULATIONS”)

1 THE ISSUE AND RECOMMENDATION

The Financial Services Commission (“the Commission”) currently pays a contribution arising from fees levied on corporate vehicles such as annual return fees to the Treasurer of the States on an annual basis. This process and the legal framework has now been revised as part of the amendments being made in response to the IMF’s recommendations following their visit in 2002 and in preparation for the second IMF visit to Jersey later this year. The final piece of the implementing legislation is for the States to set a fee on company annual returns in these proposed Regulations.

As the Treasury Minister has indicated his support for the fee set out in the Regulations, it is recommended that the Minister for Economic Development (“the Minister”) should approve the Regulations and the report, sign the Decision Summary and that the Finance Industry Development Executive take the necessary steps to lodge the documents au Greffe to be debated on 16 September 2008.

BACKGROUND

The Financial Services Commission (Jersey) Law 1998 previously provided for the Commission to pay an annual amount set by the Committee to the Treasury of the States of Jersey .
However, international standards demanded that there should be clear independence between regulatory bodies and government: in the case of Jersey, between the Commission and the States of Jersey. This principal was set out in the Edwards’ report and was repeated in the most recent IMF recommendations arising out of that body’s visit to the Commission in 2002.

The fees levied under laws administered by the Companies Registry include the Companies (Jersey) Law (“the Companies Law”). The fees under this law were previously fixed in an Order signed by the Minister for Economic Development. International bodies regarded this arrangement as compromising the independence of the Commission. Further, the previous arrangement in relation to companies fees, whereby the Committee set fees, the Companies Registry levied and collected fees, and the Commission then paid a contribution to the States from these proceeds, lacked transparency.

Accordingly the power to set fees levied under the Companies Law was transferred to the Commission with the idea being that fees levied under the Companies Law would directly (and transparently) fund the costs of administering the Registry. At the same time, the States were given the power to levy a fee set by Regulation to replace the Commission’s annual financial contribution.

THE PROPOSED REGULATIONS

The proposed Regulations would set a fee of £115, to be paid to the States of Jersey in 2009, in respect of each company that files an annual return. The figure was reached as set out below.
The Commission calculated the costs of collecting and administering annual returns in the Registry and divided this figure by the estimated number of companies to reach the amount of £35 per annual return per company.
The Treasury Minister, having consulted with Jersey Finance on the prospect of increasing the fees, decided that it was appropriate to maintain the status quo for 2009 so that the overall fee for filing an annual return of £150 in 2008 is not increased.
Accordingly the figure of £115 was reached. However, the States are due to receive £4.1 million from the Commission in 2008 paid in four instalments over the year. Based on the estimate supplied by the Commission that the number of companies paying annual return fees would be in the region of 33,000 at 1 January 2009, such a fee would produce approximately £300,000 less than the amount that the States are due to receive in 2008. In order for the total estimated payment to be received by the States in 2009 to remain level the Commission has agreed to pay an extra £300,000 to the States in December 2008.
The Treasury Minster has agreed to these figures and undertakes to review the figures in consultation with the Commission and industry over the course of 2009 with a view to considering the appropriate level of fees once the financial move to zero/ten has taken place.

SUMMARY

In summary, it is envisaged that the new Regulations will maintain a level playing field in terms of the monies receivable by the States in 2009 from income raised by the Companies Registry. .

RECOMMENDATION

5.1 It is recommended that the Minister for Economic Development approve the Law and the report attached to it and that the Finance Industry Development Executive take the necessary steps to lodge the documents au Greffe to be debated on 16 September 2008.

JAMES MEWS

Finance Industry Development Executive

01 August 2008