Multi-licenced firms in particular are expected to benefit; as the Commission, in an attempt to better understand businesses and their risk culture, will adopt a more supervisory approach.
This means that the Commission will take a single consolidated supervisory view per firm, rather than per licence, enabling the JFSC to target its resources more effectively, and reduce the administrative overhead for firms.
Changes identified
In addition to the supervisory changes, the JFSC identified a number of areas in which it needs to change the way it operates:
- The need to simplify, speed up and consolidate interactions with the Commission, meaning efficiency gains for industry
- The need for better and more prompt communication with industry, relating to supervision findings, concerns, risk assessments and good practice points
- The ongoing requirement for alignment with international standards
- The ability to obtain, understand and respond to information on emerging risks
- Greater assurance that intelligence and heightened risk situations are raised promptly and consistently
The Commission advised that “we will be making changes on an incremental basis rather than taking a ‘big bang’ approach”.
Trust company business fees
The JFSC also released a consultation document this week proposing an increase of 2.0% in regulatory fees for trust company businesses for 2016.
A change to the way the current fee cap is calculated has also been proposed, so that the cap would apply at the higher of £60,000 ($90,793, €82,630) or three-quarters of the unadjusted fee; rather than £50,000 or two-thirds of the unadjusted fee.
The consultation will close on 29 January 2016.
