Consultation No. 5 2022: Fund Fees

Summary

This is a JFSC consultation paper (Consultation No. 5 2022) proposing an increase to fees charged across the Jersey funds sector, together with a new fee for change-of-control transactions involving registered fund services businesses. It is a draft for comment, not a final rule; draft fee notices are attached as appendices showing how the proposed fees would work if adopted.

• Headline fee increase: Proposes raising fee rates by 5% above RPI (RPI recorded at 6% in March 2022), applying to all fund sectors: Fund Services Business (FSB), Alternative Investment Funds/AIF Services Business, Collective Investment Funds (CIF), Jersey Private Funds (JPF), Control of Borrowing Order (CoBO) fees, and Qualifying Segregated Managed Accounts (QSMA).
• New change-of-control fee: Proposes introducing, for the first time, a fee for transactions where an FSB applies to acquire a Registered Person, set at the same level as an application to carry on fund services business, plus a 1,000 pound premium for Registered Persons subject to heightened supervision or enforcement.
• Draft fee notices: Appendices B to F contain draft Notices of Fees for AIF/AIFSB, CIF, CoBO, FSB and QSMA, each stated to take effect from 1 July 2022 to 30 June 2023 if the proposals proceed, including application fees, annual fees, and late payment surcharges (5% of unpaid principal for late payment).
• Consultation questions: Respondents are specifically asked whether they agree with the proposed 5.0% above RPI fee increase and with the proposed change of control fee.

The JFSC states it will publish feedback and finalise the fee notices in June, after which fees will be administered via myJFSC, with businesses receiving email prompts when an invoice is due.

Key obligations

• Interested parties wishing to comment must submit responses to Jersey Finance Limited or directly to the JFSC no later than 24 June 2022
• If the draft notices are adopted as proposed, permit holders and fee payers would need to pay application, annual and other fees by the due dates set out in each draft notice (e.g. annual CIF fee due 31 July each year; QSMA subsequent charging period fee due 31 July)
• Late payment of any fee due under the draft notices would trigger an additional 5% late payment fee on the day after the due date and on the first day of each subsequent calendar month

Applies to

Fund Services Business (FSB) registrants, Alternative Investment Fund (AIF) and AIF Services Business (AIFSB) registrants, Collective Investment Fund (CIF) permit holders and certificate holders, Jersey Private Funds (JPF), Control of Borrowing Order (CoBO) fee payers, Qualifying Segregated Managed Account (QSMA) operators

Deadlines

• 24 June 2022: Deadline for submitting consultation comments to Jersey Finance Limited or the JFSC
• 1 July 2022 to 30 June 2023: Proposed effective period for the draft fee notices in Appendices B to F if adopted