Consultation Paper No. 2 2016: AIF, CIF, COBO and FSB Fees

Summary

This is a consultation paper issued by the Jersey Financial Services Commission proposing a 7% increase in fee tariffs for the 2016/17 fee year across the fund services business, alternative investment fund, collective investment fund, and control of borrowing fee regimes. It also flags operational changes to how fees are collected, and sets out draft fees notices for each regime as appendices.

• Fee increase: A 7% increase is proposed to regulatory fee tariffs for AIFs, AIFMs, certified fund certificate holders, recognized fund permit holders, CoBO funds and registered persons (fund services business).
• Effective date: If adopted, the new fee tariffs would take effect from 1 July 2016, covering the 2016/17 fee period.
• Operational changes: The Commission will introduce a new web portal for data submission and fee collection and will stop accepting cheques, requiring payment by bank transfer.
• Draft fee notices: Draft Fees Notices are attached as appendices covering AIF/AIF Services Business fees, Collective Investment Funds fees, Control of Borrowing Order fund fees, and Fund Services Business fees, including annual fee schedules, late payment fees (5% per month unpaid) and late filing fees (£100 per month).
• Financial rationale: The Commission cites recent operating deficits and a need to rebuild reserves toward an £8.4m target by 2019 as the basis for the proposed increases.

The Commission invites written feedback on the proposals, and indicates that fee structure (rather than quantum) changes previously consulted on separately may commence from 1 January 2018, subject to further consultation.

Key obligations

• Respondents wishing to comment on the proposed fee increases must submit responses to Jersey Finance Limited or directly to the Commission by 20 May 2016.
• If adopted, registered persons, AIFs, AIFMs, certificate holders and permit holders would pay the increased fee tariffs from 1 July 2016.
• Under the draft Fund Services Business Fees Notice, a registered person who fails to pay a fee by its due date would be liable for an additional late payment fee of 5% of the unpaid amount for each complete month it remains unpaid.
• Under the draft Fund Services Business Fees Notice, a registered person who fails to file or deliver a required document by its due date would be liable for a late filing fee of £100 for each complete month or part month the document remains outstanding.
• Under the draft notice, the annual fee for a registered person is due on 31 July each year based on pools of assets held as at 1 July.
• Registered persons will need to pay fees via bank transfer using the Commission's HSBC account details once cheques are no longer accepted.

Applies to

fund services business registered persons, Alternative Investment Funds (AIFs), Alternative Investment Fund Managers (AIFMs), certified fund certificate holders, recognized fund permit holders, Control of Borrowing (CoBO) consent holders/funds

Deadlines

• 20 May 2016: Deadline for interested parties to submit written comments on the consultation paper to Jersey Finance Limited or the Commission.
• 1 July 2016: Proposed effective date for the increased fee tariffs across AIF, CIF, CoBO and FSB fee regimes.
• 31 July (annually): Under the draft Fund Services Business Fees Notice, the annual fee based on pools of assets as at 1 July is due.
• 1 month after date of registration certificate: Under the draft Fund Services Business Fees Notice, the initial registration fee is due one month after the date of the registration certificate.
• each complete month unpaid: Late payment fee of 5% of the unpaid amount accrues for each complete month a fee remains unpaid past its due date.
• each complete month or part month unfiled: Late filing fee of £100 accrues for each complete month or part month a required document remains unfiled or undelivered.
• 1 January 2018 (indicative): Possible commencement date for separate changes to the way fees are charged and collected, subject to further consultation.