Consultation Paper No. 2 2017 - AIF, CIF, FSB, CoBO, QSMA Fees

Summary

This is a JFSC consultation paper proposing to increase fee rates charged under several fund-related regimes for the 2017/18 fee period. It sets out draft fees notices and invites comments from industry before the JFSC finalises the changes.

• Scope of fee increases: Fund Services Business (FSB), Alternative Investment Fund (AIF) and AIF services business, Collective Investment Fund (CIF) and Control of Borrowing (CoBO) fee rates are proposed to rise by 19 percent (including application fees and the fee cap, rounded to the nearest 5 pounds)
• QSMA fees: Qualifying Segregated Managed Accounts (QSMA) fee rates are proposed to rise by 7.5 percent, the first change since they came into force in 2014
• CoBO caveat: The only change proposed to the CoBO fees notice is to the application fee for a non-Jersey Private Fund CoBO consent issued by the FSB/TCB authorisation team; JPF fee rates remain under separate consultation
• Rationale: The JFSC explains it is trying to meet a previously announced target of collecting 5,432,000 pounds from the funds sector for 2017/18, following a shortfall in 2016/17 caused by a decline in the number of asset pools despite rising assets under management
• Alternative charging method: The JFSC re-opens the question of whether an alternative to charging by number of asset pools (e.g. relevant income) should be used, and invites views
• Draft notices: Draft Fees Notices for AIF/AIF services business, CIF, CoBO, FSB and QSMA are attached as appendices, proposed to take effect for the period 1 July 2017 to 30 June 2018

Responses can be sent either to Jersey Finance Limited or directly to the JFSC. Following the consultation, the JFSC intends to publish feedback and the final fees notice in the second quarter of 2017, with firms notified of new invoices via the myJFSC portal.

Key obligations

• Interested parties wishing to comment must submit responses to Jersey Finance Limited or the JFSC by 12 May 2017
• Operators relying on the QSMA exemption must pay the initial charging period fee on the date reliance is first placed on Article 3(1) of the QSMA Order
• Operators relying on the QSMA exemption in subsequent charging periods must pay the fee due by 31 July in that charging period

Applies to

Fund services business (FSB) registrants, Alternative Investment Funds (AIF) and AIF services business registrants (Class ZL managers), Collective Investment Funds (CIF), certificate holders and fund service providers, Persons holding Control of Borrowing (CoBO) consents, Operators relying on the Qualifying Segregated Managed Accounts (QSMA) exemption

Deadlines

• 12 May 2017: Deadline for comments on the consultation paper to be sent to Jersey Finance Limited or the JFSC
• 1 July 2017 to 30 June 2018: Proposed effective period for the draft AIF, AIF services business, CIF and FSB fees notices
• second quarter of 2017: JFSC intends to publish feedback and the final fees notice
• 31 July in a subsequent charging period: Due date for QSMA fee payment in respect of a subsequent charging period