Consultation Paper No. 3 2021: Fund Services Business Fees

Summary

This is a consultation paper in which the JFSC seeks industry feedback on proposed fee changes affecting Jersey funds businesses regulated under multiple laws and orders. It sets out a proposed 2.0% increase to headline fee rates across the funds sector, plus several new or amended fee mechanisms, and includes draft fees notices for each regime as appendices.

• Fee increase: A 2.0% increase to headline fee rates is proposed across all fund sectors (FSB, AIF, CIF, Jersey Private Fund, CoBO and QSMA) for the period 1 July 2021 to 30 June 2022, despite the JFSC's overall funding target remaining broadly flat.
• JPF alignment: The JFSC proposes aligning Jersey Private Fund fee increases with other fund sectors, ending the prior commitment to inflation-only increases for JPF fees in 2019 and 2020.
• Change of control fee: A new fee is proposed for transactions where a Fund Services Business applies to acquire a Registered Person, set at the same level as an application to carry on fund services business, plus a £1,000 premium for entities in heightened supervision or enforcement.
• Alteration fee: A new £400 fee is proposed for Fund Services Business applications to change the registered person's name, add, alter or remove licence conditions, or remove a licence class.
• Revocation deadline: A formal annual deadline of 1 May is proposed for revocations, to give the JFSC more timely data for its fee-setting and revenue projections.
• Draft fees notices: Appendices B to F contain draft Fees Notices for AIF/AIFSB, CIF, CoBO, FSB and QSMA fees reflecting the proposed rates, effective 1 July 2021 to 30 June 2022, including late payment provisions (a 5% surcharge on unpaid amounts).

The paper invites written comments from interested parties, to be sent to Jersey Finance Limited or directly to the JFSC by 21 June 2021. The JFSC intends to publish feedback and finalised fees notices in June 2021, with fees to be administered via the myJFSC portal.

Key obligations

• Interested parties wishing to comment must submit responses to Jersey Finance Limited or the JFSC no later than 21 June 2021
• Under the draft FSB, AIF/AIFSB, CIF, CoBO and QSMA fees notices, affected persons would be required to pay the applicable fees by the due dates specified in each notice once finalised
• Under the proposed alterations fee, a Fund Services Business applying for a name change, or addition, alteration or removal of licence conditions or classes, would be required to pay a £400 fee
• Under the proposed change of control fee, an FSB acquiring a Registered Person would be required to pay an application-level fee, plus a £1,000 premium if in heightened supervision or enforcement
• Under the proposed revocation deadline, revocations would need to be submitted by 1 May each year
• Under the draft notices, any fee not paid by its due date would incur a 5% late payment surcharge on the unpaid amount, repeating monthly

Applies to

Fund Services Business (FSB), Alternative Investment Fund (AIF), Alternative Investment Fund Services Business (AIFSB), Collective Investment Fund (CIF), Jersey Private Fund (JPF), Control of Borrowing Order (CoBO) registrants, Qualifying Segregated Managed Account (QSMA) operators, Registered persons under the Financial Services (Jersey) Law 1998

Deadlines

• 21 June 2021: Deadline for interested parties to submit comments on the consultation paper to Jersey Finance Limited or the JFSC
• 1 July 2021 to 30 June 2022: Proposed commencement period for the draft AIF, AIFSB, CIF, CoBO, FSB and QSMA fees notices
• 1 May (annually, proposed): Proposed new deadline for revocations to give the JFSC timelier data for fee-setting
• 31 July (in subsequent charging periods, per draft QSMA notice): Proposed due date for QSMA fees in respect of a subsequent charging period