Consultation Paper No. 4 2019: Proposals to change fund fee rates

Summary

This is a JFSC consultation paper proposing a 7% increase to fee rates charged under the fund-related regulatory regimes, made up of 3.6% RPI-linked inflation plus a further 3.4% to fund financial crime supervision, reserve rebuilding and data analytics work. It also proposes new fees for amending certain existing CoBO consents and sets out draft fees notices for the fee cycle running 1 July 2019 to 30 June 2020. As a consultation, none of the proposed rates are yet binding; the JFSC is seeking industry feedback before finalising them.

• Scope of proposal: A 7% increase to Fund Services Business (FSB), Alternative Investment Fund (AIF) and AIF Services Business, Collective Investment Fund (CIF), Control of Borrowing (CoBO) and Qualifying Segregated Managed Account (QSMA) fee rates.
• New fees: Introduction of new fees for amending existing CoBO consents issued for NDS (non-fund) and Jersey Unit Trust (non-fund) structures, with a wider CoBO fee consultation to follow within 12 months.
• Jersey Private Fund (JPF): JPF annual fee proposed to rise by only 3.6% (inflationary), consistent with a prior commitment, though the JFSC invites views on a larger increase (e.g. to £2,000) that would allow other fee rates to rise by less than 7%.
• Additional option: The JFSC also invites comment on a further optional 1.5% across-the-board increase to fund an additional funds policy development resource.
• Draft notices: Draft AIF/AIFSB, CIF, CoBO, FSB and QSMA fees notices are annexed, showing proposed rate tables and a commencement/effective period of 1 July 2019 to 30 June 2020.

Because this is a consultation rather than a final rule, the only immediate obligation is to respond by the stated deadline; the substantive fee changes would only take legal effect once finalised and published as fees notices.

Key obligations

• Interested parties wishing to comment must submit responses in writing to Jersey Finance Limited or directly to the JFSC no later than 14 June 2019.
• Under the draft fees notices, once finalised, late payment of any fee by its due date would trigger an additional 5% late payment charge on the unpaid amount, repeating on the first day of each subsequent calendar month.

Applies to

fund services business licensees, Alternative Investment Funds (AIFs) and AIF Services Businesses, Collective Investment Funds (CIFs), Jersey Private Funds (JPFs), persons holding or applying for CoBO consents (including NDS and Jersey Unit Trust non-fund structures), Qualifying Segregated Managed Account (QSMA) operators

Deadlines

• 14 June 2019: Deadline for interested parties to submit written comments on the consultation paper to Jersey Finance Limited or the JFSC.
• 1 July 2019 to 30 June 2020: Proposed effective period for the revised AIF, AIFSB, CIF, CoBO and FSB fees set out in the draft fees notices.
• 31 July (in a subsequent charging period): Proposed due date for QSMA fees payable in respect of a subsequent charging period.