Feedback on Consultation No. 5 2022: Fund Fees

Summary

This is the JFSC's feedback paper on Consultation No.5 2022, which proposed a 5.0% above RPI increase to fund-related fees and a new transaction fee for changes of control of registered fund services businesses. It summarises the responses received and sets out the final decisions on fee changes, which take effect through revised Fees Notices annexed as appendices.

• Fee increases confirmed: AIF, CIF, JPF, CoBO and QSMA fee rates will increase by 5.0% above RPI, totalling an 11.0% increase; FSB fee rates will increase by 5.1% above RPI, totalling 11.1%.
• Change of control fee deferred: The proposed new transaction fee for changes of control (acquisitions of a Registered Person) is deferred pending further discussion with the Jersey Funds Association on the future structure of Funds Sector fees; the extra 0.1% added to FSB fees is in lieu of this deferred fee.
• Effective date: The revised fees are effective from 1 July 2022, as reflected in the updated Fees Notices (Appendices B to F).
• Invoicing and payment: Affected firms will be notified via myJFSC during July that an invoice is ready; payment is due within 30 days of the invoice date, and late payment triggers additional fees as detailed in the relevant Fees Notice.

The appendices contain the finalised Fees Notices for AIF/AIFSB, CIF, CoBO, FSB and QSMA, setting out application fees, annual fees, fees on grant of permits/certificates, and late payment surcharges applicable for the period 1 July 2022 to 30 June 2023.

Key obligations

• Registered persons and fund entities must pay the increased AIF, CIF, JPF, CoBO and QSMA fees (11.0% above prior levels) and FSB fees (11.1% above prior levels) as set out in the revised Fees Notices effective from 1 July 2022.
• Firms must pay invoiced fees within 30 days of the invoice date once notified via myJFSC.
• Firms experiencing payment difficulties must contact their supervisor in advance of the due date to avoid late fees.
• Late payment triggers an additional late payment fee of 5% of the unpaid principal, applied the day after the due date and on the first day of each subsequent month, as detailed in the individual Fees Notices.

Applies to

Alternative Investment Funds (AIF), AIF Services Businesses (AIFSB), Collective Investment Funds (CIF), Jersey Private Funds (JPF), Control of Borrowing (CoBO) applicants, Fund Services Businesses (FSB), Qualifying Segregated Managed Account (QSMA) operators, Registered persons carrying on fund services business

Deadlines

• 1 July 2022: Revised fee rates (11.0% increase for AIF, CIF, JPF, CoBO, QSMA; 11.1% for FSB) become effective, per the updated Fees Notices covering 1 July 2022 to 30 June 2023.
• 30 days from the date of the invoice: Due date for payment of fees once an invoice is issued via myJFSC.
• 24 June 2022: Closing date of the consultation period on the proposed fee changes (informational, already passed).