Feedback on Consultation Paper No. 2 2020 - Fund Services Business, AIF, CIF, CoBO and QSMA Fees

Summary

This is the JFSC's feedback paper following Consultation Paper No.2 2020, which proposed changes to annual and application fee rates for several fund-related regimes. It confirms the fee increases that will actually be implemented and includes the final Fees Notices as appendices covering AIF, AIF Services Business, CIF, CoBO, FSB and QSMA fees for the 2020/21 charging period.

• Fee increases confirmed: AIF, CIF, CoBO, FSB and QSMA fee rates will increase by 12.5%, except Jersey Private Fund (JPF) annual fees, which increase by 2.7%.
• Additional levy rejected: The JFSC will not introduce the proposed extra 1.5% fee increase that would have funded a dedicated funds policy development resource.
• Effective period: The revised fees set out in the appended Fees Notices apply for the period 1 July 2020 to 30 June 2021.
• Payment method and timing: As in prior years, 2020 annual fees are collected electronically by bank transfer, with payments accepted only from 1 July 2020 and invoices available via the myJFSC portal from that date.
• QSMA-specific rules: The QSMA Fees Notice sets fees for initial and subsequent charging periods (with a schedule based on number of relevant QSMAs), a 31 July due date for subsequent charging periods, and a relief mechanism for operators also registered for discretionary investment management.
• Late payment: Under the QSMA Notice (and by implication the other fee notices), an unpaid fee attracts a 5% late payment fee on the day after the due date and on the first day of each subsequent calendar month.

The paper also records that respondents (JFA, one funds services business and one banking business via Jersey Finance) did not object to the core fee increases, though some raised concerns about cumulative fee burden and permanence of increases; the JFSC's responses are summarised but create no new obligations beyond the fee changes themselves.

Key obligations

• Pay revised AIF, CIF, CoBO, FSB and QSMA annual/application fees at the increased rates (12.5% increase, or 2.7% for JPF annual fees) for the period 1 July 2020 to 30 June 2021.
• Pay 2020 annual fees electronically by bank transfer; payments are only accepted from 1 July 2020.
• QSMA operators must pay the fee for the initial charging period on the date reliance is first placed on the QSMA exemption, and for subsequent charging periods by 31 July each year.
• Pay a 5% late payment fee on any unpaid QSMA fee amount from the day after the due date, recurring on the first day of each subsequent month until paid.
• Firms experiencing Covid-19-related financial constraints that prevent timely payment of increased fees are encouraged to contact their supervisors promptly.

Applies to

Alternative Investment Funds (AIF), AIF Services Business, Collective Investment Funds (CIF), CoBO-regulated entities, Fund Services Business (FSB), Qualifying Segregated Managed Account (QSMA) operators, Jersey Private Funds (JPF)

Deadlines

• 1 July 2020 - 30 June 2021: Period for which the revised AIF, CIF, CoBO, FSB and QSMA fees set out in the Fees Notices are effective.
• 1 July 2020: Date from which 2020 annual fee payments are accepted electronically and invoices become available via myJFSC.
• 31 July (in the subsequent charging period): Due date for QSMA fees in respect of a subsequent charging period.