JFSC Consultation Paper No. 2 2020: Fund Fees

Summary

This is a JFSC consultation paper proposing increases to fees charged in relation to Jersey funds and fund services business. It sets out draft fee notices for public comment and explains the rationale for the proposed increases, including funding financial crime supervision, rebuilding JFSC reserves, and investment in data analytics.

• Scope of fee increase: Proposed 12.5% increase to FSB, AIF, CIF, CoBO and QSMA fee rates (2.7% RPI plus 9.8% additional contribution for financial crime supervision, reserves and strategic investment).
• Jersey Private Fund (JPF) fee: JPF annual fee proposed to increase by 2.7% (inflationary only); other CoBO fees, including JPF application fees, to rise at the same rate as other fees.
• FSB net effect: Proceeds of civil financial penalties will reduce FSB annual fees levied on 1 July 2020 by approximately 6.5%, resulting in a net increase of about 6% for FSB annual fees in 2020.
• Additional funds policy proposal: JFSC invites comment on a further 1.5% increase to fund an additional policy development resource dedicated to funds-related policy work.
• Draft fee notices included: Draft AIF and AIFSB Fees Notice, CIF Fees Notice, CoBO Fees Notice, FSB Fees Notice, and QSMA Fees Notice are attached as appendices, each with proposed fee schedules effective 1 July 2020 to 30 June 2021.
• Late payment: Draft notices propose a late payment fee of 5% of unpaid principal, applied the day after the due date and on the first day of each subsequent calendar month.

The JFSC asks interested parties to comment on the proposed changes and on the additional 1.5% funds policy development option. Following the consultation, the JFSC intends to publish feedback and final fees notices in June 2020, with fees administered via firms' myJFSC portal accounts.

Key obligations

• Interested parties must submit written comments on the proposed fee changes to Jersey Finance Limited or directly to the JFSC no later than 22 June 2020.
• Once finalised, affected entities will be required to pay the increased FSB, AIF, CIF, CoBO and QSMA fees as set out in the fees notices for the period 1 July 2020 to 30 June 2021.
• Under the draft notices, any fee not paid by its due date will incur a 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.
• QSMA operators placing reliance on the QSMA Order exemption must pay the applicable initial or subsequent charging period fee, with subsequent period fees due by 31 July each year.

Applies to

Alternative Investment Funds (AIF), AIF Services Business (AIFSB), Fund Services Business (FSB), Collective Investment Funds (CIF), Jersey Private Funds (JPF) and other CoBO-registered funds, Qualifying Segregated Managed Account (QSMA) operators

Deadlines

• 22 June 2020: Deadline for interested parties to submit comments on the consultation paper to Jersey Finance Limited or the JFSC.
• 1 July 2020 to 30 June 2021: Proposed effective period for the new AIF, AIFSB, CIF, CoBO, FSB and QSMA fee rates set out in the draft fees notices.
• 31 July in the relevant charging period: Proposed due date for QSMA fees payable in respect of a subsequent charging period.