Consultation on proposals to change fund fee rates No 2 2020

Consultation Paper

The Jersey Financial Services Commission (JFSC) invites comments on this consultation paper. Comments should reach Jersey Finance Limited by 22 June 2020.

Responses should be sent to:

Lisa Springate

Jersey Finance Limited
4th Floor
Sir Walter Raleigh House
48-50 Esplanade
St Helier
Jersey
JE2 3QB

Direct Line: +44 (0) 1534 836029
Office Line: +44 (0) 1534 836000
Email: [email protected]  

Alternatively, responses may be sent directly to the JFSC by 22 June 2020. If you require any assistance, clarification or wish to discuss any aspect of the proposal prior to formulating a response, it is of course appropriate to contact the JFSC. 

The JFSC contact is:

Jon Stevens

Head of Unit, Policy
Jersey Financial Services Commission
PO Box 267
14-18 Castle Street
St Helier
Jersey
JE4 8TP

Direct Line: +44 (0) 1534 822085

Email: [email protected]

It is the policy of the JFSC to provide the content of responses for inspection unless specifically requested otherwise.

It is the policy of Jersey Finance Limited (unless otherwise requested or agreed) to collate all responses and share them verbatim with the JFSC on an anonymised basis (with reference made only to the type of respondent, e.g. individual, law firm, trust company etc.) This collated, anonymised response will, typically, be placed in JFL’s permanent electronic archive which is currently open to all JFL members.

Glossary of Terms

AIF	Alternative Investment Fund
AIFSB	Alternative Investment Fund Services Business
Commission Law	Financial Services Commission (Jersey) Law 1998, as amended
CoBO	Control of Borrowing (Jersey) Order 1958
FSB	Fund Services Business
JFSC	Jersey Financial Services Commission
QSMA	Qualifying Segregated Managed Account
Representative Body	A body that the JFSC is satisfied is representative of the interests of those who would be required to pay the fee in accordance with Article 15 of the Commission Law

1   Consultation

1.1   Basis for consultation

1.1.1 The JFSC is issuing this consultation paper in accordance with Article 8(3) of the Commission Law, under which the JFSC “may, in connection with the carrying out of its functions […] consult and seek the advice of such persons or bodies whether inside or outside Jersey as it considers appropriate”.

1.1.2 In addition, Article 15(3) of the Commission Law, requires that before the JFSC may introduce and publish any fee:

“[T]he Commission must first publish a report that must include:

(a) details of the duty or power for or in respect of which the fee is to be determined;

(b) details of the proposed fee;

(ba) details of the extent (if any) to which any penalties received have reduced the level of fee that would otherwise have been proposed;

(c)a request for comments on the level of the proposed fee; and

(d) a date, that is at least 28 days after the publication of the report, before which those comments may be made to the Commission”.

1.1.3 Article 15(4) of the Commission Law provides that should the JFSC and a Representative Body be unable to agree a fee that the JFSC must request the Bailiff to appoint 3 Jurats to consider if the fee proposed is unreasonable.

1.1.4 The JFSC considers that the proposed fee rates are reasonable and that this consultation paper constitutes such a report as required by the Commission Law.

1.2   Who will be affected by the proposed changes?

1.2.1 The amendments to fees will affect any person applying for, or having already been granted a registration, certificate, permit, consent or exemption under the:

1.2.1.1 Alternative Investment Funds (Jersey) Regulations 2012;

1.2.1.2 Collective Investment Funds (Jersey) Law 1988, as amended;

1.2.1.3 Control of Borrowing (Jersey) Order 1958;

1.2.1.4 Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 2014; and

1.2.1.5 Financial Services (Jersey) Law 1998, as amended, in respect of Fund Services Business (FSB) and Alternative Investment Fund Management Business (AIFSB).

1.3   Responding to the consultation

1.3.1 The JFSC invites comments, in writing, from interested parties on the content of this consultation paper.

1.3.2 Comments should be received by either Jersey Finance Limited or the JFSC no later than 22 June 2020.

1.4   Next steps

1.4.1 Following this consultation, the JFSC will publish feedback and the final fees notices in June. Fees will be administered via firms’ myJFSC portal accounts. Firms will receive an email prompt to notify them that an invoice is awaiting payment.

2   The JFSC

2.1   Overview

2.1.1 The JFSC is a statutory body corporate established under the Commission Law.  It is responsible for the supervision and development of financial services provided in or from within Jersey.

2.1.2 Article 15(2) of the Commission Law provides that fees set by the JFSC are to be retained and must, together with any other income:

2.1.2.1 raise sufficient income to meet the JFSC’s liabilities; 

2.1.2.2 cover the JFSC’s expenses; and

2.1.2.3 provide a reserve for the JFSC of such amount as it considers necessary.

2.2   The JFSC’s functions

2.2.1 Article 5 of the Commission Law prescribes that the JFSC shall be responsible for:

2.2.1.1 the supervision and development of financial services provided in or from within Jersey;

2.2.1.2 providing the States, any Minister or any other public body with reports, advice, assistance and information in relation to any matter connected with financial services;

2.2.1.3 preparing and submitting to the Minister recommendations for the introduction, amendment or replacement of legislation appertaining to financial services, companies and other forms of business structure; 

2.2.1.4 such functions in relation to financial services or such incidental or ancillary matters:

›  as are required or authorised by or under any enactment, or

›  as the States may, by Regulations, transfer; and

2.2.1.5 such other functions as are conferred on the JFSC by any other Law or enactment

2.3   Guiding principles

2.3.1 Article 7 of the Commission Law provides that in exercising its functions the JFSC may take into account any appropriate matter, but that it shall have particular regard to:

2.3.1.1 the reduction of the risk to the public of financial loss due to dishonesty, incompetence or malpractice by, or the financial unsoundness of, persons carrying on the business of financial services in or from within Jersey;

2.3.1.2 the protection and enhancement of the reputation and integrity of Jersey in commercial and financial matters;

2.3.1.3 the best economic interests of Jersey; and

2.3.1.4 the need to counter financial crime in both Jersey and elsewhere.

3   Proposals

3.1   Covid-19 uncertainty

3.1.1 While the JFSC is closely monitoring and managing its costs in light of the current situation, the crucial work that we undertake continues with minimal disruption.

3.1.2 Regulatory fees form a very small part of the outgoings of the majority of regulated businesses, however, as stated within the feedback to Consultation Paper No. 1 2020 in respect of Investment Business fees, any firms that are experiencing financial constraints as a result of the Covid-19 outbreak that mean they are unable to pay increased fees as they fall due are encouraged to contact their supervisors at the earliest opportunity.

3.2   Proposed fee rate increases

3.2.1 The proposals in this Consultation Paper seek to ensure that the JFSC obtains sufficient funding to carry out its supervisory objectives; to provide additional funding in support of the JFSC’s work in respect of combatting financial crime; to enhance our data analytics capacity and to provide investment in the JFSC’s reserves to return them to a level equal to at least six months’ expenditure by 2022.

3.2.2 Proceeds of Civil Financial Penalties received in 2019 will reduce annual fees for FSBs as detailed at 3.3.9.

3.2.3 In 2022/2023, the Island will undergo its next MONEYVAL assessment. A strongly positive outcome to the assessment is considered crucial to the continued ability of the Island’s financial services industry to access international markets efficiently. Jersey’s Government has indicated that such an outcome to the assessment is one of its key targets over the course of the current Island Strategic Plan. In any event, the JFSC is of the view that the supervision of financial crime will require a significantly enhanced supervisory capacity in the next period having regard to the increasing sophistication and scale of financial crime risks.

3.2.4 The JFSC’s efforts towards achieving a strongly positive outcome with regard to the forthcoming MONEYVAL assessment and tackling these financial crime risks are focused on demonstrating effective supervision as a key part of Jersey’s AML/CFT regime, adequate remediation and enforcement activities, sufficient development of systems and data as well as ensuring the regime’s overall compliance with FATF Recommendations. This work has already begun and the JFSC is currently building its Financial Crime supervision capacity.

3.2.5 The Commission Law contemplates increases to fees in line with RPI, however, the cost of regulation has been and continues to rise well in excess of this metric.

3.2.6 In respect of CIF and FSB fees, the key charging mechanism continues to be the number of pools of assets. In our feedback on Consultation Papers No.2 2017, No. 3 2018 and No. 4 2019 the JFSC committed to being open to industry proposals to change the basis on which fees were charged. No agreed alternative to the current charging methodology has yet been put to the JFSC, however, as in previous years, the JFSC remains open to discussions on this subject.

3.2.7 Building on 3.1.5, and as stated in feedback to all recent fees Consultation Papers, the JFSC is keen to discuss its fee structures with all industry sectors. During the course of 2020 the JFSC intends to hold strategic discussions with industry and to consult on potential methodologies to ensure that there is proportionality across the fees base.

3.2.8 In Consultation No. 4 2019, the JFSC requested the funds sector’s perspective on the urgency of current policy development projects and priorities, and invited comment on the option of a further increase of 1.5% which would be sufficient to fully fund an additional policy development resource devoted to funds-related policy development (products, fund-sector-related fintech issues and the development of the legal framework for the funds sector). Feedback was split with two respondents’ views being amenable to this initiative and two respondents’ view being adverse. For this consultation, the JFSC invites comment on this option, being a further increase of 1.5% which would be sufficient to fully fund an additional policy development resource devoted to funds-related policy development

3.3   Regulatory fee proposals

3.3.1 In feedback on Consultation Paper No. 3 2018 the JFSC committed to no more than inflationary increases in the JPF annual fee for 2019 and 2020. As such the proposed increase in respect of the JPF annual fee is 2.7%. All other CoBO fee rates including JPF application fees are proposed to increase by the same rate as for other fees within this consultation paper.

3.3.2 The JFSC proposes to increase FSB, AIF and CIF, CoBO and QSMA fee rates by 12.5%. This comprises:

3.3.2.1 2.7%, being the most recent Jersey RPI prior to publication; and

3.3.2.2 a further 9.8% comprising:

›  a contribution towards meeting the significantly higher costs of the Island project to enhance the JFSC’s work in respect of countering financial crime, which has already been initiated;

›  investment towards restoring the JFSC’s reserves to a level of six months’ total expenditure from the prior year; and

›  investment towards successfully implementing the JFSC’s strategy including enhanced data analytics and industry portals.

3.3.3 The main driver of this calculation is JFSC’s project to significantly enhance its supervision of financial crime.

3.3.4 The reserves of the JFSC have been reducing for some time as a result of capital investment in technology which enhances our supervisory effectiveness. A small contribution beginning to reverse this is included in the proposal. This will only go a very small way to beginning to reverse the trend of declining reserves.

3.3.5 Investment has been critical to maintaining the JFSC’s supervisory effectiveness at a time when compliance costs for industry and supervisory costs for regulators have been rising in tandem.

3.3.6 The first part of the funds industry’s contribution to the above initiatives were proposed in Consultation Paper No. 4 2019 and similar fee increases have been introduced for other industry sectors as part of their recent fee cycles to ensure the burden of this increased funding requirement is fairly distributed. This consultation introduces the second part of the funds industry’s contribution to the above initiatives.

3.3.7 Consultation Paper No. 4 2019, outlined discussions between the JFSC and Government regarding bridging funding meaning a lower increase to funds sector fee rates was proposed than would otherwise have been required to support the JFSC’s increased AML/CFT activities. It was noted that ultimately the cost of regulation will need to be borne by industry over the course of time. The proposals in this Consultation accommodate the increase to fee rates required in order to ensure that this crucial work continues.

3.3.8 Changes in the number of pools of assets, QSMAs, licences held, and/or authorisation income may mean that we raise more or less than our target amount of fee income in 2020.

3.3.9 Proceeds of Civil Financial Penalties received in respect of FSBs will reduce annual fees for FSBs levied on 1 July 2020 by approximately 6.5%. This will result in a net increase to FSB annual fees of approximately 6% during 2020 (12.5% less 6.5%). No other penalties have been received that will reduce fee amounts.

3.3.10 Draft fees notices reflecting the proposals can be found in Appendices B to F .

3.4   Questions

3.4.1 Do you agree with the proposed fee rate changes consulted on in this paper?

3.4.2 Do you have views on the notions outlined at 3.2.7?

Appendix A – List of bodies who have been sent this consultation paper

› Jersey Finance Limited

› Jersey Funds Association

Appendix B - Draft AIF and AIFSB Fees Notice

	Notice of Fees
Published in accordance with:	Article 15 of the Financial Services Commission (Jersey) Law 1998, as amended
Payable by or in relation to:	AIF and AIF Services Business
Pursuant to:	Articles 8(2)(e) of the Alternative Investment Funds (Jersey) Regulations 2012, as amended; and Articles 8(3) and 9(6) of the Financial Services (Jersey) Law 1998, as amended
Commencement date:	The fees set out in this notice and the attached schedule are effective for the period from 1 July 2020 – 30 June 2021

1   Interpretation

1.1   In this notice, unless the context otherwise requires -

AIF	means an Alternative Investment Fund within the meaning of the Regulations
Certified Fund	means an unclassified fund in respect of which a certificate has been granted by the JFSC under Article 8B of the Collective Investment Funds (Jersey) Law 1988, as amended
FS(J)L	means the Financial Services (Jersey) Law 1998, as amended
JFSC	means the Jersey Financial Services Commission
Recognized Fund	means a recognized fund in respect of which a certificate has been granted by the Commission under the Collective Investment Funds (Recognized Funds) (Rules) (Jersey) Order 2003
Recognized Fund functionary	means a person who holds a permit as a functionary of a Recognized Fund under the Collective Investment Funds (Jersey) Law 1988, as amended
Regulations	means the Alternative Investment Funds (Jersey) Regulations 2012, as amended

2 Application fee

2.1   For the purposes of Regulation 8(2)(e) of the Regulations (which Regulation allows the publication of fees that are to accompany applications for registration), a fee of £1,590 is published in respect of applications for a certificate to be granted under the Regulations. The application fee is payable in respect of:

2.1.1 Any AIF registered in Jersey (company, limited partnership or limited liability partnership); or

2.1.2 Any AIF which is a Jersey trust that is a unit trust.

For the avoidance of doubt, an AIF which is a Certified Fund or a Recognized Fund is not required to pay an application fee under this Notice.

3 Application Fee – AIF services business

3.1   For the purposes of Article 8(3)(c) of the FS(J)L (which Article allows the publication of fees that are to accompany applications for registration), a fee of £1,590 is published in respect of applications for registration under Article 2(11) of the FS(J)L to carry on Class ZL (Manager of an AIF) AIF services business.

For the avoidance of doubt, a person is not required to pay an application fee under this Notice where the person is:

›   Registered to carry on any one or more classes of fund services business under Article 2(10) of the FS(J)L; or

›   A Recognized Fund functionary; and

›   Where the classes or functions of that person include the same classes or functions as the AIF services business.

Appendix C - Draft CIF Fees Notice

	Notice of Fees
Published in accordance with:	Article 15 of the Financial Services Commission (Jersey) Law 1998, as amended
Payable by or in relation to:	Collective Investment Funds
Pursuant to:	Articles 6(1), 7(12), 8A(2)(e) and 8B(13) of the Collective Investment Funds (Jersey) Law 1988, as amended; and Article 15(6) of the Financial Services Commission (Jersey) Law 1998, as amended
Commencement date:	The fees set out in this notice and the attached schedules are effective for the period from 1 July 2020 – 30 June 2021

1 Interpretation

1.1   In this notice, unless the context otherwise requires -

cell, cell company, company, incorporated cell company, protected cell company	each has the same meaning as in the Companies (Jersey) Law 1991
certificate holder	means a company, trustee, general partner or limited liability partnership to whom a certificate has been granted under Article 8B of the Law in respect of a certified fund
certified fund	means a collective investment fund in relation to which a certificate that is in force has been granted under Article 8B of the Law
fund service provider	means a person who is or would be required to be registered under the Financial Services (Jersey) Law 1998 to carry on fund services business in relation to a collective investment fund that is or would be required to be a certified fund
JFSC	means the Jersey Financial Services Commission
Law	means the Collective Investment Funds (Jersey) Law 1988, as amended
permit holder	means a person to whom a permit has been granted under Article 7 of the Law in respect of a recognized fund
pool of assets	means a collective investment fund, except that where such a collective investment fund is divided into separate and distinct parts, the rights of which are restricted to an identifiable class of participants, it means each one of those parts
recognized fund	means a collective investment fund in relation to which there is a recognized fund certificate granted under the Collective Investment Funds (Recognized Funds) (General Provisions) (Jersey) Order 1988 or the Collective Investment Funds (Recognized Funds) (Rules) (Jersey) Order 2003
umbrella fund	means a collective investment fund where: a.the contributions of the unit holders and the profits and income out of which payments are to be made to them are pooled; and b.the documents constituting the fund provide that such pooling is to be accomplished separately in relation to separate parts of the property of the fund

Recognized Funds

2   Application for a functionary permit (Article 6(1)(f) of the Law)

2.1   Subject to paragraph 3.6, the fee that is to accompany an application for a permit to be a functionary of a collective investment fund shall be £2,700

3   Fees payable by a permit holder (Article 7(12) of the Law

On the grant of a first permit

3.1   Subject to paragraphs 3.2 and 4.1, a person who was not a permit holder immediately prior to the grant of a permit, shall pay a fee determined in accordance with Schedule 1 – Recognized Funds, in respect of the issue by the JFSC of a permit under Article 7(1) of the Law. The fee is due one month after the date of the permit.

3.2   If the date of the permit in respect of which a fee is payable is other than 1 July, the fee payable under this section shall be 1/12th of the amount specified by paragraph 3.1 for each complete month between the grant of that permit and 1 July next following.

Annual fee

3.3   Subject to paragraph 4.1 of this Notice, a permit holder shall pay a fee in respect of the aggregate of the number of pools of assets in relation to which the person holds one or more permits on 1 July each year. The amount of the fee shall be determined in accordance with Schedule 1 – Recognized Funds. The fee is due on 31 July the same year.

New pool of assets

3.4   Subject to paragraph 3.6 of this Notice, a permit holder that is either a company issuing units or the trustee of a unit trust shall pay, at the time of application, a fee of £1,210 in respect of each new pool of assets to be added to a collective investment fund.

Transfers of certain functions to cells

3.5   An application by a permit holder that is a company (but not a cell company, incorporated cell company, protected cell company or a cell), for a permit to be varied in relation to the company becoming a cell company, incorporated cell company, protected cell company or a cell, shall be accompanied by a fee of £3,170.

3.6   If a permit holder is liable to pay the fee set by paragraph 3.5, no further fee shall be payable under either paragraph 3.1 or, in the event that one or more pools of assets are added concurrently, under paragraph 3.4.

4   Cell companies

4.1   The total of the fees payable under paragraphs 3.1 to 3.3 by, or in respect of, the incorporated cells of an incorporated cell company and, as the case requires, that company, that apply to become or are permit holders under Article 7 of the Law shall be the same as the total amount that would be payable under those paragraphs by a protected cell company with the same number of cells that applies to become or is a permit holder under Article 7 of the Law.

Certified Funds

5   Application for certificate (Article 8A(2)(e) of the Law)

5.1   Subject to paragraphs 5.2 and 5.3, a person who applies for a certificate in relation to a collective investment fund shall pay a fee that is the sum of:

5.1.1 £2,700; and

5.1.2 £2,700 in respect of each fund service provider in relation to the collective investment fund.

5.2   Where two or more persons apply, at the same time, for certificates in relation to a collective investment fund in respect of which no other person currently holds a certificate, each of those applicants shall pay a fee that is the sum of:

5.2.1 the amount payable by one applicant in relation to the collective investment fund, in accordance with paragraph 5.1; and

5.2.2 £2,700 for each of the second and any additional applicant,

divided by the number of applicants.

5.3   A person who applies for a certificate in relation to a collective investment fund:

5.3.1 in respect of which at least one other person already holds a certificate; or

5.3.2 in a case where the certificate applied for would replace a certificate granted to another person in relation to the collective investment fund,

shall pay a fee of £2,700.

6   Fee in respect of grant of certificate (Article 8B(13)(b) of the Law)

6.1   A fee shall be paid by a certificate holder in respect of the grant of a certificate.

6.2   The fee must be paid no later than one month after the day on which the certificate is issued.

6.3   Subject to paragraphs 6.4 and 6.5, the fee shall be the amount specified in Schedule 2 – Certified Funds applicable in the case of the collective investment fund to which the certificate relates, according to the total number of pools of assets in the collective investment fund on the day on which the certificate is issued.

6.4   If a certificate is granted on a day other than 1 July, the fee payable under paragraph 6.1 shall be 1/12th of the amount specified in paragraph 6.3 for each complete month between the grant of the certificate and 1 July next following.

6.5   Where:

6.5.1 a certificate is or certificates are granted in respect of one or more cells of an incorporated cell company and, as the case requires, in respect of that company; and

6.5.2 the JFSC is satisfied that the structure of the company and the cells of the company is equivalent to that of an umbrella fund,

6.5.3 the total of the fees determined in accordance with paragraphs 6.3 and 6.4 in respect of the cells and, as the case requires, the company, shall be the same as the total amount that would be determined in accordance with those paragraphs in the case of the grant of a certificate in relation to a protected cell company with the same number of cells.

7   Annual fee (Article 8B(13)(a) of the Law)

7.1   A fee shall be paid by a person who, on 1 July, is a certificate holder.

7.2   The fee must be paid no later than 31 July in that year.

7.3   The fee is whichever is the lesser of:

7.3.1 the sum of the annual amounts for every collective investment fund in relation to which the person is a certificate holder on 1 July in that year; and

7.3.2 £110,880.

7.4   Subject to paragraph 7.5, the annual amount for a collective investment fund is the amount specified in the table in Schedule 2 – Certified Funds applicable in the certificate holder’s case according to the total number of pools of assets in the collective investment fund on that day.

7.5   Paragraph 6.5 applies for the purposes of determining the fees payable under this section in relation to a collective investment fund that is any combination of an incorporated cell company and one or more cells of that company as it applies for the purpose of section 6.

8   Fee for alteration of certificate (Article 8B(13)(b) of the Law)

8.1   Subject to paragraph 8.3, a certificate holder who applies for a certificate in relation to a collective investment fund to be altered so as to add one or more pools of assets to the pools of assets specified in the certificate shall pay a fee of £1,210 for each pool of assets so added.

8.2   A fee of £3,170 shall be paid by a certificate holder in relation to a collective investment fund that is a company (but not a cell company, incorporated cell company, protected cell company or a cell) who applies for the certificate in relation to the collective investment fund to be altered so as to allow the company to become a cell company, incorporated cell company, protected cell company or cell.

8.3   A certificate holder who applies, at the same time, for a certificate to be altered as described in both paragraphs 8.1 and 8.2 shall only be liable to pay the fee due under paragraph 8.2.

8.4   A fee of £400 shall be paid by a certificate holder who applies for a certificate in relation to a collective investment fund to be altered so as to reflect all or any of the following:

8.4.1 a change of the name of the collective investment fund or of a pool of assets of the collective investment fund;

8.4.2 a change of the name of the certificate holder on a fund certificate;

8.4.3 the removal of a pool of assets from the collective investment fund; and

8.4.4 the addition, alteration or removal of conditions pursuant to the application of the certificate holder.

8.5   A fee payable under this section must be paid at the time the application is made.

8.6   A certificate holder who pays an application fee under section 8 is not also liable to pay an application fee under section 5 or, upon the issue of the altered certificate, a fee under Section 6.

9   Fee for increase in fund service providers (Article 8B(13)(b) of the Law)

9.1   Subject to paragraph 9.2, where the number of fund service providers in relation to a collective investment fund is increased from the number of such fund service providers that were taken into account in calculating the fee under paragraph 5.1, a fee of £2,700 shall be paid by the certificate holder in respect of each fund service provider so added.

9.2   Where there is more than one certificate holder in relation to a collective investment fund, the certificate holders shall be jointly and severally liable to pay the fee that would be payable by a single certificate holder under paragraph 9.1.

9.3   The fee payable under this section must be paid at the time the number of fund service providers in relation to the collective investment fund is increased.

Recognized Funds and Certified Funds

10 Article 15(6) of the Financial Services Commission (Jersey) Law 1998, as amended

Late payment of fees

10.1   If the JFSC does not receive the fee due from a permit holder or certificate holder by the date in paragraph 7.2 an additional late payment fee of 5% of the unpaid principal amount will be applied on the day after that date, and on the 1st day of each calendar month after that.

Late filing fees

10.2   If a permit holder or certificate holder fails to file or deliver any document to the JFSC under the provisions of the Law or under the provisions of any Order issued in accordance with the Law on or before the date that the document becomes due, the permit holder or certificate holder shall be liable to pay a fee of £100 on the day after the document falls due and an additional £100 on the 1st day of each calendar month after that. This shall apply while the document remains unfiled or undelivered unless the permit holder or certificate holder has given the JFSC prior written notice of the reasons for the late filing or delivery of the document and the JFSC has agreed in writing that the filing may be late. Any such later agreed date shall become the due date for the purposes of the calculation and the payment of late filing fees.

Schedule 1 – Recognized Funds

Calculation of fees payable on the grant of a first permit (paragraph 3.1) and on 1 July (paragraph 3.3)

Number of pools of assets	Fee (£)
0 – 1	8,550
2 – 4	9,590
5 – 9	10,610
10 – 19	12,760
20 or more	14,880

Schedule 2 – Certified Funds

Calculation of fees payable on the grant of a certificate (paragraph 6.3) and on 1 July (paragraph 7.4)

Number of pools of assets	Fee (£)
0 – 1	a)   where the certificate holder is a company issuing units or a trustee of a unit trust - £4,450 b)   in any other case - £1,760
2 – 4	5,720
5 – 9	7,370
10 – 19	9,830
20 – 49	12,280
50 – 99	17,170
100 – 149	24,530
150 – 199	32,670
200 or more	43,790

Appendix D - Draft CoBO Fees Notice

	Notice of Fees
Published in accordance with:	Article 15 of the Financial Services Commission (Jersey) Law 1998, as amended and Article 12A of the Control of Borrowing (Jersey) Order 1958
Payable by or in relation to:	Control of Borrowing (Jersey) Order
Pursuant to:	Control of Borrowing (Jersey) Order 1958; and Article 15(6) of the Financial Services Commission (Jersey) Law 1998, as amended
Commencement date:	The fees set out in this notice and the attached schedules are effective for the period from 1 July 2020 – 30 June 2021

1 Interpretation

1.1   In this notice, unless the context otherwise requires

CoBO	means the Control of Borrowing (Jersey) Order 1958
DSP	means a ‘designated service provider’ required to be appointed by a JPF
Jersey UT (non-fund)	means a Jersey unit trust which is not an investment fund
JFSC	means the Jersey Financial Services Commission
JPF	means a Jersey Private Fund which has been issued with a relevant consent and which is operated in accordance with the JPF Guide
JPF Guide	means the Jersey Private Fund Guide as may be amended from time to time
JPF Return	means the annual compliance return for a JPF required to be provided to the JFSC in each relevant year by the relevant DSP (the form of which is included as part of the JPF Guide)
NDS (non-fund)	means a non-domiciled structure which is not an investment fund

2   Application fee

2.1   For the purposes of Article 12A of CoBO:

2.1.1 a fee of £1,340 shall be payable in respect of any JPF applying to the JFSC’s authorisation team for the issue of an initial JPF CoBO consent;

2.1.2 a fee of £500 shall be payable in respect of any application to the JFSC’s authorisation team for the issue of a CoBO consent, which is not subject to the fee specified in 2.1.1 above;

2.1.3 a fee of £410 shall be payable in respect of any Jersey UT (non-fund) applying to the Jersey Companies Registry for the issue of an initial CoBO consent pursuant to Articles 9(1)(a) and/or 9(1)(b) of CoBO;

2.1.4 a fee of £410 shall be payable in respect of any NDS (non-fund) applying to the Jersey Companies Registry for the issue of an initial CoBO consent pursuant to Articles 1, 3, 9(1)(a), 9(1)(b), 10(1)(a), 10(1)(b), 11(1)(a) and/or 11(1)(b) of CoBO;

2.1.5 a fee of £210 shall be payable in respect of any application for the issue of an amended CoBO consent where the original CoBO consent was issued in accordance with sub-paragraphs 2.1.3 to 2.1.4.

3   JPF annual fee

3.1   A fee shall be paid in respect of a JPF on 1 July in each relevant year for so long as the JPF’s CoBO consent remains in force.

3.2   The fee must be paid no later than 31 July in each relevant year, and shall be paid directly by the governing body of the JPF or by the DSP on behalf of the JPF.

3.3   The fee payable on an annual basis shall be £1,070 and shall be pro-rated.

4   JPF late payment of fees

4.1   If the JFSC does not receive the fee due from a JPF (or the JPF’s DSP on behalf of the JPF) by the date in paragraph 3.2 an additional late payment fee of 5% of the unpaid principal amount will be applied on the day after that date, and on the 1st day of each calendar month after that.

5   JPF late filing fees

5.1   If the DSP fails to file or deliver the JPF Return to the JFSC under the provisions of CoBO on or before the date that the JPF Return becomes due, the DSP shall be liable to pay a fee of £100 on the day after the document falls due and an additional £100 on the 1st day of each month after that in which the JPF Return remains unfiled or undelivered unless the DSP has given the JFSC prior written notice of the reason for the late filing or delivery of the JPF Return and the JFSC has agreed in writing with the relevant DSP that the filing may be late.

Appendix E - Draft FSB Fees Notice 

	Notice of Fees
Published in accordance with:	Article 15 of the Financial Services Commission (Jersey) Law 1998, as amended
Payable by or in relation to:	Fund Services Business
Pursuant to:	Articles 8(3) and 9(6) of the Financial Services (Jersey) Law 1998, as amended; and Article 15(6) of the Financial Services Commission (Jersey) Law 1998, as amended
Commencement date:	The fees set out in this notice and the attached schedules are effective for the period from 1 July 2020 – 30 June 2021

1 Interpretation

1.1   In this notice, unless the context otherwise requires -

JFSC	means the Jersey Financial Services Commission
Law	means the Financial Services (Jersey) Law 1998, as amended
pool of assets	means a collective investment fund, except that where such a collective investment fund is divided into separate and distinct parts, the rights of which are restricted to an identifiable class of participants, it means each one of those parts
registered person	means a person registered under the Law to carry on investment business
unregulated fund	Has the same meaning as in the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008, as amended

2 Application fee

2.1 The fee that is to accompany an application for registration of a person to carry on fund services business shall be £3,330.

3 Fees payable by a registered person (Article 9(6) of the Law)

3.1 Subject to paragraph 3.2, a fee determined in accordance with the Schedule attached shall be paid by a registered person in respect of the issue by the JFSC of the registration certificate in accordance with Article 9(2) of the Law. The fee is due one month after the date of the registration certificate.

3.2 If the date of the registration certificate is other than 1 July, the fee payable under this Article shall be 1/12th of the amount specified by paragraph 3.1 for each complete month between the date of the registration certificate and 1 July next following.

Annual fee

3.3 A person who, on 1 July is a registered person shall pay a fee determined in accordance with the Schedule attached to this Notice (subject to paragraph 3.4) in respect of the number of pools of assets, other than any pool of assets that is an unregulated fund, in relation to which the person is registered to carry on fund services business. The fee is due on 31 July the same year.

3.4 The fee payable by a registered person who on 1 July acts only for one or more unregulated funds shall be the fee applicable to zero pools of assets.

4 Fees pursuant to Article 15(6) of the Financial Services Commission (Jersey) Law 1998, as amended

Late payment of fees

5.2   If the JFSC does not receive the fee due from a registered person by the date in paragraph 3.3 an additional late payment fee of 5% of the unpaid principal amount will be applied on the day after that date, and on the 1st day of each calendar month after that.

 Late filing fees

4.1 If a registered person fails to file or deliver any document to the JFSC under the provisions of the Law or under the provisions of any Order issued in accordance with the Law on or before the date that the document becomes due, the registered person shall be liable to pay a fee of £100 on the day after the document falls due and an additional £100 on the 1st day of each calendar month after that. This shall apply while the document remains unfiled or undelivered unless the registered person has given the JFSC prior written notice of the reasons for the late filing or delivery of the document and the JFSC has agreed in writing that the filing may be late. Any such later agreed date shall become the due date for the purposes of the calculation and the payment of late filing fees.

Schedule

Number of pools of assets	Fee (£)
0 – 1	5,550
2 – 4	7,370
5 – 9	9,030
10 – 19	11,480
20 – 49	14,730
50 – 99	19,850
100 – 149	28,650
150 – 199	39,240
200 or more	52,370

Appendix F - Draft QSMA Fees Notice 

	Notice of Fees
Published in accordance with:	Article 15 of the Financial Services Commission (Jersey) Law 1998, as amended
Payable by or in relation to:	Utilisation of the QSMA Order
Pursuant to:	Article 3(1) of the Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 2014; and Article 9(6) of the Financial Services (Jersey) Law 1998, as amended
Commencement date:	The fees set out in this notice and the attached schedules are effective for the period from 1 July 2020 – 30 June 2021

1 Interpretation

1.1   In this notice, unless the context otherwise requires -

charging period	includes both an initial charging period and a subsequent charging period
initial charging period	means the period from (and including) the date on which an operator first placed reliance on Article 3(1) of the QSMA Order to (but excluding) 1 July next following
JFSC	means the Jersey Financial Services Commission
operator	means a person appointed to undertake relevant activity (as defined in the QSMA Order) in connection to a segregated managed account
QSMA Order	means the Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 2014
relevant QSMA	means a QSMA in respect of which an operator is placing reliance upon the exemption conferred by Article 3(1) of the QSMA Order
subsequent charging period	means a charging period (other than an initial charging period) commencing on 1 July and lasting for a period of 12 months

2   Reliance on the QSMA Order in the initial charging period

2.1   When an operator first places reliance upon the exemption conferred by Article 3(1) of the QSMA Order it shall pay the fee due in respect of the initial charging period specified in paragraph 2.2 or, as the case may be, paragraph 2.3.

2.2   Subject to paragraph 2.3, the fee due from an operator in respect of the initial charging period shall be £4,740.

2.3   If the date on which reliance is first placed by an operator on Article 3(1) of the QSMA Order is other than 1 July, the fee payable by that operator in respect of the initial charging period shall be £400 (being 1/12th of the amount at 2.2) for each complete month between the date of such first reliance and 1 July next following.

2.4   The due date for a fee in respect of the initial charging period due from an operator pursuant to paragraphs 2.2 or 2.3 shall be the date on which reliance was first placed by the operator on Article 3(1) of the QSMA Order.

3   Reliance on the QSMA Order in subsequent charging periods

3.1   An operator who, on:

3.1.1   1 July immediately following the expiration of the initial charging period; or

3.1.2   1 July in any subsequent year;

3.1.3   is placing reliance upon Article 3(1) of the QSMA Order shall pay a fee in respect of the subsequent charging period which commences on that 1 July, determined in accordance with the attached Schedule.

3.2   The due date for a fee in respect of a subsequent charging period due from an operator pursuant to paragraph 3.1 shall be 31 July in that subsequent charging period.

4   Relief from QSMA fees for certain operators

4.1   For each complete month within a charging period that an operator is registered pursuant to the Law to conduct discretionary investment management within the meaning given in Article 2(2)(b) of the Law (and has paid the JFSC the fee or fees due in respect of such registration), the fee due from or paid by the operator pursuant to this Notice in respect of that charging period shall be reduced by:

4.1.1   £400, if the charging period is an initial charging period;

4.1.2   1/12th, if the charging period is a subsequent charging period.

4.2   At the end of the relevant charging period, the JFSC will remit (or, at its discretion, credit) to an operator any sums received from the operator which, as a result of the operation of paragraph 4.1, constituted an overpayment of the fee in fact due pursuant to this Notice. No interest thereon shall accrue in favour of the operator.

5   Clarification where an operator ceases to place reliance on Article 3(1) of the QSMA Order

5.1   For the avoidance of doubt, no fee rebate or refund shall be due to an operator in the event that, having paid a fee in respect of a charging period, the operator subsequently ceases to place reliance on Article 3(1) of the QSMA Order within the charging period.

6   Late Payment of fees

6.1   If any fee due under this notice of fees is not received by the JFSC by applicable due date, an additional late payment fee of 5% of the unpaid principal amount will be applied on the day after the due date, and on the 1st day of each calendar month after that.

Schedule

Calculation of fees payable for subsequent charging periods (paragraph 3.1)

Number of relevant QSMAs on 1 July	Fee (£)
1	4,740
2 – 4	6,270
5 – 9	7,650
10 – 19	9,750
20 – 49	12,530
50 – 99	16,710
100 – 149	24,350
150 – 199	33,390
200 or more	44,520