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Feedback on proposals to change funds fees
Feedback on proposals to change funds feesConsultation Feedback
The Jersey Financial Services Commission (JFSC) reports on responses received regarding Consultation Paper No.2 2020.
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 make the content of all responses available for public 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.
1 Executive Summary
1.1 Overview
1.1.1 We issued the Consultation Paper on 22 May 2020. The purpose of the Consultation Paper was to seek views on proposals to:
1.1.1.1 Increase AIF, CIF, CoBO, FSB and QSMA fee rates by 12.5% with the exception of JPF annual fees;
1.1.1.2 Increase JPF annual fees by 2.7%; and
1.1.1.3 Explore views on an additional 1.5% increase in fee rates to fund an additional policy development resource devoted to funds matters.
1.2 Feedback received
1.2.1 The consultation period closed on 22 June 2020. Two responses were received directly by us and one response was received by Jersey Finance Limited (JFL).
1.2.2 Section 2 of this Feedback Paper presents a summary of the substantive comments received and our replies, as appropriate, to each.
1.2.3 We are grateful to respondents for taking the time to consider and comment on the proposals. The final Fees Notices can be found from Appendices B to F.
1.3 Next steps
1.3.1 For the reasons given in this Feedback Paper, we will proceed with the following increases to the fee tariffs (rounded to £10):
1.3.1.1 Increase AIF, CIF, CoBO, FSB and QSMA fee rates by 12.5% with the exception of JPF annual fees;
1.3.1.2 Increase JPF annual fees by 2.7%; and
1.3.1.3 We will not introduce an additional 1.5% increase in respect of an additional policy development resource devoted to funds matters.
1.3.2 The Fees Notices (Appendices B to F) have been updated and will be published on the JFSC website.
1.3.3 As in prior periods, the 2020 annual fees will be collected electronically i.e. by bank transfer, and payments will only be accepted, from 1 July 2020. Invoices will be available through the myJFSC portal after this date.
2 Summary of responses
2.1 Structure of this section
2.1.1 This section summarises the substantive comments received in response to the Consultation and our responses.
2.1.2 The Consultation Paper asked two questions:
2.1.2.1 “Do you agree with the proposed fee rate changes consulted on in this paper?”
2.1.2.2 “Do you have views on the notions outlined at 3.2.7” (views on an additional 1.5% increase in fee rates to fund an additional funds policy development resource).
2.2 Increase to fee rates
2.2.1 None of the respondents objected to the proposals, however, a number of questions and clarificatory requests were made. For this reason, the proposals will be implemented as summarised at 1.3.1. Our detailed responses are below.
2.2.2 One respondent expressed concern that the increase to fee rates was “another shock increase to fund clients and the users of Jersey’s funds industry” with a potential negative impact on Jersey's “attractiveness to new funds and fund clients”. The same respondent also noted that Jersey has a “well established and growing funds industry”.
2.2.2.1 We recognise the concern that fee rate increases may have a perceived negative impact on Jersey’s competitiveness. In context, we note the strength and continued growth of Jersey’s funds industry, in particular the success of the JPF, the absence of direct evidence that fee rate increases have led to a loss of new business, and the strong evidence of the importance of the regulatory reputation of the JFSC to Jersey’s competitive position.
2.2.2.2 Regulatory fees generally form a very small component of the overall costs of funds businesses. The recent fee rate increases across all regulated sectors enable the JFSC to make critical investment in activities that will, in particular, further strengthen and protect Jersey’s capability in countering the threat of financial crime. This is a critical aspect of Jersey’s attractiveness to new funds and new clients. Further detail on these initiatives can be found in the JFSC’s Strategic Roadmap 2020-23.
2.2.3 One respondent expressed concern that fee increases supporting the initiatives within the Consultation Paper may be “disproportionately weighted on the funds industry” and stated that it would be “re-assuring to receive the Commission's acknowledgement that the similar increases have or will be planned across the industries”.
2.2.3.1 We draw attention to 3.3.6 within the Consultation which states “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.”
2.2.4 One respondent stated that “whilst the Commission's investment in infrastructure/ automation and adding to its reserves is broadly understood within industry, these seem characteristic of short-term funding needs whereas [there is] concern that the large fee increases are permanent in nature;.”
2.2.4.1 The strategic investments that we are making as part of our 2020 Business Plan and Strategic Roadmap 2020-22 are multi-year projects and part of our capital cycle that will, in due course, require reinvestment. Developing, then sustaining, the JFSC’s reserves at an adequate level is also a significant and long-term activity. As such, the increases in our fees are designed to accommodate our ongoing investment and do not seek to fund, in one year, the entirety of our current capital investment programme.
2.2.4.2 As highlighted in all recent fees consultations, the increases to annual fee rates introduced across all industry sectors are critical to ensuring that we are able “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.”
2.2.5 During the consultation period, we met with the JFA to discuss the proposals within the Consultation Paper. The outcome of the discussion was positive in supporting the work of the JFSC, in particular, working collaboratively to mitigate resource pressures, ensuring strong outcomes from international assessments and continuing dialogue on fee structures that are proportionate across the regulatory fees base.
2.2.5.1 We see such dialogue as critical to the success of our interaction with industry and achieving the best possible outcomes in our work. We are pleased to be working toward further strategic discussions about sustainable fees methodologies across industry and intend to develop this dialogue over the course of 2020.
2.3 Views on additional policy resource
2.3.1 Two respondents did not support the further increase in respect of a dedicated resource for funds policy development for various reasons. These included that existing products are extensive, do not require refinement, are unlikely to be necessary and that such work would be “skewed towards private equity and professional funds.” One respondent supported the further 1.5% increase citing “the importance of Jersey having a credible regulatory framework and [that they perceive] the development of funds-related policy [to be] integral to this.”
2.3.1.1 We recognise the concerns raised in respect of the additional increase in respect of funds-specific policy development and, on balance, consider that the additional 1.5% levy should not be introduced at this time.
2.3.2 One respondent added that “the JFSC has, in recent years, successfully delivered on the JPF regime, the AIF regime and AIF Code and has managed to do so without a dedicated policy resource”.
2.3.2.1 We would highlight that in previous periods of intensive funds-specific policy development such work was clearly factored into the JFSC’s business plans and resources allocated accordingly. As outlined in our Strategic Roadmap 2020-23, such funds-specific policy development activity is not generally anticipated and accordingly policy development resources are not generally available for discretionary activities outside of our published plans.
2.3.3 The same respondent offered support should there be an urgent need to deploy resource in the area of funds policy.
2.3.3.1 We gratefully acknowledge this, particularly in the context of our comments at 2.3.2.1.
2.4 Other comments
2.4.1 One respondent asked whether the JFSC might be eligible for allocations from the Criminal Offences Confiscation Fund ("COCF") to help fund its efforts on the upcoming MONEYVAL assessment.
2.4.1.1 We acknowledge the importance of the COCF in supporting all of Jersey’s efforts in countering crime. The JFSC will keep an open mind in relation to possible sources of additional funding.
2.4.1.2 Our general approach to ensuring that we achieve the objectives of our Strategic Roadmap 2020-23, including in countering financial crime, terrorist financing and proliferation is through the fees that we levy from the financial services industry under the Regulatory Laws.
2.4.2 One respondent commented, generally, that the “proposed increases seem somewhat high, particularly in the current environment where the Government should be encouraging Business to “get back on its feet””.
2.4.2.1 We are sympathetic to concerns that all organisations have at the current time. In the consultation paper, we highlighted that JFSC is closely monitoring and managing its costs in light of the current situation. Even so, the crucial work that we undertake continues with minimal disruption. In this context, the funds industry’s contribution to the final tranche of fees increases consulted on across all industry sectors over the past year is both appropriate and necessary.
2.4.2.2 We reiterate that while regulatory fees form a very small part of the outgoings of the majority of regulated businesses, 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.
Appendix A – List of Respondents to this Consultation Paper
- JFA
- One Funds Services Business (direct)
- One Banking Business (via JFL)
Appendix B - Draft AIF and AIFSB Fees Notice
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Notice of Fees |
|
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Published in accordance with: |
Article 15 of the Financial Services Commission (Jersey) Law 1998, as amended |
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Payable by or in relation to: |
AIF and AIF Services Business |
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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 |
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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 -
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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 |
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JFSC |
means the Jersey Financial Services Commission |
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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 |
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Published in accordance with: |
Article 15 of the Financial Services Commission (Jersey) Law 1998, as amended |
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Payable by or in relation to: |
Collective Investment Funds |
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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 |
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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 -
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cell, cell company, company, incorporated cell company, protected cell company |
each has the same meaning as in the Companies (Jersey) Law 1991 |
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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 |
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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 |
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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 |
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Law |
means the Collective Investment Funds (Jersey) Law 1988, as amended |
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permit holder |
means a person to whom a permit has been granted under Article 7 of the Law in respect of a recognized fund |
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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 |
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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 |
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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 |
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.
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.
6.5.1 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.
Calculation of fees payable on the grant of a first permit (paragraph 3.1) and on 1 July (paragraph 3.3)
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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 |
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 |
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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 |
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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 |
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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
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CoBO |
means the Control of Borrowing (Jersey) Order 1958 |
|
DSP |
means a ‘designated service provider’ required to be appointed by a JPF |
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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 |
|
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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.
|
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
3.1.1 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.
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 |