Consultation on proposals to change fee rates No 4 2019
Consultation on proposals to change fee rates No 4 2019A consultation on proposals to change fee rates
Financial Services (Jersey) Law 1998: Fund Services Business Fees
Financial Services (Jersey) Law 1998/Alternative Investment Funds (Jersey) Regulations 2012: AIF and AIF Services Business Fees
Collective Investment Funds (Jersey) Law 1988: Collective Investment Fund Fees
Control of Borrowing (Jersey) Law 1947/Control of Borrowing (Jersey) Order 1958: CoBO Fees
Financial Services (Jersey) Law 1998/Financial Services (Investment
Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 2014: QSMA Fees
Issued: May 2019
Consultation No. 4 2019
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 These 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 Financial Services (Jersey) Law 1998, as amended, in respect of fund services business;
1.2.1.2 Alternative Investment Funds (Jersey) Regulations 2012;
1.2.1.3 Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 2014;
1.2.1.4 Control of Borrowing (Jersey) Order 1958;
1.2.1.5 Collective Investment Funds (Jersey) Law 1988, as amended.
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 14 June 2019.
1.4 Next steps
1.4.1 Following this consultation, the JFSC will publish feedback and the final fees notices later in June. Firms will be notified when their invoices are ready via the myJFSC portal.
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 Proposed fee rate increases
3.1.1 The JFSC proposes to increase FSB, AIF and CIF, CoBO and QSMA fee rates by 7%. This comprises 3.6% being:
3.1.1.1 the most recent Jersey RPI prior to publication; and
3.1.1.2 a further 3.4% comprising:
› a contribution towards meeting the significantly higher costs of a major 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.
› Investment towards building an enhanced data analytics function;
› The final tranche in the increase of 15% in funding overall, in real terms, by end-2019, raised from this sector as from other sectors since 2015 to develop the quality of supervision.
3.1.2 The main driver of this calculation is the JFSC’s new project to significantly enhance its supervision of financial crime. The full relevant cost of that is not included in this proposal. Collecting the full cost from this fee cycle onwards would have resulted in an increase of 12.5%, rather than the proposed increase of 7%. The reasoning behind not charging that full amount is set out below within Section 3.2.
3.1.3 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.
3.1.4 The JFSC now has increased demands for data analytics due to the increased volume of data it holds and the need to analyse and report on that data. A small contribution is therefore included to help build out that function.
3.1.5 The JFSC has gradually raised its income from the funds industry in line with the strategic approach set out in 2015. This increased income has contributed to funding the Change Programme on which we are reporting in our 2018 Annual Report. That 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.
3.1.6 The JFSC proposes to introduce fees for the amendment of existing CoBO consents issued for NDS (non-fund) and Jersey UT (non-fund) which are reflective of the work performed on such activities. As noted in Consultation Paper No.3 2019 (Registry Fees), a wider consultation on fees levied under CoBO will be issued within the next 12 months.
3.1.7 No penalties have been received which would reduce these fees.
3.1.8 Draft fees notices reflecting the proposals can be found in Appendices B to F .
3.1.9 Fees will be administered via firms’ myJFSC portal accounts. Firms will receive an email prompt to notify them that an invoice is awaiting payment.
3.1.10 Similar fee increases will also be proposed to other industry sectors as part of their next fee cycles to ensure the burden of this increased funding requirement is fairly distributed.
3.2 Fee proposals
3.2.1 In Consultation Paper No.2 2016, the JFSC explained its intention to increase the amount of regulatory fees collected from industry by 15% above their 2015 level by 2019. We explained cost drivers, including the need to recruit, maintain and train effective regulatory staff in a competitive market environment.
3.2.2 The 15% increase is on target to be achieved, in real terms, during 2019.
3.2.3 The proposals in this Consultation Paper seek to ensure that the 15% increase is, in real terms, achieved during 2019; 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.
3.2.4 In 2021/2022, 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.
3.2.5 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 remediative 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.
3.2.6 The JFSC are liaising with Government to explore the possibility of bridging funding towards the cost of meeting the additional regulatory workload that is necessary to deliver the activities summarised at 3.2.5. Whether or not Government do provide bridging funding, ultimately the cost of regulation will need to be borne by industry over the course of time.
3.2.7 If Government were unable to provide bridging funding, the proposed additional increase over RPI would need to be increased to the extent that the bridging funding did not meet the expected additional expenditure in respect of the JFSC’s increased AML/CFT activities. This would need to be dealt with as part of this funding cycle because the relevant expenditure is already being undertaken by the JFSC.
3.2.8 In respect of CIF and FSB fees, the key charging mechanism continues to be the number of pools of assets. There has been a continued decline in the number of pools of assets despite increases in the total assets under management. The impact of this has been somewhat offset by the success of the Jersey Private Fund (JPF) and last year’s increase in the JPF annual fee by 100%. As such, excepting the proposed additional 3.4% increase, the rates for CIF and FSB fees are not proposed to increase over the 7%.
3.2.9 In our feedback on Consultation Papers No.2 2017 and No. 3 2018 the JFSC committed to being open to industry proposals to change the basis on which fees were charged, given the ongoing decline in the number of pools of assets, even while the total value of assets under management has increased (i.e. there are fewer funds, but they are larger). To that end, we provided aggregate data to the industry to help them assess new funding models. 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.
3.2.10 The introduction of fees for amendments to existing CoBO consents issued for NDS (non-fund) and Jersey UT (non-fund) reflect work performed on these activities with a wider consultation on fees levied under CoBO to be issued over the course of the next 12 months.
3.2.11 JPF annual fee rates were increased by 100% in 2018 to £1,000. 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 3.6%.
3.2.12 In respect of JPF annual fee rates, the JFSC notes that for each approximately 1% increase across other fee rates (AIF and CIF, CoBO and QSMA) an equivalent increase to JPF annual fee rates equates to approximately 33%. While the JFSC is not proposing to increase JPF rates above the committed inflationary only increase, the JFSC invites feedback from industry regarding the potential for an over-inflationary increase to JPF fees such that the other fee rates might increase by a lower percentage. For example, if JPF annual fee rates increased by £1,000 to £2,000 the other fee rates consulted on would increase by 4% rather than 7%.
3.2.13 Depending on the funds sector’s perspective on the urgency of current policy development projects and priorities, the JFSC invites comment on the option of a further increase of 1.5% across the board which would be sufficient to 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).
3.3 Questions
3.3.1 Do you agree with the proposed fee rate changes consulted on in this paper?
3.3.2 Do you have views on the notions outlined at 3.2.12 and 3.2.13.
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
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 2019 – 30 June 2020
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 £1,410 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 £1,410 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 2019 – 30 July 2020
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 |
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 £2,400
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 £1,070 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 £2,820.
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 £2,400; and
5.1.2 £2,400 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 £2,400 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 £2,400.
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 £98,940.
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 £1,070 for each pool of assets so added.
8.2 A fee of £2,820 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 £350 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 £2,400 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 |
7,630 |
|
2 – 4 |
8,550 |
|
5 – 9 |
9,450 |
|
10 – 19 |
11,370 |
|
20 or more |
13,270 |
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 - £3,960 b) in any other case - £1,560 |
|
2 – 4 |
5,090 |
|
5 – 9 |
6,570 |
|
10 – 19 |
8,760 |
|
20 – 49 |
10,950 |
|
50 – 99 |
15,310 |
|
100 – 149 |
21,880 |
|
150 – 199 |
29,150 |
|
200 or more |
39,390 |
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 schedule are effective for the period from 1 July 2019 – 30 June 2020
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 £1,190 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 £440 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 £360 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 £360 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 £180 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 £1,040 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 schedule are effective for the period from 1 July 2019 – 30 June 2020
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 £2,960.
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 |
4,940 |
|
2 – 4 |
6,570 |
|
5 – 9 |
8,050 |
|
10 – 19 |
10,230 |
|
20 – 49 |
13,130 |
|
50 – 99 |
14,580 |
|
100 – 149 |
25,550 |
|
150 – 199 |
35,010 |
|
200 or more |
46,720 |
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
date:The fees set out in this notice and the attached schedule are effective for the period from 1 July 2019 – 30 June 2020
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 £4,190.
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 £350 (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 £350, 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 |
4,210 |
|
2 – 4 |
5,560 |
|
5 – 9 |
6,800 |
|
10 – 19 |
8,660 |
|
20 – 49 |
11,130 |
|
50 – 99 |
14,840 |
|
100 – 149 |
21,640 |
|
150 – 199 |
29,680 |
|
200 or more |
39,570 |