Jersey Consults On Fee Hikes For Funds
by Jason Gorringe, Lowtax.net, London
19 April, 2016
Jersey's financial services regulator, the Jersey Financial Services Commission, has proposed a fee increase of seven percent for Jersey funds and fund services businesses for the 2016/17 year.
The proposal is contained in a consultation paper that notes the Commission's total regulatory fee income has only increased by a compound rate of less than 2.5 percent each year since 2012. The Commission's fee income has also been volatile; regulatory fee income fell between 2013 and 2014, for example.
The Commission is looking to increase the fund sector's contribution to Commission costs by some JEP727,000 (USD1.04m) in total by 2019. Other sectors will be asked for similar fee increases.
The Commission is proposing that the fee increase, while spread over time, should be front loaded. That is, the Commission would look to collect from the funds sector: JEP339,500 (USD485,000) more than 2015/16 in the 2016/17 fee period (an increase of seven percent over the 2015/16 period); JEP242,500 (USD350,000) more than 2016/17 in the second fee period; and JEP145,500 (USD210,000) more than the second fee period by 2019 (making a total increase of JEP727,000 (USD1.04m) by 2019).
The Commission has separately consulted on the way it charges and collects fees, but not their quantum. Subject to consideration of the feedback received, it is intended that any changes to the way fees are charged will commence from January 1, 2018.
Interested parties should submit their comments to the Commission or Jersey Finance by May 20, 2016.
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