Limited Partnerships (Annual Additional Charging) (Jersey) Regulations: Lodging

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 28 September 2012:

Decision Reference: MD-E-2012-0114

Decision Summary Title :

Separate Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-;

Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-;

Incorporated Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-.

Date of Decision Summary:

18 September 2012

Decision Summary Author:

Director, Finance Industry Development

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

Written Report

Title :

Separate Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-;

Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-;

Incorporated Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-.

Date of Written Report:

18 September 2012

Written Report Author:

Director, Finance Industry Development

Written Report :

Public or Exempt?

Public

Subject: Approval of the draft Annual Additional Charge Regulations pursuant to the Incorporated Limited Partnerships (Jersey) Law 2011, Separate Limited Partnerships (Jersey) Law 2011 and Limited Partnerships (Jersey) Law 1994.

Decision(s):

The Minister for Economic Development approved the following draft Regulations and reports for lodging:

i) Incorporated Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-.

ii) Separate Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-;

iii) Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-;

The Minister further directed that the documents be lodged au Greffe for debate by the States at the earliest opportunity.

Reason(s) for Decision:

Article 26 of the Incorporated Limited Partnerships (Jersey) Law 2011, Article 33 of the Separate Limited Partnerships (Jersey) Law 2011 and Article 30A of the Limited Partnerships (Jersey) Law 1994 each respectively permit the States (through Regulation) to require limited partnerships established under these three laws to pay an ‘annual additional amount’, being a charge additional to the annual administration fee (currently £35) published by the Jersey Financial Services Commission.

In October 2011, the Jersey Financial Services Commission consulted on the level of annual fees payable by the three different types of limited partnership (Consultation No 5 2011). The level of the annual additional amount being proposed across these draft Regulations (namely, £115) is in line with the amounts outlined in that consultation, provide for parity with similar fees paid by Jersey companies and foundations, and is lower than the comparator fees payable in many of Jersey’s competitor jurisdictions.

Resource Implications:

There are no manpower implications. The financial implications of these Regulations will be to raise an additional £115 per ILP/SLP/LP as revenue to the Treasurer of the States.

Action required:

The documents to be lodged au Greffe for debate by the States at the earliest opportunity.

Signature:

Position:

Minister for Economic Development

Date Signed:

Date of Decision (If different from Date Signed):

Limited Partnerships (Annual Additional Charging) (Jersey) Regulations: Lodging

MINISTER FOR ECONOMIC DEVELOPMENT

i) Incorporated Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-

ii) Separate Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-

iii) Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-

1. ISSUE AND RECOMMENDATION

1.1. This package of draft legislation relates to the fixing of an annual additional charge relating to Incorporated Limited Partnerships (“ILPs”), Separate Limited Partnerships (“SLPs”) and Limited Partnerships (“LPs”).

1.2. Since the passing of the Limited Partnerships (Jersey) Law 1994 (“the LP Law”), Jersey limited partnerships have proved increasingly popular, particularly as collective investment vehicles. The Incorporated Limited Partnerships (Jersey) Law 2011 (“the ILP Law”) and the Separate Limited Partnerships (Jersey) Law 2011 (“the SLP Law”) introduced two further types of limited partnership differentiated by their legal ‘personalities’.

1.2 Each of these product laws allows for an annual administration fee which is published and collected the Jersey Financial Services Commission (“the Commission”). In addition, Article 26 of the ILP Law, Article 33 of the SLP Law and Article 30A of the LP Law provide for payment of an annual additional amount determined by the States through Regulations. This annual additional amount is collected by the Commission and paid to the Treasurer of the States.

1.3 It is proposed that the States pass Regulations providing for the annual additional amount for LPs, ILPs or SLPs to be set at £115 for payment in 2013. An annual additional amount at this level would set the total annual charge for LPs, ILPs and SLPs at the same level as for companies and foundations in Jersey (£150).

1.4 In order for the Commission to be able to collect the annual additional amount for 2013, in addition to the annual administration fee, regulations now need to be enacted.

1.5 It is recommended that the Minister approve the following draft regulations which introduce an annual additional amount for ILPs, SLPs and LPs respectively, payable from January 2013. It is further recommended that the Minister direct that the following documents be lodged au Greffe for debate by the States at the earliest opportunity:

i) Incorporated Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-

ii) Separate Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-

iii) Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-

BACKGROUND

2.1 The ILP Law and the SLP Law were registered with the Royal Court on 1 April 2011. The level of fees were consulted on during March 2011 on the basis that incorporation fees for ILP’s and SLP’s should track, where similarities exist, those currently set for Jersey LP’s. Incorporation fees for SLP’s and ILP’s were published by the Commission on 20 April 2011 and 26 May 2011 respectively. The consultation made it clear that any annual administration fee would be consulted upon later in the year.

2.2 On 10 October 2011 the Commission issued a consultation paper on the annual administration fee for ILPs, SLPs and LPs. (https://www.jerseyfsc.org/pdf/Consultation_Paper_No_5_2011_ILP_SLP_LP_Annual_Administration_Fees.pdf) in accordance with Article 8(3) of the Financial Services Commission (Jersey) Law 1998 (the “Commission Law”), as amended, under which the Commission “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”.

In addition, Article 15(3) of the Commission Law, as amended, requires that before the Commission may introduce and publish any fee “...the 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;

(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”.

The Commission considers that this consultation paper can be taken to constitute such a report as required by the Commission Law.

2.3 The consultation paper further indicated that the States would look to set the additional annual charge at £115. This would set the total annual fee for ILP’s, SLP’s and LP’s at £150, making the fee the same as for companies and foundations in Jersey.

2.3 Responses were received from Industry through Jersey Finance on 15 November 2011. In considering the response from Industry it was noted that the proposed additional fee of £115 is deemed to be lower than that charged in many comparable jurisdictions such as Guernsey, the Cayman Islands and the British Virgin Islands. (Appendix A)

2.4 It is therefore recommended that a fee of £115 be introduced from January 2013 in respect of an additional annual administration fee for ILP’s, SLP’s and LP’s. In accordance with this recommendation, the Economic Development Department submitted Law Drafting Instructions to the Law Draftsman. As the fee relates to three legal structures created under three separate Laws, three sets of Regulations are proposed:

i) Incorporated Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-.

ii) Separate Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-;

iii) Limited Partnerships (Annual Additional Charge) (Jersey) Regulations 201-;

3. FINANCIAL AND MANPOWER IMPLICATIONS

3.1 There are no manpower implications. The financial implications of these Regulations will be to raise an additional £115 per ILP/SLP/LP as revenue to the Treasurer of the States.

4 RECOMMENDATION

4.1 It is recommended that the Minister approve the three draft regulations and direct that the documents be lodged au Greffe for debate by the States at the earliest opportunity.

Director, Finance Industry Development

Economic Development Department

18 September 2012

Appendix A – table taken from JFSC Consultation No 5 2011

Comparison of fees for LP’s in comparable jurisdictions

Jurisdiction	Limited Partnership
Jurisdiction	Registration Fee	Annual Fee
Guernsey	£350	£500
Cayman	£653*	£365*
Isle of Man	£220	£85
Malta	£184- £1,662^	n/a
BVI	£311**	£311**
Singapore	£24*	£10*
Ireland	£2*	n/a
Hong Kong	£27*	£36*

This information was obtained from the relevant company registry websites.

* Currency converted in March 2011

**Dependent on authorised capital or total contributions