DRAFT COLLECTIVE INVESTMENT FUNDS (CERTIFIED-FEES) (JERSEY) ORDER 2012
1 THE ISSUE AND RECOMMENDATION
1.1 This Decision Summary concerns the making of the draft Collective Investment Funds (Certified Funds - Fees) (Jersey) Order 2012 (“the Fees Order”). The Fees Order prescribes fees under the Collective Investment Funds (Jersey) Law 1988 (the CIF Law”).
1.2 It is recommended that the Minister for Economic Development signs the Decision Summary, approves and makes the Fees Order and lodges documentation au Greffe at the earliest possible opportunity.
2 BACKGROUND AND SUMMARY
2.1 The CIF Law provides the administrative framework for the operation of collective investment funds (“CIFs”) within Jersey, prohibiting unauthorised persons from being functionaries of CIFs and regulating both the functionaries and the funds themselves.
2.2 Article 8 of the Collective Investment Funds (Jersey) Law 1988 contains a requirement which prevents a company, trustee or partnership from carrying on business in Jersey as an unclassified fund unless it has been granted a certificate.
2.3 Article 8A of the Collective Investment Funds (Jersey) Law 1988 sets out the application process for a certificate and requires, at Article 8A(2)(e) that an application for a certificate be accompanied by the “prescribed fee”.
2.4 Article 8B of the Collective Investment Funds (Jersey) Law 1988 allows for conditions to be attached to certificates and sets out the grounds upon which a certificate may be refused or cancelled. Article 8B(13) allows for the prescribed fees to be paid by certificate holders at prescribed intervals and on the occurrence of prescribed events.
2.5 Article 1 of the Collective Investment Funds (Jersey) Law 1988 states that ‘prescribed’ means prescribed by an Order made by the Minister for Economic Development on the recommendation of the Jersey Financial Services Commission.
2.6 The Jersey Financial Services Commission has recommended that the Minister for Economic Development prescribes the fees as set out in the Fees Order. Under the Fees Order, fees will become payable:
2.6.1 upon an application for a grant of a certificate in relation to an unclassified fund;
2.6.2 upon the grant of a certificate;
2.6.3 annually, whilst a certificate is in force; and
2.6.4 upon an application for certain variations in the conditions of a certificate.
3 RESOURCE IMPLICATIONS
3.1 There are no financial or manpower implications arising as a result of this decision.
4 RECOMMENDATION
4.1 It is recommended that the Minister for Economic Development should sign the Decision Summary, approve and make the Fees Order at the earliest possible opportunity.
Deputy Director, Finance Industry Development