Jersey in Focus

Peggy Gielen: Hello, and welcome to another episode of Jersey in Focus, our podcast for Jersey Finance Members where we look at the regulatory, legislative, and wider developments shaping our finance industry.

I am Peggy Gielen, Senior legal and technical manager at Jersey Finance, and I am joined today by my colleague, Karolina Pilcher, our senior strategy and research manager

It has been a busy few months since our last episode in March when the government launched its Time to Win programme. And today, we will look at what’s changed, what is coming next and what it all means for our Members.

Karolina, lovely to have you here.

Karolina Pilcher: Hello, Peggy. Thank you. And yes, lovely to be chatting to you again.

Peggy Gielen: Let’s start with the Digital Assets Innovation Council. What is Jersey hoping to achieve through the council?

[01:06] Karolina Pilcher: Yeah, sure. So the council is really about bringing the right people together to help us, Jersey, make the most of the opportunities within the digital asset space, and essentially grow the market, attract new business.

It was set up through the financial services competitiveness programme. It brings together government, the regulator, Jersey Finance, Digital Jersey, and obviously, our industry as well. And I think having everyone around the same table really does help us work out where the opportunities are, and therefore what we need to do to support them.

Now, at the moment, some of that is about building skills on the island. It’s also about making it easier for businesses to understand what they can or cannot do, what support is available, and also who they can speak to. And of course, we need to tell that story then internationally, and this is where we come in, we’re helping make that information clearer and easier to find online. That’s number one.

And we’ve also put forward some proposals for a more coordinated approach, to promoting Jersey’s digital assets offering overseas. So ultimately, we want all those efforts to come together so that firms, can see opportunities in Jersey, and, they can find it easier to do business here.

[02:29] Peggy Gielen: Oh, great. Yes. Now, another interesting initiative is the Investment Gateway or the concierge service. How are we looking to make it easier for businesses to establish a presence in Jersey, Karolina? And really, what are we offering in practice?

Karolina Pilcher: Sure. So at the moment, obviously it links with the previous, response, around Digital Assets Innovation Council, and the fact that we are trying to make it easier for businesses to establish here and make and do business in Jersey.

And then the Investment Gateway or concierge service as it’s called, yet again, it’s another recommendation from the financial services competitiveness programme that, we at Jersey Finance are taking forward. So the idea is to make it easier for financial and related professional services businesses to establish a presence in Jersey, and I think it’s important to distinguish that it’s, financial services related.

[03:24] There is obviously a lot of experience, expertise, sorry, and support here. But, I suppose if you’re new to the Island, knowing where to start and who to speak to can be a challenge, and it’s not always easy to figure out.

So the gateway would provide that clear first point of contact and someone to help coordinate the journey, We would take time to understand, plans, explain the next steps, connect them, with the right people, and I suppose navigate the journey and keep things moving and making sure they all progress in line with, with timelines. So for example, if I, use a practical example, and let’s use a digital assets business for the sake of it.

[04:06] Digital assets, business might need to understand the regulatory requirements. They may want to or need to find premises. They may need to look at relocating key staff. Now, that means, dealing with several different organizations to get, make this happen.

So our role would be to help them understand how those steps fit together, coordinate introductions, and just stay in touch and help things moving. We want businesses ultimately to spend less time trying to work out who to go to for help and spend more time getting established in Jersey.

But alongside, helping businesses navigate the process, there is also a lot of work underway to improve the process itself. So now, Peggy, we’ve heard quite a lot about COBO reform. Where have we got to on this, and, what will it actually mean for the industry?

[05:00] Peggy Gielen: it’s impressive, Karolina. We’ve made some really good progress. So COBO dates back to 1947, I believe, and some of its requirements have become unnecessarily complex or duplicative.

And so a number of consent requirements have already been removed- including changes to the prospectus requirements that came into effect in September And the next major step is the proposed Financial Products and Prospectuses law, which is due to be debated in November. And then if approved, it would replace the remaining COBO framework with a more modern and proportionate regime.

And so for our Members, the key benefit really is fewer unnecessary consents, less duplication, a simpler process for establishing and operating Jersey structures.

[05:50] Karolina Pilcher: Which I’m sure they’re all going to be pleased about. Again, we’ve seen some positive changes for Jersey LLCs. so would you mind letting our listeners know what’s new there?

Peggy Gielen: Yes. And actually, these came into effect on 14 October, so they’re already available to industry. And the JFSC has relaxed its guidance to allow LLCs to be used for a wider range of regulated activities, including fund services business, investment business, and trust company business.

And it’s also removed the previous restriction limiting their use to financially sophisticated investors or customers.

Now, importantly, there’s now greater flexibility to use LLCs within Jersey private fund structures, although this does not yet extend to collective investment funds.

It’s a really useful development that gives advisors more structuring options and, of course, this is particularly for clients familiar with LLCs, maybe in the US, as well.

[06:57] Karolina Pilcher: Just turning to funds, more generally, what are we looking to achieve through the simplification work that I know is also ongoing?

Peggy Gielen: Yes. So the aim here is to make sure our funds framework continues to meet the needs of international managers and investors. And one area we’re looking at is whether our minimum investment thresholds and investor eligibility criteria remain appropriate across the framework.

And that’s of course, particularly given the growing interest in making private markets accessible to sophisticated retail investors.

Now we’re also considering where existing requirements could be simplified, but of course, all of that, Karolina, without compromising investor protection.

And ultimately, it’s all about making our fund products more flexible, more competitive, and maintaining the standards Jersey is known for.

[07:52] Karolina Pilcher: Absolutely. that makes sense. And I suppose again, there’ve been some changing, changes to the licensing policy for banks. So could you tell us a little bit more about it?

Peggy Gielen: Yes. So the JFSC published its revised bank licensing policy in September, and there are two particularly important changes. First, it’s removed the requirement for applicant banking groups to be among the world’s top 1,000 banks by tier one capital.

And so that means, Karolina, that otherwise suitable banks are no longer automatically excluded simply because of their size.

Now second, and that’s exciting, there’s now a clearer framework for startup banks, including the possibility of a mobilisation phase to demonstrate that their systems and controls are ready.

And so, these changes could open the door to a wider range of specialist banking businesses while maintaining appropriate prudential safeguards, of course.

[08:52] Karolina Pilcher: Yes. So yet again, just like with funds, making it simpler and easier for businesses to do the business here, but without compromising, obviously, on our regulatory standards. so that’s fantastic.

Now, Peggy, I’m sorry, I know I’m asking you a lot of questions, but there’ve been a lot of developments, a lot of interesting developments, most recently in the UK as well. Some of these developments could create opportunities for Jersey.

Can you explain a little bit more about it, please?

[09:22] Peggy Gielen: Yes. This was highlighted at a recent Jersey Funds Association masterclass. And you will know, Karolina, the UK is reviewing its alternative investment fund managers regime.

And so the proposals there are to create a more proportionate regulatory framework. But one aspect worth watching is the definition of alternative investment fund and how that is expressed in legislation there. And we think that’s important because there might be a need to reclassify these structures.

[09:57] And of course, whether something is an AIF or not will determine which regulatory requirements apply.

And whilst the UK isn’t intentionally intending to change the overall regulatory parameter, this new definition may create some opportunities for Jersey structures, where some managers in the UK could be encouraged to review their structures and consider a Jersey arrangement, potentially. Especially given our expertise in private capital. It’s an opportunity we need to keep a close eye on.

[10:31] Karolina Pilcher: Yes, absolutely. Fantastic. And just finally, I will give you a break in a minute. There’s one project you’ve been closely involved with, which is introducing compartments into Jersey LPs.

Would you mind talking a little bit about what it means in practice?

[10:47] Peggy Gielen: Oh, yes. This is a really valuable addition to our private capital offering.

So the idea here, Karolina, is that instead of establishing multiple limited partnerships or contractual side pockets for different investments, a manager could now establish one umbrella partnership with separate compartments.

And each compartment would have its own assets and liabilities, and that would be protected by statutory segregation.

Now, there are some interesting applications here, particularly for deal-by-deal private equity investments, co-investments and carried interest arrangements. And it will provide greater flexibility, really, and potentially reduce the costs and administrative complexity of maintaining multiple structures.

So we’re now working with the working group through the legislative detail – and that includes looking at creditor protection, insolvency matters, etcetera. But the important point is that we’re responding to a genuine commercial need and we are developing a product that could strengthen Jersey’s competitiveness

Karolina Pilcher: Fantastic news all the way.

Peggy Gielen: Yes. Now let’s move away from, the legislation, Karolina. We’re also refreshing our global value chains research. Could you tell us a little bit more about how important that is for industry?

[12:12] Karolina Pilcher: Sure, of course.

Yes, indeed, it’s very exciting. We have commissioned, CEBR again to update their 2021 study, this time using 2025 data.

So really, why this is important, because it’s about understanding Jersey’s role (the role it plays) in the global economy, and having more up-to-date, figures to explain that, right?

Now, this research will look at the capital that flows through the island, where it goes, and, how it then supports jobs, wages, and economic activity around the world.

That gives us obviously hugely, valuable  evidence, for our conversations with government, with media, for promoting Jersey internationally, and for exploring opportunities, in different markets as well.

So at the moment, we are in the sort of survey stage, if you like. We’re asking our Members to contribute data. So my plea is: Members, pl- please, do take part in the survey.

We know you’re very busy, and pulling this information together does take time. We acknowledge that. But it is your input that really makes this research, valuable.

And the more firms naturally take part, the stronger the picture that we can build of Jersey’s contribution is. And also, that helps us then represent the industry better and demonstrates the impact of the work that they do.

[13:36] Peggy Gielen: Now, finally, Karolina, we’re also exploring oppo- opportunities in defence and space, and these are, of course, two sectors attracting increasing interest from private capital as well.

So we are organising a defence roundtable on 20 November to explore where Jersey’s strengths in fund structuring and other professional services could support the big investment into the defence sector. And that will be informed by a position paper.

But Karolina, perhaps you could tell us a little bit more about the work we’re doing on space and how these discussions fit into our wider approach to identifying new market opportunities?

[14:19] Karolina Pilcher: Yeah, sure. Of course. Starting with the approach, is, sometimes we have Members that come to us with an idea that they think we may wish to explore. Sometimes it’s something that we find through our membership of different international bodies, or indeed, through our standard research work that we do.

But I suppose what that involves is looking at where Jersey’s strengths are, where can they be useful in a particular opportunity or new market, and then testing those ideas with the industry before taking them further, right?

And that’s exactly what happened with space. We’ve been approached by Members to maybe have a little bit more discussions about it.

We are exploring how Jersey could help connect private capital and, with businesses in the space economy. So we held a round table earlier this month, on 14 October (2026) with Members, and the response was very positive. Certainly not something I thought I would be doing in my day job -talking about space and finance!

[15:21] But, it was a very interesting conversation. People could see opportunities to apply Jersey’s strengths, in finance, governance, professional services, and so on.

But obviously, there’s still a need to understand more about the markets, the expertise that we would need to have here, and also, the roles of government and the regulator.

Then another thing that came out of the discussion was that overlap between space and defence, which you’ve just, referenced in your question.

So we are considering whether these, it would make sense for these two to be looked at together, particularly in our conversations with government and the JFSC.

So for now, I suppose we are gathering examples of how Jersey firms are already involved in the space economy. So again, another plea from me, sorry. If anyone listening has experience or examples to share with us, we would absolutely love to hear from you because it will really help us understand where the commercial opportunities might be, whether there is interest among our Members, and I suppose, what practical next steps could look like.

[16:30] Peggy Gielen: Yes. Now, Karolina, I think that gives everyone a good sense of just how much has been happening over the past few months. And what is encouraging is that we’re seeing tangible progress on the Time to Win programme, alongside work to develop new products and identify some new future opportunities.

And I would really encourage all our Members to get involved, whether that’s contributing to a working group, responding to a consultation, or importantly, sharing market insights.

So to stay informed, please sign up to our weekly Industry Insight newsletter through the Jersey Finance website.

Karolina, thank you so much for joining me, and thank you to everyone for listening.

We look forward to bringing you more updates in the new year.

Karolina Pilcher: Thank you so much for having me.