Jersey Moves to Simplify its Financial Services Framework

30 Sep 2026

Jersey is taking further steps to modernise its financial services framework, with approved changes to prospectus requirements and proposed legislation to repeal the remaining Control of Borrowing requirements. Together, the reforms are designed to simplify processes and provide a more flexible foundation for the future.

The changes form part of the Government of Jersey’s Financial Services Competitiveness Programme and deliver on actions set out in its Time to Win report, launched in March 2026 as the action plan for strengthening Jersey’s long-term competitiveness as an international finance centre. They are intended to make Jersey a simpler and more consistent jurisdiction to use while maintaining appropriate regulatory oversight.

Approved changes to the prospectus requirements under the Companies (General Provisions) (Jersey) Amendment Order 2026 and Companies Law (Jersey) Amendment Order 2026 came into force on 30 September 2026.

As a result, certain requirements in the Companies (General Provisions) (Jersey) Order 2002, such as registrar consent, will now no longer apply to the circulation of prospectuses outside Jersey. This will make it easier for Jersey companies to operate internationally, reduce unnecessary administration and duplication to help create a more efficient business environment in Jersey.

Separately, the proposed changes to the Control of Borrowing (Jersey) Law 1947 and associated Order (COBO) would, subject to approval by the States Assembly, remove the remaining COBO consent requirements. This would remove COBO controls relating to the issue of shares, securities and other ownership interests by Jersey entities, as well as certain activities by non-Jersey entities raising money or having interests registered in Jersey.

The proposed Law would also introduce a more consistent approach to the incorporation and establishment of Jersey vehicles and the migration of certain foreign entities into Jersey, simplifying processes for international businesses and their advisers.

For Jersey Private Funds (JPFs), it would provide an updated statutory foundation for the existing Jersey Financial Services Commission (JFSC) approval regime. No substantive change to the JPF regime is proposed and detailed requirements would continue to be governed by the JPF Guide. The proposed Law would also provide a new statutory foundation for the approval regime applying to relevant digital asset issuers.

Minister for External Relations with responsibility for financial services, Senator Ian Gorst, said:

“The Control of Borrowing framework was created for a different time and a different economy. These proposals would replace its remaining requirements with a simpler, more modern framework, removing duplication while maintaining appropriate oversight where it is needed.

“Alongside the prospectus changes already approved, this is part of our work to make it easier for businesses to operate in Jersey and internationally and to strengthen Jersey’s position as a leading international finance centre.”

Joe Moynihan, CEO of Jersey Finance, added:

“Jersey has a long track record of evolving its financial services proposition to meet the changing needs of international businesses, investors and advisers, while maintaining the high standards for which the Island is known.

“These reforms are another important step forward. Removing outdated and duplicative requirements will help create a simpler and more consistent experience for those doing business in Jersey, while ensuring appropriate oversight remains in place.

“The proposals would also provide a modern and flexible foundation for key areas of our proposition, including Jersey Private Funds and digital assets. This will help Jersey remain responsive to the needs of international markets and provide an efficient environment in which to do business.”

Jersey Finance will share further updates with Members as the legislation progresses.

Frequently asked questions

Why is COBO being repealed?

The Control of Borrowing framework dates back to 1947 and has historically been used as a gatekeeping mechanism across a broad range of transactions.

Jersey’s regulatory framework has developed significantly since then. Some COBO requirements now overlap with modern financial services legislation or impose controls that are no longer considered necessary.

The proposed changes are intended to create a simpler, more consistent framework while retaining appropriate oversight where it is required.

Which COBO consent requirements will be removed?

Once the relevant provisions of the proposed Law are in force, the remaining COBO consent requirements will fall away. COBO consent would no longer be needed for:

  • Jersey corporate bodies issuing shares, admitting members or issuing other securities;
  • non-Jersey corporate bodies raising money through shares in Jersey, or having shares or other securities registered in Jersey;
  • Jersey limited liability companies (LLCs) issuing securities other than LLC interests, or non
  • Jersey LLCs having such securities registered in Jersey; and
  • Jersey and non-Jersey unit trusts, partnerships and LLCs raising money in Jersey through units, partnership interests or LLC interests, or having those interests registered in Jersey.

This removes the relevant COBO consent requirements. Other applicable registration, approval and regulatory requirements will continue to apply. Firms should follow the current rules until the relevant provisions come into force.

What will change when establishing Jersey companies and other vehicles?

The proposed reforms would simplify and align application processes for incorporating or establishing Jersey companies and other vehicles, and for migrating foreign companies and limited partnerships into Jersey.

The relevant laws would be amended to introduce a more consistent approach, with the Registrar required to approve an application unless doing so would not be in the public interest.

What does the proposed Law mean for Jersey Private Funds?

Jersey Private Funds (JPFs) would continue to operate under the JFSC’s approval regime. The proposed Law would replace COBO with a new statutory foundation for that regime. The Jersey Private Fund Guide, as amended from time to time, would continue to set out the detailed requirements. No substantive change to the JPF regime is proposed.

What happens to existing Jersey Private Funds?

Existing JPFs and legacy private funds would transition into the new regime, providing continuity for existing structures. Further information on the transitional arrangements will be shared as the legislation progresses.

What does the proposed Law mean for digital asset issuers?

The proposed Law would replace COBO as the statutory foundation for the approval regime applying to relevant digital asset issuers.

The detailed requirements would continue to be governed by JFSC guidance, allowing the framework to respond to developments in the market. This is a change to the statutory basis for the regime, rather than a removal of appropriate oversight.

What is changing for prospectuses?

There are two separate changes.
First, the Companies (General Provisions) (Jersey) Amendment Order 2026 and the Companies Law (Jersey) Amendment Order 2026 come into force on 30 September 2026. They simplify the rules for Jersey companies circulating prospectuses outside the Island. Certain requirements under the Companies (General Provisions) (Jersey) Order 2002, including the need for registrar consent, will no longer apply to that circulation. Requirements for prospectuses circulated in Jersey continue to apply.

Second, the proposed Financial Products and Prospectuses (Jersey) Law 202- would allow the Minister to regulate by Order the circulation of prospectuses to retail investors in Jersey. It is intended that an Order would be made when the Law comes into force to carry forward relevant arrangements currently applying under COBO, concerning prospectuses for non-Jersey vehicles and governments. The proposed framework would also provide flexibility for the regime to evolve in future.

Does the repeal of COBO mean Jersey is reducing regulatory standards?

The purpose of the proposed reforms is to remove outdated or unnecessary requirements and duplication while retaining oversight where it remains appropriate. For example, the proposed Law would provide a new statutory foundation for the approval regimes applying to JPFs and relevant digital asset issuers.

Do Member firms need to do anything now?

The two Companies Law prospectus Orders take effect on 30 September 2026. Firms whose activities may be affected should consider those changes when reviewing their prospectus processes.

The wider Financial Products and Prospectuses (Jersey) Law 202- remains subject to States Assembly approval and subsequent commencement. Firms should continue to follow requirements currently in force and look out for further information on commencement dates, transitional arrangements, updated guidance and practical changes to application processes.

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