Feedback on proposals regarding sustainable finance (2025-09)

Summary

This is the JFSC's feedback paper responding to its May 2025 consultation on integrating sustainability-related risks and anti-greenwashing measures into Jersey's regulatory framework. It summarises the 20 formal responses received and sets out the Commission's final policy position and implementation timetable for registered persons subject to the Codes of Practice.

• Sustainability risk (governance and internal controls): No new Code provisions will be introduced. The JFSC considers existing Code requirements (Principle 3, requiring firms to identify, assess and manage all material risks) already cover sustainability risks proportionately. A guidance note will instead clarify expectations.
• De minimis exemption: Rejected. No size-based exemption will be introduced; proportionality will instead be addressed through guidance, applicable to firms of all sizes.
• Business integrity risk (anti-greenwashing): Code enhancements will proceed under Principle 7. Sustainability-related claims about a registered person, its products or services must be fair, clear and supported by robust evidence (changed from the proposed term credible evidence, to align with UK FCA terminology).
• Guidance and transition: A single Sustainable Finance guidance note covering both sustainability risk and business integrity risk will be published in Q1 2026, developed with industry input. Revised Code provisions on business integrity risk will follow a one-year transition period, with full implementation by Q1 2027.

The changes apply to registered persons governed by the JFSC Codes of Practice, spanning banking, fund services, investment business, insurance and trust company business sectors. No immediate amendment to Codes on sustainability risk is required, but firms should expect Code changes on anti-greenwashing claims to take effect after the transition period.

Key obligations

• Registered persons must continue to identify, assess and manage material risks, including sustainability-related risks, under existing Principle 3 of the Codes of Practice, proportionate to the nature, scale and complexity of the business
• Once the revised Codes take effect (following the one-year transition period, full implementation by Q1 2027), registered persons must ensure sustainability-related claims about themselves, their products and services are fair, clear and supported by robust evidence
• Registered persons should engage with the forthcoming Sustainable Finance guidance note (expected Q1 2026) to align their practices with JFSC's clarified expectations on sustainability risk and business integrity risk

Applies to

registered persons under the Codes of Practice, banks (deposit-taking business), trust company business, fund services business, investment business, insurance business (general insurance mediation and insurance business), money service business, collective investment fund businesses

Deadlines

• Q1 2026: JFSC will publish a Sustainable Finance guidance note covering sustainability-related risks and business integrity risks, and revised Code provisions on business integrity risk
• Q1 2027: Full implementation deadline for revised Code provisions on business integrity risk, following a one-year transition period