Repeal of the control of borrowing framework (2025-07-11)

Summary

This is a Jersey Financial Services Commission (JFSC) related consultation (a green paper issued by the Department for the Economy) seeking views on repealing the Control of Borrowing (Jersey) Law 1947 and the Control of Borrowing (Jersey) Order 1958 (together, the COB Framework) and replacing it with a more modern, proportionate gatekeeping regime. It does not itself change the law; it sets out proposed reforms and invites comment. The consultation period has now closed and a response paper has been published.

• Repeal: Repeal the COB Framework in its entirety.
• Consequential amendments: Amend other laws that currently cross-refer to the COB Framework.
• Preserve refusal powers: Make targeted additions to product laws that currently require COBO consent, so the JFSC retains the ability to refuse registration applications on reasonable grounds.
• New FSL business class: Create a new class of financial services business under the Financial Services (Jersey) Law 1998 to give proportionate oversight to certain fund products that previously relied on COBO consent.
• Digital products oversight: Ensure ongoing oversight of certain digital products is achieved proportionately through the JFSC's existing FSL powers rather than the COB Framework.
• Retire COBO conditions: Retire ongoing post-registration conditions imposed under COBO, with any necessary conditions instead addressed explicitly and enforceably under modern regulatory laws.
• Sound Business Practice Policy review: Work with the JFSC to simplify or potentially remove the current Sound Business Practice Policy approach to registration decisions.

The proposals state that entities currently holding a COBO Consent would automatically retain good standing after repeal, with no action required on their part. As this document is a consultation whose comment period has closed, it creates no ongoing compliance obligations at this stage; any binding requirements would arise only once implementing legislation is enacted.

Applies to

entities holding a COBO Consent, registrants under the Control of Borrowing (Jersey) Order 1958, fund products previously relying on the COB Framework for consent, digital product businesses currently subject to COBO oversight, financial services businesses under the Financial Services (Jersey) Law 1998

Deadlines

• 30/09/2025: Deadline for submitting comments on the consultation (consultation is now closed)
• Thursday 28 August 2025, Tuesday 2 September 2025, Thursday 11 September 2025: Drop-in workshop public meeting dates held at the Old Magistrate's Court, 12pm to 1pm

Related documents

• This document repeals Control of Borrowing (Jersey) Law 1947
• This document repeals Control of Borrowing (Jersey) Order 1958