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

Summary

This is a closed public consultation (Green Paper) issued by Jersey's Department for the Economy, working with the JFSC, seeking views on repealing the Control of Borrowing (Jersey) Law 1947 and the related 1958 Order (together the COB Framework) and replacing it with a modern gatekeeping regime. It does not itself change the law; it sets out proposals and invites comment, with the consultation period having run from 11 July 2025 to 30 September 2025.

• Repeal: Repeal the COB Framework (the 1947 Law and 1958 Order) entirely.
• Consequential amendments: Amend other laws that currently cross-refer to the COB Framework.
• Preserve refusal powers: Make targeted additions to product laws currently requiring 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 provide proportionate oversight of certain fund products that previously relied on COBO consent.
• Digital products: Ensure ongoing oversight of certain digital products is achieved proportionately through the JFSC's existing powers under the FSL rather than the COB Framework.
• COBO Conditions retired: Retire ongoing post-registration conditions imposed under COBO, with any necessary conditions instead addressed explicitly and enforceably under Jersey's modern regulatory laws.
• Sound Business Practice Policy: Work with the JFSC to simplify or potentially remove the current Sound Business Practice Policy approach to administrative decision-making on registrations.

The paper states that entities currently holding a COBO Consent at the time of repeal are intended to automatically retain good standing under the new framework, with no action required on their part. As a consultation document, it creates no binding legal obligations; it signals the direction of future legislative reform for funds and other registrants that currently rely on the COB Framework.

Applies to

entities holding a COBO Consent, registrants under COBO, fund products relying on the COB Framework, digital product businesses, financial services businesses under the Financial Services (Jersey) Law 1998

Deadlines

• 30/09/2025: Deadline for submitting comments on the consultation (consultation has now closed).

Related documents

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