Jersey wants to replace the control of the borrowing (COBO) framework.

• ​JERSEYGOV would like your views on proposals to replace the Control of Borrowing (Jersey) Law 1947 (COBL) and the Control of Borrowing (Jersey) Order 1958 (together referred to as the COB Framework) with a modern, proportionate, and internationally aligned gatekeeping framework.
• This would empower the Jersey Financial Services Commission (JFSC) to act decisively while reducing administrative friction.

Background​​

• The COB Framework was initially implemented to safeguard economic stability and ensure oversight of capital-raising activities. It now overlaps significantly with modern regulatory tools and product laws.
• The COB Framework provides the JFSC with the power to refuse applications under product laws on specified grounds. It would be detrimental to Jersey were these powers not to be maintained, but there is a significant opportunity to streamline and clarify these powers.
• It is proposed that the ongoing conditions on registrants under COBO (COBO Conditions) are to be retired.
• Where such post-registration conditions may be necessary, these will be addressed explicitly by Jersey’s modern regulatory laws, which are designed to impose such conditions and would be transparently enforceable if breached.

​To achieve these aims, JERSEYGOV propose to:

• Repeal the COB Framework.
• Make consequential amendments to laws which cross-reference the COB Framework.
• Make targeted additions to the product laws that currently require consent under COBO (COBO. Consent) to preserve the JFSC’s ability to refuse applications for registration on reasonable grounds.
• Make regulations to establish a new class of financial services business under the Financial Services (Jersey) Law 1998 (FSL).

• This would provide for proportionate oversight of certain fund products that have historically relied on the COB Framework to demonstrate their status as having been given consent by the JFSC.
• Ensure that ongoing oversight of certain digital products is achieved proportionately via the JFSC's existing powers under the FSL.

Sound Business Practice Policy (SBPP)

• JERSEYGOV also work with the JFSC to simplify the approach to administrative decision making in respect of registrations.
• This approach is currently set out in the Sound Business Practice Policy (SBPP) on the JFSC​ , which may be streamlined or removed to support a more focused risk-based approach.
• It is intended that all entities holding a COBO Consent at the time of repeal will retain good standing, with no action required on their part.

​​Principles for reform

The overarching intent of this consultation is to achieve the proposed reforms in a way that ensures:

• A modern, proportionate, and internationally aligned gatekeeping framework;
• Authorities in Jersey can refuse an application on reasonable grounds;
• Relevant conditions are set out in the regulatory laws, with breaches subject to appropriate supervisory action through those laws; and
• All entities holding a current consent will retain good standing post-reform.

Consultation Paper: Repeal of the control of borrowing framework = CP Repeal of Control of Borrowing Framework.pdf

Public meeting dates

JERSEYGOV will hold drop-in workshops at the Old Magistrate's Court (part of the Town Hall) from 12 pm to 1 pm on:

• Thursday 28 August 2025
• Tuesday 2 September 2025
• Thursday 11 September 2025

You don't need to register to attend.

How to submit comments to the consultation

Comments should be related to the questions set out in the consultation paper.

Consultation Paper: Repeal of the control of borrowing framework = https://www.gov.je/SiteCollectionDocuments/Industry and finance/CP Repeal of Control of Borrowing Framework.pdf

Deadline for submission is 12 September 2025.​

You can submit your comments:

• By email to growthfs@gov.je with the subject line COB Framework Consultation
• In writing to:
  FAO Miguel Zaragoza
  Department for the Economy
  Union Street
  St Helier
  Jersey
  JE2 3DN

Jersey Finance ​will also be collating an industry response. These responses should be sent:

• By email to Peggy.Gielen@jerseyfinance.je
• In writing to:

Peggy Gielen
Jersey Finance Limited
4th Floor
Sir Walter Raleigh House
48-50 Esplanade
St Helier
Jersey
JE2 3QB

SOURCE

https://www.gov.je/Government/Consultations/Pages/COBORepeal.aspx