JFSC Strategic Priorities for 2026: - a timely update for horizon scanning

ON January 21 2026, Alan Ainsworth, Executive Director of Policy, Innovation and Marketing & Communications, spoke at a one-hour Ogier CPD event – his topic was:-

• JFSC Strategic priorities for 2026 - Navigating the evolving regulatory landscape

Rachel Cropper-Mawer, Global Head of Legal Regulatory at Ogier, asked Alan a series of questions and his replies touched on the following key issues:-

1. Strategic Priorities: JFSC's four key focuses for 2025 are growth, risk management, financial crime prevention, and service excellence.
2. Risk-Based Supervision: New plan prioritises data-driven, targeted oversight to cut regulatory burden for low-risk firms and improve efficiency.
3. Digital Transformation: A unified user experience across platforms aims to reduce drop-offs and significantly improve interaction reliability.
4. Digital Assets Council: Collaboration with government to shape regulatory frameworks for digital assets, balancing innovation and risk management.
5. Bank Licensing Review: Updating policies to attract diverse banks, enhancing Jersey's competitiveness and responding to market demands.
6. Cost Management: JFSC prioritises service improvement and operational efficiency over headcount reduction, keeping fee increases below inflation.

In support of these key issues, the following offers some more depth on what was said.

JFSC Strategic Priorities and Market Position

The JFSC is focusing on a refreshed strategy aligned with Jersey’s unique strengths to support sustainable economic growth.

• Alan Ainsworth outlined four strategic priorities to guide JFSC’s work through 2025: supporting growth, risk-based proportionality, combating financial crime, and delivering excellent service
• Supporting growth involves collaborating closely with government and industry to create smarter regulation that fosters economic activity beyond just financial services, which currently represents about 40% of Jersey’s economy.
• Risk-based and proportionate regulation means focusing supervisory efforts where risks are higher, reducing burdens on low-risk businesses, and using data to direct resources efficiently.
• Combatting financial crime remains critical, including emerging risks like AI-driven fraud and deepfakes, preserving Jersey’s reputation as a safe jurisdiction.
• Delivering excellent service is a new priority, aiming to improve responsiveness, digital usability, and user experience, reflecting industry feedback on clunky interactions and slow processes.
• Alan emphasised Jersey’s credibility and agility, noting the ability to quickly convene decision-makers locally as a unique asset for innovation and implementation.
• The strategic refresh responds to a pivotal moment marked by government competitiveness programs and global financial shifts
• The existing strategy was extended to 2025 but needs updating to reflect current geopolitical and technological changes.
• The goal is a focused approach that leverages Jersey’s size and strengths rather than trying to replicate larger markets like the UK.
• Alignment with government initiatives is key, with public communication planned around March alongside government announcements.

Risk-Based Supervision and Regulatory Efficiency

JFSC is transitioning to a data-driven, intelligence-led supervisory model to reduce unnecessary examinations and improve oversight focus.

• Alan described a two-year plan to implement a risk-based, data-led supervisory approach that prioritises targeted interventions over routine exams  
• This approach uses data, AI, and international intelligence to focus resources where risks are highest and reduce the frequency of supervisory visits for low-risk firms.
• The plan aligns with recent Bank of England guidance suggesting longer intervals between bank examinations, indicating broader regulatory trends.
• While the exact timeline for impact on individual firms is not fixed, the goal is to lessen compliance officers’ regulatory workload, which currently can consume up to 50% of their time (30:40).
• Alan highlighted the ambition to access necessary data without repeated requests, reducing disruption and enabling more proactive supervision.
• The risk-based approach applies across all JFSC functions, including registry inspections, ensuring consistent principles organisation-wide  
• This unified approach supports the vision of JFSC as a trusted regulator and registry that enables economic growth.
• Improvements in internal collaboration between regulatory and registry teams are underway to reduce mixed messaging and enhance consistency  
• Alan acknowledged these organisational challenges and committed to stronger leadership coordination to achieve a “one JFSC” culture.

Digital Transformation and User Experience Enhancements

JFSC is investing in digital infrastructure and user experience to simplify interactions and improve service speed.

• A key digital goal is to create a unified login and seamless portal experience across MyJFSC, MyRegistry, and the website to reduce duplication and user drop-offs  
• Current completion rates for online journeys suffer from high drop-offs; the target is to approach reliability levels like Visa or Mastercard’s “five nines” uptime, though this will be adapted for regulatory contexts.
• Initial improvements include a redesigned registry homepage launched late 2023 and ongoing enhancements driven by usage analytics  
• The JFSC will adopt Agile development with two-week sprints to roll out incremental changes quickly rather than slow, large-scale projects.
• To reduce risk, new digital services are hosted externally with vendors rather than on internal systems, allowing more flexible experimentation.
• Hiring a UX specialist from Money Supermarket reflects the priority on improving ease of use for regulated businesses and their customers  
• Alan compared Jersey’s digital capabilities unfavourably to the UK, citing Apple Wallet’s banking integration not available locally, underscoring the need to modernise.
• Better digital service is seen as a way to “oil the cogs” of Jersey’s financial services engine and increase competitiveness.

Digital Assets and Innovation Council Development

JFSC is actively shaping its approach to digital assets but remains cautious, balancing innovation with risk management.

• JFSC is collaborating with the government on an Innovation Council focused on digital assets, aiming to clarify risk appetite and regulatory frameworks for emerging products  
• This initiative stems from McKinsey recommendations and government competitiveness efforts, signalling openness to digital asset business while ensuring control.
• Alan acknowledged that Jersey operates a “light touch” digital asset regime compared to other jurisdictions like the UK and Dubai, which have more extensive rules and resources.
• There is concern about Jersey falling behind due to rapid global innovation and competitors investing heavily, for example, Dubai’s dedicated virtual asset regulator managing dozens of firms versus just over a dozen in Jersey
• The council’s mandate is still evolving, with ongoing work to define which digital asset products and regulatory overlays will best serve Jersey’s strategic goals.
• JFSC monitors international regulatory bodies such as IOSCO, FATF, and closely watches developments in the EU and UK to stay aligned and competitive  
• Engagement includes attending plenaries and assessing evolving standards for financial crime and digital asset risks.
• The approach is collaborative with the government, balancing innovation opportunities against regulatory safeguards.

Banking Policy Review and Licensing Adjustments

JFSC is reviewing its bank licensing policy to serve future market demands better and broaden banking options.

• Alan revealed plans to update bank licensing policy to reflect Jersey’s future needs, aiming to attract a broader range of banks beyond the current top 1000 global institutions 
• This review is part of responding to McKinsey’s report and market feedback to ensure the policy is fit for purpose.
• Changes require governance approval and industry consultation, but have executive backing to proceed.
• The goal is to make Jersey more accessible to diverse banking players, enhancing competitiveness and economic growth potential.

Cost Management and Operational Efficiency

JFSC aims to balance cost control with service improvements, leveraging technology rather than headcount reductions.

• Despite digital investments, JFSC does not plan to reduce headcount, focusing instead on improving service quality and operational efficiency (29:00)
• Fee increases have been kept below inflation for two consecutive years, reflecting cost discipline.
• An upcoming office move funded from reserves will support more efficient working environments.
• Alan emphasised that emerging technologies like AI are intended to help staff work better, not cut jobs.
• The priority is to deliver better value and faster responses to regulated businesses while managing costs responsibly.

Concluding JFSC Action items – what's on the horizon

In conclusion, the matters being worked on and are  on the horizon include:-

1. JFSC updated its strategy with four priorities
• Finalise and publicly release JFSC’s updated strategy with four priorities, coordinated with Government announcements in March 2026
2. JFSC risk-based, data-led supervisory framework
• Continue development of a risk-based, data-led supervisory framework and reduce the number of routine examinations across supervision and registry functions  
3. JFSC Fees
• Manage fee structures, mindful of inflation, and ensure cost efficiency while maintaining service quality  
4. Innovation Council
• Define mandate and risk appetite regarding digital assets and blockchain, working closely with government and industry stakeholders
5. JFSC digital team
• Implement foundational UX improvements across digital platforms, including new website launch and portal integration, using Agile sprints for ongoing updates; target to show visible improvements within weeks to months  
6. Banking policy team
• Conduct review and consultation on bank licensing policy changes with industry engagement and governance approval  
7. Executive leadership
• Enhance collaboration and consistency between Registry and Regulatory teams to address industry concerns about guidance misalignment  
8. JFSC clarify Schedule 2 and PTC guidelines
• Engage with the government to clarify Schedule 2 and PTC guidelines and communicate updates clearly to the industry to resolve  

Disclaimer: The notes above were taken by Mathew Beale, Comsure’s MD, and these notes represent his best efforts to record what was said during the public training event. These are personal notes, not an official transcript, and are shared for educational purposes only. If there are any mistakes or if clarification is required, please contact Mathew at mathew@comsuregroup.com so that he can update them accordingly.