Repeal of the control of borrowing framework

Department	Department for the Economy
Start date	11/07/2025
End date	30/09/2025
Type of consultation	Green paper
Deadline for comments	30/09/2025

About the consultation

We 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 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 originally 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.

In particular, it is proposed 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 we propose to:

repeal the COB Framework
make consequential amendments to laws which cross-refer to 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

We'll 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 in order to support a more focussed 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 are able to refuse an application on reasonable grounds
relevant conditions are clearly set out in the regulatory laws with breaches subject to appropriate supervisory action through those laws
all entities holding a current consent will retain good standing post-reform

Consultation Paper: Repeal of the control of borrowing framework

Public meeting dates

Drop-in workshops were held at the Old Magistrate's Court (part of the Town Hall) from 12pm to 1pm on:

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

How to submit comments to the consultation

This consultation has now closed.

Data protection

The information you provide will be processed in compliance with the Data Protection (Jersey) Law 2018. Find more information in the Department for the Economy Privacy Notice.

The Government of Jersey may quote or publish responses to this consultation but will not publish the name and addresses of individuals without consent. Types of publishing may include, for example, sending to other interested parties on request, sending to the Scrutiny Office, quoting in a published report, reporting in the media, publishing on the Government website, and listing on a consultation summary. Confidential responses will still be included in any summary of statistical information received and views expressed.

Under the Freedom of Information (Jersey) Law 2011, information submitted to this consultation may be released if a Freedom of Information request requires it, but no personal data may be released.

Responses to the consultation

Repeal of the COBO framework - consultation response paper