Industry update

Update on the repeal and replacement of COBO framework

The Control of Borrowing (Jersey) Law 1947 and the Control of Borrowing (Jersey) Order 1958 (together, the COBO framework) were introduced in a very different regulatory environment.

As Jersey's financial services framework has evolved, some aspects of the COBO framework now overlap with more modern legislation and regulatory processes. This can create unnecessary duplication and complexity for businesses and investors.

The proposed repeal and replacement of the COBO framework aim to create a simpler and more consistent financial services framework while maintaining appropriate safeguards and oversight.

In March 2026, we published an industry update outlining the first phase of the repeal of the COBO framework as part of Jersey's Financial Services Competitiveness Programme.

Key milestone reached in updating the COBO framework

Last week, the next important milestone was reached with the lodging of the draft Financial Products and Prospectuses (Jersey) Law (FPPL), which is scheduled for debate by the States Assembly on 10 November 2026. If adopted, the FPPL will repeal and replace the COBO framework by:

  • streamlining existing processes by removing duplication where products are already subject to regulatory oversight
  • creating a more consistent framework for financial products
  • preserving the ability to refuse a transaction where there are public interest concerns
  • providing a right of appeal to the Royal Court where consent is refuse
  • establishing a new registration regime for digital asset issuers, Jersey Private Funds and certain legacy private funds
  • giving power to the Minister by Order to regulate the circulation of prospectuses to retail investors in Jersey  
  • making consequential amendments to related legislation to support implementation

These proposals are the result of close collaboration between the Government of Jersey, industry and the JFSC and form part of wider efforts to modernise Jersey's financial services framework.

Further information on the wider programme of reforms can be found in the announcement published by the Jersey Finance.

Next steps

Now that the FPPL has been lodged and, on the working assumption that the FPPL will be adopted, we have begun the implementation programme ahead of the planned repeal and replacement of the COBO framework.

This will include a public consultation in Q1 2027 on the detailed implementation proposals, alongside ongoing engagement with industry and other stakeholders.

We will continue to provide updates, guidance and practical information to support industry as implementation progresses.

Contact us

For questions about how these changes apply to your business, please contact your Supervisor or contact our policy team.