The Government of Jersey has now released its response to the public consultation on the repeal of the Control of Borrowing Framework, which is made up of both the Control of Borrowing (Jersey) Law 1947 (COBL) and the Control of Borrowing (Jersey) Order 1958 (COBO). The feedback confirms strong industry support for modernising this long-standing system, provided that replacement mechanisms are clear and transitional guidance is in place.

Key themes from the consultation

Respondents supported moving away from the historic COB Framework, which has been criticised for creating administrative burden and regulatory duplication, particularly for companies undertaking capital-raising or restructuring activity. However, there was a consistent message that any repeal must avoid regulatory gaps. Firms want clarity on how oversight will be exercised once COBL/COBO are removed and how existing entities will transition to new arrangements.

A phased approach is therefore preferred which would allow the Jersey Financial Services Commission (JFSC) to shift regulatory functions into updated product laws whilst introducing a clearer refusal-power structure without disrupting market access or day-to-day transactions.

So what happens next?

The Government intends to continue refining the proposals and then begin work on transitional arrangements. The areas that are highlighted for further development include:

• Guidance on how existing COBO consents will be treated
• Amendments to product laws, to ensure continuity of regulatory oversight
• Staged implementation, to give firms time to adapt systems and processes

The direction remains aligned with Jersey’s wider goal of maintaining a competitive, proportionate and internationally-credible regulatory environment.

For businesses affected by the COB Framework, now is a sensible time to map where COBL/COBO currently apply and prepare for the phased changes.

Read the Government’s full response paper, here.