Knowledge

Jersey has begun the process of fully repealing the Control of Borrowing (Jersey) Law 1947 and the Control of Borrowing Order 1958 ("COBO"), with a complete repeal planned for 2027. In their place, a modernised regulatory framework will be introduced to streamline capital raising, structuring activity, and fund formation.  This has been welcomed by fund managers, investors and banks in Jersey and in our global markets.

The Control of Borrowing (Jersey) Amendment Order 2026, coming into force on 13 April 2026, marks the first step in this transition. Below is an overview of the initial changes and their expected impact.

Key changes introduced by the 2026 Amendment Order

Removal of certain consent requirements

• Consent will no longer be required to register foreign government securities (i.e., where the issuing government is not Jersey, the UK or Guernsey).
• Unit trusts that are not investment funds will no longer require COBO consent to:
• raise money in Jersey;
• issue units governed by Jersey law; or
• maintain a Jersey register.
• Non domiciled non fund entities will no longer require consent to raise money in Jersey or hold a Jersey register.

Relaxation for offer circulation

A COBO consent will no longer be required (unless the offer is made to retail investors) for circulating offers in Jersey of:

• foreign companies;
• unit trusts;
• limited partnerships;
• limited liability partnerships; and
• limited liability companies.

Changes for regulated schemes

• Consent requirements for professional investor regulated schemes and special purpose regulated schemes will be removed through amendments to:
• the Financial Services (Investment Business (Restricted Investment Business – Exemption)) (Jersey) Order 2001; and
• the Financial Services (Investment Business (Special Purpose Investment Business – Exemption)) (Jersey) Order 2001.
• Consent under Article 2 of the Collective Investment Funds (Restriction of Scope) Order 2000 will no longer be required for collective investment funds.

Impact on existing COBO consents

From 13 April 2026, any COBO consent previously granted to a unit trust or a non domiciled non fund entity for an activity that no longer requires consent will automatically cease to have effect.
This will not affect the validity of any prior actions taken in reliance on those consents.

Practical implications of the 2026 changes

This first phase of COBO reform will:

• shorten product launch timelines and accelerate transactions;
• enable quicker establishment of the ever-popular Jersey property unit trusts, particularly benefitting real estate and transactional structures;
• reduce filing requirements and touchpoints with the Jersey Financial Services Commission;
• decrease regulatory burdens for non fund structures and non domiciled non fund entities; and
• simplify the use of exemptions for professional investor and special purpose regulated schemes by removing the additional COBO consent step.

Looking ahead

The 2026 amendments signal the start of a broader overhaul that will culminate in the full repeal of COBO in 2027. The changes taking effect on 13 April 2026 offer an early indication of the efficiencies and competitive advantages that the new regime will bring to Jersey's corporate structuring, asset holding and fund adjacent markets.

If you would like advice on how the Control of Borrowing (Jersey) Amendment Order 2026 may affect your existing and new structures or forthcoming transactions, Bedell Cristin is here to assist.