Jersey prepares funds sector for new regulatory regime

Jersey’s funds industry is preparing for a broad regulatory reset covering COBO reform, company law changes, AIFMD divergence and JFSC supervision. The first phase of COBO changes took effect on 13 April 2026, easing consent requirements for non-Jersey fund prospectuses aimed outside retail investors and removing approvals for non-fund Jersey unit trusts. A fuller repeal is planned through a replacement framework, with implementation currently targeted for the end of 2027.

Recent Companies Law amendments add a formal administration regime, allow capital contributions without issuing shares, simplify buybacks and redemptions, make share certificates optional and abolish the 30-shareholder rule for private companies. Governance changes also support direct voting, electronic participation and more streamlined written shareholder resolutions.

EU and UK AIFMD regimes are moving in different directions. AIFMD II has applied in the EU since 16 April 2026, while the UK replacement regime is not expected until 2028. Non-EU managers should prepare for expanded reporting and disclosure, while EU managers face tighter requirements for loan-originating and open-ended funds. Jersey remains positioned as a route to both markets, but firms will need to manage rising compliance complexity.

The JFSC is also shifting toward more agile, data driven and risk focused supervision. Its AI guidance, published in July, classifies use cases by risk and expects material deployments to be reflected in business risk assessments, supported by data protection analysis, human oversight and contingency planning.