In brief: The Jersey Financial Services Commission kept busy in October 2026, launching a digital assets hub, confirming a 3.0% fee rise for 2027 and warning the public about a fraudulent entity impersonating a Jersey-regulated firm. Guernsey’s regulator, meanwhile, turned its attention to artificial intelligence and sanctions compliance.
Jersey: Digital assets, LLC reforms and a fraud warning
The headline move from the JFSC in October was the launch of a dedicated digital assets hub, Channel Eye reports. The hub brings together regulatory guidance, resources and practical information to help firms identify the requirements relevant to their activities and navigate the regulatory pathways for establishing or expanding digital asset operations in Jersey, including tokenisation. For an island that has worked hard to position itself as a credible and well-regulated finance centre, this is a meaningful step: firms no longer need to piece together scattered guidance when deciding whether to set up or grow a digital asset business here.
Also notable was the JFSC’s confirmation of changes to its limited liability company guidance. Following consultation, LLCs in Jersey will now be permitted to act as trustees and undertake specified financial services activities, with restrictions that previously limited their use to financially sophisticated investors or customers removed. The revised guidance and registry arrangements took effect on 14 October.
On fees, the JFSC confirmed a 3.0% increase for 2027 rather than the 3.5% originally proposed, with the reduction attributed to industry feedback and greater certainty in the Commission’s financial planning. The 2027 fees notice will apply from 1 January 2027.
The JFSC also published feedback on its proposed replacement of Jersey’s Control of Borrowing framework through the draft Financial Products and Prospectuses Law. The proposals aim to remove duplication while retaining public-interest safeguards, introduce registration arrangements for digital asset issuers, Jersey Private Funds and certain legacy private funds, and provide powers concerning prospectuses circulated to retail investors. An implementation consultation is planned for the first quarter of 2027.
Firms and investors should take note of a fraud warning issued by the JFSC concerning an unauthorised entity impersonating the legitimate Jersey-regulated company SVF GP (Jersey) Limited. The impersonating entity was falsely claiming the company’s identity and address and holding itself out as conducting lending business. The JFSC confirmed it had no association with the genuine company or its service provider and said the entity displayed warning signs of fraud. The Commission also published separate investor-protection guidance on advance-fee investment fraud and bank impersonation scams, highlighting unexpected approaches, demands for upfront payments, pressure to act quickly and requests for security information as red flags.
AML, Basel III and the MLCO regime
October also brought a clutch of technical but consequential regulatory updates. The JFSC published feedback on changes to the reliance and Money Laundering Compliance Officer regimes, with the approach including further guidance on when an MLCO may not be necessary, more flexible risk-based reliance arrangements, and confirmation that testing is not mandatory in every case. Obtaining identity evidence within five working days will generally meet the “without delay” requirement. The remaining changes were scheduled to take effect on 31 October.
On prudential matters, the JFSC published feedback on proposed Pillar 2 and prudential reporting changes within its Basel III implementation programme. Respondents broadly supported the proposals but sought clarification on capital adequacy guidance, reporting and transition arrangements. The JFSC confirmed it would proceed broadly as consulted on, with further banking code, guidance and reporting materials to follow.
The JFSC’s third-quarter service report showed that most regulatory and registry services met or exceeded their targets. The Commission highlighted nine new unaffiliated trust company business licences granted over the preceding year, with four further applications at advanced stages.
Guernsey: AI readiness and sanctions updates
The Guernsey Financial Services Commission took a forward-looking stance in October, hosting a discussion on the foundations organisations need for effective AI adoption. The session covered data quality, systems and processes, organisational skills and culture, and robust risk management, helping firms assess their readiness to move from experimentation towards wider use. The GFSC also outlined its involvement in an AI for AML hackathon, with its contribution focusing on using technology to improve financial crime controls while maintaining regulatory responsibilities and appropriate safeguards.
On sanctions, the GFSC explained the replacement of the UK’s Global Human Rights sanctions regime with a broader regime encompassing serious violations of international humanitarian law, and its implementation in the Bailiwick. Existing designations and licences continue under the replacement regime. Businesses were reminded of their asset-freezing and reporting responsibilities, including reporting affected relationships to the Commission.
The GFSC also reminded licensees to complete their annual verification of standing data through the Online Submissions Portal by 31 October, with entity records marked unverified from 1 October pending completion of the process.
Source: Channel Eye
