Foundation Law amendment

By Christine Herbert

FOUNDATIONS set up in Jersey will be able to merge with other legal structures in other jurisdictions, if an amendment is approved by the States.

The proposition lodged this week will also enable a foundation set up outside the Island to continue as a Jersey foundation. Politicians are due to debate both the Draft Foundation Law and the amendment during the sitting on 21 October.

The financial services industry expect the new legislation to attract new streams of business to the Island, particularly from the Middle East and Asia where foundations are better-known and understood than the traditional trust structure. Unlike a trust, a foundation is a distinct legal entity similar to a company, although it has no shareholders. The powers of the foundation will be in the hands of a council, one of whom must be registered to conduct this type of business under the Financial Services (Jersey) Law.

Geoff Cook, chief executive of Jersey Finance (pictured), said: ‘The industry has consulted extensively, learning from the experiences of other jurisdictions and has worked closely with the regulators and legislators in the formation of the rules.

Article posted on 8th October, 2008 - 3.00pm

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