The Privy Council has approved an order allowing Foundations to be set up in Jersey. At a meeting held this week in London, an order was made approving the Foundations (Jersey) Law 2009.
Foundations are commonly used for wealth management, and residents of jurisdictions like the Middle and Far East are more familiar with foundations than with trusts, which do not exist in their legal systems.
Economic Development Minister Alan Mclean has welcomed the Privy Council’s decision: “More than ever, in these difficult times, we need to do what we can to support and diversify the island’s Finance Industry. I am pleased that Jersey is the first of the Crown Dependencies to bring in Foundations, and we hope this kind of innovation will help to protect and develop the industry that pays for more than half of Jersey’s essential services.
Earlier this month the Economic Development Minister lodged Regulations with the States which will allow foundations to move to Jersey from other countries. These regulations are due to be debated by the Assembly on July 14.
For further information please contact Senator Alan Maclean, Minister for Economic Development, on 07797 719202
Notes to editors:
The counsellors present at the Privy Council meeting were:
The Rt Hon Baroness Royall of Blaisdon (Acting Lord President)
The Rt Hon Alan Johnson MP
The Rt Hon John Denham MP
The Rt Hon Andy Burnham MP
The Rt Hon Yvette Cooper MP
The Rt Hon Peter Hain MP
The Rt Hon Bob Ainsworth MP
What is a foundation?
A foundation will be an incorporated legal entity, with many of the features of companies and trusts. It will be run by a foundation council, similar to a company’s board of directors. The foundation council will be required to have at least one member who is a Jersey financial professional regulated by the Jersey Financial Services Commission.
The foundation council will be supervised by an independent guardian, who will receive information about the foundation’s activities and will be able to hold the council to account, if necessary by applying to court.
The foundation will hold assets in its own name and will use these assets in accordance with its constitutional documents, e.g to benefit specified persons. These constitutional documents will be a public charter, and a private set of regulations. The charter will include information regarding the founder. Private matters e.g. regarding beneficiaries, will be covered in the regulations.