LONDON, 16 JUNE 2009 – Alan Binnington, Private Client Director at RBC Wealth Management, says that Jersey’s new Foundations law, which comes into force on Friday 17 July 2009, will provide a significant new vehicle for high net worth individuals (HNWIs), particularly those with international ties.
He points out that whilst Jersey is first and foremost a trust jurisdiction, with many years of experience in the administration of trust structures, there are many countries in which the trust is an unfamiliar concept. Consequently the ability to create a more familiar vehicle such as the Foundation will be of interest to clients from areas of the world where the trust is not well understood, and will likely encourage more HNWIs to do business with Jersey.
Commenting on the detail of the new legislation, Alan Binnington said:
“Unlike a trust, which is essentially a relationship between the trustees and the beneficiaries, rather than a legal entity, the Foundation has a separate corporate personality, similar to a company, and this may be more attractive to clients who are uncomfortable with the trust concept.
“Jersey is keen to ensure that its Foundations are subject to the same regulatory regime as trusts and accordingly the new law contains a requirement that one of the members of the Council of the Foundation is a regulated person.
“In addition, whilst beneficiaries will not have any rights to enforce the council’s duties, there is a requirement that each foundation has a guardian, who will hold the council members to account.”
Commenting on the use of foundations in other jurisdictions, Alan Binnington noted:
“The new law enabling the migration of a Foundation from another jurisdiction to Jersey will be of interest to those with existing structures who wish to move their foundation to a jurisdiction which is on the OECD’s ‘white-list’.
“The new law is an example of Jersey’s commitment to being at the forefront of wealth structuring, whilst at the same time ensuring that any new structures are subject to its full regulatory regime.”
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To talk to Alan about his comments, please contact:
Anna Watson / Phillippa Cantrill
Telephone: +44 (0)20 7680 5052 / +44 (0)20 7680 5063
RBC Wealth Management
Sanam Alaghband / Beverley Weber
Telephone: +44 (0)20 7002 2013 / + 44 (0)20 7029 7685
About RBC Wealth Management
The international arm of RBC Wealth Management services over 35,000 high net worth individuals and institutions through 35 offices in the British Isles, Continental Europe, Asia, the Middle East, the Caribbean, Latin America and North America. RBC Wealth Management provides integrated and diversified international wealth management expertise and solutions, asset management and trust services to high net worth individuals and to corporate and institutional clients. Services provided by RBC Wealth Management consultants, advisors, private bankers and trust officers include trust and estate planning, tax advice, discretionary investment management and investment advisory services, structured solutions, banking, lending and global custody. For more information, please visit www.rbcwminternational.com.
RBC Wealth Management is a segment of RBC, which directly serves affluent and high net worth clients and provides asset management products and services to institutional and individual clients. The business has more than C$450 billion of assets under administration, more than C$220 billion of assets under management and more than 4,000 financial consultants, advisors, private bankers and trust officers.
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