Jersey Approves Foundations Law

by Robert Lee, Tax-News.com, London

12 June 2009

The UK's 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.