Jersey Introduces Foundations Law
Alicia Lewis, a Senior Manager in Volaw’s Wealth Structuring department, examines the intricacies of Jersey’s new Foundations Law and the benefits it will bring to Jersey’s Finance industry.
Jersey has developed its own Foundations Law distinct from that of jurisdictions such as Panama and Liechtenstein. The Foundations (Jersey) Law comes into force on17th July 2009.
Foundations have their origins in Roman civil law, when the Roman Empire was crumbling and Christendom needed to manage its “divine assets”. During the Middle Ages, Canon Law developed the judicial concept of a structure whose aims were essentially charitable.
More recently, Foundations have evolved into versatile financial planning vehicles that provide an alternative to company and trust structures. Foundations will appeal to those seeking wealth management and estate planning solutions but are not familiar or comfortable with the trust concept, and require a distinct corporate personality over which they may exercise a high degree of control. The fact that Jersey Foundations are registered with the Jersey Financial Services Commission upon creation and their existence is therefore a matter of public record also adds a degree of transparency that is absent with trusts.
Jersey Foundations are an attractive alternative to trusts and companies, particularly to those from civil law jurisdictions, as well as those wishing to retain control over the assets and maintain privacy on such matters as administration or assets, which need not be divulged to any party – not even the beneficiaries. Foundations employ the most useful aspects of companies and trusts to create a very versatile hybrid structure that will augment Jersey’s attractiveness as a high quality international finance centre.
Additional information on Jersey's new Foundations Law can be found by pressing the dowload button or by contacting Alicia Lewis (alewis@volaw.com) or Simon Perchard (sperchard@volaw.com) of Volaw.
Article Date: 8th July 2009
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