Friday, 26 April 2013

Jersey Foundations proving popular with clients from civil law jurisdictions


In the summer of 2009 Jersey introduced a new law, which enabled the establishment in the Island of Foundations for the first time.  Since that date, 200 of the structures have been registered in the Island – not a huge number, but a respectable performance given the current financial gloom.  

So what are they being used for?

Interestingly, according to Jersey Finance, around one third of the Foundations formed are being used for philanthropic or charitable purposes, with a further third being used specifically by ultra-high-net-worth families as part of their family wealth management and dynastic planning strategies. The remainder are being used for commercial purposes and for holding high value or luxury assets.

Jersey Foundations are apparently proving particularly popular in civil law jurisdictions, where the common-law concept of the trust is less familiar. As well as a strong uptake in continental Europe, including Switzerland and the Netherlands, there have been high levels of interest from Asia, including the Far and Middle East, with a number of Foundations being used for Sharia’h-compliant financing arrangements.


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