Foundation business outstrips other Crown Dependencies

Thursday 07 August 2014

High standards of regulation and quality of governance have led to a marked rise in the number of foundation structures being formed - according to Jersey Finance.

Figures collated by Jersey Finance show that the number of Jersey foundations established in the first six months of this year (33) is almost the same as the number formed in the whole of last year (36).

July marked the fifth anniversary of the Jersey foundation and, despite the Isle of Man having introduced its own version in 2012 - and Guernsey in 2013 - the monthly formation rate of Jersey foundations has increased in 2014 to reach its highest level since 2011 (5.5), to outstrip both that of the Isle of Man (1.3) and Guernsey (0.7).

Geoff Cook, CEO of Jersey Finance said, as it enter sits sixth year, the Jersey foundation continues to be a flexible and attractive proposition, equally suited to charitable administration as to orphan structuring and private wealth management.

“We now have clear evidence that the flexibility offered and governance required by the Jersey Foundation offers the right balance of potency and proportionality, and accords with the expectations of both individual and institutional clients. The strength of the Foundation, combined with its trust and company vehicles, means that Jersey provides a good platform that can cater for a broad range of bespoke family, philanthropic and commercial needs,” he said.

Around a third of Jersey Foundations are estimated to have a charitable or philanthropic objective, whilst the structure is finding particular favour with clients from EU countries, Switzerland, Russia, South America and the Middle East.

The figures also show that, as at June 2014, a total of 264 Jersey Foundations have been formed since their introduction in 2009, more than four times the total number of foundation structures in the other Crown Dependencies combined.