High standards of regulation and quality of governance oversight are the key drivers behind a marked rise in the number of Foundation structures being formed in Jersey as the structure marked its fifth anniversary last month, 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 version of a Foundation 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).
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.
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.
This year also sees the 30th anniversary of Jersey’s pioneering trust law, which remains a model framework for jurisdictions around the world and which continues to be the regime of choice for High Net Worth Individuals who are looking for a flexible wealth management structure that benefits from a solid body of case law and a robust disclosure framework.
Geoff Cook, CEO of Jersey Finance, commented:
“As it marks its fifth anniversary this month, the Jersey Foundation continues to prove itself to be a flexible and attractive proposition, equally suited to charitable administration as to orphan structuring and private wealth management. We have welcomed the introduction of competitor Foundations by our fellow Crown Dependencies over the past couple of years as an opportunity to test the parameters of the distinct Jersey offering and are delighted that the appeal of the Jersey Foundation has continued to rise.
“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.”