Demand For Jersey Foundations Surges
by Jason Gorringe, Lowtax.net, London
11 August, 2014
Jersey Foundations have continued to grow in popularity since they were introduced five years ago, with almost as many Foundations registered in the first six months of this year as were registered in all of 2013. Jersey has registered 264 Foundations, more than four times the total number of Foundations in the other Crown Dependencies combined. July marked the fifth anniversary of the Jersey Foundation, while the Isle of Man and Guernsey introduced their respective foundation forms in 2012 and 2013, respectively.
Jersey has established itself as a dominant player in the foundation industry with a formation rate of 5.5 per month, outpacing both that of the Isle of Man (1.3) and Guernsey (0.7).
Between January and June this year, 33 Jersey foundations were formed – almost surpassing the 36 foundations that were formed in all of 2013. About a third of Jersey foundations are estimated to have a charitable or philanthropic objective, and the structure finds particular favor with clients from EU countries, Switzerland, Russia, South America, and the Middle East.
Geoff Cook, CEO of Jersey Finance – the promotional agency for the island's financial services industry, said: "As it marks its fifth anniversary, 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."
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