Isle of Man Set To Introduce Foundations
Friday, November 18, 2011
The Isle of Man's Treasury Minister Eddie Teare has welcomed the announcement of
Royal Assent to new legislation
that would permit the establishment of foundations in the territory, enhancing
its position as a centre for international wealth management.
The Foundations Act provides for the establishment of foundations, which are
an alternative to trusts as vehicles for holding assets. While foundations resemble
trusts in many respects, they also have separate legal personality, like a company.
Their existence will be recorded on a public register and each must have a local
registered agent accountable to the authorities.
"The Manx Foundation will be a bespoke product that will provide our
financial services industry with an additional tool to open up new business
opportunities,” Teare explained. “The world of wealth management
is highly competitive so it is vitally important that the government keeps working
in partnership with the private sector to enhance the island’s offering
to international clients.”
John Rimmer, a partner at the law firm Appleby, welcomed the announcement that foundations would soon be added to Isle of Man financial services providers'
suite of offerings, stating: "The island needs to offer decent solutions for all
those whose custom we want to attract. Trusts form a key part of our offering,
but they are not the answer for everyone. Foundations offer greater familiarity
and comfort for individuals and families from civil law countries, as well as
interesting opportunities in commercial legal structures.”
“The Treasury have shown real commitment in bringing this offering to
the statute books in response to an initiative from the Isle of Man branch of
the Society of Trust and Estate Practitioners. The Foundations Act is another
good example of what cooperation between government and private sector can achieve.”
Annemarie Hughes, senior associate within Dougherty Quinn’s specialist
trust team, added: “Having recently returned from the STEP Asia Conference
in Singapore, where Foundations and estate planning formed a key part of that
conference, I am confident that the Isle of Man’s new sophisticated yet
flexible Foundation vehicle is ideally placed to service the numerous opportunities
and growing demand in the international market.”