Guernsey foundation law 'a welcome boost'

Related Stories

The introduction of Guernsey's foundation law on 7 January will be a "welcome boost" for the island's financial services industry.

Commerce and Employment Minister Kevin Stewart said it would offer the industry "an edge in an increasingly competitive global environment".

It follows the introduction of similar legislation in Jersey in 2009 and the Isle of Man in 2011.

The department has said it could create an extra £100,000 a year in revenue.

Foundations are similar to trusts, but are based on civil law.

Reputational damage

Trusts are not used in many civil law jurisdictions, such as the emerging markets in continental Europe, South America and the Far East.

The department has said the lack of knowledge of trusts was a barrier for Guernsey's financial services sector in developing new business.

It said foundations are well established in such jurisdictions and there is a large international market for them with more than 200,000 in the Netherlands.

The department conducted three years of research into possible negative effects on the island's reputation based on their introduction.

It decided to restrict the creation of foundations to those licensed by the Guernsey Financial Services Commission to ensure they comply with all the necessary regulations.

The law was approved by the Privy Council on 12 December after being passed by the States in July.

More on This Story

Related Stories

From other news sites

The BBC is not responsible for the content of external Internet sites

BBC Guernsey


Guernsey Airport

8 °C 8 °C

Features & Analysis

Elsewhere on the BBC

  • Older ladyAge of happiness

    A Russian photographer documents inspirational seniors who are refusing to grow old


  • A computer generated model of a lift shaftClick Watch

    The future of elevator technology - lifts that can climb up to 1km in the air and even travel sideways

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.