Jersey introduced the structures in July 2009, becoming the first British Crown Dependency to do so.
According to the Jersey Financial Services Commission, around one third of the foundations are being used for philanthropic or charitable purposes, with a further third being used specifically by ultra-high-net-worth families as part of their family wealth management and dynastic planning strategies. Foundations are also being used for commercial purposes and for holding high value or luxury assets.
Geoff Cook, chief executive of Jersey Finance which represents the financial interests of the Channel Island, said: “It is encouraging that, almost four years since their introduction, Jersey Foundations have established themselves as mainstream vehicles within global wealth management strategies.
“Their long-term appeal is also proving hugely valuable as Jersey builds relationships with key markets in Asia, thanks both to their flexibility and control structures. The consistent growth both in terms of bare numbers but also in terms of the levels of funds being placed into Foundations reflects the success of Jersey’s Foundations Law and reinforces again Jersey’s position as a centre of excellence for private wealth management business.”
Jersey Finance said foundations are proving particularly popular in civil law jurisdictions, where the common-law concept of the trust is less familiar. As well as a strong uptake in continental Europe, including Switzerland and the Netherlands, there have been high levels of interest from Asia, including the Far and Middle East, with a number of Foundations being used for Shariah-compliant financing arrangements.
