Isle of Man announces Foundations Act

The Isle of Man has received the Royal seal of approval for its Foundations Act. This latest piece of legislation adds to the Island’s offering as a centre for international wealth management, and puts it ahead of other centres who have still to usher in its Foundations law.

The new Act provides for the establishment of Manx-based foundations, which are an alternative to trusts as vehicles for holding assets. Foundations will be recorded on a public register and each must have a local registered agent accountable to the authorities. The legislation, which was promoted by Treasury in conjunction with the Department of Economic Development and the private sector, was taken through the House of Keys by Treasury Minister, Eddie Teare MHK.

The new Act has been welcomed by private sector representatives. John Rimmer, a partner at the law firm Appleby, comments, ‘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.’
 
Annemarie Hughes, senior associate within Dougherty Quinn’s specialist trust team, adds, ‘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.’

www.gov.im/ded/