On 17 March 2015, the Foundations (Amendment of Law) (Jersey) Regulations 2015 (the "2015 Regulations") came into force, amending the Foundations (Jersey) Law 2009 (the "Law").
The two main changes to the Law are:
Under Article 36 of the Law, a Jersey foundation must keep, at its business address, records sufficient to show and explain its transactions, and records that disclose with reasonable accuracy its financial position.
Under the 2015 Regulations, each councillor must take reasonable steps to ensure that the foundation's records are prepared and kept properly and accurately. The records must contain entries of all sums of money received and expended by the foundation, the matters in respect of which the receipt and expenditure takes place and a record of the assets and liabilities of the foundation, including shares, interests and units held by the foundation.
Every councillor is entitled to inspect the records required upon giving 2 working days' notice to the qualified member, and the records must usually be kept for 10 years.
A criminal offence may be committed under the 2015 Regulations where these obligations are not met.
Foundations can be a useful vehicle particularly for wealth management and succession planning. Jordans is happy to assist with the registration and administration of foundations both in Jersey and Seychelles. For more information please contact Jason Reader.
The information provided in this article is for general information purposes only. The information is not intended to be comprehensive or to include advice on which you may rely. You should always consult a suitably qualified professional on any specific matter.
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