ASK MAT – Do I have to register a Jersey foundation with the Jersey Financial Services Commission (JFSC)?

ASK MAT –

• Do I have to register a Jersey foundation with the Jersey Financial Services Commission (JFSC)?

MATS REPLY –

• Thank you for a great question. It's easy to overlook essential legal and regulatory requirements. 

MATS thoughts are as follows.

• Yes, Jersey foundations get registered with the Jersey Financial Services Commission (JFSC), but the process differs from registering a company.

However:-

• Foundation incorporation applications can only be made by a ‘qualified person’ registered with the JFSC to provide foundation formation services.
• A foundation founder can instruct the qualified person to apply on the founder’s behalf.

• The foundation must have a charter and regulations, and it is subject to specific requirements and fees

The Foundations (Jersey) Law 2009 is the primary legislation governing Jersey foundations' formation, administration and dissolution.

• A Jersey foundation is a separate legal person. This means it can act and be a party to legal proceedings in its name.
• Foundations have features of both a company and a trust.
• You can create a foundation for the benefit of a person or class of persons, for a specific purpose, or both.
• The purpose can be charitable, non-charitable, or both.
• A foundation cannot directly acquire, hold, or dispose of Jersey immovable property. It cannot engage in commercial trading unless it is incidental to its objects.
• A foundation may be set up for a fixed term, for example, 20 years, or until a particular event. It would be wound up and dissolved after the event or a fixed period.

How to set up a Jersey foundation

Foundation incorporation applications can only be made by a ‘qualified person’ who is registered with the JFSC to provide foundation formation services.

However, a foundation founder can instruct the qualified person to apply on the founder’s behalf.

The JFSC guidance on incorporating a foundation walks you through each stage of the process and tells you what information you need to provide.

1. Guidance on incorporating a foundation - https://www.jerseyfsc.org/registry/register-or-make-a-change/incorporate-a-foundation/
2. Foundation forms https://www.jerseyfsc.org/registry/registry-forms/foundation-forms/

You must provide information on the proposed foundation, its activities, and the associated parties.

Consideration is given to:

• The need to protect the integrity of the island in commercial and financial matters
• The need to protect against money laundering, terrorist financing and the proliferation of weapons of mass destruction
• The best economic interests of the island

Each foundation must have a charter which confirms the following details:

• The name of the foundation
• Its objectives
• The name and address of the first council members
• Its endowment (if there is one)
• Information regarding winding up, dissolution and the term of the foundation

Regulations

Every foundation must have a set of regulations to:

• Establish a council
• Provide for the retirement, appointment, removal and remuneration of the council members and guardian
• Set out how decisions are to be made by the council
• Set out what decisions (if any) need approval from a separate person and that person’s identity

Abridged regulations

The foundation must provide us with abridged regulations which do not need to include names or any information that would identify a person.

Fees

You will need to pay fees to register a foundation in Jersey.

Foundation fees https://www.jerseyfsc.org/registry/registry-fees/foundation-fees/

READ MORE

https://www.jerseyfsc.org/registry/register-or-make-a-change/about-foundations/

OTHER Source:  

(1) About foundations — Jersey Financial Services Commission. https://www.jerseyfsc.org/registry/register-or-make-a-change/about-foundations/.

(2) Registry — Jersey Financial Services Commission. https://www.jerseyfsc.org/registry/.

(3) Jersey Foundations - Carey Olsen. https://www.careyolsen.com/insights/briefings/jersey-foundations.