The Government of Gibraltar has launched a consultation on the introduction of new legislation to permit the creation of private foundations.
A foundation is an incorporated, self-owning, legal entity which, although having much in common with a trust, has a distinct legal personality, something that is more commonly associated with companies. A foundation has similar features to a trust in that it has a founder who is similar to a settlor, beneficiaries who have similar rights to those of a discretionary trust, and a foundation instrument and rules which are similar to a trust deed. Foundations are commonly used for wealth management, and residents of jurisdictions in the Middle and Far East are more familiar with foundations than with trusts, which tend not to exist in their legal systems.
The draft Bill will be based on Jersey's Foundations Law. Jersey introduced foundations in 2009, and the Isle of Man followed suit in 2012, before Guernsey enacted similar legislation in 2013.
In addition to the proposed Private Foundations Act 2015, the public consultation will also seek feedback on the Limited Liability Partnerships Act (Amendment) Regulations 2015. Responses should be submitted by November 30.
