We are pleased to announce that the Foundations Act 2011 received Royal Assent today and has now come into force.

The Act provides for the establishment of a foundation; a vehicle for holding assets that can also be used for the purpose of estate planning and philanthropy. It is a flexible vehicle and although it resembles a trust, has a separate legal personality, like a company.

The legislation was promoted by Treasury in conjunction with the Department of Economic Development and the private sector. It was taken through the House of Keys by Treasury Minister, Eddie Teare, who explained:

‘The Manx Foundation will be a bespoke product that will provide our financial services industry with an additional tool to open up new business opportunities. The world of wealth management is highly competitive so it is vitally important that Government keeps working in partnership with the private sector to enhance the Island’s offering to international clients.’

The Isle of Man is well placed and has the capability to provide for the needs of the growing international market. The new legislation is expected to add to the Island’s offering as a centre for international wealth management.

The new Financial Services Rule Book and Regulated Activities Order are expected on 1 January 2012.  The Winding Up and Continuance Regulations are expected to become law in December 2011.

For more information on Isle of Man Foundations and how Abacus can assist you, please contact Gillian Ralston Jordan via email on gillian.jordan@abacusiom.com or telephone +44 (0) 1624 689630.