HM Government of Gibraltar Approves Bill Enabling the
Establishment of Private Foundations
Gibraltar continues to develop and diversify its services with
the creation of the 'Private Foundation Act 2017' on
Thursday 6 April.
The approval of this bill demonstrates the Government's
desire to continuously develop its financial services, tying in
with legislation for Limited Liability Partnerships, Private Trust
Companies and, of course, the redrafted Companies Act.
The establishment of the Gibraltar Private Foundation Act brings
to the sector a vehicle which is often preferred by civil law based
clients over the often utilised Anglo-Saxon Trust.
A Private Foundation provides a fiduciary structure for the
orderly transfer and disposition of assets to beneficiaries upon
the death of the Founder, who directs the administration of assets
through the Foundation's regulations.
These regulations may be established so that they have effect
from the date of their constitution or after the death of the
The Act also allows for the re-domiciliation of a Foundation.
This is effectively the moving of a foundation from its current
registry to Gibraltar, or away, and is only possible where the
current Registry also permits for re-domiciliation.
Re-domiciliation has proven to be useful in the past, more so
with companies, due to an unfavourable change in any one given
jurisdiction or the Founder's personal situation, or simply a
desire for a more cost-effective jurisdiction. Re-domiciliation is
often preferred to the transferring of assets, as transferring
assets could crystallise an undesirable tax liability.
We would expect the registration process of a Private Interest
Foundation at Companies House to take approximately 5 to 8 working
days after all necessary data and documents are received.
Now that the United Kingdom has served notice to leave the European Union under Article 50 of the Lisbon Treaty, managers of offshore funds have a clearer timetable for when Brexit will happen, with the UK scheduled to leave the EU in March 2019.
The EU has responded to the era of Big Data and mobile technology with new legislation that will affect anyone, anywhere, who trades in or shares data within the EU.
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