The Jersey Foundations Law was approved last week by the UK Privy Council and will come into force in the middle of July.
Specialists say it has the potential to bring in ‘a flood’ of work for the Island’s trust firms, legal firms and the Island’s company registry.
Foundations have long been used in other parts of the world – such as Panama, and Liechtenstein – but this is the first time that they have been available to Channel Islands practitioners.
The structure is expected to be used an alternative to trusts, particularly for people from parts of the world where the concept of trusts is not well-understood. Potential customers include families wanting to preserve their private wealth, successful entrepreneurs, and also charities.
Robert Kirkby, technical director at Jersey Finance, said: ‘The approval of foundations is a hugely important development for Jersey’s finance industry. There has been extensive consultation between industry, legislator and regulator throughout the development of the Jersey foundation.’