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Jersey Finance Trust: Appointment of Enforcer

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A decision made 1 April 2011:

Decision Reference:   MD-E-2011-0052

Decision Summary Title :

Appointment as Enforcer for Jersey Finance Trust

Date of Decision Summary:

30 March 2011

Decision Summary Author:

Assistant, Finance Industry Development

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

n/a

 

Written Report

Title :

Appointment as Enforcer for Jersey Finance Trust

Date of Written Report:

30 March 2011

Written Report Author:

Assistant, Finance Industry Development

Written Report :

Public or Exempt?

Public

 

Subject:

 

Accepting the ex officio appointment as Enforcer of the Jersey Finance Trust.

 

Decision(s):

 

The Minister accepted the appointment as Enforcer of the Jersey Finance Trust.

 

Reason(s) for Decision:

 

Jersey Finance Limited (“JFL”) is a non-profit making organisation charged with representing and promoting Jersey’s finance industry inside and outside the Island as well as providing technical expertise to assist Government in developing new legislation.

 

The shares in JFL are owned by a non-charitable purpose trust (“the JFL Trust”) known as The Jersey Finance Trust constituted under a Declaration of Trust dated 21 March 2001.

 

Pursuant to Article 12 of the Trusts (Jersey) Law 1984, the validity of a non-charitable purpose trust is dependent upon provision being made for the appointment of an enforcer in relation to the non-charitable purposes.  The JFL Trust contains such provisions and identifies a panel with the power to remove and appoint enforcers.

 

The panel has invited the Minister for Economic Development to accept an ex officio appointment as enforcer to the JFL Trust.  The Minister has accepted that invitation.  The panel has proposed the President of the Law Society as a second enforcer.

 

Resource Implications:

 

There are no manpower implications for the States.

 

Action required:

 

Execution by the Minister of the Instrument of Removal and Appointment of Enforcers in the Trusts of the Jersey Finance Trust.

 

Signature:  Senator A.J.H.Maclean

 

 

Position:

 

Minister for Economic Development

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

Jersey Finance Trust: Appointment of Enforcer

MINISTER FOR ECONOMIC DEVELOPMENT

 

 

APPOINTMENT OF THE MINISTER FOR ECONOMIC DEVELOPMENT AS ENFORCER IN THE TRUSTS OF JERSEY FINANCE TRUST

 

 

  1. THE ISSUE AND RECOMMENDATION
    1.               Jersey Finance Limited (“JFL”) is a non-profit making organisation, the shares in which are owned by the JFL Trust, a non-charitable purpose trust.  Under the law, non-charitable purpose trusts require enforcers and the Minister for Economic Development has been invited ex officio to become an enforcer to the JFL Trust.
    2.               It is recommended that the Minister accepts this invitation and executes the appointment instrument drafted for this purpose.
  2. BACKGROUND
    1.             Jersey Finance Limited (“JFL”) is a non-profit making organisation charged with representing and promoting Jersey’s finance industry inside and outside the Island as well as providing technical expertise to assist Government in developing new legislation.
    2.             The shares in JFL are owned by a non-charitable purpose trust (“the JFL Trust”) known as The Jersey Finance Trust constituted under a Declaration of Trust dated 21 March 2001.
    3.             Pursuant to Article 12 of the Trusts (Jersey) Law 1984, the validity of a non-charitable purpose trust is dependent upon provision being made for the appointment of an enforcer in relation to the non-charitable purposes.  The Declaration of Trust contains such provisions for the JFL Trust.
    4.             These provisions confirm the Enforcer’s role as providing prior or simultaneous written consent to the exercise of certain specified powers held by the trustees.  More particularly, and by way of example:
      1.             To appoint a date for the expiry of the trust period;
      2.             To add purposes to the trust;
      3.             To appropriate or apply trust income;
      4.             To amend the JFL Trust documentation;
      5.             To sell securities owned by the trustees.
    5.             Another provision indemnifies the enforcer against any consequence of consenting (or failing to consent) to the exercise to any power or discretion of the trustees.
    6.             There are also a number of ‘passive’ acts of office e.g. the enforcer is one of a number of required recipients of any notice from a trustee that he wishes to be discharged from office.
    7.             The Declaration of Trust identifies a panel with the power to remove and appoint enforcers.  The panel has invited the Minister for Economic Development to accept an ex officio appointment as enforcer to the JFL Trust.  The panel has proposed the President of the Law Society as a second enforcer.
  3. RECOMMENDATION
    1.             It is recommended that the Minister accept the invitation of the JFL Trust panel to be appointed as an enforcer and execute the appointment instrument drafted for this end.

 

Assistant, Finance Industry Development

30 March 2011

http://sojedm/livelinkdav/nodes/38726755/WR_Appointment as Enforcer for Jersey Finance Trust.doc

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