Designation of Recognized Entities under Foundations Regulations

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A decision made on 1 August 2011:

Decision Reference: MD-E-2011-0119
Decision Summary Title :	Update to designation of Recognized Entities under the Foundations (Continuance) (Jersey) Regulations 2009 and Foundations (Mergers) (Jersey) Regulations 2009		Date of Decision Summary:	August 2011
Decision Summary Author:	Director, Finance Industry Development		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title :	Update to designation of Recognized Entities under the Foundations (Continuance) (Jersey) Regulations 2009 and Foundations (Mergers) (Jersey) Regulations 2009		Date of Written Report:	August 2011
Written Report Author:	Director, Finance Industry Development		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Update to designation of Recognized Entities under the Foundations (Continuance) (Jersey) Regulations 2009 and Foundations (Mergers) (Jersey) Regulations 2009 (“the Continuance and Merger Regulations”).
Decision(s): The Minister designated the updated list of Recognized Entities as per the attached Notices and directed that the updated Notices be published on the States website.
Reason(s) for Decision: The Continuance and Merger Regulations provide for Recognized Entities, as designated by Notice by the Minister for Economic Development, to be able to continue or merge with Jersey foundations. The bodies listed in the updated attached Notices are considered to be similar in nature to Jersey foundations and therefore appropriate vehicles for continuance or merger.
Resource Implications: There are no financial or manpower costs for the States. The Jersey Financial Services Commission and the Registrar will have costs associated with considering proposed continuances and mergers for approval but these costs will be passed on to those seeking the procedure.
Action required: The updated Notices to be published on the States website.
Signature: Senator AJH Maclean		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

Designation of Recognized Entities under Foundations Regulations

The Minister for Economic Development (“the Minister”)

Update to designation of Recognized Entities under Foundations (Continuance) (Jersey) Regulations 2009 and Foundations (Mergers) (Jersey) Regulations 2009

1 THE ISSUE AND RECOMMENDATION

1.1 It is recommended that the Minister should designate the updated list of Recognized Entities under the Foundations (Continuance) (Jersey) Regulations 2009 and the Foundations (Merger) (Jersey) Regulations 2009 (collectively “the Continuance and Merger Regulations”) as per the attached Notices and that the updated Notices should be published on the States website.

1.2 There are no financial or manpower costs for the States. The Jersey Financial Services Commission and the Registrar will have costs associated with considering proposed continuances and mergers for approval but these costs will be passed on to those seeking the merger.

2 BACKGROUND

2.1 The Foundations (Mergers) (Jersey) Regulations 2009 provide how Jersey foundations may merge. They also provide how a foundation and a ‘Recognized Entity’ incorporated or established outside Jersey may merge and continue either as a foundation incorporated in Jersey or as a recognized entity incorporated or established outside Jersey.

2.2 The Foundations (Continuance) (Jersey) Regulations 2009 provide for three types of continuance involving Jersey foundations. Firstly, they provide for Jersey companies to continue as foundations. Secondly, they provide for Recognized Entities to continue as foundations. Thirdly, they will provide for foundations to continue as Recognized Entities.

2.3 The concept of “Recognized Entities” is therefore used in the Continuance and Merger Regulations to specify which overseas entities are within the scope of the respective Regulations. For example, a Jersey foundation may merge with a Recognized Entity and a Recognized Entity may merge with a foundation.

2.4 Regulation 2 of each of the Continuance and Merger Regulations provides for the Minister to designate these Recognized Entities.

2.5 The Minister first designated such Recognized Entities by Notice soon after the Continuance and Merger Regulations were introduced in 2009. Given the evolving demands on the industry since 2009, it is considered appropriate to update the original lists of Recognized Entities.

2.6 The bodies listed in the attached updated Notices are considered to be similar in nature to Jersey foundations and therefore appropriate vehicles for continuance and/or merger.

3 RECOMMENDATION

3.1 It is recommended that the Minister should designate Recognized Entities under the Continuance and Merger Regulations as per the attached updated Notices and that the updated Notices should be published on the States website.

DIRECTOR, FINANCE INDUSTRY DEVELOPMENT