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Amendment to draft Foundations (Jersey) Law 200-.

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A decision made (02/10/2008) regarding: Amendment to draft Foundations (Jersey) Law 200-.

Decision Reference:  MD-E-2008-0190 

Decision Summary Title :

Amendment to the draft Foundations (Jersey) Law 200- (“the Draft Law”)

Date of Decision Summary:

2 October 2008

Decision Summary Author:

James Mews

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 :

Amendment to the draft Foundations (Jersey) Law 200- (“the Draft Law”)

Date of Written Report:

2 October 2008

Written Report Author:

James Mews 

Finance Industry Development

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:    

Approval of the Amendment to the draft Foundations (Jersey) Law 200- (“the Amendment”)

Decision(s):  

The Minister approved the Amendment and the attached report and has signed the declaration of compatibility with the European Convention on Human Rights and for the Financial Industry Development Executive to take such steps as are necessary to lodge them au Greffe in time to amend the existing proposed Amendment to the Law for the States to debate together on 21 October 2008.

Reason(s) for Decision: 

The Amendment allows regulations to provide for cross-border mergers, and for mergers and continuances to include other bodies corporate as well as foundations.  This is a response to a late industry request.  It will permit the law to be sufficiently flexible to deal with all possibilities.

 
Resource Implications: 

No measurable cost or manpower implications arise for the Commission, the States or industry.

Action required: 

The Finance Industry Development Executive to arrange for the matter to be referred to the States Greffe Publications Editor to arrange for the Amendment to be lodged ‘au Greffe’ in time for the States debate on 21st October 2008.

Signature:  Senator P.F.C.Ozouf  

Position:  Minister  

Date Signed: 

Date of Decision (If different from Date Signed): 

Amendment to draft Foundations (Jersey) Law 200-.

MINISTER FOR ECONOMIC DEVELOPMENT  

AMENDMENTS TO THE DRAFT FOUNDATIONS (JERSEY) LAW 200-  

1 THE ISSUE AND RECOMMENDATION  

  1. It is proposed to amend the draft Foundations (Jersey) Law 200- (“the Draft Law”) which has been lodged and is awaiting debate on 21 October 2008.

 

  1. It is recommended that the Minister for Economic Development approves the amendment to the Draft Law (“the Amendment”) and the attached report and signs the statement of Human Rights compliance and that the Finance Industry Development Executive takes the necessary steps to lodge the Amendment au Greffe to be debated by the States on 21 October 2008.

 

  1. THE AMENDMENT

 

  1. The Draft Law as it currently stands would allow the States to provide for mergers and continuances of foundations by regulations.  However this applies to mergers between two Jersey foundations or for the continuation of an overseas foundation in Jersey.

 

  1. It is proposed that an amendment be adopted that would give the States the additional flexibility in its regulation making powers so that:

(a) mergers can include mergers between a Jersey foundation and any other body corporate, including an overseas body; and

(b) continuances may include any body corporate (whether in Jersey or elsewhere) becoming a foundation. 

  1. This is a response to a late industry submission to the effect that allowing cross-border mergers may create a competitive advantage for Jersey entities with regard to doing business with other corporate entities in other jurisdictions.  However, it should be noted that this provision is merely enabling and it will be for the States subsequently to consider what regulations they wish to make under this power.  The amendment will allow us to keep all options open.

 

  1. There are no financial or manpower implications arising from the proposals.

 

  1. It is believed that the Amendment does not raise any Human Rights issues because of the subject matter and the fact that no new offences are created.

 
 
 

  1. RECOMMENDATION

 

  1. It is recommended that the Minister for Economic Development approves the amendment to the Draft Law and the attached report, signs the statement of Human Rights compliance and that the Finance Industry Development Executive takes the necessary steps to lodge the Amendment au Greffe to be debated by the States on 21 October 2008.

 
 

JAMES MEWS

Finance Industry Development Executive

2 October 2008


 

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