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Foundations in Guernsey

Foundations in Guernsey. Robert Hovenier Commercial Director Fortis Intertrust Luxembourg Managing Director Fortis Intertrust Geneva Rick Denton Commercial Director Fortis Intertrust Guernsey. A Snapshot of Fortis.

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Foundations in Guernsey

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  1. Foundations in Guernsey Robert Hovenier Commercial Director Fortis Intertrust Luxembourg Managing Director Fortis Intertrust Geneva Rick Denton Commercial Director Fortis Intertrust Guernsey Fortis Intertrust | Richard Denton & Robert Hovenier

  2. A Snapshot of Fortis • Head Quartered in Brussels – a European Bank with particular strengths in Benelux • Represented in over 50 countries globally • €4.4bn net profit excluding exceptional items as at 31/12/2006 (+24% v. 2005) • €749m net profit in Q4 2006 (+ 62% v. Q4 2005) • 60,000+ staff • One of the largest networks of fiduciary offices covering both Anglo Saxon and Civil Law environments Fortis Intertrust | Richard Denton & Robert Hovenier

  3. Fortis Information • The Fortis Group is represented in over 50 jurisdictions worldwide: - Fortis Intertrust | Richard Denton & Robert Hovenier

  4. Fortis in Guernsey • The result of an integration : MeesPierson Channel Islands (1978) : Banque Généraledu Luxembourg : Banque Belge (1984) : BDO Reads (1900) • Local brand changed from MeesPierson Reads on 22 May • Four strong business disciplines: • A leading fiduciary business in Channel Isles • Integrated tax expertise • The European offshore bank of Fortis • Strong investment team with UK expertise • 265 specialist staff Fortis Intertrust | Richard Denton & Robert Hovenier

  5. Foundations in Guernsey – What is Happening? • Expert working party reviewed trust law Q1 2006 • Recommendations included creation of Foundations capability • A Guernsey Foundation would be a legal entity registered with the Registrar of Companies and governed by its Constitution • A council would be appointed to fulfil the aims of the Foundation which would have its registered office in Guernsey • The registered office to be provided by a financial services business authorised and regulated by the GFSC Fortis Intertrust | Richard Denton & Robert Hovenier

  6. Why Are We Doing This? • Competitive pressures (Foundation style structures possible in Jersey / Isle of Man / Bahamas etc) • A trend for centres to diversify (e.g. Switzerland and trust capability) • Client demand (many European ‘clients’ are still more familiar with Foundations) • Commercial possibilities Fortis Intertrust | Richard Denton & Robert Hovenier

  7. Essential Features of a Foundation • Individuals / legal entities (founders) formalise a Charter registered at Registrar • Donation of Foundation Assets for benefit of beneficiaries • Constitution / charter / rules govern operation of Foundation by Management Board / Council – individuals or corporate body which must include a qualified person / body (authorised by GFSC) • Founders assets become assets of Foundation – a legal entity but without shareholders and managed according to governing rules • Protector may be appointed with defined powers to help oversee Fortis Intertrust | Richard Denton & Robert Hovenier

  8. Foundations, general (NL, FL, CUR, LUX) Differences • Payments may be made to the founders or third parties • Payments are not required to have an idealistic or social purpose • The Private Foundation may not conduct any business or run a company with profit motive, unless it operates as an investment company or holding company. Usage • Set aside assets for: estate planning / protection (hostile take overs/political nationalisations); • Holder of shares (voting rights / legal ownership and economical ownership) • Art collections • Pension assets • Discretion Trends • Shift from old EU to new EU and Russia • EU savings directive Fortis Intertrust | Richard Denton & Robert Hovenier

  9. Trusts Compared with Foundations Fortis Intertrust | Richard Denton & Robert Hovenier

  10. Foundations, examples Example Example Polish Shareholder Foundation Supervisory Board Foundation Cyprus Company Board Holders of certificates Company Polish Company Polish Company Sometimes stock quoted Fortis Intertrust | Richard Denton & Robert Hovenier

  11. Contacts Robert Hovenier Email: robert.hovenier@fortisintertrust.com Telephone: 00 41 22 317 8000 Richard Denton Email: rick.denton@gg.fortis.com Telephone: 01481 751394 Fortis Intertrust | Richard Denton & Robert Hovenier

  12. Thank you

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