LEGISLATION

The Act makes provision for the facilitating the creation of authorised purpose trusts. It provides that a trust may be declared by trust instrument to be for a non-charitable purpose if the purpose of the trust is possible and sufficiently certain to allow the trust to be carried out, the purpose is not contrary to public policy or unlawful under the laws of The Bahamas, and the trust instrument specifies the event upon the happening of which the trust terminates and provides for the disposition of surplus assets of the trust. A trust so declared is an authorised purpose trust.

The principal Act is amended to incorporate the concept of purpose trusts.

The Act increases the perpetuity period from eighty years to one hundred and fifty years.

This Act provides the legislative basis for the establishment of foundations as vehicles for the holding of private assets endowed on the foundation for the benefit of identified persons or classes of persons. The characteristics of a foundation, method of setting up and registering it, qualifications and duties of the officers and of any supervisory individuals for which the founder makes provision in the documents establishing the foundation, and general conduct of a foundation, its administration, liquidation and winding up are fully covered. A foundation is defined by reference to the method of establishment, its asset holding function and the registration and management of the foundation.

It is anticipated that there will soon be amendments to the following Acts:

The Financial & Corporate Services Providers Act

Domestic and External Insurance Acts

The Securities Industry Act.