Island experts
Nevis is strengthening and rede¸ning its position in the
international ¸nancial services sector by Jackie Hunkins
As a jurisdiction that prides itself
on being innovative and responsive to market changes, Nevis
is in a continuous process of evaluating and enhancing its
international financial services industry in order to make
it more competitive with other jurisdictions. In fact, Nevis
has realized that today’s sophisticated investors need
more options that offer them financial solutions and as such,
in the dawn of its 20th Anniversary in the International Financial
Services Arena, Nevis has undertaken several legislative initiatives.
On the 7th of April 2004, Nevis Financial Services welcomed
the enactment of the Nevis International Insurance Ordinance.
Later this month, Nevis will also enact the Nevis Multiform
Foundations Ordinance and the Nevis International Mutual Funds
Ordinance. Several other pieces of legislations namely, the
Service Provider, Corporate Management and Trustee (Licensing)
Ordinance and the Nevis Segregated Accounts Companies Ordinance,
are currently on the drafter’s table. These new products
will complement the existing offshore vehicles offered by
the Nevis Financial Services.
Nevis’ legislative regime for the international financial
services currently include:
international exempt trusts under the Nevis International
Exempt Trust Ordinance 1994, international business companies
under the Nevis Business Corporation Ordinance 1984, limited
liability companies under the Nevis Limited Liability Company
Ordinance 1995, international insurance under the Nevis International
Insurance Ordinance 2004 and offshore banking under the Nevis
Offshore Banking Ordinance 1995.
Since 1984, Nevis has been a popular jurisdiction for investors
in search of a powerful tax planning and asset protection
vehicle. Its IBC’s are on par with those from the British
Virgin Islands and other popular IBC jurisdictions. Additionally,
the Nevis International Exempt Trust and the Nevis LLCs have
been hailed as two of the best-drafted and managed products
in the offshore world. It is hoped that the new proposed products
will gain likewise popularity and will attract high net-worth
individuals and corporations.
In this article focus is drawn to some of the key features
of one of the new legislations: the proposed Nevis Multiform
Foundations Ordinance. This piece of legislation introduces
a flexible hybrid ‘multiform’ of foundation into
the Nevis offshore regime. The proposed Nevis foundation is
a legal entity shell into which allows a subscriber to self-design
the form, subject to given rules that define the multiform
foundation. The Nevis Foundation will allow for wide purposes
and objects, and unlike a trust, there are no beneficiary
requirements.
The proposed Nevis Multiform Foundation Ordinance provides
for a balance between privacy and transparency and also provides
for healthy corporate governance. Another key feature is that
it provides for transformation, conversion and consolidation
of entities. For instance, (1) an entity incorporated outside
of Nevis can be transformed into a Nevis foundation, (2) an
existing Nevis entity can be converted into a Nevis Foundation
and (3) any two or more entities from outside or within Nevis
can merge into a Nevis Multiform Foundation. There are many
other notable features of the Nevis Multiform Foundations
Ordinance, which make the proposed Nevis Foundation an attractive
asset protection tool.
The Nevis Financial Services is confident that, with this
proposed Ordinance and the other proposed legislation, Nevis
will be placed in more competitively advantageous position.
This reality however mandates that we must constantly review
our legislative packages, enhance our regulatory framework,
enhance our infrastructures, employ new opportunities for
the development of the international financial services sector
and continue to give quality service. The Nevis Financial
Services rises to the challenge of this mandate and positions
itself for an exciting future.
Jackie Hunkins LLB (Hons) LEC is Acting Director of the Nevis
Financial Services Development and Marketing Department
For more information, please visit our website:
www.nevisfinance.com
or contact the Nevis Financial Services Development &
Marketing Department, Ministry of Finance, Nevis Island Administration,
P.O. Box 882, Rams Complex, Stoney Grove, Nevis.
Tel: 1(869) 469-0038; Fax: 1(869) 469-0039;
e-mail: nevismarketing@caribsurf.com
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