IT IS vital for the trust industry to keep an eye on developments in other jurisdictions, according to the sector’s representative. But Ian Burns added that the option of introducing foundations – which act like a trust but have the flexibility of a company – was not a top priority.

Jersey is about to issue a consultation paper on foundations and the managing director of a Panamanian law firm with a branch there is keen to promote them.

Nick Poole, of Mossack Fonseca, told the Jersey Evening Post that foundations had to be the way forward.

Guernsey Promotional Agency chief executive Talmai Morgan said that industry should not rule out considering foundations.

Mr Morgan was instrumental in introducing the island’s fiduciary legislation in 2001 when he was director of fiduciary services at the Guernsey Financial Services Commission.

‘It is scarcely surprising that a Panamanian business will sing the praises of Panamanian foundations, but nevertheless I think that Guernsey should seriously consider anything innovative which could add future depth and breadth to its already extensive and well- established trust industry,’ he said.

‘We should never dismiss ideas out of hand.’

Mr Burns backed Mr Morgan’s comments.

‘We have never really considered foundations because in a way they compete with trusts, but what Talmai said is right: it is something we would consider, especially if Jersey does so,’ he said.

Mr Burns, chairman of the Guernsey Association of Trustees, believed that introducing foundation laws would make sure that Guernsey had the complete range of trust products available to clients.

But he said it was not top of the priority list for the association, which is working on other issues.

‘It would be nice to have [the legislation]. We will watch with interest and act accordingly,’ he said.

‘There are other things that are more important.’

Guernsey’s trust industry employs about 2,500 people.