Fortis Intertrust | Richard Denton & Robert Hovenier | 25 April 2007 | 1 25 April 2007Fortis Intertrust | Richard Denton & Robert Hovenier 1 Foundations in Guernsey Robert HovenierCommercial Director Fortis Intertrust Luxembourg Managing Director Fortis Intertrust Geneva Rick DentonCommercial Director Fortis Intertrust Guernsey

Fortis Intertrust | Richard Denton & Robert Hovenier | 25 April 2007 | 2 25 April 2007Fortis 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 Q (+ 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 | 25 April 2007 | 3 25 April 2007Fortis Intertrust | Richard Denton & Robert Hovenier 3 Fortis Information –The Fortis Group is represented in over 50 jurisdictions worldwide: - Algeria Anguila (BWI) Australia Austria Belgium Brazil Burundi Cayman Islands China Congo Curacao Czech Republic Denmark France Germany Ghana Greece Guernsey Hong Kong Hungary Indonesia Iran Ireland Isle of Man Italy Ivory Coast Japan Korea Luxembourg Mauritania Mexico Netherlands Niger Nigeria Norway Philippines Poland Portugal Russia Rwanda Singapore Spain Sweden Switzerland Tanzania Togo Turkey Uganda United Arab Emirates United Kingdom United States of America Vietnam

Fortis Intertrust | Richard Denton & Robert Hovenier | 25 April 2007 | 4 25 April 2007Fortis Intertrust | Richard Denton & Robert Hovenier 4 Fortis in Guernsey –The result of an integration: MeesPierson Channel Islands (1978) : Banque Générale du 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 | 25 April 2007 | 5 25 April 2007Fortis Intertrust | Richard Denton & Robert Hovenier 5 Foundations in Guernsey – What is Happening? –Expert working party reviewed trust law Q –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 | 25 April 2007 | 6 25 April 2007Fortis 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 | 25 April 2007 | 7 25 April 2007Fortis 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 | 25 April 2007 | 8 25 April 2007Fortis 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 | 25 April 2007 | 9 25 April 2007Fortis Intertrust | Richard Denton & Robert Hovenier 9 Trusts Compared with Foundations IssueTrustsFoundations Legal IdentityTrust is not a legal entity – a description of obligations between parties. Trustees can be sued for failure to meet duties Has a legal personality as owner of assets. Can be sued in own right Settlor/founder involvementDirect involvement can lead to assets being viewed as own. Can be involved at subsidiary company level or shape action through letter of wishes Can (in certain jurisdictions) be directly involved at foundation management board level DocumentationNo obligation to ‘register’ trust deed. Trustees regulated by local jurisdiction. Arrangements confidential Either registered at company/government registry or foundation documents registered with the court Time periodOften a perpetuity period (time limit)No time limit PurposeCan contain commercial, personal or charitable interests Often have non-commercial purpose but can manage commercial assets EndingCan be ended by distribution of all assetsA foundation can be declared bankrupt

Fortis Intertrust | Richard Denton & Robert Hovenier | 25 April 2007 | April 2007Fortis Intertrust | Richard Denton & Robert Hovenier 10 Foundations, examples Foundation Company Sometimes stock quoted BoardHolders of certificates Supervisory Board Example Polish Company Polish Shareholder Foundation Polish Company Cyprus Company Example

Fortis Intertrust | Richard Denton & Robert Hovenier | 25 April 2007 | April 2007Fortis Intertrust | Richard Denton & Robert Hovenier 11 Contacts Robert Hovenier Telephone: Richard Denton Telephone:

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