The government of Gibraltar is legislating to introduce Private Foundations and amend the Limited Liability Partnerships Act.

The aim is to pass a Private Foundations Act and new Limited Liability Partnerships Act (Amendment) Regulations this year. A consultative periond has now begun. The closing date for representations to be made is the 30th November.

The draft legislation in respect of the Private Foundations Act can be found on the Gibraltar Laws website gibraltarlaws.gi as a Command Paper. That Act will come into effect whenever the minister chooses, as advertised in the Gibraltar (government) Gazette. Proposals for regulations to govern Limited Liability Partnerships will be issued by way of a notification and in a subsequent circulation from the Finance Centre Council.

In the absence of fraud, if the Bill comes into force, assets effectively transferred to a foundation will be the property of that foundation (with full legal, equitable and beneficial title), will cease to be the property of the founder and will not become the property of any beneficiary (where applicable) unless distributed in accordance with the foundation charter and/or the foundation rules (if any) and the eventual Act itself. It will be allowed to hold present or future assets of any nature.

The object of a foundation may, but need not be, philanthropic. The permitted purposes and objects of a foundation will not be allowed to include the carrying on of a commercial or trading activity (unless that activity is incidental to the attainment of its purpose or objects) or "the carrying on in or from Gibraltar of any activity in respect of which a licence under any other Act is required in the absence of that licence having been granted to the foundation."

The relevant minister may issue regulations to prescribe both a standard foundation charter and standard foundation rules.