The Abu Dhabi Global Market is consulting interested parties about its proposal to pass laws and regulations for foundations.

The "ADGM Foundations Regulations," issued in draft form in Arabic, purport to follow international best practice, including international regulatory obligations, and cater to the unique requirements of families and asset owners in Abu Dhabi, regionally and globally.

Regulators are now responsible for policing foundations in many international financial centres, including common-law jurisdictions that have historically relied on traditional trust structures instead. The proposed foundation regime will be the first of its kind in the United Arab Emirates if and when it "goes live."

The proposed ADGM foundations regime is designed for HNW individuals, families, organisations and their professional advisors who want to manage their private wealth efficiently, safeguard their assets and take part in "succession planning" in Abu Dhabi and abroad.

The regime is designed to keep clients' details as confidential as possible and establish asset protection mechanisms that respect the founders’ wishes. Benchmarked against the other leading global jurisdictions, including Jersey and Guernsey, the proposed features of the ADGM foundations regime include:

• the creation of a new type of legal structure with its own distinct attributes which have evolved for different purposes and requirements;
• some confidentiality for each foundation’s arrangements;
• safeguards for the founder’s ability to exercise control over a foundation; and
• 'migrations' from other jurisdictions (preferably with the cancellation of the old licence and the creation of the new one done on the same day) to Abu Dhabi and vice versa.