1. ATU Corporate Services (Anguilla) Inc. P.O. Box 1551, The Valley, Anguilla, B.W.I. Phone +1 264 497 3891 Fax +1 264 497 3891 www.atuanguilla.com info@atuanguilla.com The strategic opportunities offered by foundations Frank Marxer Annual Meeting of the Financial Services Industry – 28th November 2008

2. Trust versus Foundation TRUST  Concept of Common Law Countries  No independent legal person - Relationship between trustee and beneficiaries  Trustee becomes legal owner of assets – Often underlying company used  Wide responsibilities of a Trustee  Possible problems in case of bankruptcy of a Trustee  No Minimum Initial Capital  time limit usually 80 - 150 years FOUNDATION  Concept of Civil Law Countries  Independent legal person  Legal owner of assets (i.e. bank account on foundations name)  Limited responsibility of a Foundation Council Member  No risk in case of bankruptcy of a Foundation Council Member – assets separated  Minimum Initial Capital required (Liechtenstein US$30,000 or CHF30,000 / Anguilla US$10,000)  No time limit (perpetuity allowed)

3. Family Foundations in contrast Liechtenstein FoundationPanama FoundationAnguilla Foundation Minimum Initial Capital:- US$ 30’000 or CHF 30’000 - endowment before establishment - Capital preservation - US$ 10’000 - endowment after establishment - Capital preservation - US$ 10’000 - endowment before establishment - No Capital preservation i.e. used for paying establishment / annual fees Documents filed with Registry: Documents not filed with Registry: - Foundation Deed and Statutes (no name of real founder, beneficiaries) - By-Laws / Regulations (including the names of beneficiaries ) - Foundation Charter (no name of real founder, beneficiaries) - Regulations (including confidential information) - Articles of Establishment (including name of founder, beneficiaries) - separate Articles Bodies of the Foundation:- Founder / Settlor - Board of Foundation - representative office - Protector / Guardian (optional) - Auditors (only mandatory for charitable foundations) - Founder / Settlor - Foundation Council - registered agent - Protector / Supervisory Board (optional) - Auditors (no legal requirement) - Founder / Settlor - Foundation Council - registered agent - Guardian (optional) - Secretary (only mandatory if Foundation Council does not resides in Anguilla) - Auditors (no legal requirement) Obligation for bookkeeping / accounting: - No (only mandatory for charitable foundations) - No Government annual fee / Taxation:- In practice CHF 1’000 (1% of the foundation assets, not less than CHF 1’000) - No other taxes - US$ 350 - No other taxes - US$ 500 - No other taxes Approx. costs for setting up in US$: Approx. annual fee including Government, Registered Agent, Council fee in US$: 3’400 3’800 1’850 incl. annual fees 1st calendar year 1’400 2’500 3’500 Anti-forced heirship rules in the Act / Law: - No- Yes

4. Why use a Foundation?  Estate planning for client in Civil Law Countries (especially Central Europe)  Flexible in arranging the succession of the Foundations assets over generations  Holding entity with additional benefit of offering estate planning i.e. Business Foundations  Confidence and discretion  Separation of certain funds from personal estate (asset protection)  Philanthropy – benefit of social / charitable organizations

5. Thanks a lot for your kind attention Any Questions?