Summary of Developments During Year 2005

There was considerable legislative activity in Anguilla during the year 2005.

Three significant pieces of legislation have been submitted to the House of Assembly as follows and it is anticipated that they will soon be enacted:

1. A Foundations Act ("FA"), based on civil law principles, has now been completed by the Legislation Committee of the Anguilla Financial Services Association and has been submitted to Government for enactment. The FA provides for the establishment, operation and regulation of civil law type foundations in Anguilla.
2. A Netting Act ("NA"), based on model ISDA legislation, ensures the enforceability in accordance with their terms, of bilateral netting agreements, multi-branch netting agreements and certain collateral arrangements as well as bilateral and multi-branch netting agreements.. The NA seeks to protect current market participants from risks associated with international insolvencies. As a consequence foreign participants and counterparties are more