Jersey passes limited partnerships amendment 17 July 2020St Helier Reporter: Rebecca Delaney
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Jersey Finance has welcomed an amendment to the Limited Partnership Jersey Law to improve the ease in which managers can migrate limited partnership fund structures to the jurisdiction.
Changes to the legislation, which originally came into force in 1994, were approved by the Jersey government this week and will come into effect today (17 July).
The amendment stipulates a new statutory basis for migrating limited partnerships in order to provide improved legal certainty for managers and investors. It will place Jersey in line with the laws of other jurisdictions, therefore making it easier for lawyers to assess the validity of the same legal entity across jurisdictions.
Joe Moynihan, CEO of Jersey Finance, explained: “In an increasingly complex global alternative funds environment, managers are looking at their fund structuring options and indeed, over recent months, our funds industry has reported a rise in interest in Jersey from private equity and other alternative managers wanting to restructure their funds.”
“This amendment makes it easier for managers to migrate their structures from elsewhere in a quick, cost-effective manner so that they can benefit from Jersey’s ideal alternatives ecosystem. We anticipate a strong uptick in fund relocations following this amendment.”
Tim Morgan, chair of the Jersey Funds Association, added: “The industry, regulator and government in Jersey have all worked very efficiently together to bring this amendment to fruition impressively quickly.”
“This is a really important development, introducing an express mechanism whereby limited partnerships can migrate to Jersey quickly and seamlessly, and it will undoubtedly prove an attractive proposition for managers who are exploring how they can better navigate the complex environment they operate in. We have already seen a number of enquiries for migrations into Jersey in recent weeks.”
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