Jersey Finance welcomes Limited Partnership amendments
11 May 2022 Jersey
Image: Jersey Finance
Jersey Finance has welcomed a further series of amendments to Jersey’s Limited Partnership Law which aims to provide fund managers with greater flexibility in their international fund structuring.
The amendments, which are subject to Privy Council approval, are expected to come into
force in the third quarter of this year.
They are designed to modernise the jurisdiction’s regulatory framework, recognising trends and developments in the international funds environment.
The amendments include introducing wider protections for the limited liability of limited partners (LPs), by expanding “safe harbour” provisions where participation in the management of a limited partnership is concerned.
Further amendments include allowing third parties to have enforceable rights under the partnership agreement while not being a partner of the Limited Partnership.
The Limited Partnership vehicle is used extensively in cross-border fund structuring, particularly
within the private equity and venture capital asset classes.
Other amendments include new reporting obligations to ensure the register is kept up-to-date, the introduction of a clearer termination process, and the initiation of wider amendment powers to facilitate more efficient legislative change in the future.
The last set of amendments to Jersey’s Limited Partnership law were made in 2020, when a
a statutory basis for limited partnerships to be migrated from other jurisdictions was introduced.
The move provided greater legal certainty for managers and investors and resulted in a significant uptick in Limited Partnership fund structures moving to Jersey.
Elliot Refson, head of funds at Jersey Finance (pictured), says: “We have a strong track record when it comes to evolving and enhancing our ecosystem for alternative funds. These latest amendments will be welcomed by the industry as a further demonstration of our innovative approach and our ambition and capability to support high quality private equity and wider alternative fund structuring.”
The amendments, which are subject to Privy Council approval, are expected to come into
force in the third quarter of this year.
They are designed to modernise the jurisdiction’s regulatory framework, recognising trends and developments in the international funds environment.
The amendments include introducing wider protections for the limited liability of limited partners (LPs), by expanding “safe harbour” provisions where participation in the management of a limited partnership is concerned.
Further amendments include allowing third parties to have enforceable rights under the partnership agreement while not being a partner of the Limited Partnership.
The Limited Partnership vehicle is used extensively in cross-border fund structuring, particularly
within the private equity and venture capital asset classes.
Other amendments include new reporting obligations to ensure the register is kept up-to-date, the introduction of a clearer termination process, and the initiation of wider amendment powers to facilitate more efficient legislative change in the future.
The last set of amendments to Jersey’s Limited Partnership law were made in 2020, when a
a statutory basis for limited partnerships to be migrated from other jurisdictions was introduced.
The move provided greater legal certainty for managers and investors and resulted in a significant uptick in Limited Partnership fund structures moving to Jersey.
Elliot Refson, head of funds at Jersey Finance (pictured), says: “We have a strong track record when it comes to evolving and enhancing our ecosystem for alternative funds. These latest amendments will be welcomed by the industry as a further demonstration of our innovative approach and our ambition and capability to support high quality private equity and wider alternative fund structuring.”
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