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Jersey’s funds industry is set to benefit from the introduction of new legislation this year which will offer more choice for fund promoters over how they structure their investment vehicles, according to funds lawyers, Joel Hernandez and Sophie Travis at Jersey law firm, Mourant du Feu & Jeune.
During 2009, Jersey intends to introduce two new limited partnerships which will offer a degree of separate legal personality. Modelled on the existing 1994 Limited Partnerships Law, the new vehicles will be known as the Separate Limited Partnership and the Incorporated Limited Partnership. Each regime will be independent.
Limited partnerships are frequently used in fund structures but, at present, the Jersey limited partnership does not have a separate legal personality and must contract through its general partner (usually a body corporate), which will have unlimited liability for the debts of the partnership. Each of the two proposed limited partnership vehicles will have a separate legal personality, however, as its name suggests, the Incorporated Limited Partnership will have the additional feature of being incorporated.
Joel Hernandez notes: ”There is increasing demand amongst fund promoters for limited partnerships with separate legal personalities so that the assets of the partnership can be recorded in the name of the partnership, rather than its general partner.”
Sophie Travis adds: ”We anticipate that the new limited partnerships will be well-received by the funds industry and will complete the range of limited partnerships available in Jersey.”
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