Monday 21 September 2020
Select a region

Jersey anticipates funds boost with amendment to LP legislation

Jersey anticipates funds boost with amendment to LP legislation

Wednesday 22 July 2020

Jersey anticipates funds boost with amendment to LP legislation


Jersey Finance has welcomed a new legislative change that will make it significantly easier for managers to migrate limited partnership fund structures here.

The tweaks to the Limited Partnership (Jersey) Law 1994 introduce a new statutory basis for limited partnerships, which are frequently used for alternative fund structuring, to be migrated from other jurisdictions, providing greater legal certainty for managers and investors.

Whilst migrating a limited partnership to Jersey has been technically possible in the past, the move brings Jersey in line with the laws of other jurisdictions, making it easier for lawyers to give a clean legal opinion as to the validity of the migration of a limited partnership into Jersey from elsewhere, as the same legal entity. 

Commenting on the amendment, Jersey Finance CEO Joe Moynihan commented: “In an increasingly complex global alternative funds environment, managers are increasingly 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.

"They are attracted by the sort of stability, expertise, and high-quality service levels Jersey offers, whilst its strong track record in corporate governance, its ability to offer certainty around substance and its ‘whitelisted’ status are all seen as real benefits too.

“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."

Tim_Morgan_.jpeg.jpg

Pictured: JFA Chair Tim Morgan.

He continued: "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.”

Sign up to newsletter

 

Comments

Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

Once your comment has been submitted, it won’t appear immediately. There is no need to submit it more than once. Comments are published at the discretion of Bailiwick Publishing, and will include your username.

There are no comments for this article.

To place a comment please login

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?