The Government have published their response to their consultation on the reform of limited partnership law.
A key theme of the UK’s industrial strategy is ensuring the UK has a world-leading business environment, which holds the confidence of investors, employees, consumers and the public. An important element of this is the provision of a range of business structures through which a variety of commercial objectives can be achieved.
Limited partnerships play an important role in private fund structures used by private equity, real estate and infrastructure managers. In recent years however it has been reported that limited partnerships in some circumstances have been used for illicit purposes. The Government recognise that robust action is required.
The reforms set out in the Government’s response include: tightening of registration requirements for limited partnerships, ensuring that those applying to register limited partnerships demonstrate that they are registered and supervised by an official anti-money laundering supervisor; requiring limited partnerships to demonstrate a firmer connection to the UK; increasing transparency requirements; and enabling the Registrar to strike from the companies register limited partnerships which are dissolved or which are no longer carrying on business.
The Government have worked closely with industry in developing these reforms and considers that they strike the right balance between preventing the abuse of limited partnerships while ensuring they remain attractive to legitimate commercial activity.
The reforms require primary legislation and the Government will legislate when parliamentary time allows.
The Government response will be deposited in the Libraries of both Houses.