Introduced in February and designed to be both simple and flexible, Guernsey's new Limited Partnership Law is already assuming wider uses than were first envisaged: the creation of pooled investment vehicles for North Americans especially in venture capital and management buy-out situations and as an option for some captive insurers.

"We were intrigued to find that instead of a fund the first to take advantage of our new legislation was a leading European legal practice. It is an unforeseen development which we warmly welcome," says Peter Crook, Director General FSC.

The core principle of Guernsey's legislation is that a "general partner" is liable for all the debts and obligations of a firm. However, a "limited partner" at the time of entry contributes, or agrees to contribute, a stated amount of capital and is not liable for the obligations of the partnership beyond that amount.


Please note: The Financial Services Commission has a new E-mail address which is and its information site on the Internet can now be located on

However, will remain active for the foreseeable future.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010.

Visit the Guernsey Financial Services Commission Web Site at Click Contact Link