Jersey is one of the few offshore jurisdictions with limited liability partnership legislation, namely the Limited Liability Partnerships (Jersey) Law 1997, as amended (the "Jersey LLP Law").
In a major step forward, the Jersey Financial Services Commission has now approved a policy for the licensing of limited liability partnerships ("LLPs") to act as managers, investment managers, general partners and investment advisers to investment funds under the Financial Services (Jersey) Law 1998, as amended (the "FSJL"). Two of the key elements of the licensing policy are:
- at least one of the LLP's designated partners must be a Jersey company or individual; and
- the "span of control" of the LLP must be comprised of Jersey-resident individuals who are either directors of a corporate partner of the LLP or partners in the LLP.
There are a number of ways in which structures might feature Jersey LLPs. Immediate uses are anticipated to include LLPs as real estate holding vehicles or as general partners (including general partners of GP/LPs) of Jersey or foreign limited partnerships.
It should be noted that foreign LLPs which carry on business in or from within Jersey (for example, by the appointment of a Jersey managing partner), may also be required to register under the FSJL.
Our firm's briefing relating to the Jersey LLP Law can be found here.
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