PRESS RELEASE : Limited Partnership et al
The new statutory framework for Limited Partnerships and Limited Cell Partnerships has now commenced
Click the image for the Government Press Release 878/2021
Her Majesty’s Government of Gibraltar (HMGoG) confirms that The Limited Partnerships Act and the Protected Cell Limited Partnerships Act have now commenced.
The Gibraltar Funds and Investment Association (GFIA) worked closely with the Government and the financial services regulator over many months to make this legislation a reality.
Head of the GFIA Technical Committee Jonathan Garcia, commented on behalf of GFIA:
“It was a pleasure to have headed the working group that led to this legislation’s development, which represents a significant moment for the funds industry in Gibraltar. The Limited Partnerships Act and the Protected Cell Limited Partnerships Act have ushered in a powerful regulatory evolution, showcasing the unparalleled benefits of doing business on the Rock.
After a rigorous review and consultation stage, this carefully considered legislative framework facilitates businesses in staying up to date with the modern uses of Limited Partnerships. This is significant, as the funds industry continues to grow in importance to Gibraltar. More and more businesses are attracted to our ‘right touch, not light touch’ regulatory model that Gibraltar offers.”
Minister for Digital and Financial Services, Albert Isola, said:
“I am most grateful to Jonathan Garcia and the Executive Committee of GFIA for their ever-constructive engagement with Government. We will continue to work with Jay Gomez and James Lasry on all matters GFIA for the benefit of this important sector of our community.”
The Protected Cell Limited Partnerships Act 2021 allows funds structured as limited partnerships to create one or more cells that are statutorily segregated from each other. This means that, much in the same way that a protected cell company can create different sub-funds with distinct strategies or fee structures, a fund structured as a limited partnership can now do the same and benefit from the statutory protection as do protected cell companies. This is particularly important to real estate, private equity and debt funds.
With the introduction of the new Limited Partnerships Act 2021, limited partnerships will offer:
the partnership interests of limited partnerships being represented by shares, bonds, notes, loans or other debt securities or instruments;
limited partners being able to undertake a more active role in the affairs of the limited partnership without forfeiting their limited liability; and
the general partners of a limited partnership may elect whether or not the limited partnership is to have legal personality.
The new legislation can be found HERE
November 26th 2021