Investment limited partnerships to be ‘modernised’ under new law
Legislation modernising investment limited partnerships (ILPs) in Ireland has been approved by the Oireachtas and is due to be signed into law.
The Investment Limited Partnership (Amendment) Bill 2020 modernises the Investment Limited Partnership Act 1994 and aligns it with more recent domestic and EU legislation, as well as making technical amendments to the Irish Collective Asset Management Vehicles Act 2015.
The government said the new law will enhance the development of Ireland’s international financial services sector, promoting investment, securing Ireland’s competitiveness and enhancing its regulatory environment in international financial services.
Finance Minister Paschal Donohoe said: “The changes will help to further support Ireland’s offering as a top-tier global location choice for financial services. The legislation supports the Ireland for Finance strategy and is well timed to take advantage of the Capital Markets Union agenda and to promote the establishment of private equity and venture capital vehicle funds in Ireland.
“The Investment Limited Partnership (Amendment) Bill will allow Ireland to better compete for global private equity investment, with the aim of creating employment and securing Ireland’s reputation as an attractive location for the funds industry, which is subject to a robust and transparent regulatory regime.”
Seán Fleming, minister of state with responsibility for financial services, added: “This bill provides an opportunity to align transparency requirements that apply to other Irish investment fund vehicles and to ensure the highest international standards are met across Irish fund vehicles, in order to enhance our reputation as a well regulated financial centre.”
An investment limited partnership is a partnership between one or more general partners and one or more limited partners. A general partner has unlimited liability for the debts and obligations of the ILP, while a limited partner is not liable beyond the amount of their capital contribution. A limited partner must not take part in any of the conduct of the business of the ILP or risk losing their limited liability. All ILPs are regulated by the Central Bank of Ireland.