Modernisation of investment limited partnerships to be commenced by March
Legislation modernising investment limited partnerships (ILPs) in Ireland will be fully commenced by March, Finance Minister Paschal Donohoe has announced.
The Investment Limited Partnership (Amendment) Act 2020, approved by the Oireachtas last month, enhances the transparency applied to Ireland’s fund vehicles by extending anti-money laundering beneficial ownership requirements to (ILPs) and to common contractual funds (CCFs).
The modernisation of the Investment Limited Partnership Act 1994 is a long-standing priority of the Ireland for Finance Strategy and will enhance the development of Ireland’s international financial services sector.
Most of the 2020 Act will be commenced from 1 February 2021, but sections 27, 28(b), 29, 38, 39, 61 and 63, containing provisions on registration of beneficial ownership for ILPs and CCFs, will not be commenced until 1 March 2021.
This delay is intended to allow the Central Bank of Ireland, which is named in the legislation as the registrar of beneficial ownership of ILPs and CCFs, to have “sufficient time to set up the appropriate registers of beneficial ownership”.
Seán Fleming, minister of state at the Department of Finance, said: “The changes to the ILP Act caters for both the modernisation of the Investment Limited Partnership and for various best practices in the area of transparency and money laundering. It is well timed to take advantage of the Capital Markets Union agenda and the changes will further support Ireland’s offering as a top-tier global location of choice for financial services investments.
“This is a timely opportunity to modernise Ireland’s private equity offering by amending the Investment Limited Partnership Act which was recognised in the Programme for Government – Our Shared Future, as well as a strategic priority set out in “Ireland for Finance - Strategy for the development of Ireland’s international financial services sector to 2025.”