UK to reform private funds law

The country is seeking to compete with other jurisdictions for private funds’ business.

The UK government is set to reform the law on domiciling and running private fund to make fund management less onerous and provide clarity on limited liability status for investors.

“The revised legislation allows a limited partner in a private fund limited partnership to undertake any activities on the so-called ‘white list’ without being considered as participating in the management of the business, maintaining their limited liability status,” said Chris Ormond, knowledge development lawyer at Berwin Leighton Paisner, a London-based law firm.

“The registration process will be more streamlined and some of the filing requirements have been simplified. It also removes some of the Partnership Act 1980 statutory duties that apply to partners in a limited partnership.”

The British Private Equity and Venture Capital Association, which consulted its members on the changes, also welcomed the reforms. “This will ensure the UK continues to be an attractive domicile for private equity and venture capital funds,” said Gurpreet Manku, policy director.

The UK’s competitor jurisdictions include Jersey, Guernsey, the Cayman Islands, the state of Delaware and Luxembourg.