Jersey Finance has welcomed an amendment to Jersey’s legislation that will make it significantly easier for managers to migrate limited partnership fund structures to the jurisdiction.
The changes to the Limited Partnership (Jersey) Law 1994, which were approved by Jersey’s government this week to come into force today (17 July), introduce a new statutory basis for limited partnerships, which are frequently used for alternative fund structuring, to be migrated from other jurisdictions, providing greater legal certainty for managers and investors.
Whilst migrating a limited partnership to Jersey has been technically possible in the past, the move brings Jersey in line with the laws of other jurisdictions, making it easier for lawyers to give a clean legal opinion as to the validity of the migration of a limited partnership into Jersey from elsewhere, as the same legal entity.
Joe Moynihan, CEO, Jersey Finance, said: “In an increasingly complex global alternative funds environment, managers are looking at their fund structuring options. Indeed, over recent months, our funds industry has reported a rise in interest in Jersey from private equity and other alternative managers wanting to restructure their funds.
“This amendment makes it easier for managers to migrate their structures from elsewhere in a quick, cost-effective manner so that they can benefit from Jersey’s alternatives ecosystem. We anticipate a strong uptick in fund relocations following this amendment.”
Tim Morgan (pictured), Chair of the Jersey Funds Association, added: “The industry, regulator and government in Jersey have worked together to bring this amendment to fruition quickly.
"This is an important development, introducing an express mechanism whereby limited partnerships can migrate to Jersey quickly and seamlessly, and it will undoubtedly prove an attractive proposition for managers who are exploring how they can better navigate the complex environment they operate in.
"We have already seen a number of enquiries for migrations into Jersey in recent weeks.”