The government is consulting on proposals for a series of reforms to limit the risk of misuse of limited partnerships.
The Department for Business, Energy and Industrial Strategy (BEIS) published a call for evidence between January and March 2017, in response to a significant increase in registrations of limited partnerships in Scotland, and allegations that Scottish limited partnerships in particular were being used for illicit purposes. The government believes the responses demonstrate a continuing need to offer the limited partnership as a business entity, including its Scottish form, in order to facilitate ‘legitimate and important’ commercial activity. Scottish limited partnerships have provided an innovative funding mechanism for asset-based contribution pension schemes and pension deficit structures, BEIS said. However, there is also evidence of misuse, including large-scale international money laundering.
The consultation looks at ways in which the law governing limited partnerships could or should be brought more in line with that governing limited companies. The main proposals would introduce:
a requirement for those seeking to register limited partnerships to demonstrate registration with an anti-money laundering (AML) supervisory body;
a requirement for the limited partnership’s principal place of business to remain in the UK, or alternatively to allow the principal place of business to be based anywhere, but require a UK service address;
a requirement for all limited partnerships to file an annual confirmation statement (similar to the introduction of reporting for Scottish limited partnerships in 2017);
a requirement for limited partnerships to prepare accounts and reports, as is already the case for qualifying partnerships; and
a power for the registrar to strike off partnerships from the register of companies.
The potential reforms set out in this consultation will require primary legislation. The consultation closes on 23 July 2018. See https://bit.ly/2HF2ZfO.
The government is consulting on proposals for a series of reforms to limit the risk of misuse of limited partnerships.
The Department for Business, Energy and Industrial Strategy (BEIS) published a call for evidence between January and March 2017, in response to a significant increase in registrations of limited partnerships in Scotland, and allegations that Scottish limited partnerships in particular were being used for illicit purposes. The government believes the responses demonstrate a continuing need to offer the limited partnership as a business entity, including its Scottish form, in order to facilitate ‘legitimate and important’ commercial activity. Scottish limited partnerships have provided an innovative funding mechanism for asset-based contribution pension schemes and pension deficit structures, BEIS said. However, there is also evidence of misuse, including large-scale international money laundering.
The consultation looks at ways in which the law governing limited partnerships could or should be brought more in line with that governing limited companies. The main proposals would introduce:
a requirement for those seeking to register limited partnerships to demonstrate registration with an anti-money laundering (AML) supervisory body;
a requirement for the limited partnership’s principal place of business to remain in the UK, or alternatively to allow the principal place of business to be based anywhere, but require a UK service address;
a requirement for all limited partnerships to file an annual confirmation statement (similar to the introduction of reporting for Scottish limited partnerships in 2017);
a requirement for limited partnerships to prepare accounts and reports, as is already the case for qualifying partnerships; and
a power for the registrar to strike off partnerships from the register of companies.
The potential reforms set out in this consultation will require primary legislation. The consultation closes on 23 July 2018. See https://bit.ly/2HF2ZfO.
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