Ireland’s long-awaited Investment Limited Partnerships (Amendment) Bill 2020 was introduced into the Irish Parliament last month, having been part of the Irish Government’s Programme for Government for some time.
The Bill will modify the existing legislation to accommodate changes at national and EU level introduced since the vehicle first became approved for use in Ireland in 1994.
The revisions proposed by the Bill will ensure that the same standards of transparency apply across all investment fund vehicles in Ireland, thus cementing Ireland’s reputation in the global market as a centre of excellence for fund domiciliation, management and administration and its ability to compete on a level playing field with other EU jurisdictions.
It is expected to further increase demand for Irish fund vehicles in light of the end of the Brexit transitional period on 31 December 2020, particularly from the private equity market.
The Bill also amends Ireland’s ICAV legislation, bringing it into line with changes brought about by the Companies Act 2014, and extends the beneficial ownership regime in Ireland (currently applicable to ICAVS and unit trusts) to ILPs and common contractual funds.
Key improvements include:
- Umbrella ILPs introduced with segregated liability
- Broader safe harbours whereby the limited partner may take part in certain management activities without losing the protection of limited liability
- Ability to amend LPA by majority of limited partners or without limited partner approval where the depositary certifies that the changes are not prejudicial to the interests of limited partners
- Process for withdrawals and redemptions by limited partners streamlined and aligned to other fund vehicles
- Provides for the migration of ILPs in and out of Ireland.
The Bill will bring Ireland into a more competitive position in Europe and beyond and is expected to be approved and enacted by the end of 2020.
If you’d like to find out more about the Bill and discuss its significance for your fund operations, please feel free to get in touch:
E: joanne.mcenteggart@iqeq.com
T: +353 1 631 6053
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