Contact Us

+350 20079000 info@hassans.gi

This data will only be used by Hassans for processing your query and for no other purpose. View our privacy policy

New Limited Partnerships Bill guarantees the modernisation of the Gibraltar funds industry

James Lasry
Team Leader, Partner

Following a joint effort from Her Majesty’s Government of Gibraltar (“HMGoG”), the Gibraltar Funds and Investments Association (“GFIA”) and the Gibraltar Financial Services Commission (“GFSC”) with guidance from Paul Hastings LLP in London, HMGoG have confirmed the publication of two bills this week: the Limited Partnerships Bill and the Protected Cell Limited Partnerships Bill. The new statutory framework guarantees the modernisation of the funds industry in Gibraltar ensuring that the jurisdiction remains robust and innovative in the provision of financial services.

The Protected Cell Limited Partnerships Bill, will allow funds structured as limited partnerships to create one or more cells that are statutorily segregated from each other. This means that much in the same way that a protected cell company can create different sub-funds with distinct strategies or fee structures, a fund structured as a limited partnership can now do the same and benefit from the statutory protection as do protected cell companies. This is particularly important to real estate, private equity and debt funds.

With the introduction of the new limited partnerships framework, limited partnerships will offer:

  •  the partnership interests of limited partnerships being represented by shares, bonds, notes, loans or other debt securities or instruments;
  • limited partners being able to undertake a more active role in the affairs of the limited partnership without forfeiting their limited liability; and
  • the general partners of a limited partnership may elect whether or not the limited partnership is to have legal personality.

James Lasry, Partner and Head of Funds at Hassans and Deputy Chairman of GFIA, assisted in the formulation of these bills. He said:

“This is an absolute breakthrough for the Gibraltar funds industry. Managers have long used PCCs for multi-strategy funds but they have had to create separate funds when those investments require the tax transparency of a limited partnership, Gibraltar is one of the few jurisdictions in the world to have this innovative new legislation.”

To read the full press release by HM Government of Gibraltar, click here.

For more information, please see our Limited Partnership and Protected Cell Companies expertise pages.

More Insights from James

Brexit, Limited Partnerships, and the new opportunities for Gibraltar Funds

What a whirlwind 2020 was! The United Kingdom and Gibraltar separated from the European Union (despite the fact that Gibraltar firmly voted to remain within) and the world has experienced […]

Posted on

Latest Insights from Hassans

Hassans – Legal Podcasts. Episode 1 – UK/Spain Tax Treaty regarding Gibraltar

Welcome to our new podcast series where our lawyers and their guests discuss legal and business matters. In this first episode, Partners Grahame Jackson and Kenneth Bonavia take an in-depth look at the International […]

Posted on

International Tax Bites Podcast – Ep.5 Double Taxation

International Tax Bites explores concepts and issues in international taxation. In this fifth episode, Grahame Jackson and his podcast partner Harriet Brown of Old Square Tax Chambers discuss Double Taxation.    

Posted on

Acuerdo Internacional en materia de fiscalidad entre España y Reino Unido en relación a Gibraltar.

El pasado día 4 de marzo España y el Reino Unido firmaron un Acuerdo Internacional en materia de fiscalidad en relación con Gibraltar con el objetivo de mejorar la cooperación […]

Posted on