Jersey’s funds industry is set to benefit from new legislation which will offer fund promoters more choice in how they structure their investment vehicles, according to Joel Hernandez and Sophie Travis at offshore law firm Mourant du Feu & Jeune.

During 2009, Jersey’s authorities intend to introduce two new limited partnerships which will offer a degree of separate legal personality. Limited partnerships are frequently used in fund structures but, currently, the Jersey limited partnership does not have a separate legal personality and must contract through its general partner (usually a body corporate), which will have unlimited liability for the debts of the partnership.

The new vehicles, which are modelled on the existing 1994 Limited Partnerships Law, will be known as the Separate Limited Partnership and the Incorporated Limited Partnership. Each of the two proposed limited partnership vehicles will have a separate legal personality, however, as its name suggests, the Incorporated Limited Partnership will have the additional feature of being incorporated.

”There is increasing demand amongst fund promoters for limited partnerships with separate legal personalities so that the assets of the partnership can be recorded in the name of the partnership, rather than its general partner,” said Mr Hernandez.

”We anticipate that the new limited partnerships will be well-received by the funds industry and will complete the range of limited partnerships available in Jersey,” added Ms Travis.