Commencement dates for Investment Limited Partnerships (ILP) (Amendment) Act 2020 set – Donohoe & Fleming
IPL Act enhances the transparency of Ireland's fund vehicles, reduces potential for money laundering & ensures the highest standard of international requirements are applied
The Investment Limited Partnership (Amendment) Act 2020, which was signed by the President on 23rd December 2020, is subject to a commencement order. The Minister for Finance, Paschal Donohoe TD, has now signed the Statutory Instrument (SI) which sets two commencement dates.
The Act enhances the transparency applied to Ireland's fund vehicles by extending anti-money laundering beneficial ownership requirements to Investment Limited Partnerships (ILPs) and to common contractual funds (CCFs). The modernisation of the Investment Limited Partnership Act 1994 is a longstanding priority of the Ireland for Finance Strategy and will enhance the development of Ireland’s international financial services sector.
The SI sets two commencement dates; the 1st day of February 2021 applies to all sections of the Act, with the exception of sections 27, 28(b), 29, 38, 39, 61 and 63. These sections contain the new provisions on beneficial ownership for ILPs and CCFs and names the Central Bank of Ireland as Registrar of Beneficial Ownership of ILPs and CCFs. To ensure the Central Bank has sufficient time to set up the appropriate registers of beneficial ownership these sections have a commencement date of the 1st day of March 2021.
Marking the signing of the Statutory Instrument, Minister of State at the Department of Finance, Seán Fleming TD, said: ‘The changes to the ILP Act caters for both the modernisation of the Investment Limited Partnership and for various best practices in the area of transparency and money laundering. It is well timed to take advantage of the Capital Markets Union agenda and the changes will further support Ireland’s offering as a top-tier global location of choice for financial services investments’.
“This is a timely opportunity to modernise Ireland’s private equity offering by amending the Investment Limited Partnership Act which was recognised in the Programme for Government – Our Shared Future, as well as a strategic priority set out in “Ireland for Finance - Strategy for the development of Ireland’s international financial services sector to 2025.”
Note to Editors:
- An Investment Limited Partnership (ILP) is a partnership between one or more general partners and one or more limited partners. A general partner has unlimited liability for the debts and obligations of the ILP, while a limited partner is not liable beyond the amount of their capital contribution. A limited partner must not take part in any of the conduct of the business of the ILP or risk losing their limited liability. All ILPs are regulated by the Central Bank of Ireland.
- In addition to modernising the Investment Limited Partnership Act, which was first introduced in 1994, this legislation aligns it with more recent domestic and EU legislation and also makes technical amendments to the Irish Collective Asset Management Vehicles Act 2015.
- While the EU Anti Money Laundering (AML) legislative framework does not require the establishment of beneficial ownership registers for structures such as the ILPs and Common Contractual Funds (CCFs), this Act ensures that the highest standard international requirements will apply for these fund vehicles. It does so by extending AML Beneficial Ownership requirements to both ILPs and to CCFs. This will ensure that the Central Bank can verify PPSN information pertaining to beneficial ownership registers it operates.
Aidan Murphy, Press Officer, Department of Finance – 085 886 6667