§ Barbara FollettTo ask the Chancellor of the Exchequer what powers he has to authorise limited liability partnerships under the Financial Services and Markets Act 2000. [158182]
§ Miss Melanie JohnsonFrom 6 April 2001, businesses are able to organise themselves as limited liability partnerships (LLPs), in addition to other existing business structures.
The effect of EC law is to prevent insurance business being undertaken by LLPs. We will ensure FSMA is consistent with that.
There is no evidence of interest in banking (ie deposit-taking) businesses seeking to be organised as LLPs. Were there any evidence of interest in using the LLP structure, we would need to examine the issues closely.
LLPs carrying on financial services business, other than insurance or deposit taking, may seek authorisation under the FSMA from the Financial Services Authority after N2.