§ Mr. Bernard JenkinTo ask the President of the Board of Trade what action he intends to take in response to the draft limited liability partnerships law in Jersey with particular reference to United Kingdom professional firms moving their nominal registration to Jersey. [3406]
§ Mr. LangI am well aware of the concerns of many within the professions about the possible consequences of the unlimited liability of partners in the modern commercial environment. In a big modern partnership advising on large commercial transactions it may be impossible for partners to know all other partners and their work—yet their personal assets can be put at risk by the actions of their partners. The Government are determined to maintain a competitive and up-to-date legal framework for business in the UK. We are aware of recent developments in partnership law in other jurisdictions such as the United States of America and Jersey, and responses to a recent consultation were strongly in favour of dealing with this issue. The Government therefore intend to bring forward legislation at the earliest opportunity to make limited liability partnership available to regulated professions in the UK, subject to appropriate safeguards to protect the interests of those doing business with the limited liability partnership. To keep a level playing field with companies and partnerships registered in the UK, limited liability partnerships registered abroad but operating from a place of business in the UK will be required to file financial information equivalent to that to be required from limited liability partnerships registered618W in this country. The Government will publish before Easter full and detailed proposals for legislation, for consultation with all interested parties.