LLP registration tempts Guernsey firms
Guernsey is set to join Jersey in offering accountancy firms limited liability partnerships.
Island draftsmen are preparing to draw up LLP legislation after pressure from the island’s Society of Chartered and Certified Accountants. A new law, free of demands for a #5m bond, could be in place within a year, protecting innocent partners’ personal assets if a claim is made against the firm.
Director general of Guernsey’s financial services commission John Roper said the law would be designed ‘primarily’ for island practices, but he did not rule out the possibility of mainland firms registering offshore.
Roper told Accountancy Age: ‘Our motivation is different from Jersey’s.
We’re not looking at the big London firms, but at local professionals concerned about their position in these litigious days. However, it has been suggested that such a law could be of interest to others outside the island.’
Ernst & Young Guernsey managing partner Steve Harlow, who is leading negotiations, said: ‘The legislation would not permit outside registration, but other views might come into play.’
Guernsey’s interest raises the number of Crown dependencies examining the issue to three.
Reform of UK liability laws failed to win a place in last week’s Queen’s Speech. The accountancy profession must instead wait to see if the Government can find room in its legislative programme.
