Senior figures in the profession described the proposals as an ‘acceptable compromise’ that would allow firms to protect their assets in return for greater disclosure of financial information.
An LLP bill is expected to be included in the Queen’s speech and fast-tracked with three other non-political bills to be law by spring.
The Department of Trade and Industry confirmed it would publish the bill in the next two weeks after ministers had finalised details. It follows 18 months’ consultation and hundreds of submissions to industry minister Ian McCartney.
Accountancy firms are set to jump at the chance of switching to LLPs, following their US counterparts which gained LLP status in 1994. PricewaterhouseCoopers and Ernst & Young, which threatened to register offshore to Jersey, are expected to be first in line.
The bill would mean only a firm’s assets and those of negligent partners would be at risk in a damages claim, cutting risk to non-negligent partners.
Colin Ives, managing partner of Smith & Williamson, was keen to adopt LLP status.
‘It is a sensible vehicle to trade through, because you are in a better position to protect your assets,’ he said.
But Chantrey Vellacott partner Maurice Fitzpatrick expected his firm to judge the perception of risk and level of personal injury insurance cover against the requirement to publish company-style accounts.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.