Jersey limited liability law faces late ambush
Opponents of Jersey’s limited liability legislation aim to cripple it during a final debate later this month.
Details of the controversial legislation, which is designed to limit the liability of accountancy firm partners, won approval from the island’s politicians last week.
However, the latest version of the law, which features several amendments to the original draft accepted in principle in July, must secure full approval from the island’s Parliament on 24 September.
A group of island politicians plan to rally support against the revamped legislation before the debate.
Changes already made include demands for publication of LLP status on all registered firm papers and retention of all documents for 30 years.
If it wins backing on Jersey, the law will go to the UK Privy Council for scrutiny before receiving Home Office sanction, becoming law by the end of the year.
Constant doubt about the law’s viability has failed to dampen the enthusiasm of Price Waterhouse and Ernst & Young, the two Big Six accountancy firms which helped draft the initial LLP legislation for Jersey and are leading the profession’s charge offshore.
Both firms said this week that their plans to register as LLPs on Jersey are on course.
PW’s operations director, Michael Bishopp, said: ‘The fact that the details have now gone through is extremely pleasing, but it still needs to pass that third reading.’
E&Y’s senior partner, Nick Land, added: ‘We remain very confident about it, but the final outcome is not in our hands or our gift.’