The MFSA is proposing the introduction of a framework for Collective Investment Scheme (‘CISs’) structured as Limited Partnerships (‘LPs’) without separate legal personality into Maltese law, referred to as the Limited Partnership Funds (‘LPF’) framework, and has commenced a consultation process in this respect. The framework will be governed by a new regulation issued under the Investment Services Act.
An LPF must be created by means of a partnership deed between the general partner/s and one or more investors who participate as limited partner/s. The proposed framework will require the LPF to limit its objective to the collective investment of its funds.
The duties and responsibilities of the general partner in an LPF are the same as those applicable to a LP, i.e., management of the business and liability for its debts and obligations. Moreover, the absence of separate legal personality grants any general partner the ability to enter into contracts on behalf of the partnership.
