Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

The amendment seeks to remove one element of the segregated nature of sub-funds. If accepted, it would adversely affect the segregation of liability between the sub-funds that this legislation seeks to establish. It would result in inconsistency between other investment funds' legal structures which are currently available in Ireland and it would expose investors to the risk of cross-contamination of liability between unconnected sub-funds. Each sub-fund will hold a separate pool of assets whereby the liabilities of one sub-fund will be segregated from those of another. What the Senator suggests means that certain sub-funds could be liable for others although they have no direct involvement in them. Segregated liability ring-fences the assets and liabilities of each sub-fund, and the structure is available to all other regulated fund vehicles in the country. This process is in line with the normal process to date.

On the section, I may table a technical amendment on Report Stage to correct typographical error in the printed Bill, which refers to "limited partners".