Alice-Mary Higgins (Independent) | Oireachtas source

These amendments deal with the issue of the 25%. These investment limited partnerships are potentially very large. An investment limited partnership could potentially have up to €100 million in capital. Under the Bill, an investor who might have €24 million in capital in an investment limited fund would not be listed as a beneficial owner.I am concerned that there is still effectively a mandate for secrecy for very large-scale investors, whether for individuals who come in under that 25%, corporate entities as described, or the kinds of structures of concern mentioned in respect of the issue of money laundering and so forth. At a certain level, 25%, which is a very blunt tool that is not attached to any other limitations regarding amount or volume, tens of millions of euros may be invested in an investment limited partnership without transparency attached. This figure of 25% seems somewhat arbitrary. It does not speak to the wider need, which is the driver of some of this Bill, the idea that we need greater transparency around beneficiaries, for individuals to be more accountable and more capacity to investigate issues such as money laundering. If even €1 million, €2 million or €3 million of investment is not subject to potential investigation through the beneficial owners register, that is of real concern. Again, this is the core part of the Bill. I am concerned about the very large volume of money associated with limited partners, the considerable power given to them, as we will be discussing when we get to section 7, and the fact that their liabilities and their transparency under the register are extremely limited. This is our concern.

My amendments in this regard include both a main one and a compromise. In one I suggest that anybody who has a share in an investment limited partnership should be considered a beneficial owner. Although I felt it was something the Minister might want to address himself, an alternative would be to link percentages to different sizes of investment limited partnership. I do not believe anyone who is investing €1 million should not be recognised as a beneficial owner or actor. That is a potential solution. My solution simply suggests that the threshold of 25% be deleted and that all who have shares be considered beneficial owners. I have another alternative, which is to alter the figure to 10%. If we are talking about a fund of the scale of €5 million or €100 million, 10% is a very substantial amount of money. It is appropriate that the owners of such a proportion of a fund be regarded as beneficial owners and have the liabilities and transparency associated with that.

Will the Minister of State indicate whether he is inclined to accept these amendments or whether he has concerns or plans to ensure that we will not have a number of invisible large-scale investors in investment limited partnerships in the future?