delete The Limited Liability Partnerships (Application and Modification of Company Law) Regulations 2025
These Regulations apply and modify company law provisions for Limited Liability Partnerships (LLPs), including: identity verification requirements for members (equivalent to those for company directors under s.1110A), statements confirming members are not disqualified under directors disqualification legislation, notification duties for changes in LLP membership within 14 days, extension of People with Significant Control (PSC) regulations to LLPs, and criminal offenses for failure to notify. The Regulations apply sections 167G-167L (notification of director/member changes), 12A-12B (statement of initial significant control), and related provisions to LLPs through the 2009 Regulations.
These Regulations mechanically extend company law compliance requirements to LLPs without proper justification for why the LLP structure requires identical treatment. The 14-day notification obligation for every membership change creates significant administrative burden and ongoing compliance costs. Identity verification requirements add friction and cost to LLP formation with no clear benefit over existing verification mechanisms. Criminal penalties for failure to notify (s.167L) are disproportionate for what are essentially administrative filing obligations. LLPs differ fundamentally from companies—members have different liability profiles and the partnership structure has distinct characteristics that make rote application of company law provisions inappropriate. This represents the kind of regulatory accretion that post-Brexit reform should eliminate rather than perpetuate.