Home > News > 2004 > June 2004 > Barnett Waddingham becomes an LLP
Barnett Waddingham becomes an LLP
On 1 June 2004, Barnett Waddingham converted to a limited liability partnership, Barnett Waddingham LLP. The use of the LLP as a vehicle has quickly embraced leading firms of accountants and, increasingly, other professional services firms such as lawyers and actuaries. The partners consider it a clearly desirable development for our business.
What is an LLP?
An LLP is a corporate entity with its own legal identity (and rights and liabilities) separate from its members. In this respect, it is similar to a UK company.
In addition, its members are not personally liable for its debts, beyond the amount they have contributed as capital. Again, this position is similar to the position of shareholders in a UK limited liability company. This differs from the position in a traditional partnership whereby the partners are jointly and severally liable for the debts of the firm.
Why are so many professional services firms becoming LLP?
The personal risks that partners bear in a traditional partnership are significant. In order to continue to attract and retain high calibre partners Barnett Waddingham, like many others, have decided to convert to LLP.
What does this mean for our clients?
There will be no change to the services we provide or the people who provide them, including the partner responsible. There will be no change to the professional requirements that the firm is subject to or to the regulation of investment business.
Our policy of seeking to maintain a substantial level of professional indemnity insurance will not change as a result of becoming an LLP.
After 1 June 2004, you will notice some changes to our communications, our letterhead for example, to reflect the fact that you will be dealing with a new legal entity.
Will I still deal with a "partner"?
Yes. Under the law governing LLPs, the current partners of the partnership will become "members" of the LLP. Since the people we deal with are used to the term "partner" (and the title "member" is not particularly appealing for day-to-day use) we will continue to use "partner" as a working title, e.g. when signing letters or on business cards.
What happens to "Barnett Waddingham"
The old partnership ceased trading as at 1 June 2004.
If you have any questions about the planned change to LLP status, please contact the partner with whom you normally deal. We will update this page on our web-site in the light of questions received and our responses.
Barnett Waddingham LLP, June 2004.