Explanatory note
(This note is not part of the Regulations)
Section 716 of the Companies Act 1985 prohibits the formation of partnerships consisting of more than 20 persons. These Regulations exempt from that prohibition partnerships formed for the purpose of carrying on investment business which are—
(a)
authorised to carry on that business under the Financial Services Act 1986, or
(b)
“European investment firms” carrying on “home-regulated business” in the United Kingdom (for definitions see regulation 2(2)).