Bruce Stephen, Alan Knowles and Eilidh McMillan from our Banking and Finance Team attended the Fund Finance Association's 8th Annual European Fund Finance Symposium in London on 2 May 2024.

In light of the May 2024 Symposium we look at 3 significant positive changes on the near horizon which will streamline fund finance security-taking in Scotland and make the already popular Scottish limited partnerships even more attractive fund structure vehicles.

When the Moveable Transactions (Scotland) Act 2023 (MTA) and relative secondary legislation comes into force (expected later this year) it will be:

  1. Easier to create security over capital call rights and distribution rights: security interests can be created by registration of security over these rights in a new online register without having to give notice to relevant parties. If, instead, notice is given this can be done electronically by email or via an online portal/website.
  2. Easier to create security over future and changing limited partner commitments: the MTA expressly provides for security to cover future assets and therefore can cover the commitments of all limited partners admitted to the SLP during the term of the facility without the need for supplemental assignations in security or further intimations where new limited partners are admitted.
  3. Easier to create security over shares in a limited company: security interests over shares in a Scottish company in the fund structure can be created by a new statutory security perfected by online registration in a new register without the need to transfer ownership of the shares to the lender. The new security may also be capable of securing partnership interests.

These modernising changes will radically simplify the process of taking Scottish security for subscription line and NAV-based finance facilities, benefitting borrowers and lenders alike.

For more information on the positive impact the MTA is going to have on fund finance transactions please get in touch.


Alan Knowles


Eilidh McMillan


Lindsay Lee

Senior Associate