Legislation permitting the incorporation in Guernsey of Protected Cell Companies (PCCs) which came into force on 1 February this year has, as expected, attracted new business.
In the investment business sector the first protected cell company was registered in March by Credit Suisse Fund Administration Limited. Clariden International Investments PCC Limited is an open-ended umbrella fund with various cell companies one of which is investing in Russian equities.
The second protected cell company to be registered is City & Provincial Insurance (PCC) Limited, an association type insurance company with three cells and managed by Wilde & Co. Insurance Managers Limited.
Applications for the formation of additional PCCs are being considered by the Commission including a rent-a-captive being sponsored by Unison/Marsh & McLellan. It is expected to be used by medium to small clients as an entry into the captive alternative risk transfer market.
Peter Crook, Director General, says: 'We anticipate steady growth in the number of PCCs registered in Guernsey because the legislation has been developed in consultation with the finance industry. While PPCs are designed so that the collapse of a particular cell will not contaminate the whole, it is important that each PCC's core capital is sufficient to cover any deficit incurred by the cells.'
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For further information contact Peter Crook on Tel: +44 (0) 1481 712706
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