From this autumn new company law provisions governing the setting up in Guernsey of "protected cell companies (PCCs) are expected to be in place.
Steve Butterworth, Superintendent of Insurance, says: "lnsurance company managers are excited about this development because not all their clients need stand-alone captive insurance companies. The ability to rent a captive via a protected cell company offers an extremely practical alternative.
PCCs allow for core capital to be subscribed by insurance companies, insurance managers or participants themselves. The insurance business of different insurers can be written into different cells each of whose assets are protected in law from the liabilities of other cells.
PCCs are also of great interest to fund promoters who sometimes worry about the possibility that the collapse of a class in an umbrella fund will mean contagion of the other classes. It is expected that very soon umbrella funds will be set up in the form of PCCs.
NEW E-MAIL AND INTERNET ADDRESS
Please note: The Financial Services Commission has a new E-mail address which is info@gfsc.guernsey.net and its information site on the Internet can now be located on http://gfsc.guernsey.net
However, http://www.itl.net/go/to/GuernseyFSC will remain active for the foreseeable future.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010.
Visit the Guernsey Financial Services Commission Web Site at Click Contact Link
