New legislation allowing the incorporation of Protected Cell Companies (PCCS) and Financial Guarantee Insurance (FGI) are the most recent examples of the willingness of the Financial Services Commission to support worthwhile innovation especially as only two other territories in the world have FGI legislation.
PCCs permit the business of different insureds to be placed in different cells within the same company. This means that the remaining cells need not be contaminated if creditor action exhausts the assets of one particular cell. The Commission anticipates the introduction of PCCs will encourage the development of rent-a-captive business in Guernsey and extend the benefits of captive insurance, previously the exclusive domain of medium to large corporations, to smaller companies and organisations.
FGI, or bond insurance, guarantees an insured's obligations to pay principal and interest when due, for example, from the issuers of municipal bonds and asset-backed securities.
In the past, the Commission has also supported other important innovations. They include the introduction of Guernsey International Companies which, among other things, offer a highly tax-flexible corporate entity useful to some clients of captive insurance company managers. It also encouraged 'capping' document duty at a maximum of Ł5,000 a year thereby introducing huge financial savings for insurance companies capitalised in the multi-millions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.
For further information contact Peter Crook on Tel: +44 (0) 1481 712706 or visit the Guernsey Financial Services Commission Web Site at:
Click Contact Link
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Cyprus offers many key benefits to foreign investors and their dependent family members who are looking for a jurisdiction that offers a gateway to Europe, high quality standards of living and working infrastructure and services.
Investing in distressed assets is not a new phenomenon but current market conditions and the significant quantity of distressed assets remaining on bank and other balance sheets are undoubtedly giving rise to increased distressed trading opportunities globally.
At its most basic level a partnership requires no formalities or registration and is the simplest manner in which to carry on a business. Partnerships have been used for many centuries and were initially governed by common law rules that evolved to regulate both the dealings of the partnership with third parties, and the dealings of the partners with one another.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).