Protected Cell Companies
All firms wishing to establish as a Protected Cell Company (PCC) are required to comply with the Protected Cell Companies Act 2001 (the Act).
As per Section 11 of the Act, consent of the Chief Executive Officer is required for the establishment of a PCC. Consent may only be granted if the firm is, or will be:
- An Insurance Company, licensed under the Financial Services (Insurance Companies) Act;
- A Collective Investment Scheme, licensed under the Financial Services (Collective Investment Schemes) Act; or
- Established principally for the purposes of issuing bonds, notes or loan or other debt securities or instruments, secured or unsecured, in respect of which the repayment of capital and interest is to be funded from the company’s investments.
Therefore any firm wishing to establish as a PCC should submit a formal request to the GFSC for consideration. The request should include the following:
- Details on the proposed activity;
- Details on the proposed licence to be sought (if applicable);
- How the firm complies with Section 11 of the Act; and
- By when an application should be expected (if applicable).
If successful, the approval granted by the GFSC will be subject to the following:
- An application being submitted to the GFSC within 3 months;
- If the application is not received within 3 months the firm will be required to de-register the legal entity, or convert to another legal type, within 5 days of the end of the 3 months; and
- If the application is unsuccessful, the firm will be required to de-register the legal entity, or convert to another legal type, within 5 working days as from the point of communication from the GFSC.