SPCS - To Convert Or Not To Convert?

The protected cell concept is relatively straightforward. A particular type of company, known in the Cayman Islands as a segregated portfolio company or SPC (different names are used elsewhere) is set up which is able to create one or more cells in order to ring-fence pools of assets and liabilities within the company. Generally, a creditor dealing with one particular cell can only have recourse to the assets of that cell and is denied recourse to the assets of other cells and, depending on how the company is structured, may be denied access to the core assets of the company ie assets which do not relate to any particular cell. The Cayman Islands insurance industry has for the most part embraced the vehicle and