Protected Cell Companies - Commission Supports Innovation

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.