Michael Betley, Managing Director, Trust Corporation of
the Channel Islands Limited, looks at how private wealth advisors
are using cell companies for more bespoke structuring
solutions.
Guernsey pioneered the corporate cell concept and its
application and innovation continues as the cellular approach
becomes more understood.
The traditional use of cell companies, to simplify and
commoditise insurance products and segregate asset classes for
investment funds, still dominates but increasingly private wealth
advisors are using cell companies for more bespoke structuring
solutions.
A cell company can create underlying cells which can hold assets
and liabilities segregated from those assets or liabilities held in
other cells. This ring-fencing is fundamental to the cell company
concept; segregation ensures that cellular assets are only
available to creditors and shareholders of that cell. This creates
greater certainty and significantly improves on the
