The protected cell company has come a long way since its
creation in Guernsey in 1997 as a vehicle designed for use in the
captive insurance industry, explains Joe Truelove, Head of Fund
Services at Carey Group.
The concept underpinning the structure is that the protected
cell company is one separate legal entity within which there are a
series of pools of segregated assets and liabilities. Apart from
the cells there is also a core which is responsible for the
management of the structure and has the board of the entity
attached to it.
Private wealth management open ended asset allocation umbrella
funds
From the captive insurance sector it was an obvious step to
begin to use the protected cell company as the legal structure of
choice for umbrella funds. These open ended structures still exist
and are managed in Guernsey. Well established examples include
Investec World Axis PCC Limited (net value of US$761m spread across
five cells – cautious, core, flexible,
