Politicians on Tuesday voted to bring into force an amendment to the Companies Law, enabling finance firms to set up not only the traditional PCCs, but also Incorporated Cell Company (ICC) structures.
Practitioners say the new measures are the first significant advance on the original PCC model and expect it to boost the institutional investment market in particular, especially for the insurance sector and in support of international capital markets activity.
Basically the ICC establishes each ‘cell’ as a separate incorporated Jersey company, in contrast to the PCC where all the cells combined create one legal entity and each cell is not treated as a separate legal personality.
The move has been welcomed by the industry, although Jersey has been slower than other finance centres to introduce it.
Julie Coward, president of the Jersey Association of Trust Companies, said: ‘JATCo is pleased that the PCC legislation is finally in place, having pressed for this for years.
At long last, the industry is able to compete with other jurisdictions marketing these products.
‘We can now offer another option for the strong protection of clients assets and, in allowing a cell to be incorporated with separate legal personality, this gives us an advantage in jurisdictions unfamiliar with the PCC concept.
Those involved in funds administration and the writing of special risks insurance will particularly welcome the certainty in this area.
Phil Austin, chief executive of industry promoters Jersey Finance, said: ‘We are not the first to market with PCC legislation, but we have consulted widely and taken into account lessons learned elsewhere.
The result is an enhancement to the traditional features of a PCC and the introduction of the ICC concept.
Protection Mr Austin said Jersey’s legislation contained stronger provisions for asset protection and avoided problems identified in other jurisdictions.
The first new PCC has been formed on behalf of MARS Capital Management Ltd for a new collective investment fund.
Simon Pascoe of Bedell Cristin, the law firm acting for the company, said: ‘The Jersey model is undoubtedly an improvement on what is currently available elsewhere.
‘This development will further enhance Jersey’s reputation as a leading jurisdiction for investment funds and structured finance vehicles.
