Protected Cell Companies:

a guide to implementation and use

Nigel Feetham (Hassans, Gibraltar) and Grant Jones (Squire, Sanders and Dempsey LLP) 

Publication date: March 2008

Price: £95         ISBN: 978 1904905 55 4

The Protected Cell Company is now the fastest-growing vehicle for the captive insurance industry.  They were introduced in Guernsey in 1997, and other offshore jurisdictions have followed this path. It has proved to be an attractive vehicle for “umbrella fund” investment schemes and for structured finance. This guide to PCCs is designed to help accountants, finance directors and commercial lawyers understand how they work, and what practical use they can be to the client.

This book reviews the main jurisdictions in which PCCs are permissible, takes the reader through the processes involved in setting up a PCC (what the client needs to know and what the professional adviser needs to do) and then looks at the uses for insurance and investment in detail, and looks at other uses. It also examines the consequences of group or cell insolvency.

The appendices include templates for memoranda and articles of association for different types of PCC.

Nigel Feetham is a partner at Gibraltar law firm, Hassans. He was involved in drafting the relevant legislation that opened the way for the Gibraltar insurance sector in 1997 and has since helped develop the market further by advising on implementation of specific legislation, such as protected cell company laws. In 2005 he was also a member of the working group on reform of Gibraltar’s fund legislation.

Grant Jones, Counsel with Squire Sanders & Dempsey LLP, is a solicitor, New York attorney, licensed insolvency practitioner and chartered accountant. He is a member of the investment committee of Martello PCC of Gibraltar.