The Anguilla Protected Cell Companies Act 2004

The Protected Cell Companies Act 2004 (the “PCC Act”) was enacted by the Legislative Assembly in August, 2004.

A Protected Cell Company (“PCC”) is a corporate entity that holds assets in one or more segregated cells.

The purpose of a PCC is to separate the assets in each cell from those in other cells. Cellular assets are only available to satisfy the creditors of that cell and creditors of other cells have no claim upon them.

The assets of each cell must be kept separate and be separately identifiable from non-cellular assets and the
assets of other cells.

The PCC was originally intended for the insurance and mutual fund industries to facilitate “rent-a-captive” operations and “umbrella funds”.
Other users are, however, attracted by the concept.

The PCC Act caters for flexible use by providing that any company which is incorporated under the Anguilla Companies Act, if it is engaged in insurance business, or, if it is not so engaged, with the approval of the Financial Services Commission, can, by filing the prescribed notice and application, be registered as a PCC.

A PCC operates in two parts, with a core and an unlimited number of cells.

Under the Act, many structures are possible, and the eventual structure adopted can be tailored to the needs of the core sponsor and cellular users in each case.

Under the PCC Act, PCCs can either be newly incorporated or, alternatively, an existing company can be converted to a PCC.

An important feature of the PCC Act is that there is a requirement for each PCC to appoint a protected cell account representative, whose duties are similar to those of a registered agent for ordinary Anguillian companies.