Gibraltar Enables New Type of Protected Cell Company

Updated on Monday 11th January 2016

Gibraltar-enables-new-type-of-protected-cell-companyIn the last years Gibraltar has become a very attractive financial center and in its desire to provide the best development conditions for foreign investors the Government has enabled a new type of protected cell company specially designed for insurance securities. Our specialists in company formation in Gibraltar can provide you with more information about investments in the financial industry.

The new protected cell company in Gibraltar

The new category of business vehicle was added to the list of types of companies that can be registered in Gibraltar at the end of 2015. It will fall under the governance of the Insurance Companies Regulations of 2009 and will be known as a special purpose vehicle protected cell company (SPV PCC). It was customized for investors trading insurance securities in Gibraltar.

Under the Gibraltar legislation, a SPV PCC will only be allowed to register 100% collateralized cells and the minimum share capital to start this type of company will be 500 GIP, the equivalent of approximately 755 US dollars.

If you need assistance in setting up a protected cell company, you can contact our Gibraltar experts in company formation.

Gibraltar wants to become an international insurance jurisdiction

The introduction of the new type of protected cell company aims to transform Gibraltar into the first insurance-linked securities jurisdiction within the European Union. The SPV PCC will also complete Gibraltar’s list of companies that can be registered as special purpose vehicles.

The Government also emphasized that this was an innovative project successfully carried out together with the private sector in order to increase the quality of doing business in Gibraltar. Governmental officials also declared that the introduction of this type of vehicle was first conceived in 2014 when the financial services regulator in the country published the ILS guide. At that time, the guide provided for a short procedure for the authorization of ILS vehicles. The new SPV PCC will benefit from the same procedure which is deemed to be “swift and transparent” and yet to respect the confines of the legislation.

Our Gibraltar agents can provide you with detailed information about the legislation on financial companies.