As published on captiveinsurancetimes.com, Wednesday October 30, 2019.
The Guernsey Committee for Economic Development has reviewed incorporated cell company legislation and advised a number of new amendments, according to Walkers.
Walkers suggested that the amendments will likely be implemented during Q4 2019 or Q1 2020.
Kate Storey, a partner at Walkers, explained that the change of law will allow boards on incorporated cells to be different from the board on the umbrella incorporated cell company.
Storey said this is “significant” for rent-a-captives using an incorporated cell company structure, including the incorporated cell companies which have been set up in the Island for longevity risk swaps by pension schemes.
She noted that pension trustees—and other rent-a-captive owners—will “appreciate the added control they can have over their incorporated cell captive by appointing representatives to the board of their cell, whereas previously the board had to be composed of the same people appointed to the board of the incorporated cell company owned by the manager of the structure”.