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Newsletter | Articles The new Isle of Man PCC Little has been said about the Isle of Man PCC, but the legislation is now in place and working. The Isle of Man Protected Cell Companies Act was passed on the 21st January 2004 to: "provide for the incorporation of companies as protected cell companies; for the conversion of companies into protected cell companies; and for connected purposes." The island thus takes its place alongside Guernsey, Jersey, Mauritius and others offering or soon to offer similar legislation. A PCC is a corporate entity which holds assets in one or more legally distinct portions or cells. The purpose of the structure is to separate the assets in each cell from those in other cells The revenue streams, assets and liabilities of each cell are kept separate from all other cells. Each cell has its own separate portion of the PCC's overall share capital, allowing shareholders to maintain sole ownership of an entire cell while owning only a small proportion of the PCC as a whole. 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 from assets attributable to other cells. In particular, cellular assets are only available to satisfy the creditors of the company, who are creditors in respect of that cell. Uses PCC's can provide a means of entry into captive insurance market to entities for which it was previously uneconomic. The overheads of a protected cell captive can be shared between the owners of each of the cells, making the captive cheaper to run from the point of view of the insured. Permission is being sought to enable the use of PCC structures for Investment funds either to hold portfolios with separate asset managers or to enable investors to invest in a common pool of investments, but with individual currency hedges or fee structures. PCC are usually established by the insurance company directly, but ILS will be pleased to effect the necessary introductions.