Special legislation permits segregation of assets and related liabilities within a company into cells and limits the claim of a creditor against assets of the cell it has contracted with.
The problem encountered with an umbrella fund company structure is avoided, since the excess liabilities of a sub-fund cannot be set-off against the assets of the entire company.
The ring-fencing of claims is possible for funds, captive insurance companies and investment holding companies. The PCC also simplifies administration and reduces costs of operation.
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