Bermuda’s Incorporated Segregated Accounts Companies Act 2019 (ISAC), an independent statutory…
Bermuda’s Incorporated Segregated Accounts Companies Act 2019 (ISAC), an independent statutory initiative effective January 15, 2020, introduced a new beneficial corporate structure aimed at attracting more investors to the region.
Implemented as a result of the Segregated Accounts Companies Act 2000 (SAC), the ISAC corporate structure allows groups of companies to operate multiple companies, each with its own legal personality under a single brand name.
Previously, these separate entities incorporated in Bermuda under the (SAC) were not treated as distinct and separate legal persons.
With ISAC’s new structure, each separate account can operate with the rights and privileges of an individual, including the ability to contract with other entities and even with ISAC itself.
Unlimited in the number of entities an ISAC can create, the new structure can be considerably more flexible and efficient, especially in terms of expenses, because the administration costs of ISAC entities are lower than those of traditional business groups. .
The advantage of having a separate legal entity status is that each entity can, like any company, retain assets, sue in its own name and be put into compulsory liquidation without causing an impact on the other entities of the group.
In the insurance and reinsurance sector, the structure allows each entity to have a separate legal personality, allowing it to operate as an independent licensed insurer within the same ISAC. This allows each to acquire separate tax choices or separate credit ratings.
In addition, separate entities under the ISAC may choose to have their own Board of Directors, separate from the ISAC, or to have the same directors on both boards.
“Bermuda has long been an exceptional place to do business thanks to its business-friendly culture and legal framework and world-class regulations,” Business Development Agency CEO Roland Burrows said in a statement.
He added that “the ISAC legislation, which came into force this month, is very well received by the market”.
Bermuda’s ISAC program will be overseen by the Registrar of Companies and the Bermuda Monetary Authority, the latter being the region’s financial services regulator.
Elsewhere, but also in January, it was announced that Australian open banking would suffer a six-month postponement and yesterday UBS sold a majority stake in its distribution platform, Fondcenter, to Clearstream, a provider of post-trade services. based in Luxembourg and owned by Deutsche Borse.