SPC’s (Segregated Portfolio Companies) in the BVI have long been popular as entities to use as a professional or private fund and also as an insurance company. From 1 October, 2018, however, the list of uses to which it has been allowed has been significantly increased.Segregated Portfolio Companies will now also be available for:
- Use by HNW clients in segregating their assets;
- Property development or management;
- Ships/ aircraft or other assets management;
- Separating out the operation of multiple businesses;
- For use as SPV’s for structured finance and capital markets.
- Virtually any other duty and investment that is not inconsistent with any specific restriction in the BVI Business Company Act
Whilst this is very straightforward, the actual application process will depend on its use. Very usefully, the amendment will now allow a segregated portfolio to contract with another portfolio in the same Segregated Portfolio Company or will a portfolio in another Segregated Portfolio Company.
What has always been a very useful structure has just been made a very good one, and we anticipate a lot of demand for their use. The provision for the use of unregulated Segregated Portfolio Companies is in our view is very good news indeed. In particular, its use by Family Office clients will be very useful indeed.