By Fernando Mendes From Falki Aviation.com

PROVIDENCIALES, Turks and Caicos Islands — The Financial Services Commission in the Turks and Caicos Islands (TCI) has announced the successful formation of two protected cell companies (PCCs). This is the first time since the Protected Cell Companies Ordinance (PCCO) came into effect on November 1, 2006, that PCCs have been formed and registered in the TCI.

By definition, protected cell companies are limited liability companies structured in such a way that the company is separated into legally distinct portions or 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. A protected cell company is seen legally as a single entity but differs from an ordinary company as it allows greater protection of assets.

In the TCI, Section 7 of the PCCO limits the use of PPCs to insurance business. The ordinance gives the governor the power to extend the type of business PCCs may be able to engage in; however, such change would require adoption of regulations and/or an amendment of its related ordinance.

Noting that the use of protected cell companies has been a significant development in the world of finance for many years, FSC managing director Kevin Higgins said: “It is encouraging to see that the Turks and Caicos continues to be a competitive choice for establishing a wide variety of international insurance entities.”

He further commented: “The TCI regulatory regime continues to support and facilitate the development of the financial services industry and the willingness of these two newly formed protected cell companies to operate from our jurisdiction is for the Commission a clear indicator of growth in the sector.”

The structure of cell companies has been hugely successful as an alternative vehicle for financial services solutions worldwide. The Cayman Islands, Bermuda, Isle of Man, Guernsey, Jersey, Anguilla, Barbados, and Malta boast a large number of PCCs registered in their jurisdiction.

For more on this story go to: http://falkiaviation.com/rentals/item/228-first-protected-cell-companies-formed-in-turks-and-caicos/228-first-protected-cell-companies-formed-in-turks-and-caicos

Related story:

Investment unit shuts down private/public committee tasked with promoting key sector of the economy

From Turks & Caicos Sun

TCI Investment Unit Director, Mrs. Rebecca Astwood, chair of the Financial Services Coordinating Committee, has advised the Financial Services Commission (FSC) that: “The Investment Unit will no longer be actively undertaking the marketing of the financial services at this present time and all current efforts and work for this sectors has been halted. As such the Financial Services Coordinating Committee marketing group will no longer be spearheaded or funded by the Unit going forward.”

The Financial Services Coordinating Committee (FSCC) was established in May 2012 as a result of discussions with the Governor, the Private sector and the Financial Services Commission. The body main objective had been to propose and devise plans and activities that would serve to position the Turks and Caicos Islands as an attractive, well regulated financial services centre among its global competitors.

The Financial Services Coordinating Committee was comprised of both public and private sector membership, including representation from the Governor’s Office, TCIG Investment Unit, the FSC and various Financial Industry Associations. Following elections in the territory and the return to elected Government, the membership was extended to the Ministry of Finance.

In the first 8 to 9 months of its existence, the Committee took on research work with expert assistance from Mrs. Sherri Ortiz from the BVI’s International Finance Centre. It also discussed sustainable development for the financial services sector, and agreed that improved communications between all stakeholders within the industry and government was key in identifying opportunities for the promotion of the Turks and Caicos Islands to key international markets.

Last month, through its sub marketing committee, the FSCC provided the Governor and the TCI Government with a Marketing plan, which aimed to raise the visibility of the Turks and Caicos as a financial services Industry jurisdiction with a clear message that the country was open for business.

When approached for a comment following the Investment Unit’s surprising decision, Mr Kevin Higgins, Financial Services Commission Managing Director stated that: “ A lot of effort had been put into establishing and funding this body. The Commission believes that the membership was adequate as it drew on a number of areas with crucial expertise for the development of the Financial services Industry. It also offered the opportunity to draw together policy ideas, identify and overcome barriers to progress”.

He further added: “As for the funding, the Commission pledged in May 2012, that it would assist by providing the necessary expertise and covering a large portion of the costs incurred by the Committee. The Commission has fulfilled its commitment and is indeed saddened to see a year of work discarded in this manner. The Commission remains ready to support the Financial Services Industry as it seeks to develop its product base and attract new clients to the Turks and Caicos Islands”.

The Financial Services Industry is a growing sector of the TCI economy. In the past two years, a number of Seminars and Conferences held in the TCI and spearheaded by the Financial Services Commission and the Private sector have highlighted interest from international companies to do business in the territory. Under the Constitution of the Turks and Caicos Islands, the regulation of international financial services is a responsibility for the Governor.

For more on this story go to: http://suntci.com/investment-unit-shuts-down-privatepublic-committee-tasked-with-promoting-k-p1008-106.htm

See also related story published March 25 2014 in The TCI Journal:

“J. Kevin Higgins – Who is Responsible for his Actions? What compensation is appropriate?”

Kevin Higgins is the Managing Director of the Financial Services Commission, FSC, in the Turks and Caicos Islands.  The financial regulator in the British territory of the Turks and Caicos Islands.

He reports to the Governor and through the Governor to the Foreign and Commonwealth Office, FCO, in London, England.

The FCO and the British are 100% responsible for his actions.

Kevin Higgins failure to regulate the British Caribbean Bank, BCB, resulted in it and its principals (and its predecessor, the Belize Bank) being at the center of some of the most significant corrupt events in the history of the Turks and Caicos Islands; bribery of the Premier, bribery of the Finance Minister, West Caicos crown land scam, Middle Caicos crown land scam, hospitals construction contract, illegal dredging of the National Parks, etc..

For more on this story go to: http://tcijournal.com/

PHOTO: CIMA’s Managing Director, Mrs. Cindy Scotland, and TCI FSC’s Managing Director, Mr. Kevin Higgins (seated), signed the MOU in the presence of CIMA’s Deputy Managing Director – General Counsel, Mr. Langston Sibblies, QC, and Legal Counsel, Mrs. Sandra Edun-Watler re co-operation agreement between Cayman Islands and Turks & Caicos