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Dubai International Financial Centre Authority (“DIFC Authority”) announced that the Board of Directors of the DIFC Authority has issued the Investment Cell Company (“ICC”) Regulations, which came into force on 1 May 2019.
Insurers and Fund Managers will be able to use an Incorporated Cell Company (ICC) formed under the new ICC Regulations for conducting their respective fund business or insurance business (e.g. by captive insurers). Initially, only Insurers will be able to use the ICC structure for their Insurance Business. Fund Managers will not be able to establish ICCs for their fund businesses until amendments are made to the Collective Investment Law (DIFC Law No. 2 of 2010).
The new ICC Regulations are a significant improvement to the existing Protected Cell Company (“PCC”) Regulations. Assets and liabilities within each cell of an ICC are segregated from the assets and liabilities of the other cells in the ICC, and from the ICC itself. The ICC and each cell of the ICC have the status of a separate company or ‘legal entity’. In contrast, segregation of assets and liabilities within a cell of a PCC is achieved through procedural rules and each cell is not a separate company with its own legal entity status.
The new law can be viewed at: www.difc.ae/business/laws-regulations/legal-database
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