Bermuda Passes New Segregated Accounts Act
The Bermuda House of Assembly has approved a new Segregated Accounts Companies
Amendment Act.
Under the Act, Bermuda segregated accounts companies are available to insurance
firms, collective investment schemes and other special purpose vehicles that
serve an investment purpose, the Royal Gazette reported this week. The purpose of the Bill is to amend section 18 of the principal Act which clarifies
the ownership status of the assets within a segregated account and rectifies
the reference to the Exchange Control Act 1972. According to the Royal Gazette, this means those persons who are licensed to conduct long term insurance business
will now be able to take advantage of the general provisions under the Principal
Act. A segregated account is an account which contains assets and liabilities that are
legally separate from the assets and liabilities of a company's ordinary account, which is
otherwise known as its ‘general account.’ Finance Minister Paula Cox observed that: "The intended effect of the division
between the general account is to protect the assets of one account from the
liabilities of the other accounts." Since the Segregated Accounts Act was initially enacted in 2000, over 160 firms
have registered as segregated accounts companies, contributing more than $58,000
in revenue to the government annually, explained Mrs Cox.
A comprehensive report in our Intelligence Report series describing the world of offshore insurance is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report11.asp
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