Barbados has introduced both segregated accounts and segregated cells legislation as amendments to its Companies Act.
The provisions of the Companies Act apply to segregated cells and segregated accounts unless the new provisions state otherwise.
With respect to regulation, the activities of the company are regulated according to the standards that apply to the particular area of economic activity and the legislation that articulates the duties and obligations relevant to that activity apply. For example companies that wish to engage in insurance must apply to the Office of the Supervisor of Insurance, those that wish to engage in banking must apply to the Central Bank of Barbados for the appropriate licence.
The Insurance Separate Account Structure
A company that its articles of incorporation so permit may establish one or more separate accounts in respect of a contract liability. Separate accounts may only be established for insurance business. The Company must specify in its articles, the designation, restrictions, conditions and rights that are attached to any separate account created under the authority of its articles.
The assets of the company are segregated into separate accounts that are kept separate from the general assets of the company.
The "assets of a separate account" include firstly, the specific assets owned by a company allocated and credited to the separate account. It also includes all income, interest, gains, expenses and losses incurred or earned, in respect of the company's dealing with the assets that are allocated to the separate account in accordance with the terms of the contract that relate to the establishment of the separate account.
A company that has established a separate account may invest and deal with the assets of a separate account in accordance with the terms of the relevant contract. Separate books of record are kept for each separate account.
The Financial Services Segregated Cell Company
The legislation is applicable to companies carrying on financial services activity including insurance, banking and mutual fund activity. The Minister responsible for corporate affairs may also approve non-financial services activity.
The Segregated Cell Company must include in its name the expression "Segregated Cell Company" or the expression "SCC". Each cell must have its own distinct designation or denomination, which must be clearly set out in the agreement.
Read the entire document..Segregated Cells & Segregated Accounts ...here
