Protected Cell Company (“PCC”) as Pension Service Provider (“PSP”)

Overview

Introduction

This Consultation Paper proposes amendments to the current legal framework to allow a protected cell company (“PCC”) to be licensed under the Regulation of Fiduciaries, Administration Businesses, and Company Directors, etc (Bailiwick of Guernsey) Law, 2020 (“Fiduciaries Law”) to carry on pension business.

The proposed change may be beneficial to the Bailiwick as it would enable an expansion in the use of the PCC structure, recognising that the PCC is now mature, well-understood and relied upon across the financial services sector. The proposal would permit licensed pension providers to use the particular features of a PCC to ring-fence pension scheme assets thereby facilitating an efficient mechanism for pension products to be developed while at the same time ensuring that pension assets are protected and pensions activity continues to operate under the umbrella of the Commission’s supervision.

Why your views matter

Who might benefit from reading this paper?

This discussion paper is a public document and feedback is welcomed from any interested stakeholder. The proposal is likely to be of particular interest to Pension Service Providers.