A new piece of legislation has been introduced in Bermuda, the Incorporated Segregated Accounts Companies Act 2019 (ISAC Act), that allows corporate group structures to operate multiple businesses under one umbrella.
The ISAC Act came into effect on January 15th, 2020 as a standalone piece of legislation and a companion statute to the Segregated Accounts Companies Act 2000.
The introduction of the new legislation enhances the island’s legislative framework designed to cater to the needs of both existing and prospective businesses.
By enabling the creation of corporate group structures to operate multiple businesses under one umbrella, each account has the capacity, rights, and powers and privileges of a natural person. This includes the right to enter into contracts with other accounts under the ISAC and with the ISAC itself.
Under the legislation, there is no limit to the number of accounts an ISAC may establish. An announcement states that this structure provides improved flexibilities and efficiencies, including the pooling of professional support, while at the same time driving more robust asset and liability protections.
These types of structures are attractive to potential investors and have applications in insurance and reinsurance, investment funds, multinational enterprises, family offices, asset management, and securitisation.
The Chief Executive Officer (CEO) of the Bermuda Business Development Agency, Roland Andy Burrows, commented: “Bermuda has long been an exceptional place in which to do business thanks to its pro-business culture and gold standard legal and regulatory framework.
“The ISAC legislation, which came into effect this month, is very welcomed by the market and ensures that Bermuda remains at the forefront of commercial developments and is able to take advantage of future growth opportunities. We thank the Bermuda Government and the private sector for their collaborative efforts in advancing this legislation.”
