Recent changes in Cayman law will allow existing companies to
convert into Segregated Portfolio Companies (SPCs). It will also eliminate difficulties for
SPCs in obtaining credit ratings.

An SPC is a single incorporated entity with the ability to segregate one or more portfolios
by reference to share classes, or a series of shares. Creditors only have recourse against
assets of the relevant segregated portfolio.

The changes also limit the recourse of creditors against the general assets of the
company, where a provision to that effect is made in the company's articles of
association.

SPCs are roughly similar to Protected Cell Companies (PCCs) in Guernsey, which have
proved popular as umbrella fund structures, as well as finding popularity amongst captive
insurers.

This article was contributed by RSM Robson Rhodes.
For further details contact David Butler at the firm's London offices on:
Tel: 44 207 865 2814
Email: david.butler@rsmi.co.uk
Website: www.rsmi.co.uk/financialservices