What is the ISAC Act?
The Incorporated Segregated Accounts Companies (ISAC) Act came into effect on January 15, 2020 as a standalone piece of legislation that supplements the existing Segregated Accounts Companies Act 2000 (“SAC”). The ISAC Act is designed to offer greater flexibility to market participants within Bermuda's captive and (re)insurance market and asset management industry that have historically followed the segregated account structure.
By enabling the creation of corporate group structures to operate multiple companies under one umbrella, each account has its own “legal personality”: the capacity, rights, and powers and privileges of a natural person. Previously, such separate entities incorporated in Bermuda under the SAC, were not treated as distinct and separate corporate bodies.
Who does this legislation apply to?
These types of structures are attractive to potential investors and have applications for insurance and reinsurance, investment funds, multinational enterprises, family offices, asset management, and securitisation.
What are the benefits?
The ISAC structure provides improved flexibility and efficiency, including the grouping of professional support, while at the same time implementing more robust asset and liability protections. ISACs also allow corporate groups to be created with lower incorporation and management costs than stand-alone captive insurers and fund structures.
The benefit of having separate legal entity-status is that each company may, like any limited liability business, retain assets and be wound up without causing any adverse impact on the other entities in the corporate group. In addition, separate entities under the ISAC can choose to have their own board of directors.
How can Apex help?
Apex can provide fund administration, registered office services, directorships and other corporate secretarial services to companies wishing to set up this type of structure.
Bermuda was the first Apex office to be opened upon the company’s foundation in 2003 and remains one of the largest administrators on the Island. With over 45 offices worldwide and 3,500+ employees, Apex has continually improved and evolved its client-centric suite of services to offer a single-source solution that is the most comprehensive in the industry.
Apex offers an efficient and flexible approach to fund services, tailoring its support to meet the specific requirements of each individual client.
These include:
- Full fund administration services for funds using the ISAC structure
- Transfer agency and AML Officer services
- Loan administration
- Cash management
- Preparation of financial statements and full audit support
- Custody and depositary services
- Apex Bermuda can make registrations with the Bermuda Monetary Authority (“BMA”) including:
- Providing a registered office or business address for a company
- Providing an accommodation, correspondence or administrative address for a company or for any other person
- Filing statutory forms, resolutions, annual returns and notices
- Maintaining the minute book of a company, to include copies of the certificate of incorporation, board resolutions, shareholder resolutions, the memorandum and articles of association of a company and other constitutional documents
For more information on our services, Contact Us today.
