In November 2011 the MFSA has issued a document for consultation on draft Regulations regulating Recognised Incorporated Cell Companies. This document is a result of the interest that has been generated by the launch of the Incorporated Cell Company form of the SICAV in February of this year. In order to render the structure introduced at that time applicable to more diverse business models, the RICC Regulations are being proposed.
An RICC will be an incorporated cell having a patrimony of its own, resulting in ring-fencing, and thus a higher degree of asset protection and segregation. The new rules also provide for greater level of flexibility in which business is carried out. For example, one can easily have an RICC providing administrative services to another RICC which is licensed as a fund. The new rules require that RICCS be established as a limited liability company and such structures may not carry out any licensable activity.
RICCS are established in virtue of a board resolution, and this structure can be migrated in or out of the structure that they share with other RICCS or even establish itself as a separate independent vehicle.
