ICCs in Malta: background
Malta has introduced innovative and flexible legal structures in the field of insurance business thus further enhancing its appeal as a domicile for insurance business. Malta is the only EU Member State which has established a legal regime regulating both Protected Cell Companies (PCCs) and Incorporated Cell Companies (ICCs) respectively.
The ICC was introduced as a new type of corporate vehicle in the sphere of the insurance business with the introduction of the Companies Act (Incorporated Cell Companies Carrying on Business of Insurance) Regulations, 2010.
Both Malta PCCs and Malta ICCs have the ability to create cells for the purposes of the segregation of the cellular assets and liabilities however incorporated cells and protected cells have different statuses at law, namely, a protected cell does not have a separate legal personality and each cell transacts through the PCC whilst in the case of an ICC each incorporated cell has its own separate legal personality which is distinct from that of other incorporated cells and that of the Malta ICC The status of an incorporated cell is that of a limited liability company, thus being able to transact and enter into contractual relationships with third parties in its own name.
The Malta ICC Regulations are flexible regulatory measures which allow the incorporation of distinct cells which may be licensed independently of the main company. An ICC also has the power to establish Incorporated Cells for the purpose of carrying on business of affiliated (captive) insurance. In the field of captive insurance, the opportunity may be seized for instance to incorporate separate cells for catastrophe and health insurance.
Structuring Malta ICCs
Chetcuti Cauchi offers legal advisory services relative to the set up of Malta ICCs which may be set up by way of incorporation, continuation (re-domiciliation), conversion or division, the utilization of ICCs in the field of captive insurance and the exercise of EU passporting rights amongst others. Our firm also acts as a bridge between our clients and the MFSA at the pre-licensing stage and provides legal assistance throughout the regulatory process leading to the obtainment of a licence to carry on the business of insurance through the Incorporated Cell Company vehicle. At a post-licensing stage, Chetcuti Cauchi’s legal team provides a comprehensive compliance advisory service which ensures that all compliance matters are attended to.
