A PCC is basically a company having a special structure which allows it to have its core capital, core assets and liabilities, alongside different categories (or cells) of capital and assets and liabilities, without ever mixing the different cells with the core component or the different cells among themselves. Therefore, the legal separation of the different assets that exists defines the boundaries for their respective owners, whether individuals or corporations; this enables the cells to be “Protected” and this is called ring-fencing.
Generally, the shares for the core will carry voting rights as compared to the cellular shares for each class.
The possible activities of a PCC are as follows:
- Asset holding
- Structured finance businesses
- Can be structured as CIS and CEF
- Can carry-out external insurance business and
- External pension scheme