Protected Cell Company

Definition

• Also known as a segregated portfolio company (SPC), a protected cell company is a company which isolates the assets and liabilities of cells (or accounts) within the company from other cells. This segregation shields each cell from any gains and losses occurring in other cells, and protects client's accounts from creditors and/or liquidation when another client's account becomes insolvent.

Synonyms
cell company, segregated portfolio company

Acronyms
SPC

Related Terms and Acronyms

• Asset — Definition,
  • Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
• Creditor — Definition,
  • One who is owed money.
• General Account (GA) — Acronym, Very Important,
  • Investments and assets that an insurer uses for paying benefits and claims.
• Investment — Definition,
  • Something you put your money into in order to make money.
• Liabilities — Definition,
  • A borrower's debts and legal obligations.
• Liquidation — Definition,
  • The practice of selling or redistributing some or all of a business's assets in order to repay debts or pay investors if the business becomes insolvent or is sold in full or in part.
  • To convert into cash.
  • To settle the outstanding debts by selling property.
• Loss — Definition,
  • When expenses are larger than revenues.
• Mutual Fund — Definition,
  • A type of investment scheme that pools funds from multiple backers and invests them in securities such as stock or bonds.
• Profit — Definition,
  • When revenues exceed expenses.
• Security — Definition,
  • Property designated as collateral.
  • A document stating ownership of a stock or bond.
  • A tradable financial implement that represents ownership, the rights to ownership or debt.
• Segregated Fund — Definition,
  • Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
• Solvency — Definition,
  • To be able to meet one's financial liabilities in the short or long term.
• Sub Account — Definition,
  • A separate financial account used to keep track of a department's finances.