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
segregated portfolio company, cell 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,
    • To convert into cash.
    • 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 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,
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
    • Property designated as collateral.
    • A document stating ownership of a stock or bond.
  • 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.
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