Using a PCC for CIS in Mauritius
A Collective Investment Scheme (CIS) pools funds from multiple investors to invest in a diversified portfolio of assets, managed by fund managers. The goal is to provide investors with the benefits of diversification, professional management, and economies of scale. When structured as a Protected Cell Company (PCC), a CIS can leverage the unique advantages of asset segregation and risk isolation provided by the PCC framework.
Legal and Regulatory Framework
The legal framework for CIS in Mauritius is primarily governed by the Securities Act 2005 and the Financial Services Act 2007. For PCCs, the Protected Cell Companies Act 1999 provides the necessary legal structure. Together, these laws ensure that CIS structured as PCCs operate within a well-defined and secure legal framework.
Advantages of Using a PCC for CIS
Asset Protection and Risk Segregation
One of the primary advantages of using a PCC for a CIS is the segregation of assets and liabilities within separate cells. This structure ensures that the assets of one cell are protected from the liabilities of other cells, providing a high level of asset protection and risk isolation. This is particularly beneficial for CIS managers who wish to offer multiple investment strategies or funds under a single corporate structure.
Flexibility in Fund Structuring
The PCC structure offers significant flexibility in fund structuring, allowing for the creation of multiple cells under a single corporate entity. Each cell can represent a distinct investment strategy, asset class, or investor group, providing investors with a tailored investment experience. This flexibility is particularly advantageous for CIS managers looking to diversify their offerings and attract a broad range of investors.
Cost Efficiency
By operating multiple CIS investment funds under a single CIS PCC structure, Fund managers can achieve significant cost efficiencies. Shared administrative and operational resources, such as accounting, compliance, and legal services, can reduce overall costs and improve operational efficiency. This is particularly beneficial for smaller funds or new fund launches, where cost efficiency is a critical factor.
