Protected cell companies (“PCC(s)”) have been in existence in Gibraltar since 2001 and have proved to be an extremely popular vehicle for Gibraltar funds and for the establishment of multiple sub-funds (or “Cell(s)”). The vehicle is made up by a single body corporate, consisting of a core company, with an internal “umbrella” structure consisting of any number of subdivisions (i.e. Cells). Each Cell can then be used for specific investment objectives or strategies, or even for specific clients, as and when required. The number of Cells that can be created under Gibraltar law is unlimited. The driving force behind establishing such a vehicle is that, provided that the applicable legislation is complied with, the assets and liabilities attributable to a particular Cell can be legally segregated and “ring-fenced”, making the assets of a Cell available only to the creditors and shareholders of that particular Cell. This avoids the risk of cross-contamination between the Cells. Jurisdictions which do not have this facility attempt to remedy this issue by way of limited recourse provisions in agreements entered into by the investment company and other third parties or by establishing wholly owned limited liability subsidiary companies through which each sub-fund conducts its trading. The cost and practical benefits of the PCC legislation has led to a growing number of jurisdictions attempting to follow suit.