An incorporated segregated account, or ISA, is a segregated account of an ISAC that has been separately incorporated. Section 9(1) of the Incorporated Segregated Accounts Companies Act 2019 provides that it is incorporated on the date on its certificate of incorporation and is, from that date, a company to which the Companies Act 1981 applies.
At A Glance
| Governing legislation | Incorporated Segregated Accounts Companies Act 2019, sections 8 to 11 and 9A |
| Separate legal person | Yes. Section 9(1): it is a company |
| Liability of owners | As for a company under the Companies Act 1981 |
| Local or exempted | Follows its ISAC |
| Name must contain | “ISA” |
| Evidence of creation | Certificate of incorporation, section 9A |
Its relationship with its ISAC
- an ISA is not a subsidiary of its ISAC by virtue only of being one of its accounts
- an ISA may not itself be an ISAC
- an ISA has the same registered office as its ISAC
- an ISA may own shares in its own ISAC, and in the other ISAs of that ISAC, and may contract with them
How one is created
- The ISAC adopts a board resolution to establish or incorporate one or more accounts, stating each name, adopting the memorandum and bye-laws, appointing a board for each, and allocating liabilities.
- All required documents and information are filed with the Registrar.
- We register the account, if satisfied it can comply with this Act and the Companies Act 1981 and, for a financial institution, that the Bermuda Monetary Authority has no objection.
- We issue a certificate of incorporation.
Records you must keep
The registers every company must keep, applied to each incorporated segregated account, at the registered office it shares with its ISAC.
Beneficial ownership obligations
Each account carries its own obligations
Because an ISA is treated as a company, it is a legal person within section 2 of the Beneficial Ownership Act 2025. It must identify and verify its own beneficial owners, maintain its own register, file with us, and update within fourteen days. Cross-holdings between an ISA, its ISAC and other ISAs may need to be traced through to identify the individuals who ultimately own or control it.
RELATED
The beneficial ownership regime: an overview →
Becoming a stand-alone company
An incorporated segregated account may be continued as a stand-alone company under the Companies Act 1981.
RELATED
Converting between entity types →
Legislation
Incorporated Segregated Accounts Companies Act 2019 | 2019 : 44 · External link
Companies Act 1981 | 1981 : 59 · External link