The Segregated Accounts Companies Amendment Act 2004 was passed on Friday in the House of Assembly.

Through registration under the Act, Bermuda segregated account companies are available not only to insurance companies but also to collective investment schemes and special purpose vehicles that serve an investment purpose, said the Minister of Finance Paula Cox.

A segregated account is an account containing assets and liabilities that are legally separate from the assets and liabilities of a company's ordinary account known as its "general account", said Ms Cox.

And any company operating segregate accounts is known as a segregated company, she added.

"The intended effect of the division between the general account is to protect the assets of one account from the liabilities of the other accounts."

The principal Act established a system of registration of segregated accounts companies and the Register is maintained by the Registrar of Companies. Whether an entity chooses to establish a new company is now a matter of choice, said Ms Cox.

Ms Cox added that since the principal Act was enacted in 2000, 160 companies have registered as segregated accounts companies in Bermuda.

And the segregated accounts companies provide Government with $58,000 in revenue on an annual basis, she said.

The Bill amends section 18 of the principal Act to clarify the ownership status of the assets within a segregated account and rectifies the reference to the Exchange Control Act 1972 under section 18.

With the amendment those persons who are licensed to conduct long term insurance business will now be able to take advantage of the general provisions under the Principal Act, said Ms Cox.

And a company who is registered under the principal Act shall be bound by the Act from the time of registration under the Act.