SPPA Meaning and
Definition
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SPPA is an acronym for "Segregated Portfolio Protected Cell Account." It refers to a financial structure that combines aspects of a segregated portfolio company (SPC) and a protected cell company (PCC).
In an SPPA, a company is divided into separate portfolios or cells that hold different assets and liabilities. Each cell is legally protected from the risks and liabilities of other cells within the structure. This separation allows investors to participate in specific portfolios within the SPPA without being exposed to the risks associated with other portfolios.
The concept of an SPPA provides enhanced asset protection and risk mitigation for investors. The account's structure allows for the legal segregation of assets and liabilities so that the failure of one cell does not impact the assets held in other cells. This segregation offers a certain level of asset protection, as the assets held within a specific cell are not available for the satisfaction of claims against other cells.
SPPAs are commonly utilized in the financial and investment industry, particularly for collective investment schemes and alternative investment funds. They provide flexibility in managing investments and maintaining separate records for each cell, making it easier to track transactions and evaluate the performance of individual portfolios. The framework of an SPPA enables investors to diversify their holdings and manage risk more effectively.
Common Misspellings for SPPA
- zsppa
- szppa
- xsppa
- sxppa
- sdppa
- swppa
- s-ppa
- s0ppa
- sp0pa
- sppoa
- spp-a
- spp0a
- sppza
- sppsa
- sppwa
- sppqa
- sppaq
- spppa
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