What types of investments are captives allowed to use?
As part of its business plan filed with DISB, the captive will document its investment plan including the proposed types of invested assets to be acquired and held by the captive. DISB will review the proposed investment strategy and may approve the plan as submitted or require revisions. Typically, newly formed captives invest in bank instruments (e.g., money market funds and certificates of deposit) and highly rated marketable securities including mutual funds.
