Singapore legislation
Section 49
Section 49
Custody of assets of authorised reinsurers
(1)
The Authority may, in the case of an authorised reinsurer on which a requirement has been imposed under section 48, impose an additional requirement that the whole or a specified proportion of the assets to which the requirement under that section applies must be held by a person approved by the Authority for the purposes of the requirement under this section as trustee for the reinsurer.
(2)
Assets of an authorised reinsurer held by a person as trustee for the reinsurer are taken to be held by the person in compliance with a requirement imposed under this section if, and only if —
they are assets which the reinsurer has given the person written notice are to be held by the person in compliance with such a requirement; or
they are assets into which assets which the reinsurer has given the person such written notice have, by any transaction or series of transactions, been transposed by the person on the instructions of the reinsurer.
(3)
No assets held by a person as trustee for an authorised reinsurer in compliance with a requirement imposed under this section may, so long as the requirement is in force, be released except with the written consent of the Authority.
(4)
If a mortgage or charge is created by an authorised reinsurer at a time when there is in force a requirement imposed on the reinsurer by virtue of this section, being a mortgage or charge conferring a security on any assets which are held by a person as trustee for the reinsurer in compliance with the requirement, the mortgage or charge is, to the extent that it confers such a security, void against the liquidator and any creditor of the reinsurer.[34G