S.L. 403.16 Art. 11Replacingassetsof a kind with assets of any other kind.

(1) Subject to sub-regulation (3), where an insurer proposes to replace assets of a kind constituting or forming part of any deposit ("assets of the old kind") with assets of any other kind ("assets of the new kind"), the insurer shall make an application in writing to the competent authority in that regard giving the relevant details of the assets of the old kind and the assets of the new kind forming the object of the application and the competent authority shall determine the application within thirty days of receiving the details required to be given under this sub-regulation; and, if it refuses the application, the competent authority shall inform the insurer in writing of the reasons for the refusal.

(2) Where the competent authority approves of an application made under sub-regulation (1), the competent authority shall direct in writing the insurer to carry out the replacement of the assets of the old kind with the assets of the new kind in accordance with any conditions which it may deem fit to impose and the custodian to receive and hold in custody, under those conditions, the assets of the new kind and to release from custody, in accordance with sub-regulation (3), the assets of the old kind.

(3) Assets of any kind constituting or forming part of any deposit replaced or to be replaced with assets of any other kind shall not be released from custody unless and until the competent authority is satisfied that the assets replacing those assets have been received and held in custody in accordance with regulation 7 of these regulations.