S.L. 403.16 Art. 5Kindofassetstobe maintained in Malta. Cap. 371. Cap. 371.

(1) Subject to sub-regulation (2), the assets to be used for the purposes of the deposits referred to in regulation 3, unless otherwise agreed with the European regulatory authorities, where applicable, and in regulation 4, shall be assets of the following kind and shall be treated to be assets of that kind only if they satisfy the conditions applicable to assets of that kind:

(a) an asset consisting of a deposit in a currency acceptable to the competent authority with a bank or credit institution lawfully carrying on the business of banking in Malta if the deposit is in the name of the Malta Financial Services Authority for the insurer’s account or pledged by the insurer concerned in favour of the Malta Financial Services Authority and the document constituting the pledge is delivered to the competent authority; or

(b) an asset consisting of a holding of an instrument admitted to listing on a regulated market or a multilateral system, acceptable to the competent authority, from among assets that are eligible for collateral purposes in Eurosystem market operations, where such acceptable instrument holding is pledged in favour of the Malta Financial Services Authority and the document constituting the pledge is registered by the insurer concerned with a central securities depository, that provides the authentic definitive register of holdings of such instrument, and the said document is delivered to the competent authority.

(2) For the avoidance of doubt, those insurers referred to in regulation 4 shall continue to maintain the kind of assets which were required to be maintained prior to the coming into force of these regulations.

* revoked by the Insurance Business (Insurers’ Assets and Liabilities) Regulations, 2004. † revoked by the Insurance Business (Assets and Liabilities) Regulations, 2007. ‡ revoked by these regulations.

(3) For the purpose of sub-regulation (1) -"bank" or "credit institution", have the same meaning as is assigned to them by article 2(1) of the Banking Act; "deposit", in relation to any currency, has the same meaning as is assigned to it by article 2(1) of the Banking Act.