S.L. 403.16 · Insurance Business (Maintenance (S.L. 403.16)
S.L. 403.16 Art. 7Custody of assets maintained in Malta.
PART III
(1) The deposit required to be maintained in accordance with the provisions of regulations 3 or 4 shall be maintained by the insurer in Malta and shall be deposited with and held in custody for the insurer’s account by a person as custodian of assets for the insurer; and that insurer shall deposit such assets with a person as prescribed by regulation 8 and that person shall hold such assets in custody for the insurer’s account subject to and in accordance with written arrangements made between the insurer, that person and the competent authority.
(2) The arrangements referred to in sub-regulation (1) shall be made in such form and manner so as to satisfy the provisions of the Act relevant to such requirement, these regulations and any such directive which the competent authority may, from time to time, either generally or specifically, issue in writing with respect to the purpose or security of those assets.
(3) The competent authority shall be a party to those arrangements solely for the purpose of ensuring the enforceability of the provisions of those arrangements and the Act; and any expenses incurred by or under those arrangements shall be borne by the insurer concerned.
(4) Assets of an insurer held in custody for the undertaking’s account by a person as custodian for the insurer shall be taken to be held by that person in compliance with a requirement imposed by or under any provision of the Act if, and only if, they are assets in whose case the insurer has made with that person and the competent authority written arrangements in the form and manner specified in sub-regulation (2) that they are to be held by that person in compliance with such a requirement.
(5) No assets held in custody for an insurer’s account by a person as custodian for the insurer in compliance with a requirement imposed by or under any provision of the Act shall, so long as the requirement is in force, be released except with the approval of the competent authority given in writing.