Protection of Businesses Act, 1978
R 385
Insurance Act, 2017 (Act No. 18 of 2017)Chapter 6 : Financial SoundnessPart 2 : Security requirements for branches of foreign reinsurers and Lloyd's41. Trust and trustees |
| (1) | A branch of a foreign reinsurer and Lloyd’s must establish a trust in the Republic in accordance with the Trust Property Control Act, 1988 (Act No. 57 of 1988). |
| (2) | The trust and the trust deed must comply with any prescribed requirements and be approved by the Prudential Authority. |
| (3) |
| (a) | The Prudential Authority may, at any time, direct that the trust deed be varied or substituted, or that an additional trustee must be appointed, if the Prudential Authority reasonably believes that it is in the public interest, the interests of policyholders or potential policyholders of the insurer, or in the interest of maintaining the security referred to in section 40. |
| (b) | The trust deed may not be amended or terminated by any person without the prior approval of the Prudential Authority. |
| (4) | The Prudential Authority may prescribe requirements relating to the— |
| (a) | roles, responsibilities and functions of trustees; and |
| (b) | roles, responsibilities and functions of the representative of a branch of a foreign reinsurer or Lloyd’s in respect of the trust. |
| (5) | Despite the Trust Property Control Act, 1988, if any trustee of a trust fails to comply with any requirements of this Act or any provision of the trust deed, the Prudential Authority, on notice to the branch of a foreign reinsurer or Lloyd’s and the trustee, may exercise the powers of that trustee under the trust deed. |
| (6) | The funds held in the trust may not, without the approval of the Prudential Authority, be withdrawn or accessed by a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s in circumstances other than those referred to in section 7(2)(a). |
