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2007-01-01

Insurance (Amendment) Act, 2007

The Parliament of Trinidad and Tobago enacted the Insurance (Amendment) Act, 2007 to restrict how statutory funds and registered pension plans invest their assets. The legislation amends Sections 46 and 186 of the Insurance Act to mandate that all investments comply strictly with the updated Second Schedule, while introducing tiered equity investment limits for pension funds exceeding 150 percent of their actuarial liabilities. These provisions empower the Central Bank to specify investment requirements via Gazette notice and standardize liability calculations based on the most recent actuarial investigations.

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Trinidad and Tobago

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AN ACT to amend the Insurance Act, Chap. 84:01 [Assented to 7th September, 2007] ENACTED by the Parliament of Trinidad and Tobago as follows:

  1. This Act may be cited as the Insurance (Amendment) Act, 2007.

  2. In this Act “the Act” means the Insurance Act. Short title Enactment Interpretation Chap. 84:01 Fifth Session Eighth Parliament Republic of Trinidad and Tobago REPUBLIC OF TRINIDAD AND TOBAGO Act No. 22 of 2007 [L.S.]

  3. Section 46 of the Act is amended by repealing subsection (1) and substituting the following subsection: “(1) The assets of a statutory fund shall not be invested except in the assets and in such manner as specified in the Second Schedule.”.

  4. Section 186 of the Act is amended by repealing subsection (1) and substituting the following subsection: “(1) The trustees of a registered plan shall not invest the assets of the plan except— (a) in such securities as a company may by section 46 invest the assets of its statutory fund; and (b) in any other manner as specified in the Second Schedule.”.

  5. The Second Schedule to the Act is amended by— (a) renumbering paragraph 5 as paragraph 5(1); and (b) inserting after pargraph 5(1) as re￾numbered, the following subparagraph: “(2) Notwithstanding paragraph 5(1) and subject to any requirements as specified by the Central Bank by notice published in the Gazette, a registered pension fund plan which has a total accepted value of assets in excess of one hundred and fifty per cent of its total liabilities may invest in ordinary shares up to a limit of— (a) fifty per cent in respect of that portion of the total accepted value of assets equivalent to one hundred and fifty per cent of the total liabilities; and Section 186 amended Second Schedule amended Section 46 amended 2 No. 22 Insurance (Amendment) 2007

(b) one hundred per cent in respect of that portion of the total accepted value of assets in excess of one hundred and fifty per cent of the total liabilities in such manner that the aggregate value of the investment under this subparagraph and subpara￾graph (a) shall not exceed seventy per cent of the total accepted value of the assets of the plan. (3) For the purpose of paragraph 5(2), total liabilities shall be determined based on the assumptions used in the latest actuarial investigation conducted pursuant to section 185 of the Act and the details of the plan’s membership used for the purpose of determining these liabilities shall comply with such requirements as specified by the Central Bank.”. Passed in the House of Representatives this 20th day of July, 2007. Clerk of the House Passed in the Senate this 23rd day of August, 2007. Clerk of the Senate No. 22 Insurance (Amendment) 2007 3

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