Regulatory Alerts2024-04-24
Added · Updated
Notice 135 Bank Covenants in lieu of Deposits
This Notice specifies the form, amount, and claim conditions for bank covenants provided by authorised reinsurers in lieu of cash deposits under the Insurance Act 1966. The covenant amount must be no less than the reinsurance deposit required under regulation 4 of the Insurance (Authorised Reinsurers) Regulations and must allow the Authority to claim the sum upon events such as winding-up, creditor arrangements, business transfers, or specific regulatory arrangements. Authorised reinsurers who furnished covenants under the cancelled MAS Notice IA/PP-N02.1a prior to 30 April 2024 are deemed compliant if the covenants remain effective and meet the minimum deposit amount. The Notice takes effect on 30 April 2024, simultaneously cancelling the previous notice.
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