Regulatory Alerts2011-07-26
Added · Updated
Notice on Securities Borrowing and Lending Activities
Registered insurers must conduct securities borrowing and lending activities prudently with sound controls and complete records. Borrowing or lending securities requires a prior written agreement specifying terms such as collateral valuation of at least 100% of market value, rights, fees, default events, and governing law, with specific provisions for transactions involving accredited investors. The notice takes effect on 31 August 2011, cancelling the previous 2005 notice, and allows existing agreements a six-month transitional period for compliance.
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