CA-4.3.2

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Past version: Effective from 01 Jul 2007 to 31 Mar 2012
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Assets used to match linked long-term insurance liabilities must fall in one of the following categories:

(a) Real estate assets such as land and buildings (including any interest in land and buildings) each piece individually not exceeding 5% of linked long-term assets and 20% in aggregate;

(b) Listed securities which are readily realisable, other than securities which are:

i) Loans or deposits of the kinds mentioned in (c) or (d); and

ii) Derivative contracts;

(c) Loans which are fully secured by mortgage or charge on land (or any interest in land) each loan individually not exceeding 5% of linked long-term assets and 20% in aggregate and in relation to which the rate of interest and the due dates for the payment of interest and the repayment of principal can be fully ascertained from the terms of any agreement relating to the loan;

(d) Loans to or deposits with an approved financial institution;

(e) Holdings or other beneficial interests in unit trusts or mutual/managed funds which satisfies the following conditions:

i) The property of the fund comprises property only consisting of the descriptions in this section;

ii) The units are readily realisable at a price which represents the net value per unit of the assets and liabilities of the fund; and

iii) The price at which the units may be bought and sold is published regularly;

(f) Cash; and

(g) Income due, or to become due, in respect of property of any of the descriptions in this section.

Amended: January 2007