Section 20: Prohibitions concerning assets

20. Prohibitions concerning assets (1) An insurer shall not, without the approval of the Commission, given generally or in a particular case, and on such conditions as the Commission may determine— (a) mortgage, charge or otherwise encumber its assets; (b) directly or indirectly borrow any asset; (c) by means of any surety, give any security in relation to obligations between other persons except where the security is provided under a guarantee policy which the insurer is authorised to issue under its licence. (2) An insurer shall not invest in derivatives other than— (a) derivatives designated as an asset in respect of a linked long term policy; (b) for the purpose of reducing investment risk or for efficient portfolio management; or (c) in such manner as the insurer will, or reasonably expects to, have the asset at the settlement date of the derivative instrument which matches its obligations under that instrument and from which it can discharge those obligations. [Issue 1] I15 – 20 Revised Laws of Mauritius