Section 85A: Custody of assets of structured investment-linked

85A. Custody of assets of structured investment-linked insurance business (1) No person, other than a custodian, shall hold the assets of a structured investment-linked insurance business policy for safekeeping. (2) For the purpose of subsection (1), a long-term insurer carrying out structured investment-linked insurance business shall enter into a custodian agreement with a custodian. (3) A custodian under this section shall not, in relation to a structured investment-linked insurance policy, carry out an activity or a function in respect of which he has not been licensed or authorised. (4) (a) Any person, other than a custodian, who holds the assets of a structured investment-linked insurance business policy for safekeeping shall commit an offence. (b) An insurer who allows a person other than a custodian licensed to hold the assets of a structured investment-linked insurance business policy for safekeeping shall commit an offence. (c) Any person who commits an offence under paragraph (a) or (b) shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 5 years. 336 Acts 2022 (5) The Commission may, in the FSC Rules, specify – (a) the process for the appointment of a custodian under this section; (b) the criteria for selecting a custodian under this section; (c) the terms of an agreement under subsection (2); (d) the powers, duties and obligations of a custodian; (e) the use of sub-custodians; and (f) any other conditions relating to the use of a custodian. (h) in section 91, by deleting the words “2 years” wherever they appear and replacing them by the words “5 years”; (i) in the First Schedule, in Part I, by adding the following new item – Structured The business of effecting and carrying investment-linked out contracts of insurance under which insurance business the benefits are, wholly or partly, to be determined by reference to the value of, or the income from, a dedicated investment portfolio held separately for each policyholder with a custodian, and which may include the own assets and investments of the policyholder, both existing at inception and accruing over the future term of the policy, with a minimum subscription at inception in cash or assets which may be specified in FSC Rules or guidelines. Acts 2022 337