To whom it may concern,
We hereby acknowledge, for the purposes of illustration and documentation, that we act as custodian bank in connection with a Capital Redemption Policy issued by a Luxembourg-authorised insurance undertaking (the “Insurer”), in favour of the policyholder identified in the corresponding policy documentation.
This acknowledgement is provided in the context of the Luxembourg insurance framework and reflects the customary custody and asset protection arrangements applicable to insurance-based investment products governed by Luxembourg law.
The custodian bank has been duly appointed to hold, safeguard and administer the assets underlying the Capital Redemption Policy, in accordance with:
– the custody agreement entered into with the Insurer;
– applicable Luxembourg insurance legislation;
– relevant regulatory and prudential requirements.
All assets held in custody in connection with the Policy are recorded in segregated accounts and are legally distinct from:
– the proprietary assets of the Insurer;
– the proprietary assets of the custodian bank.
Such segregation is maintained at all times in accordance with Luxembourg insurance law and recognised market practice.
The custodian bank acknowledges that assets held in custody for the purposes of the Policy form part of the Luxembourg policyholder protection framework, which provides policyholders with priority rights over the segregated assets in the event of the insolvency of the Insurer.
This framework is commonly referred to as the Luxembourg “triangle of security” and is based on the contractual and regulatory separation between:
– the policyholder;
– the insurance undertaking;
– the custodian bank.
This acknowledgement does not constitute:
– a guarantee of investment performance;
– a representation as to the tax treatment of the Policy;
– legal or tax advice to any party.
The custodian bank’s role is strictly limited to custody, safekeeping and administrative functions as defined in the applicable custody arrangements.
This letter is provided for informational and illustrative purposes only. It may be relied upon solely as a description of standard Luxembourg custody arrangements in the context of insurance-based investment products.
No reliance may be placed on this document as a binding commitment or confirmation of any specific contractual relationship.
Yours faithfully,
For and on behalf of
Custodian Bank (Simulated)
Luxembourg