(1) A person shall not be appointed as a custodian of scheme assets unless  that person

(a) is a bank or a wholly owned subsidiary of a bank;

(b) has a sufficient presence and control in Ghana; and

(c) Is independent of the approved trustee and pension fund managers appointed in respect of the scheme?

(2) A person has a sufficient presence and control in Ghana if:

(a) that person’s day-to-day business activities in relation to its  business in Ghana including the keeping of records in relation to its activities are conducted wholly in Ghana; and

(b) That person has sufficient expertise and management resources in Ghana to conduct its business operations effectively.

(3) A person satisfies the requirements under sub-regulations (1) and  (2) if that person

(a) is licensed by the Securities and Exchange Commission as a custodian under the Securities Industry Act, 1993 (P.N.D.C.L. 333); 

(b) has a paid up stated capital as stated in the Banking Act, 2004 (Act 673) and net assets of at least the  same amount; and

(c) Issues a guarantee to the full sum and value of pension fund assets held by it or to be held by it.

(4)  A guarantee relating to a custodian

(a) shall be issued in writing by an authorized financial institution or authorised insurer; 

(b) shall impose a continuing obligation on the authorized financial institution or authorized insurer to indemnify the scheme against any loss sustained by the scheme or the scheme members as a result of a failure by the custodian to perform an obligation imposed under the Act;  

(c) shall be governed by the laws of Ghana; and

(d) May allow the guarantor to terminate its obligation under the  guarantee only by giving not less than thirty days' written notice in advance to the Authority and to the custodian.