The Social Security and Pensions (Financial Services and Markets Act 2000) (Consequential Amendments) Regulations (Northern Ireland) 2003

Amendment of the Occupational Pension Schemes (Investment) Regulations

8.—(1) The Occupational Pension Schemes (Investment) Regulations (Northern Ireland) 1996(1) shall be amended in accordance with paragraphs (2) to (6).

(2) In regulation 1 (interpretation) –

(a)in paragraph (2) –

(i)for the definition of “collective investment scheme” there shall be substituted the following definitions –

““the 2000 Act” means the Financial Services and Markets Act 2000;

“collective investment scheme” has the same meaning as in Part XVII of the 2000 Act, but includes arrangements of the type described in paragraphs 4 and 9 of the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001(2) (schemes not operated by way of business and schemes entered into for commercial purposes related to existing business);”;

(ii)for the definitions of “insurance company” and “policy of insurance” there shall be substituted the following definitions –

““insurance company” means a person carrying on the business of effecting or carrying out contracts of insurance;

“policy of insurance” means a contract of long-term insurance the effecting or carrying out of which, by way of business, constitutes the carrying on of a regulated activity within the meaning of the 2000 Act;”;

(b)for paragraph (3) there shall be substituted the following paragraph –

“(3) The definitions of “insurance company” and “policy of insurance” in paragraph (2), and regulations 5(3)(b), 6(2) and (4) and 8(1), shall be read with –

(a)section 22 of the 2000 Act (regulated activities);

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.”.

(3) In regulation 5(3) (restrictions on employer-related investments) for sub-paragraph (b) there shall be substituted the following sub-paragraph –

“(b)a security mentioned in paragraph (a) of the definition of “employer-related investments” in Article 40(2) which is an instrument creating or acknowledging indebtedness, except any such security which is listed on a recognised stock exchange; and”.

(4) In regulation 6 (investments to which restrictions do not apply) –

(a)in paragraph (2) for sub-paragraphs (a) and (b) there shall be substituted the following sub-paragraphs –

“(a)the policy is a contract of insurance on human life or a contract to pay an annuity on a human life, and is treated as a contract of long-term insurance for the purposes of any relevant order under section 22 of the 2000 Act (but excluding a contract which is so treated solely by virtue of being a contract to manage the investments of pension funds); and

(b)the policy of insurance is issued by an insurance company which is the employer and is –

(i)a person who has permission under Part IV of the 2000 Act to effect or carry out contracts of long-term insurance; or

(ii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act (EEA passport rights) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance.”;

(b)paragraph (3) shall be omitted;

(c)in paragraph (4) for the words from “with a building society” to the end there shall be substituted –

“with –

(a)a person who has permission under Part IV of the 2000 Act to accept deposits; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits.”.

(5) In regulation 8(1) (loans that become employer-related) for “a security falling within paragraph 2 of Schedule 1 to the Financial Services Act 1986” there shall be substituted “a security which is an instrument creating or acknowledging indebtedness”.

(6) In regulation 10(1) (exemptions from Article 35) for the words from “the effecting of which” to the end there shall be substituted “of a kind mentioned in regulation 6(2)(a).”.