The Insurance Companies (Amendment No. 2) Regulations 1994

Permitted links

15.—(1) Schedule 10 to the 1994 Regulations (permitted links) shall be amended as follows.

(2) In paragraph 5, for sub-paragraph (b) substitute—

“(b)Units in a collective investment fund which satisfies the following conditions—

(i)the property of the fund comprises property of any of the descriptions in paragraphs 1 to 4 and 5(a) above or paragraphs 6 to 10 below; and

(ii)the units are readily realisable at a price which represents the net value per unit of the assets and liabilities of the fund; and

(iii)the price at which the units may be bought and sold is published regularly.”and omit sub-paragraph (c).

(3) In sub-paragraph (a) of paragraph 14 add—

“(a)a national index of retail prices published by or under the authority of a government of a state belonging to Zone A as defined in Council Directive 89/647/EEC of 18 December 1989 on a solvency ratio for crediting institutions; or”.

(4) For sub-paragraph (b) of paragraph 14 substitute—

“(b)an index which is—

(i)based on constituents, each of which is property falling within paragraphs 1 to 8 or 10 above; and

(ii)in respect of which a derivative contract is listed.”.

(5) In sub-paragraph (a) of paragraph 16, after the words “or the income from” omit the comma and insert the word “or” and after the words “in the value of property” insert a comma.

(6) At the end of sub-paragraph (b) of paragraph 16, substitute a semi-colon for the full stop and add—

“(c)property of the description in paragraph 5(b) above unless the contract under which the benefits are payable has been marketed in accordance with any legal restrictions which apply to the marketing of the units in the collective investment fund;

(d)property of any of the descriptions in Part I of this Schedule which (wholly or in part) has the equivalent effect to a derivative contract other than a permitted derivative contract.”