The Local Government Superannuation (Scotland) Amendment (No.2) Regulations 1993

Stocklending

3.  Regulation P6 of the principal Regulations is amended–

(a) by substituting for paragraph (2)(a) the following paragraph:–

• “any contract entered into in the course of dealing in financial futures or traded options,”;

(b) by adding after paragraph (2)(c)–

“and

(d) a stocklending arrangement.”;

(c) by adding after paragraph (4)(e)–

“or

(f) enter into a stocklending arrangement so as to bring the total value of the securities transferred, or agreed to be transferred, by the administering authority pursuant to stocklending arrangements to an amount which exceeds 25% of the value of all investments of fund monies at the date of entering into such arrangement.”;

(d) by adding after paragraph (7)–

“(7A) An administering authority shall enter into a stocklending arrangement under paragraph (2)(d) only if it complies with the provisions of regulations 5.58 and 5.60 of Section L of the Financial Services (Regulated Schemes) Regulations 1991((1)) and, for this purpose–

(a) the reference in paragraph 1c (iii) of regulation 5.58 to the Guidance of the Board shall be taken to be a reference to paragraphs 12 and 13 of Guidance Release 4/91 issued by the Securities and Investments Board in June 1991; and

(b) any reference to the trustee in those Regulations shall be taken to be a reference to the administering authority.”; and

(e) by inserting in paragraph (10) after the definition of the expression “single holding” the following definitions:–

““stocklending arrangement” means an arrangement such as is mentioned in subsection (1) or (2) of section 129 of the Income and Corporation Taxes Act 1988((2));

“traded option” means an option which is for the time being quoted on a recognised stock exchange within the meaning of section 841 of the Income and Corporation Taxes Act 1988 or on the London International Financial Futures Exchange;”.

(1)

Those Regulations are made under sections 52, 81, 85, 86(3), 87(4), 88(10) and 90 of the Financial Services Act 1986 (c. 60). The power of the Secretary of State to make Regulations under these provisions was transferred to the Securities and Investments Board under the Financial Services Act 1986 (Delegation) Order 1987, (S.I. 1987/942), and the Companies Act 1989 (Commencement No.3, Transitional Provisions and Transfer of Functions under the Financial Services Act 1986) Order 1990, (S.I. 1990/354).

(2)

1988 c. 1.