The Local Government Superannuation (Scotland) Amendment Regulations 1993

Use and investment of superannuation funds' moneys

30.  Regulation P6 of the principal Regulations is amended–

(a) by adding after paragraph (2)(b) the following sub-paragraph:–

“(c) any contract the effecting of which constitutes the carrying on of insurance business being long term business within class VII in Schedule 1 to the Insurance Companies Act 1982(1) with a person who is permitted under that Act to carry on such business or, being an insurance company the head office of which is in a member State, is permitted under the law of a member State other than the United Kingdom to carry on insurance business of a corresponding class.”;

(b) in paragraph (4)(b)–

(i) by inserting after the words “single holding” the words “except where paragraph (4A) applies”;

(ii) by substituting for the words “5%” and “20%” the words “10%” and “25%” respectively;

(c) by adding after paragraph (4)(d) the following sub-paragraph:–

“or

(e) make any contract falling within paragraph (2)(c) whereby the total amount so contracted exceeds 25% of the value at the time of all investments of fund moneys.”;

(d) by adding after paragraph (4) the following paragraph:–

“(4A) An administering authority may make an investment so as to result in more than 10% of the value at the time of all investments of fund moneys being represented by a single holding where–

(a) the investment is made by an investment manager appointed under paragraph (5A); and

(b) the single holding is comprised of investments in units or other shares of the investments subject to the trusts of any one unit trust scheme.”; and

(e) by inserting in paragraph (10)–

(i) after the definition of “companies” the following definition–

““European institution” and “home-regulated investment business” have the same meaning as in the Banking Co-ordination (Second Council Directive) Regulations 1992(2);”; and

(ii) in the definition of “investment manager”–

(a) after the words ““investment manager” means” the word “(1)” and

(b) at the end the following sub-paragraph:–

“or

(2) an institution which is a European institution carrying on home-regulated investment business in the United Kingdom and which is reasonably believed by the administering authority to be suitably qualified to make investment decisions on their behalf.”.

(1)

1982 c. 50.

(2)

S.I. 1992/3218.