The Friendly Societies (Insurance Business) (Amendment) Regulations 1996

Application: Part IV

6.—(1) Regulation 20 of the 1994 Regulations (application: Part IV) shall be amended as follows.

(2) For paragraph (4) substitute—

“(4) Where in all the circumstances of the case it appears that any asset is of a lesser value than the amount calculated in accordance with this Part of these Regulations, such lesser value shall be the value of the asset.”.

(3) In paragraph (5) for the words “shall be of a lesser value than a specified amount” substitute “is of a lesser value than the amount calculated in accordance with this Part of these Regulations”.

(4) After paragraph (7) insert—

“(8) Where a society has entered into a contract for the conversion of currency which satisfies the conditions set out in paragraph (9) below, then for any of the purposes for which this Part of these Regulations applies, the society shall treat the conversion as having been made on the relevant date.

(9) The conditions referred to in paragraph (8) above are that—

(a) either—

(i) the contract provides for the conversion into another currency of an amount representing the sale of an asset which has, on the relevant date, been sold but not delivered, or

(ii) the contract provides for the purchase of currency for the purpose of settling the purchase of an asset which has, on the relevant date, been purchased but not delivered;

(b) the conversion is to take place during a period which is—

(i) where the contract is in connection with the delivery of a listed security, a period commencing on the date of the contract and extending for the usual period of settlement as laid down by the rules of the relevant stock exchange or regulated market; or

(ii) where the contract is in connection with the delivery of any other asset, a period commencing on the date of the contract and extending for twenty working days thereafter; and

(c) the contract is listed or has been entered into with an approved counterparty.”.