The Local Government Pension Scheme(Management and Investment of Funds) Regulations 1998

Definition of “investment”

3.—(1) In these Regulations “investment” and similar expressions have their normal meaning.

(2) But the following provisions of this regulation specify things which count as investments for these Regulations, although they might not otherwise do so, and exclude things which might otherwise count.

(3) A contract entered into in the course of dealing in financial futures or traded options is an investment.

(4) If the administering authority use fund money for any purpose for which they may borrow money, that counts as an investment.

(5) An insurance contract is an investment if and only if the contract is made with a person within paragraph (6) for whom making the contract is business within class III or class VII in Schedule 1 to the Insurance Companies Act 1982(1) (linked long term and pension fund management business).

(6) The persons within this paragraph are—

(a) a person whom that Act permits to carry on such business, and

(b) an insurance company which, because it has its head office in a member State, is permitted under the law of such a State to carry on insurance business of a similar sort.

(7) A stock lending arrangement is an investment if and only if, in respect of it, the conditions in regulations 5.58 and 5.60 of Section L of the Financial Services (Regulated Schemes) Regulations 1991 are complied with, modified as specified in paragraph (8).

(8) Those modifications are—

(a) for the references in regulation 5.58 to section 129 of the Income and Corporation Taxes Act 1988 substitute a reference to section 263B of the Taxation of Chargeable Gains Act 1992;

(b) delete paragraphs 1a, 1c(ii) and 2b;

(c) for the references in both those regulations to the trustee, substitute a reference to the administering authority; and

(d) for the reference in paragraph 1c(iii) of regulation 5.58 to Guidance of the Board, substitute a reference to Guidance Release 4/91 issued by the Securities and Investments Board in June 1991.

(9) It is an investment to contribute to a limited partnership in an unquoted securities investment partnership.

(10) A sub-underwriting contract is an investment.

(1)

1982 c. 50.