The Individual Savings Account Regulations 1998

Qualifying investments for a cash component

8.—(1) This regulation specifies the kind of investments (“qualifying investments for a cash component”) which may be purchased, made or held under a cash component.

(2) Qualifying investments for a cash component to which paragraph (1) refers are, subject to paragraph (3)—

(a) cash deposited in a deposit account with a building society, or an institution authorised under the Banking Act 1987(1) or a relevant European institution;

(b) cash deposited in a share account with a building society;

(c) units in a money market fund;

(d) units in a fund of funds, within the meaning given in regulation 2(1)(b), with the modification that, for the words from “securities funds” to the end, there are substituted the words “money market funds”;

(e) any securities issued under the National Loans Acts 1968(2), other than national savings certificates, premium savings bonds, national savings stamps and national savings gift tokens, which, according to the terms and conditions subject to which they are purchased, may be held under a cash component of an account.

(3) A deposit account or share account which is a qualifying investment for a cash component falling within paragraph (2)(a) or (b) respectively must not be connected with any other account falling within the descriptions in those sub-paragraphs, held by the account investor or any other person, and for this purpose such an account is connected with another if—

(a) either was opened with reference to the other, or with a view to enabling the other to be opened on particular terms, or with a view to facilitating the opening of the other on particular terms, and

(b) the terms on which the first-mentioned account in this paragraph was opened would have been significantly less favourable to the holder if the other had not been opened.

(1)

1987 c. 22.

(2)

1968 c. 13.