Regulation 22 Money market funds: general investment powers

cash or deposits with or loans to an authorised institution, a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986^f1 or a local authority, but only such deposits or loans which are repayable within a period of six months or which are made on terms on which the trustee or manager may demand repayment within that period unconditionally and without payment of a penalty exceeding more than seven days' interest calculated at normal commercial rates;

Government and other public securities which are redeemable at the option of the holder within a period of two years or which will be redeemed by the issuer within that period;

bills of exchange issued by an authorised institution which are repayable within a period of twelve months;

investments falling within paragraph 2 of Schedule 1 to the Act which are issued by an authorised institution or a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986 otherwise than by way of creating or acknowledging indebtedness arising on the making of a deposit or loan of the kind described in sub-paragraph (a) above, are not subordinated and are repayable within the period of twelve months; and

other investments falling within paragraph 2 of Schedule 1 to the Act which are not subordinated, are traded on or dealt in under the rules of an approved market otherwise than by virtue of the specific permission of the market authority and which are repayable within the period of twelve months.