# The Friendly Societies (Accounts and Related Provisions) Regulations 1994, Paragraph 11: Financial instruments


References to “derivative financial instruments” are deemed to include commodity-based contracts that give either contracting party the right to settle in cash or some other financial instrument, except when such contracts –
(a) were entered into in order to meet the society’s expected purchase, sale or usage requirements and continue to meet those requirements;
(b) were designated for such purpose at their inception; and
(c) are expected to be settled by delivery of the commodity.

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Source: https://www.legislation.gov.uk/uksi/1994/1983/schedule/9/paragraph/11 (the official version)
Page: https://openlegislation.uk/friendly-societies-accounts-and-related-provisions-regulations-1994/schedule-9/paragraph-11
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.