Regulation 10 Securities and beneficial interests in limited partnerships (substitution for regulation concerning unlisted securities)

For regulation 26 of the 1994 Regulations (unlisted securities) substitute—

“Securities and beneficial interests in limited partnerships

26

(1)

Subject to paragraph (2) below, this regulation applies to the valuation of investments comprising securities and beneficial interests in limited partnerships and, for the purposes of paragraph (6) below, investments includes loans.

(2)

This regulation shall not apply to the valuation of securities which are—

(a)

derivative contracts;

(b)

investments in dependants;

(c)

units or other beneficial interests in collective investment schemes, except as provided in regulation 27(2) below; or

(d)

contracts or assets having the effect of derivative contracts, except as provided in regulation 31(4) below.

(3)

Subject to paragraph (6) below, the value of an investment to which this regulation applies shall be—

(a)

where the investment is transferable and paragraph (4) below does not apply, the market value;

(b)

where the investment is transferable and paragraph (4) below applies, the lower of—

(i)

the market value, and

(ii)

the amount which would reasonably be expected to be received by way of consideration for an assignment or transfer of the investment at a date not later than twelve months after the relevant date, it being assumed that negotiations for the assignment or transfer commenced on the relevant date and the assignment or transfer was made other than to the issuer or to an associate or an associated company of the issuer or of the society; or

(c)

where the investment is not transferable—

(i)

the amount payable on redemption on the relevant date or the most recent date before the relevant date on which the issuer of the investment could have been required to redeem the investment; or

(ii)

where the investment cannot be redeemed, the amount which would reasonably be paid by way of compensation for the surrender of the interest in the investment.

(4)

Subject to paragraph (5) below, this paragraph applies where it is not reasonable to assume that, had negotiations for the assignment or transfer of the investment commenced not more than seven working days before the relevant date, the investment could have been assigned or transferred on the relevant date for an amount not less than 97.5 per cent. of the market value other than to the issuer or to an associate or an associated company of the issuer or of the society.

(5)

Paragraph (4) above shall be taken not to apply if it applies by reason only that—

(a)

the listing of the investment has been temporarily suspended following receipt of price sensitive information by the stock exchange on which the investment is listed or the regulated market on which facilities for dealing have been granted; or

(b)

the extent of the holding would prevent an orderly disposal of the investment for an amount equal to or greater than 97.5 per cent. of the market value.

(6)

Where a society has made more than one unlisted investment (other than a number of investments exclusively comprising loans) and the value of such investments when taken together is greater than the aggregate of the values of each investment valued separately, then such higher value may be ascribed to the investments if it is reasonable to assume that none of the investments would be assigned or transferred separately.”.