# The Friendly Societies (Insurance Business) (Amendment) Regulations 1996, Regulation 11: Beneficial interests in collective investment schemes (substitution for regulation concerning unit trusts)


For regulation 27 of the 1994 Regulations (unit trusts) substitute—
“Beneficial interests in collective investment schemes
27 (1) Subject to paragraph (3) below, this regulation applies to holdings of units, or other beneficial interests in—
(a) a scheme falling within Council Directive 85/611/EEC of 20th December 1985 on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investments in transferable securities;
(b) an authorised unit trust scheme or a recognised scheme within the meaning of the Financial Services Act 1986 (not falling within sub-paragraph (a) above); or
(c) any other collective investment scheme where—
(i) the scheme does not employ derivative contracts unless they are contracts to which regulation 30 below applies;
(ii) the scheme does not employ contracts or assets having the effect of derivative contracts unless they have the effect of derivative contracts to which regulation 30 below applies; and
(iii) the property of the scheme does not include assets other than those for the valuation of which provision is made in this Part of these Regulations.
(2) The value of units or other beneficial interests in a collective investment scheme to which this regulation applies shall be—
(a) where the issuer can be required to purchase the units or other beneficial interests from the holder upon the holder giving notice of one month or less, the price at which the issuer would have purchased the units or other beneficial interests on the relevant date or the most recent date before the relevant date on which it could have been required to make such a purchase; or
(b) where the issuer cannot be required to purchase the units or other beneficial interests as set out in sub-paragraph (a) above, a value determined in accordance with regulation 26 above.
(3) Other than as provided in regulation 31(4) below, this regulation shall not apply to units or other beneficial interests in a collective investment scheme which has the effect of a derivative contract.”.

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Source: https://www.legislation.gov.uk/uksi/1996/3008/regulation/11 (the official version)
Page: https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996/regulation-11
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.