{
  "url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996/regulation-14",
  "json_url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996/regulation-14.json",
  "legislation": "uksi/1996/3008",
  "legislation_title": "The Friendly Societies (Insurance Business) (Amendment) Regulations 1996",
  "legislation_url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996",
  "path": "regulation/14",
  "kind": "regulation",
  "number": "14",
  "heading": "Contracts and assets having the effect of derivative contracts (substitution for regulation concerning other assets)",
  "text": "For regulation 31 of the 1994 Regulations (other assets) substitute—\n“Contracts and assets having the effect of derivative contracts\n31 (1) Subject to paragraph (3) below, for the purposes of this Part of these Regulations, a contract has the effect of a derivative contract if it is a contract (other than a derivative contract) which provides whether upon the exercise of a right by the society or otherwise—\n(a) for payment (at any time) of amounts which are determined by fluctuations in—\n(i) the value of property of any description;\n(ii) an index of the value of property of any description;\n(iii) income from property of any description; or\n(iv) an index of income from property of any description;\n(b) for delivery of an asset other than an asset for the valuation of which provision is made in regulation 25 of these Regulations to or by the society; or\n(c) for the conversion of an asset held by the society or another party to—\n(i) an asset of a different type; or\n(ii) a different asset of the same type.\n(2) Subject to paragraph (3) below, for the purposes of this Part of these Regulations an asset has the effect of a derivative contract if the asset is an asset (other than an approved security or an asset falling within regulation 27(1)(a) above) and the holding of the asset confers contractual rights or imposes contractual obligations to make or accept payment, delivery or conversion as set out in sub-paragraphs (a) to (c) of paragraph (1) above.\n(3) A contract or asset does not have the effect of a derivative contract by reason only that—\n(a) it provides for the unconditional delivery of assets, or for the payment for unconditional delivery of assets, such delivery or payment to be made within a period commencing at the date of the contract and extending—\n(i) in the case of a listed security, for the usual period for delivery or payment as determined by the rules of the stock exchange or regulated market on which the securities are listed or facilities for dealing have been granted;\n(ii) in any other case, for twenty working days;\n(b) it is a contract of the type described in regulation 20(8) above in respect of which the conditions set out in regulation 20(9) above have been satisfied; or\n(c) it is a transaction to which regulation 22A(1) above applies.\n(4) Rights in respect of a contract or asset whose effect is that of a derivative contract to which regulation 30 above applies shall—\n(a) where the asset is a security, be valued in accordance with regulation 26 above;\n(b) where the asset comprises units or other beneficial interests in a collective investment scheme, be valued in accordance with regulation 27 above; and\n(c) where the asset is a debt or other right, be valued in accordance with regulation 23 above.\n(5) Rights in respect of a contract or asset whose effect is that of a derivative contract to which regulation 30 above does not apply shall have a value determined in accordance with regulation 23(8) above.\n(6) For the purposes of determining whether a contract or asset has the effect of a derivative contract to which regulation 30 applies, it shall be deemed to have the effect of a derivative contract which is listed or transacted with an approved counterparty if it is itself listed or so transacted.”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1996/3008/regulation/14",
    "retrieved_at": "2026-10-29T12:31:09.195562+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}