Regulation 7 Securities and beneficial interests in limited partnerships (substitution for regulation concerning unlisted securities)

For regulation 51 of the 1994 Regulations (unlisted securities), substitute—

“Securities and beneficial interests in limited partnerships

51

(1)

This regulation shall apply to the valuation of investments comprising securities other than securities for the valuation of which provision is made in regulation 47 above or 52 below and beneficial interests in a limited partnership, and for the purposes of paragraph (5) below investments includes loans.

(2)

Subject to paragraphs (4) and (5) below and regulation 56 below, the value of an investment to which this regulation applies shall be—

(a)

where the investment is transferable and paragraph (3) below does not apply, the market value; and

(b)

where the investment is transferable and paragraph (3) 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 insurance company; and

(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.

(3)

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 97½ per cent. of the market value other than to the issuer or to an associate or associated company of the issuer or of the insurance company.

(4)

Paragraph (3) 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 not greater than 97½ per cent. of the market value.

(5)

Where an insurance company 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.”