Regulation 11 Provision for adverse changes

Regulation 61 of the 1994 Regulations^f1 (provision for adverse changes) shall be amended as follows.

In paragraph (1), after the words “an obligation”, insert “to which this regulation applies”.

For paragraph (3), substitute—

“(3)

For the purposes of this regulation—

• “linked assets” has the meaning given in regulation 44(1) above;

• “property linked liabilities” has the meaning given in paragraph 2 of Schedule 12 to these Regulations; and

• “the amount of its excess assets” means the difference between the aggregate value of its assets (other than linked assets to the extent that they are held to match property linked liabilities), determined in accordance with Part VIII of these Regulations, and the amount of its liabilities (other than property linked liabilities or liabilities for which provision is made in accordance with this regulation).”.

After paragraph (3), insert—

“(4)

Subject to paragraph (5) below, this regulation applies to an obligation—

(a)

under a contract relating to investments of the kinds mentioned in item C under the heading “Assets” in paragraph 9 of Part I of Schedule 9A to the Companies Act 1985 (whether such contract constitutes an asset or liability of the company);

(b)

undertaken for the purposes of, or in connection with the making of, investments of the kind mentioned in sub-paragraph (a) above; or

(c)

under a contract providing for the purchase, sale or exchange of currency.

(5)

This regulation shall not apply to a contract to the extent that it relates to, or is for the purposes of the making of an investment in, or is in connection with the making of an investment in, a building which is to be occupied by the company and used by the company for the conduct of its business.”.