Regulation 9 Contracts and assets having the effect of derivative contracts

Regulation 56 of the 1994 Regulations^f1 (contracts and assets having the effect of derivative contracts) shall be amended as follows.

In paragraph (1)(a), for the words “in the value of property of any description or fluctuations in an index of the value of property of any description;” substitute—

“in—

(i)

the value of property of any description;

(ii)

an index of the value of property of any description;

(iii)

income from property of any description; or

(iv)

an index of income from property of any description;.”

In paragraph (2), for the words “paragraph (a) of regulation 52”, substitute “regulation 52(1)(a)”.

For paragraph (4), substitute—

“(4)

Rights in respect of a contract or asset which has the effect of a derivative contract to which regulation 55 above applies shall—

(a)

where the asset is a security, be valued in accordance with regulation 51 above;

(b)

where the asset comprises units or other beneficial interests in a collective investment scheme, be valued in accordance with regulation 52 above; and

(c)

where the asset is a debt or other right, be valued in accordance with regulation 48 above.”.

For paragraph (5), substitute—

“(5)

Rights in respect of a contract or asset having the effect of a derivative contract to which regulation 55 does not apply shall have a value determined in accordance with regulation 48(11) above.”.

After paragraph (5) insert—

“(6)

For the purposes of determining whether a contract or asset has the effect of a derivative contract to which regulation 55 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.”.