{
  "url": "https://openlegislation.uk/money-purchase-contracted-out-schemes-regulations-1987/regulation-2",
  "json_url": "https://openlegislation.uk/money-purchase-contracted-out-schemes-regulations-1987/regulation-2.json",
  "legislation": "uksi/1987/1101",
  "legislation_title": "The Money Purchase Contracted-out Schemes Regulations 1987",
  "legislation_url": "https://openlegislation.uk/money-purchase-contracted-out-schemes-regulations-1987",
  "path": "regulation/2",
  "kind": "regulation",
  "number": "2",
  "heading": "Permitted investments",
  "text": "(1) For the purposes of section 32(2A) of the 1975 Act (occupational pension scheme may be contracted-out if among other things the requirements imposed by or by virtue of Schedule 1 to the 1986 Act modified under section 32(2B) of the 1975 Act are satisfied in its case) and of paragraphs 3 and 6 of Schedule 1 to the 1986 Act (schemes to comply with prescribed requirements as regards the investment of their resources, and such other requirements as may be prescribed), the prescribed requirements in relation to an occupational pension scheme are those specified in paragraphs (2) and (3).\n(2) The rules of the scheme shall require that the resources of the scheme are not invested in any investments other than those specified in the Schedule to these Regulations.\n(3) The rules of the scheme shall require the trustees of the scheme to take all reasonable steps to ensure that—\n(a) in relation to the investments specified in paragraphs 5 to 8 of the Schedule, there is not, at any one time, invested in the securities of any one issuer—\n(i) more than 5% of the value of the resouces of the scheme, or\n(ii) more than 10% of that value, where the total of the investments in the securities of any one issuer of more than 5% of that value does not exceed 40% of that value;\n(b) not more than 50% of the value of the resources of the scheme is invested, at any one time, in investments specified in paragraph 6 of the Schedule;\n(c) not more than 35% of the value of the resources of the scheme is invested, at any one time, in investments of the kinds specified in paragraphs 7 and 8 (read together) of the Schedule;\n(d) the aggregate, at any one time, of—\n(i) any sum lent to a person or body associated with the scheme out of the resources of the scheme,\n(ii) any part of the resources of the scheme invested in a person or body or land associated with the scheme, and\n(iii) any part of the resources of the scheme invested in any one or more of the investments specified in paragraphs 8 to 10 of the Schedule,\ndoes not exceed 10% of the value of the resources of the scheme;\n(e) not more than 40% of the value of the resources of the scheme is invested, at any one time, in securities issued by any one investment trust company; and\n(f) not more than 25% of the value of the resources of the scheme is invested at any one time in land.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 32(2A) was inserted by the Social Security Act 1986 (c. 50), section 6 and Schedule 2, paragraph 5."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1987/1101/regulation/2",
    "retrieved_at": "2026-10-29T16:24:58.368479+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."
}