Regulation 6 Amendments to the principal Regulations

In regulation 5(3) after the word “designated” there shall be inserted the words “as a general plan account or a single company plan account.”

For regulation 5(4) and (5) there shall be substituted–

“(4)

Subject to paragraph (5) cash by way of dividends, other rights or proceeds in respect of shares, not being shares in an investment trust, which are held as plan investments may be invested only by way of cash deposit or–

(a)

in the case of a general plan, in other such shares, or

(b)

in the case of a single company plan, in other shares in the designated company or paired shares where one of the companies is the designated company, or in shares which are qualifying investments for single company plans within the meaning of regulation 6B(2) and have been issued by a company which has issued shares representing shares in the designated company.

(5)

Cash referred to in paragraph (4)–

(a)

in the case of a general plan, may be invested in an authorised unit trust, in a fund of funds or in an investment trust, satisfying in each case the condition specified in regulation 6(3)(b), provided that immediately after such an investment is made the total market value of plan investments in authorised unit trusts, funds of funds and investment trusts does not exceed one half of the market value of the portfolio; and

(b)

in the case of a single company plan, may also be invested in shares in the designated company, which are not qualifying investments for single company plans within the meaning of regulation 6B(2), where other such shares are already held under the plan by virtue of having been transferred in accordance with regulation 4A(2).”