Regulation 5 Amendments to the principal Regulations

In regulation 5(3)^f1 after the words “deposit-taker or” there shall be inserted the words “a deposit account or a share account with”.

For regulation 5(4) and (5)^f2 there shall be substituted—

“(4)

Subject to paragraphs (5) and (6), cash by way of dividends, distributions, other rights or proceeds in respect of plan investments may be invested only by way of cash deposit in accordance with paragraph (3).

(5)

In the case of a general plan, cash referred to in paragraph (4) may also be invested—

(a)

in shares, not being shares in an investment trust, which are qualifying investments for general plans, or in units in an authorised unit trust or a fund of funds or in shares in an investment trust satisfying in each case the condition specified in regulation 6(3); and

(b)

in units in an authorised unit trust or a fund of funds or in shares in an investment trust which does not satisfy the condition specified in regulation 6(3), provided that immediately after such an investment is made the total market value of plan investments in such authorised unit trusts, funds of funds and investment trusts does not exceed one quarter of the market value of the portfolio.

(6)

In the case of a single company plan—

(a)

where shares in the designated company are qualifying investments for single company plans within the meaning of regulation 6B(2), cash referred to in paragraph (4) may also be invested in other shares in that company or in other shares representing those shares; and

(b)

where shares in the designated company which are not qualifying investments for single company plans within the meaning of regulation 6B(2) have been transferred in accordance with regulation 4A(2), cash by way of dividends in respect of those shares (and any tax credit associated with those dividends) may also be invested in other shares in that company.”