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The Local Authorities (Capital Finance and Approved Investments) (Amendment) (Wales) Regulations 2002

W.S.I. 2002/885 · Made 26 March 2002

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

LOCAL GOVERNMENT, WALES

Made 26th March 2002

Coming into force 1st April 2002

The National Assembly for Wales makes the following Regulations in exercise of the power given to the Secretary of State by sections 58(9) and 66(1)(a) of the Local Government and Housing Act 1989f1 which is now vested in the National Assembly for Wales so far as exercisable in Walesf2:

Annotations to the whole text

Footnotes

f1

1989 c. 42.

f2

See the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672).

Contents

  1. 1Name, commencement and application
  2. 2Amendment of the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990
  3. 3Amendment of the Local Authorities (Capital Finance) Regulations 1997
  4. Signature
  5. Explanatory note

1Name, commencement and application

(1)

The name of these Regulations is the Local Authorities (Capital Finance and Approved Investments) (Amendment) (Wales) Regulations 2002 and they shall come into force on 1st April 2002.

(2)

These Regulations apply to Wales only.

2Amendment of the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990

(1)

The Local Authorities (Capital Finance) (Approved Investments) Regulations 1990f1 are amended as follows.

(2)

In regulation 1(2) (interpretation), after the definition of “gilt-edged securities”, insert the following definitions—

  • ““highest possible credit rating” means, in relation to a money market fund, that it has the highest possible rating—

    1. (a)

      in respect of creditworthiness assigned by Standard and Poor's, a division of The McGraw-Hill Companies Ltdf2; or

    2. (b)

      in respect of both creditworthiness and volatility assigned by either Moody’s Investors Service Ltdf3 or Fitch Ratings Ltdf4;

  • “money market fund” means a collective investment scheme which—

    1. (a)

      in accordance with the Council Directive of 20th December 1985 on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investments in transferable securities as amendedf5, is an undertaking for collective investment in transferable securities subject to that Directive;

    2. (b)

      has been given the highest possible credit rating; and

    3. (c)

      is either a unit trust scheme authorised under section 243 of the Financial Services and Markets Act 2000f6 or a collective investment scheme recognised under section 264 of that Act;”.

(3)

In regulation 2(1) (approved investments)—

(a)

in sub-paragraph (b), after “deposit-taker”, add “, the Treasury”; and

(b)

after sub-paragraph (b), insert the following sub-paragraph—

“(bb)

any investment in a money market fund;”;

(4)

In regulation 3 (conditions for approval of investments), in paragraphs (1)(c) and (4)(a), after “regulation 2” insert “(1)”.

3Amendment of the Local Authorities (Capital Finance) Regulations 1997

(1)

The Local Authorities (Capital Finance) Regulations 1997f1 are amended as follows.

(2)

In regulation 62(b) (disposal of investments),—

(a)

for “2(b) or (c)”, substitute “2(1)(b), (bb) or (c)”;

(b)

in sub-paragraph (i), for “institution” wherever it appears, substitute “deposit-taker”;

(c)

in sub-paragraph (ii),—

(i)

after “2”, insert “(1)”; and

(ii)

at the end, add “; or”; and

(d)

after sub-paragraph (ii), add—

“(iii)

where the investment was made with a money market fund, that fund has ceased to be a money market fund within the meaning given to that expression in regulation 1(2) of the 1990 Regulations.”.

Signature

Signed on behalf of the National Assembly for Wales under section 66(1) of the Government of Wales Act 1998f1

Rhodri Morgan

The First Minister of the National Assembly

26th March 2002

Explanatory note

(This note is not part of the Regulations)

The Local Authorities (Capital Finance) (Approved Investments) Regulations 1990 contain a list of investments which are approved for the purposes of Part IV of the Local Government and Housing Act 1989.

These Regulations amend the 1990 Regulations by adding investments in money market funds and deposits with the Treasury to the list of approved investments.

The Regulations also make consequential amendments to the Local Authorities (Capital Finance) Regulations 1997.