The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001

Investments to which restrictions on employer-related investments do not apply

546.  Regulation 6 of the Occupational Pension Schemes (Investment) Regulations 1996 (investments to which restrictions do not apply)(1) is amended as follows—

(a)for sub-paragraphs (a) and (b) of paragraph (2) substitute—

“(a)the policy is a contract of insurance on human life or a contract to pay an annuity on a human life, and is treated as a contract of long-term insurance for the purposes of any relevant order under section 22 of the Financial Services and Markets Act 2000 (but excluding a contract which is so treated solely by virtue of being a contract to manage the investments of pension funds); and

(b)the policy of insurance is issued by an insurance company which is the employer and is—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or

(ii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance.”;

(b)paragraph (3) is revoked;

(c)in paragraph (4), for the words from “with a building society” to the end substitute—

“with—

(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits; or

(b)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits.”;

(d)in paragraphs (8)(c) and (8A)(c), for “paragraph (2)(b)(i), (ii) or (iii)” substitute “paragraph (2)(b)(i) or (ii)”.