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

• Citation: S.I. 2002/885 (W.)
• Sections: 3

Section 1 Name, 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.

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

(1) The Local Authorities (Capital Finance) (Approved Investments) Regulations 1990 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—

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

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

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

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 amended , is an undertaking for collective investment in transferable securities subject to that Directive;

has been given the highest possible credit rating; and

is either a unit trust scheme authorised under section 243 of the Financial Services and Markets Act 2000 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)”.

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

(1) The Local Authorities (Capital Finance) Regulations 1997 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.