5.—(1) Subject to regulations 6 to 9—
(a)not more than 5 per cent. of the current market value of the resources of a scheme may at any time be invested in employer-related investments; and
(b)none of the resources of a scheme may at any time be invested in any employer-related loan.
(2) None of the resources of a scheme may at any time be invested in any employer-related investment the making of which involves the entering by the trustees or managers into a transaction at an undervalue where the agreement to enter into that transaction is made on or after the commencement date.
(3) In this regulation and in regulations 7 and 8 “employer-related loan” means—
(a)a loan mentioned in paragraph (d) of the definition of “employer-related investments” in Article 40(2) (including, for the purposes of this regulation only, one which falls within the said paragraph (d) by virtue of Article 40(3));
(b)a security mentioned in paragraph (a) of the definition of “employer-related investments” in Article 40(2) which falls within paragraph 2 of Schedule 1 to the Financial Services Act 1986 (investments and investment business), except any such security which is listed on a recognised stock exchange; and
(c)an employer-related investment prescribed as such by regulation 4(b) or (c).