6.—(1) There shall be excluded from the value of the scheme assets—
(a)any resources invested (or treated as invested by or under section 40) in contravention of section 40(1) (employer-related investments);
(b)any amounts treated as a debt due to the trustees or managers under section 59(2), 60(5) or 75(1) which are unlikely to be recovered without disproportionate cost or within a reasonable time;
(c)any increase in scheme assets attributable to an increase in the value of the scheme’s assets being secured by a method specified in Schedule 4 following a serious shortfall valuation.
(2) At any time after the transitional period, there shall also be excluded the excess of the value mentioned in paragraph (3) over the amount mentioned in paragraph (4).
(3) The value referred to in paragraph (2) is the aggregate value of employer-related investments, as defined in subsection (2) of section 40, the holding of which—
(a)contravenes subsection (1) of that section; or
(b)would do so apart from any provision enabling them to be held only until a specified time or by virtue of their having fallen within regulation 5(2)(d) of the Occupational Pension Schemes (Investment of Scheme’s Resources) Regulations 1992(1).
(4) The amount referred to in paragraph (2) is 5 per cent. of the aggregate value of the scheme’s assets (excluding anything falling within paragraph (1) or (3)(b)).
S.I. 1992/246.