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- Original (As made)
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5. (1) Subject to regulations 6 (investments to which restrictions do not apply), 7 (transitional provisions), 8 (loans that become employer-related) and 9 (multi-employer schemes)—
(a)not more than five 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 section 40(2)(d) of the 1995 Act (including, for the purposes of this regulation only, one which falls within section 40(2)(d) by virtue of section 40(3) of that Act);
(b)a security mentioned in section 40(2)(a) of the 1995 Act 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) (guarantees and security) or 4(c) (third party lending arrangements).