Modification of regulation 2 in respect of wholly-insured schemes8
1
Where, on the preparation or revision of a statement of investment principles under regulation 2, a scheme is a wholly-insured scheme and the trustees do not consider that it should cease to be such a scheme—
a
sub-paragraphs (b) and (c) of regulation 2(3) shall not apply; and
b
the statement of investment principles must cover the reasons for the scheme being a wholly-insured scheme.
2
In this regulation, “wholly-insured scheme” means a trust scheme, other than a stakeholder pension scheme within the meaning of section 1 of the Welfare Reform and Pensions Act 199915 (meaning of “stakeholder pension scheme”), which has no investments other than specified qualifying insurance policies.
3
For the purposes of paragraph (2), “investments” shall not include—
a
cash held on deposit by the trustees or managers pending payment to the insurer or to members of the scheme;
b
cash held on deposit by the trustees or managers to meet accrued liabilities or administrative expenses; or
c
any investments arising from voluntary contributions.