Welsh Statutory Instrument 2002 No. 885 (W.100)

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

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© Crown Copyright 2002

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" "highest possible credit rating" means, in relation to a money market fund, that it has the highest possible rating - 
(a) in respect of creditworthiness assigned by Standard and Poor's, a division of The McGraw-Hill Companies Ltd[4]; or

(b) in respect of both creditworthiness and volatility assigned by either Moody's Investors Service Ltd[5] or Fitch Ratings Ltd[6];


"money market fund" means a collective investment scheme which - 
(a) 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[7], is an undertaking for collective investment in transferable securities subject to that Directive;

(b) has been given the highest possible credit rating; and

(c) is either a unit trust scheme authorised under section 243 of the Financial Services and Markets Act 2000[8] 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)".

Amendment of the Local Authorities (Capital Finance) Regulations 1997
     3.  - (1) The Local Authorities (Capital Finance) Regulations 1997[9] 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.".

Signed on behalf of the National Assembly for Wales under section 66(1) of the Government of Wales Act 1998[10]


Rhodri Morgan
The First Minister of the National Assembly

26th March 2002

[2] See the National Assembly for Wales (Transfer of Functions) Order 1999 (S.I. 1999/672).back

[3] S.I. 1990/426; relevant amending instruments are S.I. 1991/501 and 2001/3731 (W.308).back

[4] Registered in England and Wales no. 01916239.back

[5] Registered in England and Wales no. 01950192.back

[6] Registered in England and Wales no. 01316230.back

[7] 85/611/EEC (OJNL375, 31.12.1985) amended by 88/220/EEC (OJNL100, 19.4.1988) and 95/26/EC (OJNL168, 18.7.1995).back

[8] 2000 c.8.back

[9] S.I. 1997/319 to which there are amendments which are not relevant to these Regulations.back

[10] 1998 c.38.back