Trust RACS (Investment) Regulations 2007 [SI No 185 of 2007]
Source: Iris Oifigiúl 36 2007-05-04

num: 1
paragraphs: (1) These Regulations may be cited as the Trust RACs (Investment) Regulations 2007.
(2) These Regulations come into operation on 27 April 2007.
num: 2
paragraphs: In these regulations—
(a) an investment undertaking within the meaning assigned to it in section 739B of the Taxes Consolidation Act 1997 (No. 39 of 1997),
(b) a unit trust which neither is, nor is deemed to be, an authorised unit trust scheme (within the meaning of the Unit Trusts Act 1990 (No. 37 of 1990)),
(c) an undertaking for collective investment in transferable securities (within the meaning assigned to it by Council Directive 85/611/EEC of 20 December 1985) 1 situate in another Member State,
(d) a common contractual fund within the meaning of section 739I(1)(a)(i) of the Taxes Consolidation Act 1997 (No.39 of 1997) (inserted by section 44 of the Finance Act 2005 ) (No. 5 of 2005));
(a) granted by the Minister for Enterprise, Trade and Employment under the European Communities (Life Assurance) Framework Regulations 1994 ( S.I. No. 360 of 1994 ) or under the European Communities (Life Assurance) Regulations 1984 ( S.I. No. 57 of 1984 ) and still in force, or
(b) granted by the authority charged with the duty of supervising the activities of insurance undertakings in a Member State other than the State in accordance with Article 6 of Council Directive 79/267/EEC 2 (as inserted by Article 3 of the Council Directive 92/96/EEC 3 );
(a) transferable securities and money market instruments admitted to or dealt in on a regulated market within the meaning of Article 1(13) of Council Directive 93/22/EEC 4
(b) transferable securities and money market instruments dealt in on another regulated market in a Member State which operates regularly and is recognised and open to the public; or
(c) transferable securities and money market instruments admitted to official listing on a stock exchange in a non-Member State or dealt in on another regulated market in a non-Member State which operates regularly and is recognised and open to the public provided that the choice of stock exchange or market has been approved by the local competent authorities.
num: 3
paragraphs: For the purposes of section 61B of the Act—
(a) the trustees of a trust RAC may borrow money but only for liquidity purposes and only on a temporary basis, and
(b) the trustees of a one member arrangement may borrow money.
num: 4
paragraphs: The statement of investment policy principles required under section 59(1B) of the Act shall be in writing and shall include the following matters—
(a) the investment objective of the trustees,
(b) the investment risk measurement methods,
(c) the risk management processes to be used, and
(d) the strategic asset allocation implemented with respect to the nature and duration of pension liabilities.
num: 5
paragraphs: (1) This Article applies to any trust RAC other than a one member arrangement.
(2) In providing for the proper investment of the resources of a trust RAC under section 59(1)(b) of the Act, trustees shall comply with the rules set out in this article.
(3) The assets of the trust RAC must be invested in a manner designed to ensure the security, quality, liquidity and profitability of the portfolio as a whole so far as is appropriate having regard to the nature and duration of the expected liabilities of the trust RAC.
(4) The assets of the trust RAC must be invested predominantly on regulated markets; investment in assets which are not admitted to trading on a regulated market must in any event be kept to a prudent level.
(5) The assets of the trust RAC must be properly diversified in such a way as to avoid excess reliance on any particular asset, issuer or group of undertakings and so as to avoid accumulations of risk in the portfolio as a whole. Investments in assets issued by the same issuer or by issuers belonging to the same group must not expose the trust RAC to excessive risk concentration.
(6) Investment in derivative instruments may be made only in so far as they—
(a) contribute to a reduction of investment risks, or
(b) facilitate efficient portfolio management,
(7) For the purposes of this article—
(a) investment in a collective investment undertaking shall be treated as being invested on a regulated market in accordance with sub-article (4) and diversified in accordance with sub-article (5) to the extent that the investments held by that undertaking are themselves so invested,
(b) investment in an insurance policy falling within the class of insurance specified at paragraph III of Annex 1 of Council Directive 2002/83 5 shall be treated as invested on a regulated market in accordance with sub-article (4) and diversified in accordance with sub-article (5) to the extent that the selection by trustees of the investments by which the return on the insurance policy will be determined complies with those sub-articles,
(c) investment in an insurance policy, the terms of which provide that the proceeds of the insurance policy at maturity will be equal to or greater than the amount of the investment over the term of the insurance policy, shall be treated as invested on a regulated market in accordance with sub-article (4) and diversified in accordance with sub-article (5),
(d) investment in an insurance policy of a type to which Article 2(1)(b) of Council Directive 2002/83 relates shall be treated as invested on a regulated market in accordance with sub-article (4) and diversified in accordance with sub-article (5), and
(e) investment in bonds issued by the Government of any Member State shall be treated as diversified in accordance with sub-article (5).
num: 6
paragraphs: (1) The provisions of Article 5(4) apply in respect of that proportion of the assets of the trust RAC attributable to each individual member of the trust RAC, other than a one member arrangement, in the same manner as they apply to the assets of the trust RAC as a whole.