80Assets

80 Assets (1) The trustees of a scheme must not apply, or deal with, the assets of the scheme, whether indirectly or directly, except in accordance with these Regulations. (2) The assets of the scheme must be applied only for the following purposes: (a) to meet liabilities or expenses incurred for the purposes of maintaining the scheme; (b) to make an investment in accordance with regulation 81(1); (c) to pay a claim made under a certificate; (d) any other purpose the Minister specifies by Gazette notice. (3) The trustees must formulate, adopt and give effect to an investment strategy that has regard to the whole of the circumstances of the scheme including, but not limited to, the following: (a) the risk (including currency and counterparty risk) involved in making, holding and realising, and the likely return from, the scheme's assets, having regard to its expected cash flow requirements; (b) the composition of the scheme's assets as a whole including the extent to which the assets are diverse or expose the scheme to risks from inadequate diversity; (c) the liquidity of the scheme's assets having regard to its expected cash flow requirements;

Chapter 3 Fidelity fund schemes and approved schemes Part 3.4 Approved schemes – prudential standards Division 3 Actuarial matters Building (RBI and Fidelity Fund Schemes) Regulations 2012 44 (d) the ability of the scheme to discharge its existing and prospective liabilities. (4) The trustees must not mortgage, charge or otherwise encumber (including by entering into a contract of guarantee) any asset of the scheme. (5) The trustees must not borrow money in relation to the scheme except in accordance with subregulation (6) or (7). (6) Unless subregulation (7) applies, the trustees may borrow money if: (a) the purpose of the borrowing is to enable the trustees to make a payment under a certificate that, apart from the borrowing, the trustees would not be able to make; and (b) the period of the borrowing does not exceed 90 days; and (c) the total amount borrowed will not exceed 10% of the value of the scheme's assets; and (d) the Minister is notified in writing of the amount and circumstances of the borrowing; and (e) the Minister has given the trustees written approval of the borrowing. (7) The Minister may give the trustees a written direction that they may borrow money only on the conditions specified in the direction.