Statutory Bodies Financial Arrangements Regulation 2019

For section 45(c) of the Act, the rating prescribed for an investment arrangement is—

a rating by Fitch Ratings of AA, AA+ or AAA; or

a rating by Moody’s Investors Service of Aa2, Aa1 or Aaa; or

a rating by Standard & Poor’s of AA, AA+ or AAA.

However, a rating mentioned in subsection (1)(b) is not prescribed for an investment arrangement if the arrangement applies to a bond mutual fund.

In this section—

bond mutual fund means an investment arrangement structured as a unit investment trust—

with underlying assets that are—

in a range of short to medium and long-term securities, with a predominant emphasis on fixed term securities; and

valued on a mark-to-market basis; and

the units in which are redeemable at a value based on the market valuation of the underlying assets of the fund.

Note—

Bond mutual funds are to be distinguished from cash mutual funds. For cash mutual funds, the underlying assets are predominantly in short-term securities. The units in the relevant unit investment trust are redeemable at par or face value on an at call basis. Income from the investment is a return paid separately as appropriate.

Fitch Ratings see section 8(2).

Moody’s Investors Service see section 8(2).

Standard & Poor’s see section 8(2).