The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2020
| Jurisdiction | Wales |
| Citation | SI 2020/110 |
2020 No. 110 (W. 19)
Local Government, Wales
The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2020
Made 31th January 2020
Laid before the National Assembly for Wales 4th February 2020
Coming into force 31th March 2020
The Welsh Ministers, in exercise of the powers conferred by sections 21(1), 24 and 123(1) of the Local Government Act 20031, make the following Regulations.
Title, commencement and interpretation
1.—(1) The title of these Regulations is the Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2020 and they come into force on 31 March 2020.
(2) In these Regulations, “the 2003 Regulations” means the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 20032.
Fair value gains and losses of pooled investment funds
2. In the 2003 Regulations, after regulation 24J insert—
“Fair value gains and losses of pooled investment funds
24K. (1) In this regulation—
“administering authority” means an administering authority as defined in Schedule 1 to the Local Government Pension Scheme Regulations 20133;
“fair value” has the same meaning as in Regulation 25A to these Regulations;
“fair value gain or loss” means a change in the fair value of an investment;
“pooled investment fund” means—
(a) a money market fund; or
(b) an investment scheme approved by the Treasury under section 11(1) of the Trustee Investments Act 19614(local authority investment schemes).
(2) Paragraph (3) applies where a local authority—
(a)
(a) invests in a pooled investment fund (other than in its capacity as an administering authority in relation to a pension fund); and
(b)
(b) a fair value gain or loss experienced on the authority’s investment in that pooled investment fund would otherwise be charged to a revenue account by that local authority in accordance with proper practices.
(3) Where this paragraph applies, the local authority—
(a)
(a) must not charge to a revenue account an amount in respect of that fair value gain or loss; and
(b)
(b) must charge that amount to an account established, charged and used solely for the purpose of recognising fair value gains and losses in accordance with this regulation.
(4) Paragraph (3) does not apply in respect of—
(a)
(a) an impairment loss in relation to the authority’s investment in a pooled investment fund as recognised...
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