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Application provision

1.1 Unless otherwise stated, this Part applies to a non-directive friendly society.



The value ascribed under 18 to 21 must be increased or decreased by an amount representing the value of assets which the firm is deemed to have acquired or disposed of under:

  1. (1) an undiversified contract for differences; or
  2. (2) a contract or asset other than a diversified contract for differences which has the effect of a derivative.



For the purposes of 22.1, the firm must be deemed to have achieved the effect of such contract by entering into appropriate futures contracts or options. The assets deemed to be acquired or disposed of must be dealt with in accordance with the provisions in 19.1 and 20.1 respectively.