Policy clause
"Only listed securities and regulated funds": how to write it, test it and evidence it
A permitted-universe clause allows only securities admitted to a public market and authorised funds. It becomes testable once listed is pinned to a kind of market and regulated to named fund regimes. Acclimetry runs it as an eligibility test on a governed market-status field, and a missing value withholds a clean reading.
The portfolio may only hold listed securities and regulated collective investment schemes.
eligibility_testQuestions to settle before it can be tested
- Listed where: a regulated market only, or multilateral trading facilities and growth markets too? The values in the field decide.
- Regulated funds: UCITS and UK authorised funds only, or recognised overseas funds and investment trusts too?
- Cash and derivatives: exempt them, or allow exchange-traded derivatives only? Say so in the clause.
- Delistings and new issues: a delisted holding, or a new issue awaiting admission, fails the test unless the policy allows a period.
As a testable rule
Eligibility test template, one predicate: field MARKET_STATUS in Regulated market, UCITS or NURS, cash exempt. Any holding outside those values is a breach with its weight reported, and a holding with no market status is a coverage gap. Because every predicate must hold, either-or conditions are encoded as values of one field.
A testable wording
The portfolio may hold only securities admitted to trading on a UK or EU regulated market and units in UCITS or UK authorised funds. Shares quoted only on multilateral trading facilities are not permitted, and cash deposits are exempt.
UK pension schemes face a softer legal test. Their assets must be predominantly on regulated markets, with other holdings at prudent levels (reg 4(5)-(6) of the 2005 Regulations). See what the regulations require.
Worked example
A share quoted only on a multilateral trading facility is outside the permitted values: a breach at 3% of the 3m portfolio.
Rule template:eligibility_test testName: Listed securities and regulated funds onlypredicates: attribute=field:MARKET_STATUS, operator=in, values=Regulated market|UCITS|NURS, label=Regulated market or authorised fundexemptClassNames: Cash
| Holding | Class | Market value | MARKET_STATUS |
|---|---|---|---|
| UK listed equities | Equities | 900,000 | Regulated market |
| UK Treasury 3.25% 2033 | Government bonds | 700,000 | Regulated market |
| Global equity fund (UCITS) | Funds | 800,000 | UCITS |
| Property fund (NURS) | Funds | 300,000 | NURS |
| Granite Robotics plc, growth-market share | Equities | 90,000 | MTF |
| Cash | Cash | 210,000 | (blank) |
| Group | Status | Value | Bounds | Headroom to the hard bound | Code |
|---|---|---|---|---|---|
| Listed securities and regulated funds only | Breach | 3% | – | – | INELIGIBLE_HOLDING_PRESENT |
INELIGIBLE_HOLDING_PRESENT: At least one holding failed an eligibility predicate the mandate requires.
Largest contributors: Listed securities and regulated funds only → Granite Robotics plc, growth-market share 3%
Computed at build time by the Acclimetry rule engine (backend commit 8197063); the same code runs in the product.
What each monitoring run records
Each run stores the state, the weight of ineligible holdings and the failing holdings with the test they failed. A clean reading means every measured holding carried a permitted value. A breach opens a case like any other limit.
Sources
- Occupational Pension Schemes (Investment) Regulations 2005, reg 4 · OGL v3.0 · Read on12 October 2026