Glossary
Prohibited investments
Prohibited investments are the assets, issuers or transaction types that an investment policy, mandate or regulation forbids a portfolio to hold.
A prohibited list names what a portfolio must never hold. Common entries are margin purchases, short sales, unregistered securities, named issuers and sanctioned countries. Some prohibitions come from law rather than from the client.
UK occupational pension schemes other than small schemes are an example. Under regulation 12 of the 2005 Investment Regulations, no more than five per cent of a scheme’s current market value may be employer-related investments. Investment in any employer-related loan is barred, subject to exceptions in later regulations.
A prohibited list is tested on every holding, and any match is a breach whatever its size. In Acclimetry’s permitted and prohibited investments template, prohibited mode matches by instrument, issuer, class, identifier, country, currency, counterparty or a governed field. Example: a 0.4% holding in a listed issuer breaches, and the offending weight is reported.
See also
Sources
- Occupational Pension Schemes (Investment) Regulations 2005, reg 12 (employer-related investments) · OGL v3.0 · Read on12 October 2026
- Acclimetry rule-template registry (32 templates, methodology options, reason codes and 108 engine-checked cases; backend commit 8197063) · cite only · Read on12 October 2026