Approved Investments Act, 1933

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Matters to be regarded by Committee.

8.—When preparing a list of securities in pursuance of this Act and considering whether any particular security should or should not be included in such list and when considering the advice to be given in pursuance of this Act in regard to a particular security, the Committee shall have regard to all the circumstances of such security and all such matters in relation thereto as appear to the Committee to be relevant and, in particular, the Committee shall have regard to the following matters, that is to say:—

(a) whether and how far the safety of the capital and the income of money to be invested in such security is assured;

(b) whether, having regard to the normal price of such security in the market, such security provides an adequate return on money invested therein;

(c) whether a free and convenient market exists for such security and whether such security is readily purchasable and realisable in such market;

(d) whether such security is redeemable or otherwise liable to compulsory repayment of capital at an early or a distant date or not at all;

(e) whether the market price of such security is and is likely to continue free from frequent or violent fluctuation.