Section 27: Permitted investments

(1) The following investments are permitted investments for the purposes of these Regulations- (a) Government securities and other financial instruments issued by any East African Community Partner State; (b) mortgages on unencumbered immovable property in Uganda; (c) debentures secured by a mortgage on unencumbered immovable property in Uganda; (d) debentures, commercial paper, preference shares or ordinary shares of public companies whose shares are quoted on the stock exchange in Uganda; (e) loans on life assurance policies constituting a liability on Uganda business not exceeding their surrender values; (f) fixed deposits in a commercial bank, provided that- (i) in the case of a life insurer, the deposits in any one commercial bank shall not exceed twenty five percent of the total paid up capital and segregated funds of the insurer; and (ii) in the case of a non-life insurer, the deposits in any one commercial bank shall not exceed twenty five percent of the total paid up capital and insurance liabilities of the insurer; (g) promissory notes, bills of exchange or other instruments issued by a company incorporated under the Companies Act and guaranteed by a commercial bank; (h) East African Development Bank and Preferential Trade Area Bank bonds; (i) securities of companies listed on the Uganda Securities Exchange; (j) investment classes approved by the Authority. (2) An insurer shall not invest any part of the assets of the insurer in the shares or debentures or loans of a company or group of related companies in excess of- (a) in the case of an insurer engaged in life insurance business, five percent of the paid-up capital and segregated funds; or (b) in the case of an insurer engaged in non-life insurance business, five percent of the paid-up capital and insurance liabilities of the insurer. (3) Debentures or loans shall be adequately secured by a first legal charge on unencumbered-property in Uganda. (4) For the purposes of this regulation, the value of an investment is the value estimated at the market rate prevailing at the time of valuation.