IPTM7755 - Personal portfolio bonds (PPB): permitted property: cash: definition

In general, cash is property that may be selected without the policy becoming a PPB. However, if under the terms of the policy cash may be selected for speculative purposes, that is wholly or partly for the purpose of realising a gain from its disposal, then the policy will be a PPB.

Meaning of cash

Cash is widely defined and includes cash held in a deposit account or share account with a building society or in a bank account or similar account. This includes deposits with foreign institutions.

Cash does not include ‘near-cash’ or ‘cash-like’ assets such as gold and silver bullion, any type of related security or equity, gilts, permanent interest bearing shares issued by a building society and quoted Eurobonds.

Loan notes

Cash also does not include loan notes, such as medium-term loan notes. These do not fall within any of the permitted categories of property and interests in a loan note may not be selected without making the policy a PPB, even if the return on the loan note is linked to a permitted index.