An investment contract with discretionary participation features does not include a transfer of significant insurance risk. Such a contract is a financial instrument that provides an investor with the contractual right to receive additional amounts, in addition to the amounts that are not subject to the discretion of the issuer. These additional amounts:

• Are expected to be a significant portionof the total contractual benefits, AND
• Their timing and amounts are at thediscretion of the issuer, AND
• Are contractually based on the returnson a specified pool of contracts ANDrealised/unrealized return on assets ORon the P&L of the entity or fund

The requirements in IFRS 17 for insurance contracts are modified for investment contracts with discretionary participation features in terms of:

• Date of initial recognition
• Contract Boundary
• Allocation ofcontractual service margin