Has anyone ever heard of a code requiring the use of clear heat shrink tubing on the shield wire for control cabling? example: encoder connected to a drive?
CE requirements suggest that the ends of a shield cable have to be protected in some way, but does not specify just how it has to be done. It is also generally done here in the states as well.
Heat shrink of some kind is the most common, although adhesive tape is also sometimes seen.
I have not seen clear heat shrink used for this, but there is not reason it would not work. It may be whoever spec'd it wanted to see what was under the heat shrink.