Glossary

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Term Definition Legal instruments

with-profits fund

01/01/2016

means the business of the firm, or a particular part of the business of the firm, in the profits of which certain with-profits policies are eligible to participate through discretionary distributions under such policies and the assets of which comprise the items set out in (1) to (6) less the outgoings in (7) and (8) (including the items and outgoings relating to both current and past business):

(1) premiums and other receivables in respect of with-profits policies;

(2) other receipts of the firm’s with-profits insurance business, including tax receipts;

(3) amounts which have been provided by the firm to facilitate the carrying on of its with-profits insurance business (other than excluded assets);

(4) all income and capital receipts in respect of the items in (1) to (3);

(5) assets into which the items in (1) to (4) have been converted, including assets representing investment in non-profit insurance business; and

(6) premiums, receivables, other receipts, income and capital receipts from non-profit insurance business falling within (5) or otherwise written for the benefit, in whole or in part, of the firm’s with-profits insurance business;

outgoings:

(7) outgoings in respect of the firm’s with-profits insurance business permitted in accordance with any relevant provision of the FCA Handbook or any other applicable regulatory requirement and, to the extent that incoming items have been included in (6), non-profit insurance business; and

(8) transfers permitted in accordance with any relevant provision of the FCA Handbook or any other applicable regulatory requirement;

and, where so required by COBS 20.1A.2R of the FCA Handbook, each distinct part of a firm’s with-profits fund identified in accordance with that rule shall constitute a separate with-profits fund.