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Glossary

The Rulebook Glossary contains defined terms used in more than one Part across the PRA Rulebook.

The full Glossary can be downloaded as a PDF or printed using the icons to the right.

Term Definition Legal instruments for this definition

occupational pension scheme

01/01/2016

has the meaning set out in article 3(1) of the Regulated Activities Order.

officer

19/06/2014

means, in relation to a body corporate:

(1) a director, member of the committee of management, chief executive, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity; and

(2) an individual who is a controller of the body.

official list

01/01/2016

means:

(1) the list maintained by the FCA in accordance with section 74(1) of FSMA for the purposes of Part VI of FSMA; and

(2) any corresponding list maintained by a competent authority for listing in another EEA State.

offsetting transaction

01/01/2016

means, in accordance with Insurance Company – Risk Management 7.8 and 7.9:

(1) an approved derivative, approved stock lending transaction or an approved quasi-derivative; or

(2) a covered transaction with an approved counterparty for the purchase of assets.

ONA system

19/06/2014

means the PRA’s online notification and applications system, by whatever name known.

operating a dormant account fund

03/08/2015

means any of the regulated activities specified in:

(1) article 63N(1)(a) of the Regulated Activities Order (meeting of repayment claims); or

(2) article 63N(1)(b) of the Regulated Activities Order (managing dormant account funds (including the investment of such funds)).

operating a multilateral trading facility

03/08/2015

means the regulated activity in article 25D of the Regulated Activities Order.

operational risk

01/01/2016

(in the Solvency II Firms Sector of the PRA Rulebook) means the risk of loss arising from inadequate or failed internal processes, personnel or systems, or from external events, including legal risks which, for the purposes of Solvency Capital Requirement – General Provisions 3.3(1), includes legal risks but excludes risks arising from strategic decisions and reputational risks.

(in the Non-Solvency II Firms Sector of the PRA Rulebook) means the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk.

Additional Notes

[Note: Art. 13(33) and Art. 101(4) of the Solvency II Directive]

option

01/01/2016

means the investment specified in article 83 of the Regulated Activities Order.

ORSA

01/01/2016

means the own risk and solvency assessment carried out from time to time, as detailed in Conditions Governing Business 3.8 to 3.11.

OTC derivative

01/01/2016

means a derivative traded solely over the counter.

outsourcing

01/10/2015

means an arrangement of any form between a firm and a service provider, whether a supervised entity or not, by which that service provider performs a process, a service or an activity, whether directly or by sub-outsourcing, which would otherwise be undertaken by the firm itself.

overseas firm

01/02/2014

means a firm which has its registered office (or, if it has no registered office, its head office) outside the UK.

own funds

01/01/2016

(in the Solvency II Firms Sector of the PRA Rulebook) means:

(1) (in relation to a UK Solvency II firm and Lloyd’s) the firm’s aggregate basic own funds and ancillary own funds as determined in accordance with the Own Funds Part of the PRA Rulebook; or

(2) (in relation to a Solvency II undertaking other than a UK Solvency II firm) own funds determined in accordance with Solvency II EEA implementing measures; or

(3) (in relation to an insurance holding company) own funds determined in accordance with (1) as if it were a UK Solvency II firm; or

(4) (in relation to a third country branch undertaking) the firm’s aggregate basic own funds and ancillary own funds as determined in accordance with (1) as if it were a UK Solvency II firm.

Additional Notes

[Note: Art. 87 of the Solvency II Directive]