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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

waiver

03/07/2015

means a direction waiving or modifying a rule given by the PRA under section 138A of FSMA (Modification or waiver of rules).

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.

with-profits insurance business

01/01/2016

means the business of effecting contracts of insurance or carrying out contracts of insurance that are with-profits policies.

with-profits policy

01/01/2016

means a contract of long-term insurance which provides benefits through eligibility to participate in discretionary distributions based on profits arising from the firm's business or from a particular part of the firm's business.

with-profits policy liabilities

01/01/2016

(1) (for a UK Solvency II firm) means, in relation to a with-profits fund, the value of policies liabilities attributable to with-profits policies (excluding any liabilities relating to non-profit insurance associated with such policies) set out in, and calculated on the basis prescribed by Surplus Funds 3.3 or, if applicable, 3.4 and (in either case) having also made adequate provisions for amounts representing future policy-related liabilities;

(2) (for a non-directive insurer other than a friendly society) means, in relation to a with-profits fund, the value of mathematical reserves attributable to with-profits policies (excluding any liabilities relating to non-profit insurance associated with such policies) determined in accordance with the rules in Insurance Company – Mathematical Reserves;

(3) (for a non-directive friendly society) means, in relation to a with-profits fund, the value of mathematical reserves attributable to with-profits policies (excluding any liabilities relating to non-profit insurance associated with such policies) determined in accordance with the rules in Friendly Society – Liability Valuation.

working day

01/01/2016

means any day other than Saturday, Sunday, Good Friday, Christmas Day and any day which is a bank holiday in any part of the UK under section 1 of the Banking and Financial Dealings Act 1971.