Close menu

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

FCA

29/04/2014

This term is defined externally, please refer to -

FSMA s417

FCA activities

10/12/2018

means a function which would, except for SUP 10C.9.8R or SUP TP 11.2.11R of the FCA Handbook, be an FCA governing function.

FCA activities notification

10/12/2018

means:

(1) in respect of a PRA senior management approval application that was made prior to 10 December 2018, the notification required by SUP 10A.11.12R(4) of the FCA Handbook
(2) in respect of a PRA senior management approval application made on or after 10 December 2018, the notification required by SUP 10C.9.8R(4) of the FCA Handbook.

FCA approval

07/03/2016

means at any time an approval granted to and in effect for a person by the FCA under section 59 of FSMA (Approval for particular arrangements) for the performance of a controlled function specified by the FCA.

FCA controlled function

07/03/2016

means a controlled function specified by the FCA under section 59 of FSMA.

FCA controlled function

07/03/2016

means a controlled function specified by the FCA under section 59 of FSMA (Approval for particular arrangements).

FCA governing function

10/12/2018

means any of the FCA controlled functions labelled as FCA governing functions in the table of FCA-designated senior management functions in SUP 10C.4.3R of the FCA Handbook.

FCA Handbook

02/04/2015

means the FCA’s Handbook of rules and guidance as amended from time to time.

FCA responsibilities

10/12/2018

means any of:

(1) the responsibilities set out in SYSC 24.2.6R (Table of FCA-prescribed senior management responsibilities) of the FCA Handbook; and

(2) the responsibilities allocated under SYSC 26.3 of the FCA Handbook;

(3) [Deleted.]

(4) [Deleted.]

FCA-authorised person

07/03/2016

means (in accordance with section 31 of FSMA (Authorised persons)) an authorised person who is not a PRA-authorised person.

FCA-designated senior management function

07/03/2016

means an FCA controlled function specified in SUP 10C.4.3R of the FCA Handbook.

final bonus

01/01/2016

(in relation to with-profits policy) means a discretionary payment which might be made by a long-term insurer, in addition to the guaranteed benefits, when the benefits under the with-profits policy become payable.

finance scheme

01/01/2016

means the finance scheme required to be provided by a UK Solvency II firm to the PRA under Undertakings in Difficulty 4.1(2).

financial conglomerate

01/01/2016

has the meaning given in Financial Conglomerates 2.1.

Financial Groups Directive

03/08/2015

means Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate.

financial holding company firm

19/01/2015

has the meaning set out at point 20 of Article 4(1) of the CRR.

financial instruments

03/01/2018

means the instruments specified in Section C of Annex I to MiFID II.

financial year

01/01/2016

means the period at the end of which the balance of the accounts of the insurer is struck, or, if no balance is struck, the calendar year.

firm

07/03/2016

This term is defined externally, please refer to -

FSMA s2B(5)

firm

01/01/2014

means a PRA-authorised person within the meaning of section 2B(5) of FSMA.

First Life Directive

19/06/2014

means the Council Directive of 5 March 1979 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance (No 79/267/EEC).

First Non-Life Directive

19/06/2014

the Council Directive of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct insurance other than life insurance (No 73/239/EEC).

fixed interest securities

01/01/2016

means securities which under their terms of issue provide for fixed amounts of interest.

flat rate benefits business friendly society

01/01/2016

means a friendly society whose insurance business is restricted to the provision of benefits which vary according to the resources available and in which the contributions of members are determined on a flat rate basis.

former member

03/07/2015

means a person who has ceased to be a member, whether by resignation or otherwise, in accordance with Lloyd's Act 1982 and any byelaw made under it.

friendly society

01/01/2016

This term is defined externally, please refer to -

s417(1) FSMA

FSCS

03/07/2015

means the body corporate established under section 212 of FSMA to administer the compensation scheme.

FSMA

01/01/2014

means the Financial Services and Markets Act 2000.

full scope regulatory reference firm

10/12/2018

means: 

(1) a CRR firm
(2) a credit union
(3) a third country CRR firm in relation to the activities of its establishment in the UK
(4) a UK Solvency II firm
(5) the Society
(6) a managing agent
(7) a third country branch undertaking (other than a Swiss general insurer) in relation to the activities of its establishment in the UK
(8) a UK ISPV
(9) a large non-directive insurer,
(10) a small non-directive insurer.

function

01/01/2016

means, within a system of governance, an internal capacity to undertake practical tasks.

Additional Notes

[Note: Art. 13(29) of the Solvency II Directive]

Fundamental Rules

01/10/2015

means the rules set out in Fundamental Rules 2

funds at Lloyd’s

01/01/2016

means the assets (not being syndicate assets) provided by or on behalf of a member to meet the liabilities arising from the member’s insurance business at Lloyd's which are held in a Lloyd's trust fund and managed by the Society as trustee.

funeral plan contract

03/08/2015

means the investment specified in articles 59(2), 60 and 87 of the Regulated Activities Order.

future

01/01/2016

means the investment specified in article 84 of the Regulated Activities Order.

future policy-related liabilities

01/01/2016

means, in relation to a with-profits fund, the aggregate of the following amounts (to the extent each constitutes a liability) less the aggregate of such amounts (to the extent each constitutes an asset):

(1) planned deductions for the costs of guarantees, options, smoothing and provision of life cover and other benefits from the amount calculated in accordance with Surplus Funds 3.3 or, where a firm is required under Surplus Funds 3.2 to use the calculation method in Surplus Funds 3.4, in accordance with Surplus Funds 3.4;

(2) planned deductions for other costs deemed chargeable to the amount calculated in accordance with Surplus Funds 3.3 or, where a firm is required under Surplus Funds 3.2 to use the calculation method in Surplus Funds 3.4, in accordance with Surplus Funds 3.4;

(3) future costs of contractual guarantees (other than financial options);

(4) future costs of financial options, including guaranteed annuity and cash options;

(5) future costs or proceeds of smoothing;

(6) future liabilities to repay financing costs of a with-profits fund where the firm expects to have to meet such liabilities; and

(7) other future costs related to the provision of the benefits referred to in Surplus Funds 3.4(4) (regardless of whether the firm is required to effect the calculation in Surplus Funds 3.4),

but only to the extent that they are not already included in the amount calculated in accordance with Surplus Funds 3.3 or, if applicable, Surplus Funds 3.4.