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Glossary

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

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Term Definition Legal instruments for this definition

technical provisions

01/01/2016

(1) (in the Solvency II Firms Sector) means the technical provisions established in accordance with Technical Provisions 2.1;

(2) (in the Non-Solvency II Firms Sector) means a technical provision established:

(a) for general insurance business, in accordance with Insurance Company - Technical Provisions 2.1; and

(b) for long-term insurance business, in accordance with Insurance Company - Technical Provisions 2.2.

temporary high balance

03/02/2016

means, in relation to a depositor who is an individual, that part of an eligible deposit in excess of the coverage level set out in Depositor Protection 4.2 which meets the additional criteria set out in Depositor Protection 10.2.

Additional Notes

[Note: Art. 2(1)(6) of the DGSD]

The EU

29/04/2014

This term is defined externally, please refer to -

s1(2) Interpretation Act 1978

third country

01/01/2014

means a territory or country that is not an EEA State.

third country branch

01/01/2016

means a third country insurance branch or a third country pure reinsurance branch.

third country branch undertaking

01/01/2016

means:

(1) a third country insurance undertaking that has a third country insurance branch; or

(2) a third country insurance undertaking or third country reinsurance undertaking that has a third country pure reinsurance branch.

third country CRR firm

01/07/2015

means an overseas firm that:

(1) is not an EEA firm;

(2) has its head office outside the European Economic Area; and

(3) would be a CRR firm if it had been a UK undertaking, had carried on all of its business in the UK and had obtained whatever authorisations for doing so as are required under FSMA.

Additional Notes

[Note: Section 425(1)(a) FSMA]

third country firm

05/09/2014

means an overseas firm that is not an incoming firm.

third country insurance branch

01/01/2016

means a permanent presence in the UK of a third country insurance undertaking that has a permission to effect contracts of insurance or carry out contracts of insurance (except an undertaking which pursues only the business of reinsurance in the UK).

Additional Notes

[Note: Art. 162(3) of the Solvency II Directive]

third country insurance undertaking

12/10/2016

means an undertaking that has its head office outside the EEA and that would require authorisation as an insurance undertaking in accordance with Article 14 of the Solvency II Directive if its head office was situated in the EEA.

Additional Notes

[Note: Art. 13(3) of the Solvency II Directive]

third country investment firm

02/04/2015

a firm which would be a MiFID investment firm if it had its head office in the EEA.

third country pure reinsurance branch

01/01/2016

means a permanent presence in the UK of a third country insurance undertaking or third country reinsurance undertaking, that has a permission to effect contracts of insurance or carry out contracts of insurance and which pursues only the business of reinsurance in the UK.

Additional Notes

[Note: Art. 162(3) of the Solvency II Directive]

third country reinsurance undertaking

12/10/2016

means an undertaking that has its head office outside the EEA and that would require authorisation as a reinsurance undertaking in accordance with Article 14 of the Solvency II Directive if its head office were situated in the EEA.

Additional Notes

[Note: Art. 13(6) of the Solvency II Directive]

third country undertaking EEA branch

01/01/2016

means a permanent presence of a third country insurance undertaking in an EEA State except the UK, which has received authorisation in accordance with Article 162 of the Solvency II Directive.

Additional Notes

[Note: Art. 162(3) of the Solvency II Directive]

Third Life Directive

19/06/2014

means the Council Directive of 10 November 1992 on the coordination of laws, etc, and amending Directives 79/267/EEC and 90/619/EEC (No 92/96/EEC).

Third Non-Life Directive

19/06/2014

means the Council Directive of 18 June 1992 on the coordination of laws, etc, and amending Directives 73/239/EEC and 88/357/EEC (No 92/49/EEC).

Threshold conditions

01/10/2015

This term is defined externally, please refer to -

s417 FSMA (by reference to s55B(1) FSMA)

tied agent

02/04/2015

means a person who, under the full and unconditional responsibility of only one MiFID investment firm or third country investment firm on whose behalf it acts, promotes investment services and/or ancillary services to clients or prospective clients, receives and transmits instructions or orders from the client in respect of investment services or financial instruments, places financial instruments and/or provides advice to clients or prospective clients in respect of those financial instruments or investment services.

Tier 1 own funds

01/01/2016

means an item of basic own funds that satisfies the conditions in Own Funds 3.1.

Tier 2 basic own funds

01/01/2016

means an item of Tier 2 own funds that is an item of basic own funds.

Tier 2 own funds

01/01/2016

means an item of own funds that satisfies the conditions in Own Funds 3.2.

Tier 3 own funds

01/01/2016

means an item of own funds referred to in Own Funds 3.3.

tier one capital

01/01/2016

means an item of capital that is specified in stages A (Core tier one capital), B (Perpetual non-cumulative preference shares) or C (innovative tier one capital) of the capital resources table.

tier two capital resources

01/01/2016

means the sum calculated at stage I (Total tier two capital) of the calculation in the capital resources table.

tontine

01/01/2016

means the class of contracts of insurance specified in paragraph V of part II of Schedule 1 to the Regulated Activities Order.

top-up permission

19/06/2014

means a Part 4A permission given to an incoming EEA firm or an incoming Treaty firm.

total assets

01/10/2018

means:

(1) for a firm which is required to submit data item FSA001, the sum of the firm’s assets as recorded at Cells 20A plus 20B of that data item;

(2) for a firm which is required to submit data item template 1.01 of Annex III of the Supervisory Reporting ITS, the sum of the firm’s assets as recorded at row 380 of that data item; or

(3) for a firm which is required to submit data item template 1.01 of Annex IV of the Supervisory Reporting ITS, the sum of the firm’s assets as recorded at row 380 of that data item.

total capital after deductions

01/01/2016

(1) in relation to an undertaking with a Part 4A permission, the total capital after deductions calculated as if that undertaking were required to calculate its capital resources in accordance with Insurance Company – Capital Resources Table 2.1, but with such adjustments being made to secure that the undertaking’s calculation of its total capital after deductions complies with relevant capital provisions in the PRA Rulebook or FCA Handbook;

(2) in relation to any other subsidiary, the total capital after deductions of the undertaking calculated as if the undertaking were required to calculate its total capital resources in accordance with Insurance Company – Capital Resources Table 2.1.

transferable securities

03/01/2018

means as defined in Article 4(1)(44) of MiFID II.

transitional deduction

01/01/2016

means the deduction from technical provisions applied in accordance with Transitional Measures 11.1.

Transitional Order

10/12/2018

means the Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) Order 2015 (SI 2015/492).