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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

bank

19/06/2014

means:

(1) a firm with a Part 4A Permission to carry on the regulated activity of accepting deposits and is a credit institution, but is not a credit union, friendly society or a building society; or
(2) an EEA bank.

Bank of England

01/01/2014

This term is defined externally, please refer to -

Schedule 1 Interpretation Act 1978 

basic own funds

01/01/2016

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

(1) (in relation to a UK Solvency II firm and Lloyd’s), has the meaning given in Own Funds 2.2; or

(2) (in relation to a Solvency II undertaking other than a UK Solvency II firm) means an own funds item referred to in Article 88 of the Solvency II Directive, determined in accordance with the applicable Solvency II EEA implementing measures; or

(3) (in relation to an insurance holding company) means an own funds item referred to in Article 88 of the Solvency II Directive, determined in accordance with (1) as if it were a UK Solvency II firm; or

(4) (in relation to a third country branch undertaking) means an own funds item referred to in article 88 of the Solvency II Directive, determined in accordance with (1) as if it were a UK Solvency II firm.

basic SCR

01/01/2016

means the minimum basic SCR, as set out in Solvency Capital Requirement to Standard Formula 3 and as supplemented by the Solvency II Regulations.

benchmarking activities

29/06/2018

means the following activities:

(1) the regulated activity of administering a benchmark; or
(2) contribution of input data to a BMR benchmark administrator.

benchmarks regulation

29/06/2018

means Regulation (EU) No. 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014.

beneficiary

01/01/2016

means any person who is entitled to a right under a contract of insurance.

best estimate

01/01/2016

means the best estimate of future cash-flows, calculated in accordance with Technical Provisions 3.

BMR benchmark administrator

29/06/2018

means a person who:

(1) is an administrator within the meaning of article 3.1(6) of the benchmarks regulation; and
(2) has been authorised or registered (whether in the UK or elsewhere) in accordance with article 34 of the benchmarks regulation.

body corporate

01/02/2014

means any body corporate including a body corporate constituted under the law of a country or territory outside the UK.

branch

01/10/2018

means

(1) (in relation to a credit institution):

(a) a place of business which forms a legally dependent part of a credit institution and which carries out directly all or some of the transactions inherent in the business of credit institutions;

(b) for the purposes of the CRD and in accordance with Article 38 of the CRD, any number of places of business set up in the same EEA State by a credit institution with headquarters in another EEA State are to be regarded as a single branch.

(2) (in relation to an investment firm) has the meaning given in Article 4(1)(30) of MiFID II.

(3) (in relation to an insurance undertaking) any permanent presence of the insurance undertaking in an EEA State other than that in which it has its head office is to be regarded as a single branch, whether that presence consists of a single office which, or two or more offices each of which:

(a) is managed by the insurance undertaking's own staff; or

(b) is an agency of the insurance undertaking; or

(c) is managed by a person who is independent of the insurance undertaking, but has permanent authority to act for the insurance undertaking as an agency would.

(4) (in relation to an IDD insurance intermediary):

(a) a place of business which is a part of an IDD insurance intermediary, not being the principal place of business, which has no separate legal personality and which provides insurance distribution for which the IDD insurance intermediary has been registered;

(b) for the purposes of the Insurance Distribution Directive, all the places of business set up in the same EEA State by an IDD insurance intermediary with headquarters in another EEA State are to be regarded as a single branch.

(5) (in relation to an IDD reinsurance intermediary):

(a) a place of business which is a part of an IDD reinsurance intermediary, not being the principal place of business, which has no separate legal personality and which provides reinsurance distribution for which the IDD reinsurance intermediary has been registered;

(b) for the purposes of the Insurance Distribution Directive, all the places of business set up in the same EEA State by an IDD reinsurance intermediary with headquarters in another EEA State are to be regarded as a single branch.

brought forward amount

01/01/2016

means an amount, as defined in Insurance Company – Capital Resources Requirements 10.1 to 10.3 in the Non-Solvency II Firms Sector, used in the calculation of the general insurance capital requirement.

BRRD

19/01/2015

means Directive 2014/59/EU of the European Parliament and the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU , and Regulations (EU) No 1093/2010 and (EU) No 648/2012 of the European Parliament and of the Council.

BRRD undertaking

19/01/2015

means a CRR firm or a qualifying parent undertaking of a CRR firm.

building society

01/01/2014

has the meaning given in section 119 of the Building Societies Act 1986. 

business day

19/06/2014

means:

(1) (in relation to anything done or to be done in (including to be submitted to a place in) any part of the UK) any day which is not a Saturday or Sunday, Christmas Day, Good Friday or a bank holiday in that part of the UK;

(2) (in relation to anything done or to be done by reference to a market outside the UK) any day on which that market is normally open for business.

byelaw

03/07/2015

means any byelaw, direction, regulation, or other instrument made using the powers of the Council under section 6 of Lloyd's Act 1982 (including any regulation ratified by the Council by special resolution) and any condition or requirement made under any such byelaw, direction, regulation or other instrument.