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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

non-core large exposures group or NCLEG

03/08/2015

has the meaning given in the Large Exposures Part.

non-directive firm

02/04/2015

(in accordance with the Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009 (SI 2009/774)) a UK domestic firm other than:

(1) a credit institution authorised under the Banking Consolidation Directive; 

(2) an investment firm authorised under MiFID;

(3) a management company as defined in article 2(1)(b) of the European Parliament and Council Directive of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (No 2009/65/EC),1 2, 3, 4, as amended (the UCITS Directive), authorised under that directive;

(4) an undertaking pursuing the activity of direct insurance within the meaning of:

(a) article 2 of the Consolidated Life Directive, authorised under that directive; or

(b) article 1 of the First Non-Life Directive, authorised under that directive;

(5) an undertaking pursuing the activity of reinsurance within the meaning of article 2.1(a) of the Reinsurance Directive, authorised under that directive.

non-directive friendly society

02/04/2015

means:

(1) 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 the members are determined on a flat-rate basis;

(2) a friendly society whose long-term insurance business is restricted to the provision of benefits for employed and self-employed persons belonging to an undertaking or group of undertakings, or a trade or group of trades, in the event of death or survival or of discontinuance or curtailment of activity (whether or not the commitments arising from such operations are fully covered at all times by mathematical reserves);

(3) a friendly society which undertakes to provide benefits solely in the event of death where the amount of such benefits does not exceed the average funeral costs for a single death or where the benefits are provided in kind;

(4) a friendly society (carrying on long-term insurance business):

(a) whose registered rules contain provisions for calling up additional contributions from members or reducing their benefits or claiming assistance from other persons who have undertaken to provide it; and

(b) whose annual gross premium income (other than from contracts of reinsurance) has not exceeded 5 million Euro for each of the three preceding financial years;

(5) a friendly society (carrying on general insurance business):

(a) whose registered rules contain provisions for calling up additional contributions from members or reducing their benefits;

(b) whose gross premium income (other than from contracts of reinsurance) for the preceding financial year did not exceed 5 million Euro; and

(c) whose members provided at least half of that gross premium income;

(6)

(a) a friendly society whose liabilities in respect of general insurance contracts are fully reinsured with or guaranteed by other mutuals; and;

(b) the mutuals providing the reinsurance or the guarantee are subject to the rules of the First Non-Life Directive.
and

(7) in each case whose insurance business is limited to that described in any of (1) to (6); and

(8) for the purposes of (4) and (5), the exchange rate from the Euro to the pound sterling for each year beginning on 31 December is the rate applicable on the last day of the preceding October for which the exchange rates for the currencies of all the European Union member states were published in the Official Journal of the European Union.