Term
Definition
Letter: 1
1986 Act
(in BSOCS) the Building Societies Act 1986.
- 01/04/2010
Letter: A
ABCP internal assessment approach
the method for calculating the risk weighted exposure amount for a securitisation position in relation to an asset backed commercial paper programme as set out in BIPRU 9.12.20 R.
- 01/01/2007
ABCP programme
(for the purposes of BIPRU 9 (Securitisation)) an asset backed commercial paper programme.
- 01/01/2007
accepted channel for dissemination of information
(in relation to any prescribed market) an approved channel of communication by which information concerning investments traded on the market is formally disseminated to other market users on a structured and equitable basis.
- 01/12/2004
accepted market practice
(as defined in section 130A(3) of the Act) practices that are reasonably expected in the financial market or markets in question and are accepted by the
FCA
or, in the case of a market situated in another EEA State, the competent authority of that EEA State within the meaning of the Market Abuse Directive.
- 01/04/2013
accepting deposits
the regulated activity, specified in article 5 of the Regulated Activities Order (Accepting deposits), which is in summary: accepting deposits if:
(a) money received by way of deposit is lent to others; or
- 01/12/2004
accepting deposits
means the regulated activity specified in article 5 of the Regulated Activities Order (Accepting deposits).
- 01/02/2014
accident
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 1 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of the person insured or, in the case of a contract made under section 140, 140A or 140B of the Local Government Act 1972 (or, in Scotland, section 86(1) of the Local Government (Scotland) Act 1973), a person for whose benefit the contract is made:
(a) sustaining injury as the result of an accident or of an accident of a specified class; or
(b) dying as a result of an accident or an accident of a specified class; or
(c) becoming incapacitated in consequence of disease or of disease of a specified class;
including contracts relating to industrial injury and occupational disease but excluding contracts within paragraph 2 of Part I of Schedule 1 to the Regulated Activities Order (Sickness) and contracts within paragraph IV of Part II of that Schedule (Permanent health). - 01/12/2004
account
(in relation to a dormant account) has the meaning given in section 9 of the Dormant Bank and Building Society Accounts Act 2008, which is in summary:
(a) an account which has at all times consisted only of money and is provided by a bank or building society as part of its activity of accepting deposits; and
- 06/08/2009
accountable functions
(1) (in the FCA Handbook and in relation to an approved person) the functions described in APER 1.1A.2 P, which are in summary:
(b) PRA controlled functions; and
(c) any other functions in relation to the carrying on of a regulated activity;
in relation to the authorised persons in relation to which that person is an approved person.(2) (in the PRA Handbook and in relation to an approved person) the functions described in APER 1.1B.2 P, which are in summary:
(c) any other significant-influence functions;
in relation to the PRA-authorised persons in relation to which that person is an approved person.- 01/04/2013
accountable significant-influence function
- 01/04/2013
accounting reference date
(1) (except in COLL):
(a) (in relation to a company incorporated in the United Kingdom under the Companies Acts) the accounting reference date of that company determined in accordance with section 391 of the Companies Act 2006;
(b) (in relation to any other body) the last day of its financial year.
(2) (in COLL): the date stipulated in the prospectus on which the annual accounting period of an authorised fund ends.
- 01/04/2009
accredited body
(A) In the PRA Handbook
any of the following bodies recognised by the FCA the purpose of providing the independent verification required under TC 2.1.27 R
(a) CFA Society of the UK;
(b) The Chartered Insurance Institute;
(c) The Institute of Financial Planning;
(d) The Chartered Institute for Securities and Investment;
(e) The Chartered Institute of Bankers in Scotland;
(f) The ifs School of Finance; [Note: The ifs School of Finance acts through its Institute of Financial Services]
(g) The Institute of Chartered Accountants in England and Wales;
(h) The Pensions Management Institute.
(B) In the FCA Handbook
any of the following bodies recognised by the FCA the purpose of providing the independent verification required under TC 2.1.27 R
(a) CFA Society of the UK;
(b) The Chartered Insurance Institute;
(c) The Institute of Financial Planning;
(d) The Chartered Institute for Securities and Investment;
(e) The Chartered Institute of Bankers in Scotland;
(f) The ifs University College; [Note: The ifs University College acts through its Institute of Financial Services]
(g) The Institute of Chartered Accountants in England and Wales;
(h) The Pensions Management Institute.
- 01/02/2014
accumulating with-profits policy
a with-profits insurance contract which has a readily identifiable current benefit, whether or not this benefit is currently realisable, which is adjusted by an amount explicitly related to the amount of any premium payment and to which additional benefits are added in respect of participation in profits by additions directly related to the current benefit or a policy with similar characteristics.
- 31/12/2004
accumulation unit
a unit in respect of which income is credited periodically to
capital property under COLL 6.8.3 R (Income allocation and distribution).
- 06/03/2007
- 01/12/2004
ACS
- 23/07/2013
- 01/12/2004
acting as the depositary or sole director of an open-ended investment company
the regulated activity, specified in article 51(1)(c) of the Regulated Activities Order (Establishing etc a collective investment scheme), of acting as the depositary or sole director of an open-ended investment company.
- 01/12/2004
acting as trustee of an authorised unit trust scheme
the regulated activity, specified in article 51(1)(b) of the Regulated Activities Order (Establishing etc a collective investment scheme), of acting as a trustee of an authorised unit trust scheme.
- 01/12/2004
acting as trustee or depositary of a UCITS
the regulated activity, specified in article 51ZB of the Regulated Activities Order which is, in summary, acting as:
(a) a trustee of an authorised unit trust scheme; or
(b) a depositary of an open-ended investment company; or
(c) a depositary of an authorised contractual scheme;
where that company or scheme is a UCITS.- 23/07/2013
acting as trustee or depositary of an AIF
the regulated activity, specified in article 51ZD of the Regulated Activities Order, which is, in summary, acting as:
(b) the trustee of an authorised unit trust which is an AIF that does not fall within article 51ZD(2) of the Regulated Activities Order;
(c) the depositary of an open-ended investment company or of an authorised contractual scheme which is an AIF that does not fall within article 51ZD(2) of the Regulated Activities Order.
- 23/07/2013
actuarial body
the Institute of Actuaries or theFaculty of Actuaries.
- 01/12/2004
actuarial body
means the Institute and Faculty of Actuaries.
- 19/06/2014
actuarial function
(in the PRA Handbook) PRA controlled function CF12 in the
table of PRA controlled functions, described more fully in SUP 4.3.13 R and
SUP 10B.8.1 R
.
- 01/04/2013
actuarial health insurance
(in the context of the rules in
INSPRU 1.1
concerning the calculation of the general insurance capital requirement), health insurance which meets all the conditions set out in
INSPRU 1.1.72 R
.
- 31/12/2006
actuarial investigation
an investigation to which IPRU-INS rule 9.4 applies.
- 31/12/2004
actuarial valuation date
the date as at which the mathematical reserves are calculated.
- 31/12/2006
actuary
a fellow of an actuarial body or (in connection with general insurance business) a Fellow of the Casualty Actuarial Society who is a member of an actuarial body.
- 01/12/2004
actuary
means a fellow of an actuarial body or (in connection with general insurance business) a Fellow of the Casualty Actuarial Society who is a member of an actuarial body.
- 19/06/2014
actuating purpose
a purpose which motivates or incites a person to act.
- 01/12/2004
adequate public disclosure
(as defined in Article 2 of the Buy-back and Stabilisation Regulation) disclosure made in accordance with the procedure laid down in Articles 102(1) and 103 of the Consolidated Admissions and Reporting Directive.
- 01/07/2005
administering a home finance transaction
- 01/07/2009
administering a home purchase plan
the regulated activity, specified in article 63F(2) of the Regulated Activities Order, which is in summary: administering a home purchase plan where the plan was entered into by way of business on or after 6 April 2007.
- 06/04/2007
administering a home reversion plan
the regulated activity, specified in article 63B(2) of the Regulated Activities Order, which is in summary: administering a home reversion plan where the plan was entered into on or after 6 April 2007.
- 06/04/2007
administering a regulated lifetime mortgage contract
the regulated activity, specified in article 61(2) of the Regulated Activities Order, which is in summary: administering a regulated mortgage contract (which is a lifetime mortgage) where the contract was entered into on or after 31 October 2004.
- 01/12/2004
administering a regulated mortgage contract
the regulated activity, specified in article 61(2) of the Regulated Activities Order, which is in summary: administering a regulated mortgage contract where the contract was entered into on or after 31 October 2004.
- 01/12/2004
administering a regulated sale and rent back agreement
the regulated activity, specified in article 63J(2) of the Regulated Activities Order, which is in summary any of the following:
(a) notifying the agreement seller of changes in payment due under a regulated sale and rent back agreement or of other matters of which that agreement requires him to be notified;
(b) taking any necessary steps for the purpose of making payments to the agreement seller under that agreement; and
(c) taking any necessary steps for the purposes of collecting or recovering payments due under that agreement from the agreement seller;
but a person is not to be treated as administering a regulated sale and rent back agreement because he has, or exercises, a right to take action for the purposes of enforcing that agreement (or to require that such action is or is not taken);and in relation to a person who acquires obligations or rights under a regulated sale and rent back agreement, an activity is a specified kind of activity for the purposes of this definition only if the agreement was entered into by the agreement provider (rather than the obligations or rights acquired) on or after 1 July 2009.- 01/07/2009
administrative expenses
has the meaning set out in the insurance accounts rules.
- 31/12/2004
administrative functions
(a) (in relation to managing investments):
(i) arranging settlement;
(ii) monitoring and processing corporate actions;
(iii) client account administration, liaison and reporting, including valuation and performance measurement;
(v) investment trust savings scheme administration;
(b) (in relation to effecting or carrying out life policies):
(i) new business administration;
(iii) preparing projections;
(iv) processing claims including pension payments;
(v) fund switching;
(c) (in relation to the operation of a stakeholder pension scheme):
(i) new business administration;
(ii) receipt of or alteration to contributions;
(iii) preparing projections and annual statements;
(iv) administration of transfers;
(v) handling claims, including pension payments;
(vi) fund allocation and switching.
- 06/11/2008
admissible asset
(1) (for the purpose of the rules in GENPRU and INSPRU as they apply to members of the Society of Lloyd's, the Society and managing agents) an asset that , subject to paragraphs (2) and (3) of GENPRU 2 Annex 7, falls into one or more categories in paragraph (1) ofGENPRU 2 Annex 7 as modified by
GENPRU 2.3.34 R
.
(2) otherwise:
(a) (in relation to an insurer which is not a pure reinsurer) an asset that, subject to paragraphs (2) and (3) of GENPRU 2 Annex 7, falls into one or more categories in paragraph (1) of GENPRU 2 Annex 7; or
(b) (in relation to a pure reinsurer) an asset the holding of which is consistent with compliance by the firm with INSPRU 3.1.61A R.
- 31/12/2006
admission or admission to listing
- 01/07/2005
admission to trading
(3) (elsewhere in the Handbook)(in relation to an investment and an exchange) the process by which the exchange permits members of the exchange to enter into transactions in that investment under and subject to the rules of the exchange.
- 22/12/2006
advanced IRB approach
one of the following:
(a) (in relation to the sovereign, institutional and corporate IRB exposure class) the approach under the IRB approach under which a firm supplies its own estimates of LGD and conversion factors;
(b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
(c) when the reference is to the rules of or administered by a regulatory body other than the
appropriate regulator, whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.
- 01/04/2013
advanced measurement approach
one of the following:
(a) the adjusted method of calculating theoperational risk capital requirement set out in BIPRU 6.5 (Operational risk: advanced measurement approaches);
(b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
(c) when the reference is to the rules of or administered by a regulatory body other than the
appropriate regulator, whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.
- 01/04/2013
advanced prudential calculation approach
one of the following:
(a) the IRB approach; or
(b) the advanced measurement approach; or
(c) the VaR model approach; or
(d) the CAD 1 model approach; or
(f) the CCR internal model method;
including, in each case, whatever corresponds to that approach under the rules of or administered by a regulatory body other than the
appropriate regulator
.- 01/04/2013
advertisement
(in PR and LR 4) (as defined in the PD Regulation) announcements:
(a) relating to a specific offer to the public of securities or to an admission to trading on a regulated market; and
(b) aiming to specifically promote the potential subscription or acquisition of securities.
- 01/07/2005
adviser
(1) (except in IPRU(INV) 13) an individual who is: a representative, an appointed representative or a tied agent
- 31/12/2009
adviser charge
any form of charge payable by or on behalf of a retail client to a firm in relation to the provision of a personal recommendation by the firm in respect of a retail investment product (or any related service provided by the firm) which:
(a) is agreed between that firm and the retail client in accordance with the rules on adviser charging and remuneration (COBS 6.1A); and
(b) is not a consultancy charge.
- 31/12/2012
advising on a home finance transaction
- 01/07/2009
advising on a home purchase plan
the regulated activity, specified in article 53C of the Regulated Activities Order, which is in summary: advising a person if the advice:
(b) is advice on the merits of his:
(i) entering into a particular home purchase plan; or
(ii) varying the terms of a home purchase plan entered into by him on or after 6 April 2007 in such a way as to vary his obligations under that plan.
- 06/11/2006
advising on a home reversion plan
the regulated activity, specified in article 53B of the Regulated Activities Order, which is in summary: advising a person if the advice:
(a) is given to him in his capacity as reversion occupier or plan provider or potential reversion occupier or potential plan provider; and
(b) is advice on the merits of his:
(i) entering into a particular home reversion plan; or
(ii) varying the terms of a home reversion plan entered into by him on or after 6 April 2007 in such a way as to vary his obligations under that plan.
- 06/11/2006
advising on a regulated sale and rent back agreement
the regulated activity, specified in article 53D of the Regulated Activities Order, which is in summary advising a person if the advice:
(a) is given to a person in his capacity as:
(i) an agreement seller or potential agreement seller; or
(ii) an agreement provider or potential agreement provider; and
(b) is advice on the merits of his doing either of the following:
(i) entering into a particular regulated sale and rent back agreement; or
(ii) varying the terms of a regulated sale and rent back agreement entered into on or after 1 July 2009 by him as agreement seller or agreement provider, in such a way as to vary his obligations under that agreement and in relation to a person who acquires obligations or rights under a regulated sale and rent back agreement, an activity is a specified kind of activity for the purposes of this part of the definition only if the agreement was entered into by the agreement provider (rather than the obligations or rights acquired) on or after 1 July 2009.
- 01/07/2009
advising on investments
(1) (except in SUP 10A (Approved Persons) and APER) the regulated activity, specified in article 53 of the Regulated Activities Order (Advising on investments), which is in summary: advising a person if the advice is:
(a) given to the person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor; and
(b) advice on the merits of his doing any of the following (whether as principal or agent):
(i) buying, selling, subscribing for or underwriting a particular investment which is a security or relevant investment (that is, any designated investment, funeral plan contract, pure protection contract, general insurance contract or right to or interests in a funeral plan contract); or
(ii) exercising any right conferred by such an investment to buy, sell, subscribe for or underwrite such an investment.
(2) (in SUP 10A (Approved Persons) and APER) the regulated activity specified in article 53 (Advising on investments) of the Regulated Activities Order. For these purposes, advising on investments includes any activities that would be included but for the exclusion in article 72AA (Managers of UCITS and AIFs) of the Regulated Activities Order.
- 23/07/2013
advising on investments (except pension transfers and pension opt-outs)
- 01/12/2004
advising on pension transfers and pension opt-outs
- 01/12/2004
advising on regulated mortgage contracts
the regulated activity, specified in article 53A of the Regulated Activities Order, which is in summary: advising a person if the advice:
(a) is given to the person in his capacity as a borrower or potential borrower; and
(b) is advice on the merits of his:
(i) entering into a particular regulated mortgage contract; or
(ii) varying the terms of a regulated mortgage contract entered into by him on or after 31 October 2004 in such a way as to vary his obligations under that contract.
- 01/12/2004
advising on syndicate participation at Lloyd's
the regulated activity, specified in article 56 of the Regulated Activities Order (Advice on syndicate participation at Lloyd's), of advising a person to become, or continue or cease to be, a member of a particular Lloyd's syndicate.
- 01/12/2004
affiliated company
- 01/12/2004
affiliated company
means (in relation to a person) an undertaking in the same group as that person.
- 01/02/2014
- 01/07/2011
agent
(in relation to payment services or electronic money) a person who acts on behalf of a payment institution or an electronic money institution in providing payment services.[Note: article 4(22) of the Payment Services Directive]
- 10/02/2011
agreeing to carry on a regulated activity
(A) In the PRA Handbook:the regulated activity, specified in article 64 of the Regulated Activities Order (Agreeing to carry on specified kinds of activity), of agreeing to carry on an activity specified in Part II or Part 3A of that Order other than:
(a) accepting deposits;
(aa) issuing electronic money;
(B) In the FCA Handbook:the regulated activity, specified in article 64 of the Regulated Activities Order (Agreeing to carry on specified kinds of activity), of agreeing to carry on an activity specified in Part II or Part 3A of that Order other than:
(a) accepting deposits;
(aa) issuing electronic money;
(ca) managing a UCITS;
(cc) managing an AIF;
- 01/04/2014
- 23/07/2013
- 23/07/2013
AIFM investment firm
a firm which:
(a) is:
(i) a full-scope UK AIFM; or
(ii) an incoming EEA AIFM branch; and
(b) has a Part 4A permission (or an equivalent permission from its Home State regulator) for managing investments where:
- 23/07/2013
- 23/07/2013
AIFM qualifier
- 23/07/2013
AIFMD
Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:174:0001:0073:EN:PDF) .
- 23/07/2013
AIFMD host state requirements
Handbook
rules transposing articles 12 and 14 of AIFMD and which fall under the responsibility of the Host State to supervise where an AIFM manages or markets an AIF through a branch in that EEA State, namely:
(a) FUND 3.8;
(b) SYSC 4.1.2C R;
(d) COBS 2.1.4 R.
- 23/07/2013
AIFMD level 2 regulation
Commission delegated regulation (EU) No 231/2013 supplementing Directive 2011/16/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:083:0001:0095:en:PDF) .
- 23/07/2013
AIFMD UK regulation
(A) In the PRA Handbook:the Alternative Investment Fund Managers Regulations 2013 (SI 2013/....)
(B) In the FCA Handbook:the Alternative Investment Fund Managers Regulations 2013 (SI 2013/1773)
- 01/01/2014
aircraft
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 5 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), upon aircraft or upon the machinery, tackle, furniture or equipment of aircraft.
- 01/12/2004
aircraft liability
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 11 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against damage arising out of or in connection with the use of aircraft, including third-party risks and carrier's liability.
- 01/12/2004
all price risk measure
(in BIPRU 7.10 (Use of a Value at Risk Model)) has the meaning in BIPRU 7.10.116A R (Capital calculations for VaR models), which is, in relation to a business day, the all price risk measure required under the provisions in BIPRU 7.10 about specific risk for the correlation trading portfolio.
- 31/12/2011
allocation period
a single 24-hour period or, with the agreement of each
professional client
concerned, a period spanning five consecutive business days, during which an aggregated series of transactions may be executed.
- 01/11/2007
allotment
(as defined in Article 2 of the Buy-back and Stabilisation Regulation) the process or processes by which the number of relevant securities to be received by investors who have previously subscribed or applied for them is determined.
- 01/07/2005
alternative debenture
the investment specified in article 77A of the Regulated Activities Order (Alternative finance investment bonds).
- 26/02/2010
alternative investment fund
(in accordance with article 4(1)(a) of AIFMD) a collective investment undertaking, including investment compartments thereof, which:
(a) raises capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors; and
(b) does not require authorisation pursuant to article 5 of the UCITS Directive.
- 23/07/2013
alternative investment fund manager
(1) (in GENPRU 3.1) a manager of alternative investment funds within the meaning of Article 4(1)(b), (l) and (ab) of Directive 2011/61/EU or an undertaking which is outside the EEA and which would require authorisation in accordance with Directive 2011/61/EU if it had its registered office within the EEA.
(2) (except in GENPRU 3.1 and in accordance with article 4(1)(b) of AIFMD) a legal person whose regular business is performing AIFM investment management functions for one or more AIF.
- 23/07/2013
alternative projection
(in COBS) a projection calculated on the basis described in paragraph 1.5R of the projection rules (COBS 13 Annex 2), rather than in accordance with the remainder of those rules.
- 01/11/2007
alternative standardised approach
one of the following:
(a) a version of the standardised approach to operational risk under which a firm uses different indicators for certain business lines as referred to in BIPRU 6.4.19 R (The alternative standardised approach);
(b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
(c) when the reference is to the rules of or administered by a regulatory body other than the
appropriate regulator, whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.
- 01/04/2013
AMA
- 01/01/2007
AMA permission
an Article 129 implementing measure, a requirement or a waiver that requires a BIPRU firm ora CAD investment firm to use theadvanced measurement approach to operational risk on a solo basis or, if the context requires, a consolidated basis.
- 01/01/2014
ancillary activity
an activity which is not a regulated activity but which is:
(a) carried on in connection with a regulated activity; or
(b) held out as being for the purposes of a regulated activity.
- 01/12/2004
ancillary activity
means an activity which is not a regulated activity but which is:
(1) carried on in connection with a regulated activity; or
(2) held out as being for the purposes of a regulated activity.
- 19/06/2014
ancillary insurance services undertaking
(in relation to any undertaking in a consolidation group, sub-group or other group of persons) an undertaking complying with the following conditions:
(a) its principal activity consists of:
(i) owning or managing property; or
(ii) managing data-processing services; or
(iii) any other similar activity;
(b) the activity in (a) is ancillary to the principal activity of one or more insurance undertakings; and
(c) those insurance undertakings are also members of that consolidation group, sub-group or other group of persons.
- 01/01/2007
ancillary risk
(in relation to an insurer with permission under the Act to insure a principal risk belonging to one class (as defined for the purposes of
INSPRU
and SUP) of general insurance business) a risk included in another such class which is:
(a) connected with the principal risk,
(b) concerned with the object which is covered against the principal risk, and
(c) the subject of the same contract insuring the principal risk.
However, the risks included in classes 14, 15 and 17 may not be treated as risks ancillary to other classes, except that the risk included in class 17 (legal expenses insurance) may be regarded as an ancillary risk of class 18 where: (d) the conditions laid down in (a) to (c) are fulfilled, and
(e) the principal risk relates solely to assistance provided for persons who fall into difficulties while travelling, while away from home or while away from their permanent residence or where it concerns disputes or risks arising out of, or in connection with, the use of sea-going vessels.
- 06/10/2007
ancillary service
(A) In the PRA Handbook:any of the services listed in Section B of Annex I to MiFID, that is:
(a) safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;
(b) granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction;
(c) advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings;
(d) foreign exchange services where these are connected to the provision of investment services;
(e) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
(f) services related to underwriting; and
(g) investment services and activities as well as ancillary services within (a) to (f), above, related to the underlying of the derivatives included under Section C - 5, 6, 7 and 10, that is (in accordance with that Annex and Recital 21 to, and Article 39 of, the MiFID Regulation):
[Note: article 4(1)(3) of MiFID] (i) commodities;
(ii) climatic variables;
(iii) freight rates;
(iv) emission allowances;
(v) inflation rates or other official economic statistics;
(vi) telecommunications bandwidth;
(vii) commodity storage capacity;
(viii) transmission or transportation capacity relating to commodities, where cable, pipeline or other means;
(ix) an allowance, credit, permit, right or similar asset which is directly linked to the supply, distribution or consumption of energy derived from renewable resources;
(x) a geological, environmental or other physical variable;
(xi) any other asset or right of a fungible nature, other than a right to receive a service, that is capable of being transferred;
(xii) an index or measure related to the price or value of, or volume of transactions in any asset, right, service or obligation;
where these are connected to the provision of investment services or ancillary services.(B) In the FCA Handbook:(1) (except in CONC) any of the services listed in Section B of Annex I to MiFID, that is:
(a) safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;
(b) granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction;
(c) advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings;
(d) foreign exchange services where these are connected to the provision of investment services;
(e) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
(f) services related to underwriting; and
(g) investment services and activities as well as ancillary services within (a) to (f), above, related to the underlying of the derivatives included under Section C - 5, 6, 7 and 10, that is (in accordance with that Annex and Recital 21 to, and Article 39 of, the MiFID Regulation):
[Note: article 4(1)(3) of MiFID] (i) commodities;
(ii) climatic variables;
(iii) freight rates;
(iv) emission allowances;
(v) inflation rates or other official economic statistics;
(vi) telecommunications bandwidth;
(vii) commodity storage capacity;
(viii) transmission or transportation capacity relating to commodities, where cable, pipeline or other means;
(ix) an allowance, credit, permit, right or similar asset which is directly linked to the supply, distribution or consumption of energy derived from renewable resources;
(x) a geological, environmental or other physical variable;
(xi) any other asset or right of a fungible nature, other than a right to receive a service, that is capable of being transferred;
(xii) an index or measure related to the price or value of, or volume of transactions in any asset, right, service or obligation;
where these are connected to the provision of investment services or ancillary services.
(2) (in CONC) a service that relates to entering into a regulated credit agreement as lender and includes, in particular, an insurance or payment protection policy.
- 01/04/2014
ancillary services undertaking
(A) In the PRA Handbook(1) (in accordance with Article 4(21) of the Banking Consolidation Directive (Definitions) and subject to (2)) and in relation to an undertaking in a consolidation group, sub-group or another group of persons) an undertaking complying with the following conditions:
(a) its principal activity consists of:
(i) owning or managing property; or
(ii) managing data-processing services; or
(iii) any other similar activity;
(b) the activity in (a) is ancillary to the principal activity of one or more credit institutions or investment firms; and
(c) those credit institutions or investment firms are also members of that consolidation group, sub-group or group.
(2) (for the purpose of GENPRU 1.3 (Valuation) and INSPRU 6.1 (Group Risk: Insurance Groups) an undertaking in (1) and an .
(B) In the FCA Handbook(1) (in accordance with Article 4(21) of the Banking Consolidation Directive (Definitions) for the purpose of GENPRU (except in GENPRU 3) and BIPRU (except in BIPRU 12) and subject to (2)) and in relation to an undertaking in a consolidation group, sub-group or another group of persons) an undertaking complying with the following conditions:
(a) its principal activity consists of:
(i) owning or managing property; or
(ii) managing data-processing services; or
(iii) any other similar activity;
(b) the activity in (a) is ancillary to the principal activity of one or more credit institutions or investment firms; and
(c) those credit institutions or investment firms are also members of that consolidation group, sub-group or group.
2) (for the purpose of GENPRU 1.3 (Valuation) and INSPRU 6.1 (Group Risk: Insurance Groups) an undertaking in (1) and an .
(3) (except in (1)) has the meaning in article 4(1)(18) of the EU CRR.
- 01/01/2014
announceable information
information which is usually the subject of a public announcement, although not subject to any formal disclosure requirement.
- 01/12/2004
annual accounting period
(1) [deleted]
(2) (in COLL): the period determined in accordance with
COLL 6.8.2 R (3) to COLL 6.8.2 R (7)(Accounting periods).
- 01/04/2009
Annual Accounts
(1) the Council Directive of 19 December 1991 concerning the annual accounts and consolidated accounts of insurance undertakings (No. 91/674/EEC).
(2) (in UPRU) accounts prepared to comply with:
(a) the Companies Acts 1985 to 1989, and their equivalent in Northern Ireland, where these provisions are applicable; or
(b) the Companies Act 2006; or
(c) other statutory obligations.
- 06/06/2008
annual audited fixed expenditure
(in UPRU) has the meaning given in UPRU 2.1.3 R (Annual audited fixed expenditure).
- 01/01/2007
annual bonus
(in relation to a with-profits insurance contract) a discretionary addition to policy benefits under a with-profits insurance contract made by a long-term insurer as a result of the annual actuarial investigation.
- 31/12/2004
annual budget
the annual budgeted costs of operating the Financial Ombudsman Service.
- 01/12/2004
annual eligible income
(in
FEES
) (in relation to a firm and a
class)
the annual income (as described in
FEES 6 Annex 3 R
) for the firm's last financial year ended in the year to 31 December preceding the date for submission of the information under FEES 6.5.13 R attributable to that
class
. A firm must calculate annual eligible income from such annual income in one of the following ways:
(a) only include such annual income if it is attributable to business conducted with or for the benefit of eligible claimants and is otherwise attributable to compensatable business; or
(b) include all such annual income.
- 01/04/2013
annual financial statements
the financial statements in respect of the year ending on the firm's annual accounting reference date, which is the date to which a corporate firm's accounts are prepared for the purposes of the Companies Acts, or, where the firm is not subject to the Companies Acts, the equivalent date chosen by the firm and notified to the
FCA or PRA as the case may be.
- 01/04/2013
annual income
(in MIPRU)the income referred to in MIPRU 4.3
- 01/01/2007
annual income allocation date
the date in any year stated in the most recently published prospectus as the date on or before which, in respect of each annual accounting period, an allocation of income is to be made.
- 01/12/2004
annual percentage rate
the annual percentage rate of charge for a contract as calculated in accordance with MCOB 10 (Annual percentage rate).
- 01/12/2004
annual report and accounts
(a) (in relation to a company incorporated in the United Kingdom) an annual report and annual accounts as those terms are defined in:
(i) section 262(1) of the Companies Act 1985, together with an auditor's report prepared in relation to those accounts under section 235 of the same Act where these provisions are applicable; or
(ii) section 471 of the Companies Act 2006 together with an auditor's report prepared in relation to those accounts under sections 495 to 497 of the same Act;
(b) (in relation to any other body) any similar or analogous documents which it is required to prepare whether by its constitution or by the law under which it is established.
- 06/06/2008
annual statement provisions
(in MCOB) in relation to a:
- 06/04/2007
annualised net written premiums
(for the purposes of
INSPRU 1.4
) in relation to a financial year, the net written premiums received during that financial year, except that in relation to a financial year that has been validly extended beyond, or shortened from, a period of 12 months, the amount of net written premiums is the amount determined in accordance with the formula: NWP x 365/Dwhere:
(1) NWP is the amount of net written premiums received in the financial year; and
(2) D is the number of days in that financial year.
- 31/12/2006
APER
the part of the Handbook in High Level Standards which has the title Statements of Principle and Code of Practice for Approved Persons.
- 01/12/2004
applicable provisions
the Host State rules with which:
(a) an incoming EEA firm is required to comply when carrying on a permitted activity through a branch or by providing services (as applicable) in the United Kingdom, as defined in paragraphs 13(4) and 14(4) of Part II of Schedule 3 to the Act (Exercise of passport rights by EEA firms); or
- 01/12/2004
applicable sectoral consolidation rules
(in respect of a financial sector and in accordance with paragraph 6.9 of
GENPRU 3 Annex 1
(Applicable sectoral consolidation rules)) the
appropriate regulator's
sectoral rules about capital adequacy and solvency on a consolidated basis applicable to that financial sector under the table in paragraph 6.10 of GENPRU 3 Annex 1.
- 01/04/2013
applicable sectoral rules
(in respect of a financial sector) applicable sectoral consolidation rules for that financial sector and the
appropriate regulator's
sectoral rules about capital adequacy and solvency for:which of those sets of rules apply for the purpose of a particular calculation depends on the nature of that calculation.
- 01/04/2013
applicant
(2) (in PR) an applicant for approval of a prospectus or supplementary prospectus relating to transferable securities.
- 01/07/2005
appointed representative
(A) In the PRA Handbook:(1) (in relation to cases apart from in (2)(in accordance with section 39 of the Act (other than an authorised person) a person who:
(a) is a party to a contract with an authorised person (his principal) which:
(i) permits or requires him to carry on business of a description prescribed in the Appointed Representatives Regulations; and
(ii) complies with such requirements as are prescribed in those Regulations; and
(b) is someone for whose activities in carrying on the whole or part of that business his principal has accepted responsibility in writing;
and who is therefore an exempt person in relation to any regulated activity comprised in the carrying on of that business for which his principal has accepted responsibility.(2) (in relation to a firm with a permission only to carry on one or more regulated activities prescribed for the purposes of section 39(1E)(a) of the Act) in accordance with section 39 of the Act, a person ("A") who: (a) is a party to a contract with another authorised person (A's principal) which:
(i) permits or requires A to carry on business of a description prescribed in the Appointed Representatives Regulations ("the relevant business"); and
(ii) complies with such requirements as are prescribed in those Regulations; and
(b) is someone for whose activities in carrying on the whole or part of the relevant business A's principal has accepted responsibility in writing;
and, therefore, to whom sections 20(1) and (1A) and 23(1A) of the Act do not apply in relation to the carrying on by A of a regulated activity which is not one to which A's permission relates, and is comprised in the carrying on of the business for which A's principal has accepted responsibility.(B) In the FCA Handbook:
(1) (in relation to cases apart from in (2) (in accordance with section 39 of the Act (other than an authorised person) a person who:
(a) is a party to a contract with an authorised person (his principal) which:
(i) permits or requires him to carry on business of a description prescribed in the Appointed Representatives Regulations; and
(ii) complies with such requirements as are prescribed in those Regulations; and
(b) is someone for whose activities in carrying on the whole or part of that business his principal has accepted responsibility in writing;
and who is therefore an exempt person in relation to any regulated activity comprised in the carrying on of that business for which his principal has accepted responsibility.
(2) (in relation to a firm with a permission only to carry on one or more regulated activities prescribed for the purposes of section 39(1E)(a) of the Act) in accordance with section 39 of the Act, a person ("A") who:
(a) is a party to a contract with another authorised person (A's principal) which:
(i) permits or requires A to carry on business of a description prescribed in the Appointed Representatives Regulations ("the relevant business"); and
(ii) complies with such requirements as are prescribed in those Regulations; and
(b) is someone for whose activities in carrying on the whole or part of the relevant business A's principal has accepted responsibility in writing;
and, therefore, to whom sections 20(1) and (1A) and 23(1A) of the Act do not apply in relation to the carrying on by A of a regulated activity which is not one to which A's permission relates, and is comprised in the carrying on of the business for which A's principal has accepted responsibility.- 01/05/2014
Appointed Representatives Regulations
the Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 (SI 2001/1217).
- 01/12/2004
apportionment and oversight function
FCA controlled function
CF8 in Parts 1 and Part 2 of the
table of FCA controlled functions, described more fully in
SUP 10A.7.1 R
.
- 01/04/2013
appropriate actuary
an actuary appointed under SUP 4.4.1 R (Appointment of an appropriate actuary).
- 01/12/2004
appropriate charges information
(in COBS) information about charges which is calculated and presented in accordance with the charges rules in COBS 13.4.1 R and
COBS 13 Annexes 3 or 4.
- 31/12/2012
appropriate position risk adjustment
(1) (in relation to a position treated under BIPRU 7.6 (Option PRR)) the percentage figure applicable to that position under the table in BIPRU 7.6.8 R (Appropriate Position Risk Adjustment);
(2) (for any other purpose and in relation to a position) the position risk adjustment applicable to that position under BIPRU 7 (Market risk).
- 01/04/2013
appropriate regulator
- 01/04/2013
appropriate UK regulator
(1) in relation to an EEA firm (in accordance with Schedule 3 paragraph 13(4) and 14(4) to the Act), whichever of the FCA or PRA is the competent authority for the purposes of the relevant Single Market Directive; (2) in relation to a UK firm (in accordance with Schedule 3 paragraph 18A to the Act),(a) the PRA, where the firm is a PRA-authorised person; and(b) in any other case, the FCA.(3) in relation to a Treaty firm (in accordance with section 35(2A) of the Act),(a) in the case of a PRA-authorised person, the PRA; and(b) in any other case, the FCA.
- 01/04/2013
appropriate valuer
(in COLL) a person who complies with the requirements of COLL 5.6.18 R (7) (Investment in property)or
COLL 8.4.11 R (4)
(Investment in property) .
- 01/04/2009
approve
(in relation to a financial promotion) approve the content of the financial promotion for the purposes of section 21 of the Act (Restrictions on financial promotion).
- 01/12/2004
approved bank
(except in COLL) (in relation to a bank account opened by a firm):
(a) if the account is opened at a branch in the United Kingdom:
(i) the Bank of England; or
(ii) the central bank of a member state of the OECD; or
(iii) a bank; or
(iv) a building society; or
(v) a bank which is supervised by the central bank or other banking regulator of a member state of the OECD; or
(b) if the account is opened elsewhere:
(i) a bank in (a); or
(ii) a credit institution established in an EEA State other than the United Kingdom and duly authorised by the relevant Home State regulator; or
(iii) a bank which is regulated in the Isle of Man or the Channel Islands; or
(c) a bank supervised by the South African Reserve Bank; or
(d) any other bank that:
(in COLL) any person falling within (a-c). (i) is subject to regulation by a national banking regulator;
(ii) is required to provide audited accounts;
(iii) has minimum net assets of £5 million (or its equivalent in any other currency at the relevant time) and has a surplus revenue over expenditure for the last two financial years; and
(iv) has an annual audit report which is not materially qualified.
- 01/04/2009
approved collateral
any form of security for the discharge of any liability arising from a contingent liability investment (other than a guarantee) which:
(a) (in relation to an on-exchange transaction) is acceptable under the rules of the relevant exchange or clearing house; and
(b) (in relation to an OTC transaction) would be acceptable for a similar transaction to the relevant exchange or clearing house.
- 01/12/2004
approved counterparty
any of the following:
(a) an approved credit institution; or
(b) a firm whose permission includes dealing in investments as principal with respect to derivatives which are not listed; or
(c) a MiFID investment firm whose authorisation (as referred to in article 5 of MiFID) authorises it to carry on activities of the kind referred to in (b); or
(d) in respect of a transaction involving a new issue of securities which are to be listed, the issuer or a MiFID investment firm acting on behalf of the issuer.
- 01/11/2007
approved credit institution
(A) In the PRA Handbook:a credit institution recognised or permitted under the law of an EEA State to carry on any of the activities set out in Annex 1 to the CRD.
(B) In the FCA Handbook:a credit institution recognised or permitted under the law of an EEA State to carry on any of the activities set out in Annex 1 to the CRD.
- 01/01/2014
approved depositary
any depositary:
(a) which is subject to regulation by a national regulatory body in connection with its custody services;
(b) which is required to prepare audited accounts;
(c) whose latest annual audit report is not materially qualified; and
(d) which
(i) has minimum net assets of £5 million (or its equivalent in any other currency at the relevant time) and has surplus revenue over expenditure for the last two financial years; or
(ii) if not, nevertheless has adequate financial resources for its business.
- 01/12/2004
approved derivative
- 01/04/2009
approved financial institution
any of the following:
(a) the European Central Bank;
(b) the central bank of an EEA State;
(c) the International Bank for Reconstruction and Development;
(d) the European Bank for Reconstruction and Development;
(e) the International Finance Corporation;
(f) the International Monetary Fund;
(g) the Inter-American Development Bank;
(h) the African Development Bank;
(i) the Asian Development Bank;
(j) the Caribbean Development Bank;
(k) the European Investment Bank;
(l) the
EU
; and
(m) the European Atomic Energy Community.
- 01/12/2009
approved index
in relation to permitted links:
(a) an index that is:
(i) calculated independently;
(ii) published at least once every week;
(iii) based on constituents that are permitted links; and
(iv) calculated on a basis that is made available to the public, and that includes both the rules for including and excluding constituents and the rules for valuation which must use an arithmetic average of the value of the constituents; or
(b) a national index of retail prices published by or under the authority of a government, or by a body recognised under the national legislation, of a
Zone A country; or
(c) an index that is:
(i) based on constituents that are permitted links; and
(d) the average earnings index when used for the purposes of orders made under section 148 of the Social Security Administration Act 1992 by the Department for Work and Pensions.
- 06/05/2011
approved money-market instrument
(in accordance with COLL 5.2.7F R) a money-market instrument which is normally dealt in on the money market, is liquid and has a value which can be accurately determined at any time.
- 23/07/2008
approved person
a person in relation to whom the
FCA or the PRA has given its approval under section 59 of the Act (Approval for particular arrangements) for the performance of a controlled function.
- 01/04/2013
approved person
means a person in relation to whom the FCA or the PRA has given its approval under section 59 of FSMA (Approval for particular arrangements) for the performance of a controlled function.
- 19/06/2014
approved quasi-derivative
a quasi-derivative in respect of which the conditions in
INSPRU 3.2.5 R
are met.
- 31/12/2006
approved reinsurance to close
(a) a reinsurance to close effected before 1 January 2005; or
(b) an agreement under which members of a syndicate in one syndicate year ("the reinsured members") agree with the members of that syndicate in a later syndicate year or the members of one other
syndicate ("the reinsuring members") that the reinsuring members will discharge, or procure the discharge of, or indemnify the reinsured members against, all known and unknown insurance business liabilities of the reinsured members arising out of the insurance business carried on by the reinsured members in that syndicate year that is:
(i) effected after 1 January 2005; and
(ii) not a balance transfer between two syndicate years where the syndicate has only one member and the member is the same in each of those years; or
(c) an agreement under which members of a syndicate in one syndicate year ("the reinsured members") agree with a subsidiary of the Society that that subsidiary will discharge, or procure the discharge of, or indemnify the reinsured members against, all known and unknown insurance business liabilities of the reinsured members arising out of the insurance business carried on by the reinsured members in that syndicate year ("the reinsured liabilities") and where:
(i) that subsidiary is wholly owned by the Society and if from time to time the subsidiary has an asset or cash flow deficiency such that the subsidiary is unable to meet any of the liabilities which it has reinsured, the Society is legally obliged to pay to the subsidiary a sum equal to that deficiency; and
(ii) at the effective date of the agreement, the relevant syndicate year has been open for at least two years after the date at which it would normally have been closed in accordance with the policies and practices in relation to the syndicate concerned.
- 31/12/2009
approved reporting mechanism
- 01/04/2013
approved security
(1) (in COLL) a transferable security that is admitted to official listing in an EEA State or is traded on or under the rules of an eligible securities market (otherwise than by the specific permission of the market authority).
(2) (in
INSPRU
) any of the following:
(a) any security issued or guaranteed by, or the repayment of the principal of which, or the interest on which, is guaranteed by, and any loans to or deposits with, any government, public or local authority or nationalised industry or undertaking, which belongs to a Zone A country;
(b) any loan to, or deposit with, an approved financial institution;
(c) any debenture issued before 31 December 1994 by the Agricultural Mortgage Corporation Limited or the Scottish Agricultural Securities Corporation Limited.
(3) (in
COBS
) any of the following:
(a) any security issued or guaranteed by, or the repayment of the principal of which, or the interest on which is guaranteed by, and any loan to or deposit with, any government, public or local authority or nationalised industry or undertaking that belongs to Zone A as defined in the Banking Consolidation Directive; or
(b) any loan to, or deposit with, an approved financial institution; or
(c) debentures issued before 31 December 1994 by the Agricultural Mortgage Corporation Ltd or the Scottish Agricultural Securities Corporation Ltd.
- 01/04/2009
approved stock lending transaction
a stock lending transaction in respect of which the conditions in
INSPRU 3.2.36 R
have been met.
- 31/12/2006
APR
(A) In the PRA Handbook:
annual percentage rate.
(B) In the FCA Handbook:
(2) (in CONC for a credit agreement secured on land) the annual percentage rate of charge for credit determined in accordance with the rules in CONC App 1.1 and CONC 3.6.9 R.
(3) (in CONC for all other credit agreements) the annual percentage rate of charge for credit determined in accordance with the rules in CONC App 1.2 and CONC 3.5.13 R.
- 01/04/2014
APR rules
- 06/04/2007
arrangement
(as defined in section 59(10) of the Act (Approval for particular arrangements)) any kind of arrangement for the performance of a function of an authorised person ("A") which is entered into by A or any contractor of his with another person, including, in particular, that other person's appointment to an office, his becoming a partner, or his employment (whether under a contract of service or otherwise).
- 01/12/2004
arranging
(a) (except in relation to a home finance transaction) arranging (bringing about) deals in investments, making arrangements with a view to transactions in investments or agreeing to carry on either of those regulated activities.
(b) (in relation to a regulated mortgage contract) arranging (bringing about) regulated mortgage contracts, making arrangements with a view to regulated mortgage contracts or agreeing to carry on either of those regulated activities;
(c) (in relation to a home purchase plan) arranging (bringing about) a home purchase plan, making arrangements with a view to a home purchase plan or agreeing to carry on either of those regulated activities.
- 06/04/2007
arranging (bringing about) a home finance transaction
- 01/07/2009
arranging (bringing about) a home purchase plan
the regulated activity, specified in article 25C(1) of the Regulated Activities Order, which is in summary: making arrangements for another person to:
(b) vary the terms of a home purchase plan entered into by him as home purchaser on or after 6 April 2007.
- 06/11/2006
arranging (bringing about) a home reversion plan
the regulated activity, specified in article 25B(1) of the Regulated Activities Order, which is in summary: making arrangements for another person to:
(b) vary the terms of a home reversion plan entered into by him as reversion occupier or as plan provider on or after 6 April 2007.
- 06/11/2006
arranging (bringing about) a regulated sale and rent back agreement
the regulated activity, specified in article 25E(1) of the Regulated Activities Order, which is in summary making arrangements:
(a) for another person to enter into a regulated sale and rent back agreement as an agreement seller or as an agreement provider; or
(b) for another person to vary the terms of a regulated sale and rent back agreement, entered into on or after 1 July 2009 by him as agreement seller or agreement provider, in such a way so as to vary his obligations under that agreement and in relation to a person who acquires obligations or rights under a regulated sale and rent back agreement, an activity is a specified kind of activity for the purposes of this part of the definition only if the agreement was entered into by the agreement provider (rather than the obligations or rights acquired) on or after 1 July 2009;
including making arrangements with a view to a person who participates in the arrangements
entering into a regulated sale and rent back agreement
as agreement seller or agreement provider.- 06/10/2009
arranging (bringing about) deals in investments
the regulated activity, specified in article 25(1) of the Regulated Activities Order, which is in summary: making arrangements for another person (whether as principal or agent) to buy, sell, subscribe for or underwrite a particular investment which is:
(a) a designated investment; or
(b) a funeral plan contract; or
(c) the underwriting capacity of a Lloyd's syndicate; or
(da) a pure protection contract; or
(db) a general insurance contract; or
(e) rights to or interests in investments in (b), (c) or (d).
- 01/12/2004
arranging (bringing about) regulated mortgage contracts
the regulated activity, specified in article 25A(1) of the Regulated Activities Order, which is in summary: making arrangements for another person to:
(a) enter into a regulated mortgage contract as borrower; or
(b) vary the terms of a regulated mortgage contract entered into by him as borrower on or after 31 October 2004.
(see also arranging (in relation to regulated mortgage contracts) and making arrangements with a view to regulated mortgage contracts.)- 01/12/2004
arranging deals in contracts of insurance written at Lloyd's
the regulated activity, specified in article 58 of the Regulated Activities Order (Arranging deals in contracts of insurance written at Lloyd's), carried on by the Society of Lloyd's of arranging deals in contracts of insurance written at Lloyd's.
- 01/12/2004
arranging qualifying credit
the controlled activity, specified in paragraph 10A of Schedule 1 to the Financial Promotion Order, of making arrangements:
(a) for another person to enter as borrower into an agreement for the provision of qualifying credit; or
(b) for a borrower under a regulated mortgage contract, entered into on or after 31 October 2004, to vary the terms of that contract.
- 01/12/2004
arranging safeguarding and administration of assets
that part of safeguarding and administering investments which consists solely of arranging for one or more other persons to carry on both:
(a) the safeguarding of assets belonging to another; and
(b) the administration of those assets.
- 01/12/2004
arrears
(in relation to a regulated mortgage contract or a home purchase plan) either:
(a) a shortfall (equivalent to two or more regular payments) in the accumulated total payments actually made by the customer measured against the accumulated total amount of payments due to be received from the customer; or
(b) remaining in breach, for more than one month, of an agreed borrowing limit or of an obligation to pay or repay where the loan or home purchase plan does not have a regular payment or repayment plan.
- 06/04/2007
article 12(1) relationship
(A) (in the PRA Handbook):
means a relationship where undertakings are linked by a relationship within the meaning of article 12(1) of Directive 83/349 EEC.
- 01/01/2014
Article 129 implementing measure
any:
(a) measure taken by the
appropriate regulator
under regulations 7-9 of the Capital Requirements Regulations 2006; or
(b) corresponding measure taken by another competent authority to apply an Article 129 permission as referred to in the last paragraph of Article 129(2) of the Banking Consolidation Directive.
- 01/04/2013
Article 129 permission
a permission of the type referred to in Article 129(2) of the Banking Consolidation Directive (permission to apply the IRB approach, the AMA approach or the CCR internal model method on a consolidated basis) or Article 37(2) of the Capital Adequacy Directive (permission to apply the VaR model approach on a consolidated basis) excluding an Article 129 implementing measure.
- 01/01/2007
Article 129 procedure
the procedure described in Article 129(2) of the Banking Consolidation Directive (permission to apply the IRB approach, the AMA approach or the CCR internal model method on a consolidated basis) or that applies under Article 37(2) of the Capital Adequacy Directive (permission to apply the VaR model approach on a consolidated basis) for the purpose of applying for and granting or refusing an Article 129 permission or the procedure for varying of revoking an Article 129 permission in accordance with the Banking Consolidation Directive or the Capital Adequacy Directive.
- 01/01/2007
Article 134 relationship
(in accordance with Article 134 of the Banking Consolidation Directive) a relationship of one of the following kinds:
(a) where a person exercises a significant influence over one or more persons, but without holding a participation or other capital ties in these persons and without being a parent undertaking of these persons; or
(b) where two or more persons are placed under single management other than pursuant to a contract or clauses of their memoranda or articles of association.
- 01/01/2007
article 18(5) relationship
(A) (in the PRA Handbook)the relationship where there are participations or capital ties other than those referred to in article 18(1) and (2) of the EU CRR (Methods for prudential consolidation).
(B) (in the FCA Handbook) the relationship where there are participations or capital ties other than those referred to in article 18(1) and (4)of the EU CRR (Methods for prudential consolidation).
- 01/02/2014
article 9 default
(as defined in article 2(2) of the compensation transitionals order) any of the following:
(a) the passing of a resolution for the voluntary winding up of an authorised insurance company within the meaning of section 3 of the Policyholders Protection Act 1975 in circumstances falling within section 5(1)(a) of that Act;
(b) the making by the court of an order for the winding up of such a company in accordance with section 5(1)(b) of that Act;
(c) the appointment of a provisional liquidator in the circumstances falling within section 15 of that Act in respect of such a company;
(d) such a company becoming a company in financial difficulties within the meaning of section 16 of that Act;
(e) a participating deposit-taker becoming insolvent for the purposes of Part II of the Banking Act 1987;
(f) a participating institution becoming insolvent within the meaning of section 25A of the Building Societies Act 1986;
(g) the beginning of a dissolution or transfer of engagements of a member society in accordance with rule 9(2) of the Rules of the Friendly Societies Protection Scheme.
- 01/12/2004
assessable mutual
(for the purposes of
INSPRU 1.4
) a mutual where the insurance business carried on by the mutual is limited to the provision of insurance business to its members and whose articles of association, rules or bye-laws provide for the calling of additional contributions from members to meet claims.
- 31/12/2006
asset
(in RCB) (as defined in Regulation 1(2) of the RCB Regulations) any property, right, entitlement or interest.
- 06/03/2008
asset backed commercial paper programme
(for the purposes of BIPRU 9 (Securitisation) and in accordance with Part 1 of Annex IX of the Banking Consolidation Directive (Securitisation definitions)) a programme of securitisations (within the meaning of paragraph (2) of the definition of securitisation) the securities issued by which predominantly take the form of commercial paper with an original maturity of one year or less.
- 01/01/2007
asset backed security
(as defined in the PD Regulation)
securities
which:
(a) represent an interest in assets, including any rights intended to assure servicing, or the receipt or timeliness of receipts by holders of assets of amounts payable thereunder; or
(b) are secured by assets and the terms of which provide for payments which relate to payments or reasonable projections of payments calculated by reference to identified or identifiable assets.
- 04/10/2013
asset identification rules
rules made by the
appropriate regulator
which require an authorised person who has permission to effecting or carry out contracts of insurance to identify assets which belong to him and which are maintained in respect of a particular aspect of his business.
- 01/04/2013
asset management company
a management company within the meaning of Article 2(1)(b) of the UCITS Directive, as well as an undertaking the registered office of which is outside the EEA and which would require authorisation in accordance with Article 6(1) of the UCITS Directive if it had its registered office within the EEA.
- 01/07/2011
asset pool
(in RCB) (as defined in Regulation 1(2) of the RCB Regulations) an asset pool within the meaning of Regulation 3 of the RCB Regulations.
- 06/03/2008
asset pool monitor
a person appointed under regulation 17A of the RCB Regulations.
- 01/01/2013
asset-related capital requirement
a component of the calculation of the ECR for a firm carrying on general insurance business as set out in INSPRU 2.2.
- 31/12/2006
assistance
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 18 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), providing either or both of the following benefits:
(a) assistance (whether in cash or in kind) for persons who get into difficulties while travelling, while away from home or while away from their permanent residence;
(b) assistance (whether in cash or in kind) for persons who get into difficulties otherwise than as in (a).
- 01/12/2004
assisting in the administration and performance of a contract of insurance
the regulated activity, specified in article 39A of the Regulated Activities Order (Assisting in the administration and performance of a contract of insurance) of assisting in the administration and performance of a contract of insurance.
- 01/12/2004
associate
(A) in the PRA Handbook:
(1) (in LR) (in relation to a director, substantial shareholder, or person exercising significant influence, who is an individual):
(a) that individual's spouse, civil partner or child (together the "individual's family");
(b) the trustees (acting as such) of any trust of which the individual or any of the individual's family is a beneficiary or discretionary object (other than a trust which is either an occupational pension scheme or an employees' share scheme which does not, in either case, have the effect of conferring benefits on persons all or most of whom are related parties;
(c) any company in whose equity securities the individual or any member or members (taken together) of the individual's family or the individual and any such member or members (taken together) are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they are (or would on the fulfilment of the condition or the occurrence of the contingency be) able:
(i) to exercise or control the exercise of 30% or more of the votes able to be cast at general meetings on all, or substantially all, matters; or
(ii) to appoint or remove directors holding a majority of voting rights at board meetings on all, or substantially all, matters;
(d) any partnership whether a limited partnership or limited liability partnership in which the individual or any member or members (taken together) of the individual's family are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they hold or control or would on the fulfilment of the condition or the occurrence of the contingency be able to hold or control:
(i) a voting interest greater than 30% in the partnership; or
(ii) at least 30% of the partnership.
For the purpose of paragraph (c), if more than one director of the listed company, its parent undertaking or any of is subsidiary undertakings is interested in the equity securities of another company, then the interests of those directors and their associates will be aggregated when determining whether that company is an associate of the director. (2) (in LR) (in relation to a substantial shareholder or person exercising significant influence, which is a company):
(a) any other company which is its subsidiary undertakings or parent undertaking or fellow subsidiary undertakings of the parent undertaking;
(b) any company whose directors are accustomed to act in accordance with the substantial shareholder's or person exercising significant influence's, directions or instructions;
(c) any company in the capital of which the substantial shareholder or person exercising significant influence and any other company under paragraph (1) or (2) taken together, is (or would on the fulfilment of a condition or the occurrence of a contingency be) able to exercise power of the type described in paragraph (1)(c)(i) or (ii) of this definition.
(3) (except in LR) (in relation to a person ("A")):
(a) an affiliated company of A;
(c) any other whose business or domestic relationship with A or his associate might reasonably be expected to give rise to a community of interest between them which may involve a conflict of interest in dealings with third parties.
(B) in the FCA Handbook:
(1) (in LR) (in relation to a director, substantial shareholder, or person exercising significant influence, who is an individual):
(a) that individual's spouse, civil partner or child (together the "individual's family");
(b) the trustees (acting as such) of any trust of which the individual or any of the individual's family is a beneficiary or discretionary object (other than a trust which is either an occupational pension scheme or an employees' share scheme which does not, in either case, have the effect of conferring benefits on persons, all or most of whom are related parties;
(c) any company in whose equity securities the individual or any member or members (taken together) of the individual's family or the individual and any such member or members (taken together) are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they are (or would on the fulfilment of the condition or the occurrence of the contingency be) able:
(i) to exercise or control the exercise of 30% or more of the votes able to be cast at general meetings on all, or substantially all, matters; or
(ii) to appoint or remove directors holding a majority of voting rights at board meetings on all, or substantially all, matters;
(d) any partnership whether a limited partnership or limited liability partnership in which the individual or any member or members (taken together) of the individual's family are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they hold or control or would on the fulfilment of the condition or the occurrence of the contingency be able to hold or control:
(i) a voting interest greater than 30% in the partnership; or
(ii) at least 30% of the partnership.
For the purpose of paragraph (c), if more than one director of the listed company, its parent undertaking or any of its subsidiary undertakings is interested in the equity securities of another company, then the interests of those directors and their associates will be aggregated when determining whether that company is an associate of the director. (2) (in LR) (in relation to a substantial shareholder or person exercising significant influence which is a company):
(a) any other company which is its subsidiary undertaking or parent undertaking or fellow subsidiary undertaking of the parent undertaking;
(b) any company whose directors are accustomed to act in accordance with the substantial shareholder's or person exercising significant influence's, directions or instruction;
(c) any company in the capital of which the substantial shareholder or person exercising significant influence and any other company under paragraph (1) or (2) taken together, is (or would on the fulfilment of a condition or the occurrence of a contingency be) able to exercise power of the type described in paragraph (1)(c)(i) or (ii) of this definition
(2A) (in CONC or in relation to a credit-related regulated activity), as defined in article 60L of the Regulated Activities Order, in relation to a person ("P"):
(a) where P is an individual any person who is or who has been:
(i) P's spouse or P's civil partner;
(ii) a relative of P, P's spouse or P's civil partner;
(iii) the spouse or civil partner of a relative of P or P's spouse or civil partner;
(iv) if P is a member of a partnership, any of P's partners and the spouse or civil partner of any such person;
(b) where P is a body corporate:
(3) (except in LR or in relation to a credit-related regulated activity) (in relation to a person ("A")):
(a) an affiliated company of A;
(4) (in LR) (when used in the context of a controlling shareholder who is an individual):
(a) that individual's spouse, civil partner or child (together "the individual's family");
(b) the trustees (acting as such) of any trust of which the individual or any of the individual's family is a beneficiary or discretionary object (other than a trust which is either an occupational pension scheme or an employees' share scheme which does not, in either case, have the effect of conferring benefits on persons all or most of whom are controlling shareholders);
(c) any company in whose equity securities the individual or any member or members (taken together) of the individual's family or the individual and any such member or members (taken together) are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they are (or would on the fulfilment of the condition or the occurrence of the contingency be) able:
(i) to exercise or control the exercise of 30% or more of the votes able to be cast at general meetings on all, or substantially all, matters; or
(ii) to appoint or remove directors holding a majority of voting rights at board meetings on all, or substantially all, matters;
(d) any partnership whether a limited partnership or limited liability partnership in which the individual or any member or members (taken together) of the individual's family are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they hold or control or would on the fulfilment of the condition or the occurrence of the contingency be able to hold or control:
For the purpose of paragraph (c), if more than one controlling shareholder of the listed company, its parent undertaking or any of its subsidiary undertakings is interested in the equity securities of another company, then the interests of those controlling shareholders and their associates will be aggregated when determining whether that company is an associate of the controlling shareholder. (i) a voting interest greater than 30% in the partnership; or
(ii) at least 30% of the partnership.
(5) (in LR) (when used in the context of a controlling shareholder which is a company):
(a) any other company which is its subsidiary undertaking or parent undertaking or fellow subsidiary undertaking of the parent undertaking;
(b) any company whose directors are accustomed to act in accordance with the controlling shareholder's directions or instructions;
(c) any company in the capital of which the controlling shareholder and any other company under paragraph (a) or (b) taken together, is (or would on the fulfilment of a condition or the occurrence of a contingency be) able to exercise power of the type described in paragraph (4)(c)(i) or (ii) of this definition;
- 16/05/2014
associated call option
a right to acquire a particular amount of the relevant security or of any associated security at a future date at a particular price.
- 01/12/2004
associated instrument
(as defined in Article 2 of the Buy-back and Stabilisation Regulation) any of the following financial instruments (including those which are not admitted to trading on a regulated market, or for which a request for admission to trading on such a market has not been made, provided that the relevant competent authorities have agreed to standards of transparency for transactions in such financial instruments):
(a) contracts or rights to subscribe for, acquire or dispose of relevant securities;
(b) financial derivatives on relevant securities;
(c) where the relevant securities are convertible or exchangeable debt instruments, the securities into which such convertible or exchangeable debt instruments may be converted or exchanged;
(d) instruments which are issued or guaranteed by the issuer or guarantor of the relevant securities and whose market price is likely to materially influence the price of the relevant securities, or vice versa; and
(e) where the relevant securities are securities equivalent to shares, the shares represented by those securities (and any other securities equivalent to those shares).
- 01/07/2005
at the money
- 01/01/2007
attached shares
(in CREDS) means any shares in the credit union (other than any deferred shares):
(a) (in relation to a Great Britain credit union) the withdrawal of which is not permitted by section 7(5) of the Credit Unions Act 1979 or (in relation to a Northern Ireland credit union) the withdrawal of which is not permitted by article 23(4) of the Credit Unions (Northern Ireland) Order 1985; or
(b) (in relation to a Great Britain credit union) the withdrawal of which is not permitted by the terms of a loan made to a member; or
(c) the withdrawal of which is not permitted without seeking and obtaining the permission of the committee of management of the credit union.
In relation to a Great Britain credit union, paragraph (c) is relevant only where the credit union made a loan to the holder of the shares before the Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 came into force. - 31/03/2012
auction regulation bidding
the regulated activity of bidding in emissions auctions where it is carried on by:
(b) a MiFID investment firm (other than a UCITS investment firm) on behalf of its clients in relation to a two-day emissions spot.
- 27/07/2012
Audit Directive
Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC.
- 29/06/2008
AUT
- 01/12/2004
authorisation
authorisation as an authorised person for the purposes of the Act.
- 01/12/2004
authorisation order
an order made by the
FCA
:as a result of which the AUT or ACS becomes authorised or the body becomes incorporated as an ICVC under regulation 3 of the OEIC Regulations (Open-ended investment company).
- 23/07/2013
authorised AIF
an AIF which is an authorised fund.
- 23/07/2013
authorised contractual scheme
- 23/07/2013
authorised corporate director
the director of an ICVC who is the authorised corporate director of the ICVC in accordance with COLL 6.5.3 R (Appointment of an ACD) including, if relevant, an EEA UCITS management companyor incoming EEA AIFM.
- 23/07/2013
authorised electronic money institution
(in accordance with regulation 2(1) of the Electronic Money Regulations):
(a) a person included by the
FCA
in the
Financial Services Register
as an authorised electronic money institution pursuant to regulation 4(1)(a) of the Electronic Money Regulations; or
(b) a person deemed to have been granted authorisation by virtue of regulation 74 of the Electronic Money Regulations.
- 01/04/2013
authorised fund manager
- 23/07/2013
authorised insurance company
(In COMP) (in accordance with the compensation transitionals order) a person who was, at any time before commencement, authorised under section 3 or 4 of the Insurance Companies Act 1982 to carry on insurance business of any class in the United Kingdom.
- 22/12/2006
authorised payment institution
(in accordance with regulation 2(1) of the Payment Services Regulations) a person included by the
FCA
in the
Financial Services Register
as an authorised payment institution pursuant to regulation 4(1)(a), or a person deemed to have been granted authorisation by virtue of regulation 121 of the Payment Services Regulations.
- 01/04/2013
authorised person
(in accordance with section 31 of the Act (Authorised persons)) one of the following:
(b) an incoming EEA firm;
(c) an incoming Treaty firm;
(d) a UCITS qualifier;
(e) an ICVC;
(f) the Society of Lloyd's.
(see also GEN 2.2.18 R for the position of an authorisedpartnership or unincorporated association which is dissolved.)- 01/04/2013
authorised primary dealer
(as defined in article 2(1)(n) of the short selling regulation) a natural or legal person who has signed an agreement with a sovereign issuer or who has been formally recognised as a primary dealer by or on behalf of a sovereign issuer and who, in accordance with that agreement or recognition, has committed to dealing as principal in connection with primary and secondary market operations relating to debt issued by that sovereign issuer.
- 01/11/2012
authorised primary dealer exemption
an exemption from articles 7, 13 and 14 of the short selling regulation for the activities of an authorised primary dealer pursuant to article 17 of the short selling regulation.
- 01/11/2012
authorised professional firm
a professional firm which is an authorised person.
- 01/12/2004
authorised UK representative
(in relation to a firm) a person resident in the United Kingdom who is authorised to act generally, and to accept service of any document, on behalf of the firm.
- 01/12/2004
authorised unit trust scheme
(as defined in section 237(3) of the Act (Other definitions)) a unit trust scheme which is authorised for the purposes of the Act by an authorisation order.
- 01/12/2004
authorised Voluntary Jurisdiction participant
a participant in the Voluntary Jurisdiction who is an authorised person.
- 01/12/2004
automatic enrolment scheme
a scheme that meets the conditions in Part 1 of the Pensions Act 2008. In summary this is a qualifying occupational pension scheme or qualifying personal pension scheme that enables automatic enrolment arrangements to take place.
- 01/10/2012
AVC
a voluntary contribution arrangement paid by a member of an occupational pension scheme under the terms of the scheme or of a separate contract.
- 01/11/2007
average outstanding electronic money
(in accordance with regulation 2(1) of the Electronic Money Regulations) the average total amount of financial liabilities related to electronic money in issue at the end of each calendar day over the preceding six calendar months, calculated on the first calendar day of each calendar month and applied for that calendar month.
- 10/02/2011
Letter: B
backtesting exception
(in BIPRU 7.10 (Use of a value at risk model)) an exception (excluding a specific risk backtesting exception) arising out of backtesting a VaR model as more fully defined in BIPRU 7.10.103 R.
- 01/01/2007
backwardation
a situation in which futures prices are lower than cash prices.
- 01/12/2004
balance
(in relation to a person's account) has the meaning given in section 8 of the Dormant Bank and Building Society Accounts Act 2008, which is in summary the amount owing to the person in respect of the account at any particular time, after the appropriate adjustments have been made for such things as interest due and fees and charges payable. In relation to a time after a transfer of the balance to a dormant account fund operator, the adjustments include those that would fall to be made but for the transfer or transfers.
- 06/08/2009
balancing amount
in respect of a syndicate, any part of the capital resources that:
(a) the managing agent of the syndicate has assessed to be necessary to support the insurance business carried on by the members of the syndicate through the syndicate, including those capital resources required to support the risks arising at syndicate level that affect that business; but
- 31/12/2006
Balancing and Settlement Code
the document designated by the Secretary of State and adopted by the National Grid Company plc as the Balancing and Settlement Code as modified from time to time in accordance with the terms of the transmission licence granted under section 6(1)(b) of the Electricity Act 1989 in respect of England and Wales, or any subsequent similar instrument or arrangements.
- 01/12/2004
bank
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.
- 19/06/2014
bank
(a) a firm with a
Part 4A permission
which includes accepting deposits, and:
(i) which is a credit institution; or
(ii) whose
Part 4A permission
includes a requirement that it comply withthe rules in GENPRU and BIPRU relating to banks;
but which is not a building society, a friendly society or a credit union;- 01/04/2013
Bank Accounts Directive
Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions.
- 01/12/2004
Bank of England
This term is defined externally, please refer to:
Schedule 1 Interpretation Act 1978
- 01/01/2014
banking and investment group
a group of persons (at least one of which is an EEA regulated entity that is a credit institution or an investment firm) who:
(a) form a group in respect of which the consolidated capital adequacy requirements for the banking sector or the investment services sector under:
(b) would form such a group if the scope of those sectoral rules were amended as described in paragraph 3.1 of
GENPRU 3 Annex 2
(removing restrictions relating to place of incorporation or head office of members of those financial sectors).
- 01/04/2013
banking and investment services conglomerate
a financial conglomerate that is identified in paragraph 4.3 of GENPRU 3 Annex 1 (Types of financial conglomerate) as a banking and investment services conglomerate.
- 01/01/2007
banking and investment services sector
(in relation to a financial sector in a consolidation group or a financial conglomerate and in accordance with GENPRU 3.1 (Cross sector groups)), the investment services sector and the banking sector taken together.
- 01/01/2007
Banking Consolidation Directive
the Directive of the European Parliament and the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (No 2006/48/EC).
- 01/01/2007
banking customer
(in BCOBS):
(a) a consumer;
(b) a micro-enterprise; or
(c) a charity which has an annual income of less than £1 million.
A natural person acting in a capacity as a trustee is a banking customer if he is acting for purposes outside his trade, business or profession.- 01/11/2009
Banking Ombudsman scheme
the former scheme set up, on a voluntary basis, to handle complaints against those banks which subscribed to it.
- 01/12/2004
banking sector
a sector composed of one or more of the following entities:
(a) a credit institution;
(b) a financial institution; and
- 01/01/2007
base capital resources requirement
(A) In the PRA Handbook
(1) (except in IPRU(INV)) an amount of capital resources that an insurer must hold as set out in GENPRU 2.1.30 R (Table: Base capital resources requirement for an insurer) or a BIPRU firm must hold under GENPRU 2.1.41 R (Base capital resources requirement for a BIPRU firm) and GENPRU 2.1.48 R (Table: Base capital resources requirement for a BIPRU firm) or, as the case may be, GENPRU 2.1.60 R (Calculation of the base capital resources requirement for banks authorised before 1993).
(2) (in IPRU(INV)) an amount of own funds that a collective portfolio management firm must hold in line with IPRU(INV) 11.3.1R (Base capital resources requirement).
(B) In the FCA Handbook
(1) an amount of capital resources that an insurer must hold as set out in GENPRU 2.1.30 R (Table: Base capital resources requirement for an insurer) or a BIPRU firm must hold under GENPRU 2.1.41 R (Base capital resources requirement for a BIPRU firm) and GENPRU 2.1.48 R (Table: Base capital resources requirement for a BIPRU firm).
(2) [deleted]
- 01/01/2014
base costs
management expenses
which are not attributable to any particular class.
- 01/04/2013
base costs levy
a levy, forming part of the management expenses levy, to meet the base costs in the financial year of the compensation scheme to which the levy relates, each participant firm's share being calculated in accordance with
FEES 6.4.5 R
.
- 01/01/2006
base currency
(1) (in COLL) the currency specified:
(a) in the instrument of incorporation of an ICVC as the currency in which its accounts are to be prepared; or
- 23/07/2013
base prospectus
(in Part 6 rules) a base prospectus referred to in PR 2.2.7 R.
- 01/07/2005
basic advice
the regulated activity, specified in article 52B of the Regulated Activities Order (Providing basic advice on stakeholder products) which is, in summary, providing advice on stakeholder products using a process that involves putting pre-scripted questions to a retail client.
- 01/11/2007
basic indicator approach
- 01/01/2007
basis risk
the risk that the relationship between two financial variables will change, particularly between two sorts of interest rate or between a hedge and the position it ostensibly hedges.
- 31/12/2004
- 01/12/2004
BCOBS
the Banking: Conduct of Business sourcebook.
- 01/11/2009
bearer certificate
(A) In the PRA Handbook:(in COLL) a certificate or other documentary evidence of title, for which provision is made in the instrument constituting the scheme, which indicates that:
(B) In the FCA Handbook:(in COLL) a certificate or other documentary evidence of title, for which provision is made in the instrument constituting the fund, which indicates that:
- 28/02/2014
bearer form
(in relation to a client's certificate, share transfer or other document) in a form signed by the client so that it enables a designated investment or deposit to which it relates to be sold, transferred, surrendered or dealt with in any other way without the need to obtain further written instructions and allows the firm access to the sale proceeds.
- 01/12/2004
behaviour
any kind of conduct, including action or inaction.
- 01/12/2004
bid price
- 06/10/2006
bidding in emissions auctions
the regulated activity, specified in article 24A of the Regulated Activities Order (Bidding in emissions auctions), which is in summary the reception, transmission or submission of a bid at an auction of an emissions auction product conducted on an auction platform.
- 27/07/2012
biofuel
liquid or gaseous fuel produced from biomass.
- 06/08/2008
biofuel collective investment scheme
a collective investment scheme, the property of which consists only of property which is biofuel or a biofuel investment or cash awaiting investment.
- 06/08/2008
biofuel investment
any of the following:
(d) a contract for differences where the property in question is biofuel or a biofuel investment or the index or other factor in question is linked to or otherwise dependent upon fluctuations in the value or price of biofuel or any biofuel investments;
(e) rights to or interests in investments in (a) to (d).
- 06/08/2008
biomass
the biodegradable fraction of products, waste and residues from agricultural (including vegetal and animal substances), forestry and related industries, as well as the biodegradable fraction of industrial and municipal waste.
- 06/08/2008
biomass collective investment scheme
a collective investment scheme, the property of which consists only of property which is biomass or a biomass investment or cash awaiting investment.
- 06/08/2008
biomass investment
any of the following:
(d) a contract for differences where the property in question is biomass or a biomass investment or the index or other factor in question is linked to or otherwise dependent upon fluctuations in the value or price of biomass or any biomass investments;
(e) rights to or interests in investments in (a) to (d).
- 06/08/2008
BIPRU
the Prudential sourcebook for Banks, Building Societies and Investment Firms.
- 01/01/2007
BIPRU 125K firm
has the meaning in BIPRU 1.1.19 R (Types of investment firm: BIPRU 125K firm) which in summary is a BIPRU investment firm that satisfies the following conditions:
(1) it does not deal on own account or underwrite issues of financial instruments on a firm commitment basis;
(2) it holds clients' money or securities in relation to investment services it provides or is authorised to do so;
(3) it offers one or more of certain specified services;
(4) it is not a
collective portfolio management investment firm
; and
(5) it does not operate a multilateral trading facility.
- 23/07/2013
BIPRU 50K firm
has the meaning in BIPRU 1.1.20 R (Types of investment firm: BIPRU 50K firm) which in summary is a BIPRU investment firm that satisfies the following conditions:
(a) it satisfies the conditions in BIPRU 1.1.19 R (1) (does not deal on own account or underwrite issues of financial instruments on a firm commitment basis) and BIPRU 1.1.19 R (3) (offers one or more of certain specified services);
(b) it does not hold clients' money or securities in relation to investment services it provides and it is not authorised to do so;
(c) it is not a
collective portfolio management investment firm
; and
(d) it does not operate a multilateral trading facility.
- 23/07/2013
BIPRU 730K firm
has the meaning in BIPRU 1.1.21 R (Types of investment firm: BIPRU 730K firm) which in summary is a BIPRU investment firm that is not a
collective portfolio management investment firm
, a BIPRU 50K firm or a BIPRU 125K firm.
- 23/07/2013
BIPRU firm
(A) In the PRA Handbook:has the meaning set out BIPRU 1.1.6 R (The definition of a BIPRU firm), which is in summary a firm that is:
(a) a building society; or
(b) a bank; or
(c) a full scope BIPRU investment firm; or
(d) a BIPRU limited licence firm; or
(e) a BIPRU limited activity firm;
but excluding firms of the type listed in BIPRU 1.1.7 R (Exclusion of certain types of firm from the definition of BIPRU firm).
(B) In the FCA Handbook:a firm, as defined in article 4(1)(2)(c) of the EU CRR that satisfies the following conditions:
(a) it is authorised to provide one or more the following investment services:
(i) execution of orders on behalf of clients;
(ii) portfolio management; and
(b) it may provide one or more of the following investment services:
(i) reception and transmission of orders in relation to one or more financial instruments;
(ii) investment advice;
but excluding firms of the type listed in BIPRU 1.1.7 R (Exclusion of certain types of firm from the definition of BIPRU firm).- 01/01/2014
BIPRU investment firm
has the meaning set out BIPRU 1.1.8 R (Definition of a BIPRU investment firm), which is in summary one of the following types of BIPRU firm:
(a) a full scope BIPRU investment firm; or
(b) a BIPRU limited licence firm; or
(c) a BIPRU limited activity firm;
including a
collective portfolio management investment firm
that is not excluded under BIPRU 1.1.7 R (Exclusion of certain types of firm from the definition of BIPRU firm).- 23/07/2013
BIPRU limited activity firm
has the meaning in BIPRU 1.1.17 R (Types of BIPRU investment firm), which is in summary a limited activity firm that meets the following conditions:
(a) it is a firm; and
(b) its head office is in the United Kingdom and it is not otherwise excluded from the definition of BIPRU firm under BIPRU 1.1.7 R (Exclusion of certain types of firm from the definition of BIPRU firm).
- 01/01/2007
BIPRU limited licence firm
has the meaning in BIPRU 1.1.17 R (Types of BIPRU investment firm), which is in summary a limited licence firm that meets the following conditions:
(a) it is a firm; and
(b) its head office is in the United Kingdom and it is not otherwise excluded from the definition of BIPRU firm under BIPRU 1.1.7 R (Exclusion of certain types of firm from the definition of BIPRU firm).
- 01/01/2007
BIPRU Remuneration Code
SYSC 19C (BIPRU Remuneration Code).
- 01/01/2014
body corporate
means any body corporate including a body corporate constituted under the law of a country or territory outside the UK.
- 01/02/2014
body corporate
(in accordance with section 417(1) of the Act (Definitions)) any body corporate, including a body corporate constituted under the law of a country or territory outside the United Kingdom.
- 01/12/2004
bonded investment
a designated investment not held by a trustee when acting as a trustee:
(a) which, except in the case of a unit, is one of the following:
(i) a readily realisable security held for a customer, whether or not held under a discretionary arrangement; or
(iii) a designated investment held by a nominee company under the control of the firm or a person whom the firm controls; or
(iv) a designated investment to which the title is recorded in electronic form;
- 01/12/2004
book value of property
(in LR) (in relation to a property company) the value of a property (which is not classified as a net current asset) before the deduction of mortgages or borrowings as shown in the company's latest annual report and accounts.
- 01/07/2005
borrow back
a feature of a regulated mortgage contract under which the customer has the ability to re-borrow monies paid by him.
- 01/12/2004
branch
(A) In the PRA Handbook:
(a) (in relation to a credit institution):
(i) 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) (in relation to an investment firm):
(i) a place of business other than the head office which is a part of an investment firm, which has no legal personality and which provides investment services and/or activities and which may also perform ancillary services for which the firm has been authorized;
(ii) all the places of business set up in the same EEA State by an investment firm with headquarters in another EEA State are regarded as a single branch;
[Note: article 4(1)(26) of MiFID] (c) (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:
(i) is managed by the insurance undertaking's own staff; or
(ii) is an agency of the insurance undertaking; or
(iii) 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.
(d) (in relation to an IMD insurance intermediary):
(i) a place of business which is a part of an IMD insurance intermediary, not being the principal place of business, which has no separate legal personality and which provides insurance mediation for which the IMD insurance intermediary has been registered;
(ii) for the purposes of the Insurance Mediation Directive, all the places of business set up in the same EEA State by an IMD insurance intermediary with headquarters in another EEA State are to be regarded as a single branch.
(e) (in relation to an IMD reinsurance intermediary):
(i) a place of business which is a part of an IMD reinsurance intermediary, not being the principal place of business, which has no separate legal personality and which provides reinsurance mediation for which the IMD reinsurance intermediary has been registered;
(ii) for the purposes of the Insurance Mediation Directive, all the places of business set up in the same EEA State by an IMD reinsurance intermediary with headquarters in another EEA State are to be regarded as a single branch.
(f) (in relation to an EEA UCITS management company):
(i) a place of business which is a part of an EEA UCITS management company, which has no separate legal personality and which provides the services for which the EEA UCITS management company has been authorised;
(ii) for the purposes of the UCITS Directive, all the places of business set up in the same EEA State by an EEA UCITS management company with headquarters in another EEA State are to be regarded as a single branch.
(g) (in accordance with regulation 2(1) of the Payment Services Regulations) (in relation to a payment institution) a place of business of a payment institution, other than its head office, which forms a legally dependent part of the institution and which carries out directly all or some of the transactions inherent in its business. For the purposes of the Payment Services Regulations, all places of business set up in the same EEA State other than the United Kingdom by an authorised payment institution are to be regarded as a single branch. [Note: article 4(29) of the Payment Services Directive]
(h) (in relation to a person carrying on auction regulation bidding) a branch.
(i) (in relation to an AIFM)
(i) a place of business which is a part of an AIFM that has no legal personality and provides the services for which the AIFM has been authorised;
(ii) for the purpose of (i), all places of business established in the same EEA State by an AIFM with its registered office in another EEA State shall be regarded as a single branch.
[Note: article 4(1)(c) of AIFMD]
(B) In the FCA Handbook:
(a) (in relation to a credit institution):
(i) 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) (in relation to an investment firm):
(i) a place of business other than the head office which is a part of an investment firm, which has no legal personality and which provides investment services and/or activities and which may also perform ancillary services for which the firm has been authorized;
(ii) all the places of business set up in the same EEA State by an investment firm with headquarters in another EEA State are regarded as a single branch;
[Note: article 4(1)(26) of MiFID] (c) (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:
(i) is managed by the insurance undertaking's own staff; or
(ii) is an agency of the insurance undertaking; or
(iii) 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.
(d) (in relation to an IMD insurance intermediary):
(i) a place of business which is a part of an IMD insurance intermediary, not being the principal place of business, which has no separate legal personality and which provides insurance mediation for which the IMD insurance intermediary has been registered;
(ii) for the purposes of the Insurance Mediation Directive, all the places of business set up in the same EEA State by an IMD insurance intermediary with headquarters in another EEA State are to be regarded as a single branch.
(e) (in relation to an IMD reinsurance intermediary):
(i) a place of business which is a part of an IMD reinsurance intermediary, not being the principal place of business, which has no separate legal personality and which provides reinsurance mediation for which the IMD reinsurance intermediary has been registered;
(ii) for the purposes of the Insurance Mediation Directive, all the places of business set up in the same EEA State by an IMD reinsurance intermediary with headquarters in another EEA State are to be regarded as a single branch.
(f) (in relation to an EEA UCITS management company):
(i) a place of business which is a part of an EEA UCITS management company, which has no separate legal personality and which provides the services for which the EEA UCITS management company has been authorised;
(ii) for the purposes of the UCITS Directive, all the places of business set up in the same EEA State by an EEA UCITS management company with headquarters in another EEA State are to be regarded as a single branch.
(g) (in accordance with regulation 2(1) of the Payment Services Regulations) (in relation to a payment institution) a place of business of a payment institution, other than its head office, which forms a legally dependent part of the institution and which carries out directly all or some of the transactions inherent in its business. For the purposes of the Payment Services Regulations, all places of business set up in the same EEA State other than the United Kingdom by an authorised payment institution are to be regarded as a single branch. [Note: article 4(29) of the Payment Services Directive]
(h) (in relation to a person carrying on auction regulation bidding) a branch.
(i) (in relation to an AIFM)
(i) a place of business which is a part of an AIFM that has no legal personality and provides the services for which the AIFM has been authorised;
(ii) for the purpose of (i), all places of business established in the same EEA State by an AIFM with its registered office in another EEA State shall be regarded as a single branch.
[Note: article 4(1)(c) of AIFMD]- 01/01/2014
breach
in DEPP:
(1) misconduct in respect of which the
FCA
is empowered to take action pursuant to section 66 (Disciplinary powers) of the Act; or
(2) a contravention in respect of which the
FCA
is empowered to impose a penalty pursuant to section 91 (Penalties for breach of listing rules) of the Act; or
(3) a contravention for the purposes of Part XIV (Disciplinary Measures); or
(4) behaviour amounting to market abuse, or to requiring or encouragingmarket abuse, in respect of which the
FCA
takes action pursuant to section 123 (Power to impose penalties in cases of market abuse) of the Act;
(6) a contravention in respect of which the
FCA
is empowered to take action pursuant to section 131G (Breach of short selling regulation: Power to impose penalty or issue censure) of the Act;
(7) a contravention in respect of which the FCA is empowered to take action pursuant to section 88A (Disciplinary powers: contravention of s.88(3)(c) or (e)) of the Act;
(8) a contravention in respect of which the FCA is empowered to take action pursuant to section 89Q (Disciplinary powers: contravention of s.89P(4)(b) or (d)) of the Act;
(9) a contravention in respect of which the FCA is empowered to take action pursuant to section 192K (Power to impose penalty or issue censure) of the Act;
(10) a contravention in respect of which the FCA is empowered to take action pursuant to section 249 (Disciplinary measures) of the Act;
- 01/04/2013
break fee arrangement
(in LR) an arrangement falling within the definition in LR 10.2.6A R.
- 01/10/2012
bridging loan
a regulated mortgage contract which has a term of twelve months or less.
- 26/04/2014
broker fund
(in relation to a fund for which the firm is or will be a broker fund adviser):
(a) an actual or notional fund of a long-term insurer or overseas long-term insurer, which contains or will contain contributions made or to be made by a client or clients of a firm in connection with a life policy or policies;
- 01/12/2004
broker fund adviser
a firm which has, or whose associate being an authorised person has, an arrangement with a long-term insurer, overseas long-term insurer or operator of a regulated collective investment scheme, under which it is to be expected that the long-term insurer, overseas long-term insurer or operator will take into account the advice of that firm or its associate:
(a) in the case of a long-term insurer or overseas long-term insurer, on any matter likely to influence the performance of any of the long-term insurer's or overseas long-term insurer's funds or of any investment issued by the long-term insurer or overseas long-term insurer into which cash contributions of that firm's customers have been made;
(b) in the case of an operator, on the composition of the property of the collective investment scheme into which cash contributions of that firm's customers have been made;
in this definition associate includes any authorised person in respect of whose services the first firm receives any benefit or reward, either directly or indirectly, in connection with advice of the kind described in (a) and (b) given to a long-term insurer or overseas long-term insurer or to a collective investment schemeoperator.- 01/12/2004
brought forward amount
an amount, as defined in
INSPRU 1.1.51 R
, used in the calculation of the general insurance capital requirement.
- 31/12/2006
BSOCS
the Building Societies sourcebook.
- 01/04/2010
buffer securities restriction
BIPRU 12.6.16R.
- 01/12/2009
building block
(in PR and LR) (as defined in the PD Regulation) a list of additional information requirements, not included in one of the schedules, to be added to one or more schedules, as the case may be, depending on the type of instrument and/or transaction for which a prospectus or base prospectus is drawn up.
- 01/07/2005
Building Societies Ombudsman scheme
the former scheme set up and recognised under the Building Societies Act 1986 to handle complaints about building societies.
- 01/12/2004
building society
has the meaning given in section 119 of the Building Societies Act 1986.
- 01/01/2014
building society
(as defined in section 119(1) of the Building Societies Act 1986) a building society incorporated (or deemed to be incorporated) under that Act.
- 01/12/2004
business day
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.
- 19/06/2014
business day
(1) (in relation to anything done or to be done in (including to be submitted to a place in) any part of the United Kingdom):
(a) (except in REC) any day which is not a Saturday or Sunday, Christmas Day, Good Friday or a bank holiday in that part of the United Kingdom;
(b) (in REC) (as defined in section 167 of the Companies Act 1989) any day which is not a Saturday or Sunday, Christmas Day, Good Friday or a bank holiday in any part of the United Kingdom.
(2) (in relation to anything done or to be done by reference to a market outside the United Kingdom) any day on which that market is normally open for business.
- 01/12/2004
business illustration
an illustration for a regulated mortgage contract that is for a business purpose.
- 01/12/2004
business offer document
an offer document for a regulated mortgage contract that is for a business purpose.
- 01/12/2004
Business Order
the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business Order) 2001 (SI 2001/1177).
- 01/12/2004
Buy-back and Stabilisation Regulation
Commission Regulation (EC) of 22 December 2003 implementing the Market Abuse Directive as regards exemptions for buy-back programmes and stabilisation of financial instruments (No 2273/2003).
- 01/07/2005
buy-back programme
(as defined in Article 2 of the Buy-back and Stabilisation Regulation) trading in own shares in accordance with Articles 19 to 24 of the PLC Safeguards Directive.
- 01/07/2005
buying
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation)) any form of buying, including acquiring for valuable consideration.
- 01/12/2004
byelaw
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.
- 31/12/2006
Letter: C
- 01/01/2007
CAD 1 model
a risk management model of the type described in BIPRU 7.9 (Use of a CAD 1 model).
- 01/01/2007
CAD 1 model approach
one of the following
(a) the approach to calculating part of the market risk capital requirement set out in BIPRU 7.9 (Use of a CAD 1 model);
(b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
(c) when the reference is to the rules of or administered by a regulatory body other than the
appropriate regulator, whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.
- 01/04/2013
CAD 1 model waiver
a waiver that requires a firm to use the CAD 1 model approach on a solo basis or, if the context requires, a consolidated basis.
- 01/01/2007
CAD Article 22 group
a UK consolidation group or non-EEA sub-group that meets the conditions in BIPRU 8.4.9 R (Definition of a CAD Article 22 group).
- 01/01/2007
CAD full scope firm
has the meaning set out BIPRU 1.1.13 R (Types of investment firm: CAD full scope firm), which in summary is a CAD investment firm that is not a limited activity firm or a limited licence firm.
- 01/01/2007
CAD investment firm
(A) In the PRA Handbook:has the meaning set out BIPRU 1.1.14 R (Types of investment firm: CAD investment firm), which in summary is an investment firm that is subject to the requirements imposed by MiFID (or which would be subject to that Directive if its head office were in an EEA State) but excluding a bank, a building society, a credit institution, a local and an exempt CAD firm.
(B) In the FCA Handbooka firm that is subject to the requirements imposed by MiFID (or which would be subject to that Directive if its head office were in an EEA State) but excluding a bank, a building society, a credit institution, a local and an exempt CAD firm that meets the following conditions:
(b) it is authorised to provide one or more the following investment services:
(i) (execution of orders on behalf of clients;
(ii) portfolio management; and
(c) it may provide one or more of the following investment services:
(i) reception and transmission of orders in relation to one or more financial instruments;
(ii) investment advice.
- 01/01/2014
callable contribution
amounts that members are liable to pay to the Society (or may by resolution of the Society be liable to pay) as contributions to the Central Fund.
- 31/12/2006
cancellation price
(in COLL) (in relation to the cancellation of units in a dual-priced authorised fund) the price for each unit payable by the depositary to the authorised fund manager on that cancellation.
- 06/10/2006
candidate
a person in respect of whom an application is made for approval under section 59 of the Act (Approval for particular arrangements) of the performance of an FCA controlled function or a PRA controlled function.
- 01/04/2013
capacity transfer market
any method of transferring capacity in syndicates, including capacity auctions, bilateral arrangements, capacity offers, minority buy-outs and conversion schemes.
- 01/12/2004
capital account
- 01/04/2009
Capital Adequacy Directive
the Directive of the European Parliament and the Council of 14 June 2006 on capital adequacy of investment firms and credit institutions (No 2006/49/EC).
- 01/01/2007
capital instrument
(in
GENPRU
,
BIPRU
and INSPRU 6 and in relation to an undertaking) any security issued by or loan made to that undertaking or any other investment in, or external contribution to the capital of, that undertaking.
- 01/02/2012
capital market-driven transaction
(in accordance with point 2 of Part 1 of Annex VIII of the Banking Consolidation Directive (Eligible forms of credit risk mitigation)) any transaction giving rise to an exposure secured by collateral which includes a provision conferring upon the person with the exposure the right to receive margin frequently.
- 01/01/2007
capital planning buffer
(A) In the PRA Handbook:(in BIPRU 2.2) the amount and quality of capital resources that a firm should hold at a given time in accordance with the general stress and scenario testing rule, so that the firm is able to continue to meet the overall financial adequacy rule throughout the relevant capital planning period in the face of adverse circumstances, after allowing for realistic management actions.
(B) In the FCA Handbook:(in BIPRU 2.2 or IFPRU 2) the amount and quality of capital resources that a firm should hold at a given time in accordance with the general stress and scenario testing rule, so that the firm is able to continue to meet the overall financial adequacy rule throughout the relevant capital planning period in the face of adverse circumstances, after allowing for realistic management actions.
- 01/01/2014
capital property
(in COLL) the scheme property, other than income property and any amount for the time being standing to the credit of the distribution account.
- 01/04/2009
capital redemption
(in relation to a class of contract of insurance) capital redemption contracts where effected or carried out by a person who does not carry on a banking business, and otherwise carries on the regulated activity of effecting or carrying out contracts of insurance, as specified in paragraph VI of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance).
- 01/12/2004
Capital Requirements Regulations
means the Capital Requirements Regulations 2013 (SI 2013/3115).
- 19/06/2014
Capital Requirements Regulations 2006
the Capital Requirements Regulations 2006 (SI 2006/3221).
- 01/01/2007
capital resources
(A) In the PRA Handbook:
(1) in relation to a BIPRU firm or an insurer, the firm's capital resources as calculated in accordance with the capital resources table, including, in relation to a BIPRU firm, as that calculation is adjusted under BIPRU 10.5 for the purposes of BIPRU 10 (Large exposures requirements); or
(2) (in relation to an institution that is an EEA firm and not a BIPRU firm and which is required to meet the capital resources requirements of the CRD implementation measures for its EEA State on an individual basis) capital resources calculated under those CRD implementation measures; or
(3) (for the purposes of GENPRU and BIPRU, in relation to an undertaking not falling within (1) or (2) and subject to (4)), capital resources calculated in accordance with (1) on the assumption that:
(b) it carries on all its business in the United Kingdom and has obtained whatever permissions for doing so are required under the Act; or
(4) (for the purposes of GENPRU and BIPRU and in relation to any undertaking not falling within (1) or (2) for which the methodology in (3) does not give an answer whose capital resources a BIPRU firm (the "relevant firm") is required to calculate under a Handbookrule) capital resources calculated under (1) on the assumption that it is a BIPRU firm of the same category as the relevant firm.
(B) In the FCA Handbook:
(1) in relation to a BIPRU firm or an insurer, the firm's capital resources as calculated in accordance with the capital resources table; or
(2) (in relation to a CAD investment firm that is an EEA firm and not a BIPRU firm and which is required to meet the capital resources requirements of the CRD implementation measures for its EEA State on an individual basis) capital resources calculated under those CRD implementation measures; or
(3) (for the purposes of GENPRU and BIPRU (except BIPRU 12), in relation to an undertaking not falling within (1) or (2) and subject to (4)), capital resources calculated in accordance with (1) on the assumption that:
(b) it carries on all its business in the United Kingdom and has obtained whatever permissions for doing so are required under the Act; or
(4) (for the purposes of GENPRU and BIPRU (except BIPRU 12) and in relation to any undertaking not falling within (1) or (2) for which the methodology in (3) does not give an answer whose capital resources a BIPRU firm (the "relevant firm") is required to calculate under a Handbookrule) capital resources calculated under (1) on the assumption that it is a BIPRU firm of the same category as the relevant firm.
- 01/01/2014
capital resources gearing rules
(A) In the PRA Handbook:
(1) (in relation to an insurer) GENPRU 2.2.29 R, GENPRU 2.2.30 R and GENPRU 2.2.32 R to GENPRU 2.2.41 R.
(2) [deleted]
(3) [deleted]
(B) In the FCA Handbook:
(1) (in relation to an insurer) GENPRU 2.2.29 R, GENPRU 2.2.30 R and GENPRU 2.2.32 R to GENPRU 2.2.41 R.
(2) [deleted]
(3) (in relation to a BIPRU firm) GENPRU 2.2.30 R, GENPRU 2.2.46 R and GENPRU 2.2.49 R and GENPRU 2.2.50 R.
- 01/01/2014
capital resources requirement
an amount of capital resources that:
- 01/01/2007
capital resources table
(A) In the PRA Handbook:
(2) [deleted]
(3) [deleted]
(4) [deleted]
(B) In the FCA Handbook:
(2) [deleted]
(3) [deleted]
(4) (in relation to a BIPRU firm) whichever of the tables in GENPRU 2 Annex 4, GENPRU 2 Annex 5 or GENPRU 2 Annex 6 applies to the firm under GENPRU 2.2.19 R.
- 01/01/2014
captive reinsurer
a pure reinsurer owned by:
(b) a group of insurance undertakings or reinsurance undertakings to which the Insurance Groups Directive applies; or
(c) a non-financial undertaking,
the purpose of which is to provide reinsurance cover exclusively for the risks of the undertaking or undertakings to which it belongs or of an undertaking or undertakings of the group of which that pure reinsurer is a member.- 06/11/2006
- 01/07/2005
carrying out contracts of insurance
the regulated activity, specified in article 10(2) of the Regulated Activities Order (Effecting and carrying out contracts of insurance), of carrying out a contract of insurance as principal.
- 01/12/2004
carrying out contracts of insurance
means the regulated activity specified in article 10(2) of the Regulated Activities Order (Effecting and carrying out contracts of insurance).
- 19/06/2014
cash component
a qualifying investment prescribed in paragraph 8 of the ISA Regulations (Qualifying investments for a cash component).
- 01/12/2004
cash deposit ISA
a cash component of an ISA which does not include the qualifying investments prescribed in paragraphs 8(2)(c), (d), (e) or (f) of the ISA Regulations.
- 01/12/2004
cashback
(in MCOB) a cash amount paid by a mortgage lender to a customer (typically at the beginning of a contract) as an inducement to enter into a regulated mortgage contract with the mortgage lender.
- 01/12/2004
CASS
the Client Assets sourcebook.
- 01/12/2004
CASS large firm
has the meaning in CASS 1A.2.7 R (CASS firm types).
- 01/01/2011
CASS medium firm
has the meaning in CASS 1A.2.7 R (CASS firm types).
- 01/01/2011
CASS operational oversight function
(in the FCA Handbook) FCA controlled function
CF10a in Parts 1 and 2 of the
table of FCA controlled functions, described more fully in
SUP 10A.7.9 R
.
- 01/04/2013
- 01/10/2012
CASS small firm
has the meaning in CASS 1A.2.7 R (CASS firm types).
- 01/01/2011
CAT standards
the CAT standards for ISAs prescribed by the Treasury on 22 December 1998.
- 01/12/2004
category B firm
a personal investment firm, other than an exempt CAD firm.
- 31/12/2009
category B1 firm
- 31/12/2009
category B2 firm
a category B firm whose permission does not include dealing as principal; and is not subject to a requirement preventing the holding or controlling of client money or custody assets.
- 31/12/2009
category B3 firm
a category B firm:
(a) whose permission includes only insurance mediation activity in relation to non-investment insurance contracts, home finance mediation activity, assisting in the administration and performance of a contracts of insurances, arranging transactions in life policies and other insurance contracts, advising on investments and receiving and transmitting, on behalf of investors, orders in relation to securities and units in collective investment schemes; and
- 31/12/2009
causing dematerialised instructions to be sent
the regulated activity, specified in article 45(2) of the Regulated Activities Order, which is in summary: causing dematerialised instructions relating to a security to be sent by means of a relevant system in respect of which an operator is approved under the 1995 Regulations where the person causing them to be sent is a system-participant;in this definition:
(a) "the 1995 Regulations" means the Uncertificated Securities Regulations 1995 (SI 1995/3272);
(b) "dematerialised instruction", "operator" and "system-participant" have the meaning given by regulation 3 of the 1995 Regulations.
- 01/12/2004
CCP
as defined in article 2(1) of EMIR.
- 01/01/2013
- 01/01/2007
CCR internal model method
one of the following:
(a) the method of calculating the amount of an exposure set out in BIPRU 13.6 (CCR internal model method);
(b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
(c) when the reference is to the rules of or administered by a regulatory body other than the
appropriate regulator, whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.
- 01/04/2013
CCR internal model method permission
(A) In the PRA Handbook:
an Article 129 implementing measure, Article 129 permission, a requirement or a waiver that requires a BIPRU firm or a CAD investment firm to use the CCR internal model method
(B) In the FCA Handbook:
an Article 129 implementing measure, Article 129 permission, a requirement or a waiver that requires a BIPRU firm or a CAD investment firm to use the CCR internal model method
- 01/01/2014
CCR mark to market method
the method of calculating the amount of an exposure set out in BIPRU 13.4 (CCR mark to market method).
- 01/01/2007
CCR standardised method
the method of calculating the amount of an exposure set out in BIPRU 13.5 (CCR standardised method).
- 01/01/2007
ceding insurer's waiver
(in FEES) a waiver granted on the application of an insurer that waives or modifies its obligations under any one or more of GENPRU 2 Annex 7, INSPRU 1.1.92A R and INSPRU 1.2.28 R in order to enable it to:
(a) treat amounts recoverable from an ISPV as:
(i) an admissible asset; or
(b) otherwise ascribe a value to such amounts.
- 01/06/2009
central assets
the Society's own assets that are available at its discretion to meet a member's liabilities in respect of insurance business.
- 31/12/2006
central bank
(A) In the PRA Handbook:(in accordance with Article 4(23) of the Banking Consolidation Directive (Definitions) and for the purposes of GENPRU and BIPRU) includes the European Central Bank unless otherwise indicated.
(B) In the FCA Handbook:
(1) (in accordance with Article 4(23) of the Banking Consolidation Directive (Definitions) and for the purposes of GENPRU (except GENPRU 3) and BIPRU (except BIPRU 12)) includes the European Central Bank unless otherwise indicated.
(2) (except in (1)) has the meaning in article 4(1)(46) of the EU CRR.
- 01/01/2014
central counterparty
(in accordance with Part 1 of Annex III of the Banking Consolidation Directive (Definitions) and for the purpose of BIPRU 13 (The calculation of counterparty risk exposure values for financial derivatives, securities financing transactions and long settlement transactions)) an entity that legally interposes itself between counterparties to contracts traded within one or more financial markets, becoming the buyer to every seller and the seller to every buyer.
- 01/11/2007
Central Fund
the Central Fund established under Lloyd's Central Fund Byelaw (No 4 of 1986) and the New Central Fund established under Lloyd's New Central Fund Byelaw (No 23 of 1996).
- 31/12/2006
certificate representing certain securities
the investment specified in article 80 of the Regulated Activities Order (Certificates representing certain securities), which is in summary: a certificate or other instrument which confers contractual or property rights (other than rights consisting of options):
(a) in respect of any share, debenture, alternative debenture,government and public security or warrant held by a
person
other than the
person
on whom the rights are conferred by the certificate or instrument; and
(b) the transfer of which may be effected without requiring the consent of that person;
but excluding any certificate or other instrument which confers rights in respect of two or more investments issued by different persons or in respect of two or more different government and public securities issued by the same person. - 28/06/2013
certificate representing debt securities
(in LR) a certificate representing certain securities where the certificate or other instrument confers rights in respect of debentures, alternative debentures, or government and public securities.
- 26/02/2010
certificate representing equity securities
(in LR) a certificate representing certain securities where the certificate or other instrument confers rights in respect of equity securities.
- 01/07/2005
certificate representing shares
(in LR) a certificate representing certain securities where the certificate or other instrument confers rights in respect of equity shares.
- 01/07/2005
CESR's guidelines on a common definition of European money market funds
the Committee of European Securities Regulators' guidelines on a common definition of European money market funds: 19 May 2010 (CESR/10-049). These are available at www.esma.europa.eu
- 01/07/2011
CESR's UCITS eligible assets guidelines
The Committee of European Securities Regulators' guidelines concerning eligible assets for investment by undertakings for collective investment in transferable securities (CESR/07-044). These are available at http://www.fsa.gov.uk/pages/Library/Other_publications/EU/eu_docs/index.shtml
- 23/07/2008
- 01/01/2007
CFEB
- 01/04/2013
CFEB levy
- 01/04/2013
CFPPFM
- 01/11/2007
CFTC
the Commodity Futures Trading Commission.
- 01/12/2004
charge
(1) (In LR) (in relation to securitised derivatives) means any payment identified under the terms and conditions of the securitised derivatives
(2) (except in LR) any fee or charge made to:
whether levied by the firm or any other person, including a mark-up or mark-down. (b) a customer in connection with any insurance mediation activities in respect of a non-investment insurance contract;
- 06/03/2006
chargeable case
any
complaint
referred to the Financial Ombudsman Service, except where:
(a) the Ombudsman considers it apparent from the
complaint
, when it is received, and from any final response or redress determination which has been issued by the firm or licensee, that the
complaint
should not proceed because:
(ii) the
complaint
does not fall within the jurisdiction of the Financial Ombudsman Service (as described in DISP 2); or
- 01/08/2011
charity
(in BCOBS and BIPRU) includes:
(a) in England and Wales, a charity as defined by section 1(1) of the Charities Act 2006;
(b) in Scotland, a charity as defined by section 106 of the Charities and Trustee Investment (Scotland) Act 2005; or
(c) in Northern Ireland, a charity as defined by section 1(1) of the Charities Act (Northern Ireland) 2008 or, until that section comes into force, a body which is recognised as a charity for tax purposes by Her Majesty's Revenue and Customs.
- 20/01/2012
chief executive
(1) (in relation to an undertaking whose principal place of business is within the United Kingdom) the person who, alone or jointly with one or more others, is responsible under the immediate authority of the directors for the conduct of the whole of its business.
(2) (in relation to an undertaking whose principal place of business is outside the United Kingdom) the person who, alone or jointly with one or more others, is responsible for the conduct of its business within the United Kingdom.
- 01/12/2004
chief executive function
(1) (in the FCA Handbook) FCA controlled function CF3 in Part 1 of the table of FCA controlled functions, described more fully in SUP 10A.6.17 R.(2) (in the PRA Handbook) PRA controlled function CF3 in the table of PRA controlled functions, described more fully in SUP 10B.6.7 R.
- 01/04/2013
Chinese wall
- 01/12/2004
circular
(in LR) any document issued to holders of listed securities including notices of meetings but excluding prospectuses, listing particulars, annual reports and accounts, interim reports, proxy cards and dividend or interest vouchers.
- 01/07/2005
CIS administrator
(in relation to firm type in SUP 16.10 (Confirmation of standing data)) a person responsible for the administrative functions of a collective investment scheme.
- 28/02/2014
CIS stakeholder product
the stakeholder product specified by regulations 5 (units in certain collective investment schemes) and 7 of the Stakeholder Regulations.
- 06/04/2005
CIS trustee
(in relation to firm type in SUP 16.10 (Confirmation of standing data)) a person holding the property of a collective investment scheme on trust for the participants in the collective investment scheme.
- 28/02/2014
CIU
- 01/01/2014
CIU look through method
one of thestandard CIU look through method or the modified CIU look through method.
- 01/01/2007
CIU PRR
- 01/01/2007
claim
(1) (in COMP) a valid claim made in respect of a civil liability owed by a relevant person to the claimant.
- 06/01/2008
claims amount
an amount, as defined in
INSPRU 1.1.47 R
, used in the calculation of the general insurance capital requirement.
- 31/12/2006
class
(A) In the FCA Handbook:
(1) (in GENPRU, INSPRU and SUP) (in relation to a contract of insurance) any class of contract of insurance listed in Schedule 1 to the Regulated Activities Order (Contracts of insurance) and references to:
(a) general insurance businessclass 1, 2 3, etc. are references to contracts of insurance of the kind mentioned in the corresponding numbered paragraph in Part I of Schedule 1 to that Order or, as the context may require, to the effecting or carrying out of contracts of insurance of that kind; and
(b) long-term insurance businessclass I, II, III, etc. are references to contracts of insurance of the kind mentioned in the corresponding numbered paragraph in Part II of Schedule 1 to that Order, as the context may require, to the effecting or carrying out of contracts of insurance of that kind.
(2) (in COLL):
(d) in relation to an EEA UCITS scheme, any arrangement equivalent to (a), (b) or (c).
(4) (in LR) securities the rights attaching to which are or will be identical and which form a single issue or issues.
(5) (in FEES) one of the broad classes to which FSCS allocates levies as described in FEES 6.4.7A R, FEES 6.5.6A R and FEES 6 Annex 3AR.
(B) In the PRA Handbook:
(1) (in
GENPRU, INSPRUand SUP) (in relation to a contract of insurance) any class of contract of insurance listed in Schedule 1 to the Regulated Activities Order (Contracts of insurance) and references to:
(a) general insurance businessclass 1, 2, 3, etc. are references to contracts of insurance of the kind mentioned in the corresponding numbered paragraph in Part I of Schedule 1 to that Order or, as the context may require, to the effecting or carrying out of contracts of insurance of that kind; and
(b) long-term insurance business class I, II, III, etc. are references to contracts of insurance of the kind mentioned in the corresponding numbered paragraph in Part II of Schedule 1 to that Order or, as the context may require, to the effecting or carrying out of contracts of insurance of that kind.
(2) (in COLL):
(d) in relation to an EEA UCITS scheme, any arrangement equivalent to (a), (b) or (c).
(4) (in LR) securities the rights attaching to which are or will be identical and which form a single issue or issues.
- 01/04/2013
class 1 acquisition
(in LR) a class 1 transaction that involves an acquisition by the relevant listed company or its subsidiary undertaking.
- 01/07/2005
class 1 circular
- 01/07/2005
class 1 disposal
(in LR) a class 1 transaction that consists of a disposal by the relevant listed company or its subsidiary undertaking.
- 01/07/2005
- 01/01/2006
- 01/07/2005
class tests
(in LR) the tests set out in LR 10 Annex 1 (and for certain specialist companies, those tests as modified by LR 10.7), which are used to determine how a transaction is to be classified for the purposes of the listing rules.
- 01/07/2005
clean-up call option
(for the purposes of BIPRU 9 (Securitisation), in relation to a securitisation (within the meaning of paragraph (2) of the definition of securitisation) and in accordance with Part 1 of Annex IX of the Banking Consolidation Directive (Securitisation definitions)) a contractual option for the originator to repurchase or extinguish the securitisation positions before all of the underlying exposures have been repaid, when the amount of outstanding exposures falls below a specified level.
- 01/01/2007
clearing facilitation service
(in relation to a RIE) any regulated activity carried on by an RIE for the purposes of, or in connection with, the provision by the RIE of services designed to facilitate the provision of clearing services by another person.
- 01/04/2013
clearing firm
- 01/12/2004
clearing house
a clearing house through which transactions may be cleared
and for the purposes of CASS 7 and CASS 7A, includes an authorised central counterparty.
- 01/01/2013
client
(A) in the PRA Handbook:
(1) (except in PROF and except in relation to a
home finance transaction
) has the meaning given in COBS 3.2, that is (in summary and without prejudice to the detailed effect of COBS 3.2) a person to whom a firm provides, intends to provide or has provided a service in the course of carrying on a regulated activity, or in the case of MiFID or equivalent third country business, an ancillary service;
(b) "client" includes:
(i) a potential client;
(ii) a client of an appointed representative of a firm with or for whom the appointed representative acts or intends to act in the course of business for which the firm has accepted responsibility under section 39 of the Act (Exemption of appointed representatives) or, where applicable, a client of a tied agent of a firm;
(iii) a
fund
even if it does not have separate legal personality;
(iiiA) any person to whom collective portfolio management services are provided, irrespective of whether or not it is authorised;
(iv) if a person ("C1"), with or for whom the firm is conducting or intends to conduct designated investment business, is acting as agent for another person ("C2"), either C1 or C2 in accordance with the rule on agent as client COBS 2.4.3 R;
(v) for a firm that is establishing, operating or winding up a personal pension scheme, a member or beneficiary of that scheme;
(c) "client" does not include:
(i) a trust beneficiary not in (b)(v);
(ii) a corporate finance contact;
(iii) a venture capital contact.
(2) [deleted]
(3) (in PROF) (as defined in section 328(8) of the Act (Directions in relation to the general prohibition)) (in relation to members of a profession providing financial services under Part XX of the Act (Provision of Financial Services by Members of the Professions)):
(a) a person who uses, has used or may be contemplating using, any of the services provided by the member of a profession in the course of carrying on exempt regulated activities (including, where the member of the profession is acting in his capacity as a trustee, a person who is, has been or may be a beneficiary of the trust); or
(4) (in relation to a regulated mortgage contract, except in
PROF
) the individual or trustee who is the borrower or potential borrower under that contract.
(5) (in relation to a home purchase plan, except in PROF) the home purchaser or potential home purchaser.
(6) (in relation to a home reversion plan, except in PROF):
(b) an individual who is an unauthorised reversion provider and who is not, or would not, be required to have permission to enter into a home reversion plan.
(7) (in relation to a dormant account transferred to a dormant account fund operator) a person entitled to the balance in the dormant account held with a bank or building society which was transferred to a dormant account fund operator.
(8) (in relation to a regulated sale and rent back agreement, except in PROF):
(b) an individual who is an unauthorised SRB agreement provider or potential unauthorised SRB agreement provider and who does not have, or would not be required to have, permission to enter into a regulated sale and rent back agreement.
(B) in the FCA Handbook:
(1) (except in PROF, in relation to a credit-related regulated activity and in relation to a home finance transaction) has the meaning given in COBS 3.2, that is (in summary and without prejudice to the detailed effect of COBS 3.2) a person to whom a firm provides, intends to provide or has provided a service in the course of carrying on a regulated activity, or in the case of MiFID or equivalent third country business, an ancillary service:
(b) "client" includes:
(i) a potential client;
(ii) a client of an appointed representative of a firm with or for whom the appointed representative acts or intends to act in the course of business for which the firm has accepted responsibility under section 39 of the Act (Exemption of appointed representatives) or, where applicable, a client of a tied agent of a firm;
(iii) a fund even if it does not have separate legal personality;
(iv) any person to whom collective portfolio management services are provided, irrespective of whether or not it is authorised;
(v) if a person ("C1"), with or for whom the firm is conducting or intends to conduct designated investment business, is acting as agent for another person ("C2"), either C1 or C2 in accordance with the rule on agent as client COBS 2.4.3 R;
(vi) for a firm that is establishing, operating or winding up a personal pension scheme, a member or beneficiary of that scheme;
(c) "client" does not include:
(i) a trust beneficiary not in (b)(v);
(ii) a corporate finance contact;
(iii) a venture capital contact.
(2) (in PROF) (as defined in section 328(8) of the Act (Directions in relation to the general prohibition)) (in relation to members of a profession providing financial services under Part XX of the Act (Provision of Financial Services by Members of the Professions)):
(a) a person who uses, has used or may be contemplating using, any of the services provided by the member of a profession in the course of carrying on exempt regulated activities (including, where the members of the profession is acting in his capacity as a trustee, a person who is, has been or may be a beneficiary of the trust); or
(b) a person who has rights or interests which are derived from, or otherwise attributable to, the use of any such services by other persons; or
(c) a person who has rights or interests which may be adversely affected by the use of any such services by persons acting on his behalf or in a fiduciary capacity in relation to him; and
(d) in relation to a person ("A") carrying on a regulated activity of the kind specified by article 39F (Debt-collecting) or 39G (Debt administration) of the Regulated Activities Order, includes:
(iv) any person providing a guarantee or indemnity under the agreement; and
(e) in relation to a person ("A") carrying on a regulated activity of the kind specified by article 60B (regulated credit agreements) or article 60N (regulated consumer hire agreements) of the Regulated Activities Order, includes a person who is treated by A as a person who is or has been:
(i) the borrower under a regulated credit agreement or the hirer under a regulated consumer hire agreement;
(ii) a person providing a guarantee or indemnity under the agreement; or
(f) includes an individual who is, may be, has been or may have been the subject of the information referred to in article 89A (Providing credit information services) of the Regulated Activities Order; and
(g) includes an individual who is, may be, has been or may have been the subject of information furnished in the course of a person carrying on an activity of the kind specified by article 89B (Providing credit references) of the Regulated Activities Order.
(3) in relation to a regulated mortgage contract, except in PROF) the individual or trustee who is the borrower or potential borrower under that contract.
(4) in relation to a home purchase plan, except in PROF) the home purchaser or potential home purchaser.
(5) (in relation to a home reversion plan, except in PROF):
(b) an individual who is an unauthorised reversion provider and who is not, or would not, be required to have permission to enter into a home reversion plan.
(6) (in relation to a dormant account transferred to a dormant account fund operator) a person entitled to the balance in the dormant account held with a bank or building society which was transferred to a dormant account fund operator.
(7) (in relation to a regulated sale and rent back agreement, except in PROF):
(b) an individual who is an unauthorised SRB agreement provider or potential unauthorised SRB agreement provider and who does not have, or would not be required to have, permission to enter into a regulated sale and rent back agreement.
- 01/04/2014
client asset rules
CASS.
- 01/12/2004
client bank account
(A) In the PRA Handbook:
(1) (other than in CASS 7 and CASS 7A and principally in CASS 5):
(B) In the FCA Handbook:
(1) (other than in CASS 7 and CASS 7A and principally in CASS 5):
(2) (in CASS 7 and CASS 7A)
(3) (in CASS 11):
(a) an account at an approved bank which:
(ii) is held in the name of the firm to which CASS 11.9 (segregation and the operation of client money accounts) applies;
(iii) includes in its title the word "client" (or, if the system constraints of the approved bank or the firm that holds the account (or both) make this impracticable, an appropriate abbreviation of "client" that has the same meaning); and
(iv) is a current or a deposit account.
- 01/04/2014
client equity balance
the amount which a firm would be liable (ignoring any non-cash collateral held) to pay to a client (or the client to the firm) in respect of his margined transactions if each of his open positions was liquidated at the closing or settlement prices published by the relevant exchange or other appropriate pricing source and his account closed. This refers to cash values and does not include non-cash collateral or other designated investments held in respect of a margined transaction.
- 01/11/2007
client money
(A) In the PRA Handbook:
(1) [deleted]
(2) (in CASS 5) subject to the client money rules, money of any currency which, in the course of carrying on insurance mediation activity, a firm holds on behalf of a client or which a firm treats as client money in accordance with the client money rules.
(2A) in FEES
CASS 6, CASS 7, CASS 7A and CASS 10 and, in so far as it relates to matters covered by CASS 6, CASS 7, COBS, GENPRU or IPRU (INV) 11) subject to the client money rules, money of any currency:
(a) that a firm receives or holds for, or on behalf of, a client in the course of, or in connection with, its MiFID business; and/or
(b) which, in the course of carrying on designated investment business that is not MiFID business, a firm holds in respect of any investment agreement entered into, or to be entered into, with or for a client, or which a firm treats as client money in accordance with the client money rules.
(3) (in MIPRU):
(a) in relation to an insurance intermediary when acting as such, money which is client money in (2);
(b) in relation to a home finance intermediary when acting as such, money of any currency which in the course of carrying on home finance mediation activity, the firm holds on behalf of a client, either in a bank account or in the form of cash.
(4)
(B) In the FCA Handbook:
(1) [deleted]
(2) (in CASS 5) subject to the client money rules, money of any currency which, in the course of carrying on insurance mediation activity, a firm holds on behalf of a client or which a firm treats as client money in accordance with the client money rules.
(2A) (in
FEES
,
CASS 6,CASS 7, CASS 7A and CASS 10 and, in so far as it relates to matters covered by CASS 6, CASS 7, COBS orGENPRUand IPRU(INV) 11) subject to the client money rules, money of any currency:
(a) that a firm receives or holds for, or on behalf of, a clientin the course of, or in connection with, its MiFID business; and/or
(b) which,in the course of carrying on designated investment business that is not MiFID business, a firm holdsin respect of any investment agreement entered into, or to be entered into, with or for a client, or which a firm treats as client money in accordance with the client money rules.
(2B) (in CASS 11 and CONC 10) money which a CASS debt management firm receives or holds on behalf of a client in the course of or in connection with debt management activity.
(3) (in MIPRU):
(a) in relation to an insurance intermediary when acting as such, money which is client money in (2);
(b) in relation to a home finance intermediary when acting as such, money of any currency which in the course of carrying on home finance mediation activity, the firm holds on behalf of a client, either in a bank account or in the form of cash.
- 01/04/2014
client money (insurance) distribution rules
the rules in CASS 5.6 (Client money distribution).
- 14/01/2005
client money chapter
- 01/01/2009
client money distribution rules
- 01/01/2009
client money rules
(A) In the PRA Handbook:
(1) [deleted]
- 01/04/2014
client money segregation requirements
- 01/01/2009
client transaction account
(in relation to a firm and an exchange, clearing house or intermediate broker) an account maintained by the exchange, clearing house or intermediate broker, as the case may be, in respect of transactions in contingent liability investments undertaken by the firm with or for its clients.
- 01/12/2004
client's best interests rule
- 01/11/2007
close links
(A) In the PRA Handbook:
(1) (in relation to MiFID business or in FUND) a situation in which two or more persons are linked by:
A situation in which two or more persons are permanently linked to one and the same person by a control relationship is also to be regarded as constituting a close link between such persons.[Note: article 4(1)(31) of MIFID and article 4(1)(e) of AIFMD] (a) participation which means the ownership, direct or by way of control, of 20% or more of the voting rights or capital of an undertaking;
(b) control which means the relationship between a parent undertaking and a subsidiary, in all the cases referred to in Article 1(1) and (2) of Directive 83/349/EEC, or a similar relationship between any person and an undertaking, any subsidiary undertaking of a subsidiary undertaking also being considered a subsidiary of the parent undertaking which is at the head of those undertakings.
(2) (except where (1) applies and except in
SUP 4 (Actuaries)) (in accordance with paragraph 3(2) in Schedule 6 to the Act (Close links)) the relationship between a person ("A") and another person ("CL") which exists if:
(a) CL is a parent undertaking of A; or
(b) CL is a subsidiary undertaking of A; or
(e) CL owns or controls 20% or more of the voting rights or capital of A; or
(f) A owns or controls 20% or more of the voting rights or capital of CL.
(3) (in
SUP 4 (Actuaries)) (in accordance with section 343(8) of the Act (Information given by auditor or actuary to a regulator: persons with close links)) the relationship in (2), disregarding (e) and (f).
(B) In the FCA Handbook: (1) (in relation to MiFID business or in FUND) a situation in which two or more persons are linked by:
A situation in which two or more persons are permanently linked to one and the same person by a control relationship is also to be regarded as constituting a close link between such persons.[Note: article 4(1)(31) of MIFID and article 4(1)(e) of AIFMD] (a) participation which means the ownership, direct or by way of control, of 20% or more of the voting rights or capital of an undertaking;
(b) control which means the relationship between a parent undertaking and a subsidiary, in all the cases referred to in Article 1(1) and (2) of Directive 83/349/EEC, or a similar relationship between any person and an undertaking, any subsidiary undertaking of a subsidiary undertaking also being considered a subsidiary of the parent undertaking which is at the head of those undertakings.
(2) (except where (1) applies and except in SUP 3 (Auditors) and SUP 4 (Actuaries)) (in accordance with paragraph 3(2) in Schedule 6 to the Act (Close links)) the relationship between a person ("A") and another person ("CL") which exists if:
(a) CL is a parent undertaking of A; or
(b) CL is a subsidiary undertaking of A; or
(e) CL owns or controls 20% or more of the voting rights or capital of A; or
(f) A owns or controls 20% or more of the voting rights or capital of CL.
- 19/06/2014
close matching rules
for the purposes of permitted links, the rules in INSPRU 1.1.34 R, INSPRU 3.1.57 R, INSPRU 3.1.58 R, and INSPRU 3.1.59 G.
- 06/10/2007
close out
(in COLL) enter into a further transaction under which the obligation to deliver or receive which arises or may, at the option of the other party to the transaction, arise under the original transaction is offset by an equivalent and opposite obligation or right to receive or deliver.
- 01/04/2009
close period
(in LR) as defined in paragraph 1(a) of the Model Code.
- 01/07/2005
close relative
(as defined in article 3(1) of the Regulated Activities Order and article 2(1) of the Financial Promotion Order) (in relation to any person):
(a) his spouse
or civil partner
(b) his children and step-children, his parents and step-parents, his brothers and sisters and his step-brothers and step-sisters; and
(c) the spouse
or civil partner of any person within (b).
- 05/12/2005
closed
(in relation to a syndicate year) closed by reinsurance to close in accordance with byelaws, either into another syndicate year or into an insurer approved by the Council for the purpose.
- 31/12/2006
closed-ended
(in LR) (in relation to investment entities) an investment company which is not an open-ended investment company.
- 01/07/2005
closed-ended investment fund
(in LR) an entity:
(a) which is an undertaking with limited liability, including a company, limited partnership, or limited liability partnership; and
(b) whose primary object is investing and managing its assets (including pooled funds contributed by holders of its listed securities):
(i) in property of any description; and
(ii) with a view to spreading investment risk.
- 28/09/2007
closely related
(in GENPRU and BIPRU) describes a relationship between two or more persons under which one or more of the following applies:
(a) the insolvency or default of one of them is likely to be associated with the insolvency or default of the others;
(b) it would be prudent when assessing the financial condition or creditworthiness of one to consider that of the others; or
(c) there is, or there is likely to be, a close relationship between the financial performance of those persons.
- 01/01/2007
closing date
the date specified in the earliest relevant public announcement of the offer as the last date for acceptance of the offer, or, if no such date is specified, then the date on which the issuer (or seller) of the securities offered receives any of the proceeds of the offer.
- 01/12/2004
CMAR
a Client Money and Asset Return, containing the information specified in SUP 16 Annex 29.
- 01/01/2011
COB
the Conduct of Business sourcebook up to 1 November 2007.
- 01/11/2007
COBS
the Conduct of Business sourcebook from 1 November 2007.
- 01/11/2007
Code of Market Conduct
- 01/04/2013
Code of Practice for Approved Persons
(1) (in the FCA Handbook) the provisions in APER 3 and APER 4 indicated by an "E" in the margin or heading, the purpose of which is to help determine whether or not an approved person's conduct complies with the Statements of Principle and which are issued by the FCA under section 64(2) of the Act (Conduct: statements and codes).(2) (in the PRA Handbook) the provisions in APER 3 and APER 4 indicated by an "E" in the margin or heading, the purpose of which is to help determine whether or not an approved person's conduct complies with the and which are issued by the PRA under section 64(2) of the Act (Conduct: statements and codes).The provisions of APER 1 marked with an "E" in the margin also form part of the Code of Practice for Approved Persons.
- 01/04/2013
cold call
a financial promotion made in the course of a personal visit, telephone conversation or other interactive dialogue:
(a) which:
(i) was not initiated by the recipient of the financial promotion; and
(ii) does not take place in response to an express request from the recipient of the financial promotion; or
(b) in relation to which it was not clear from all the circumstances when the call, visit or dialogue was initiated or requested, that during the course of the call, visit or dialogue, communications would be made concerning the kind of controlled activities and controlled investments to which the communications in fact made relate.
In this definition: (c) a person is not to be treated as expressly requesting a call, visit or dialogue:
(i) because he omits to indicate that he does not wish to receive any or any further visits or calls or to engage in any or any further dialogue; or
(ii) because he agrees to standard terms that state that such visits, calls or dialogue will take place, unless he has signified clearly that, in addition to agreeing to the terms, he is willing for them to take place;
(d) if a call, visit or dialogue is initiated or requested by a recipient (R), it is treated as also having been initiated or requested by any other person to whom it is made at the same time as it is made to R if that other recipient is a close relative of R or expected to engage in any investment activity jointly with R.
[Note: article 8 of the Financial Promotion Order]- 01/11/2007
COLL
the Collective Investment Schemes sourcebook.
- 06/10/2007
collateral
(1) (in COLL and FUND) any form of security, guarantee or indemnity provided by way of security for the discharge of any liability arising from a transaction.
(2) (in
COBS
and CASS) any of the following:
(a) an investment specified in articles 76 to 81 of the Regulated Activities Order; that is:
(i) shares (article 76);
(ii) debentures (article 77);
(iia) an alternative debenture (article 77A);
(iii) government and public securities (article 78);
(iv) warrants (article 79);
(v) certificates representing certain securities (article 80);
(vi) units (article 81); or
(b) money; or
(c) a commodity warrant (however title is recorded or evidenced);
which belongs to a client and which is held or controlled by the firm under the terms of a deposit, pledge, charge or other security arrangement. (3) (in
INSPRU
and SYSC):
(a) (in relation to any transaction) a mortgage, charge, pledge or other security interest or, as the context may require, an asset that is subject to a mortgage, charge, pledge or other security interest; and
(b) (in relation to a stock lending, repo or derivative transaction only):
(i) a transfer of assets (other than by way of sale) subject to a right of the transferor to have transferred back to it the same, or equivalent, assets or, as the context may require, the assets so transferred by the original transferor; or
(ii) a letter of credit;
where the assets are transferred, or the letter of credit is issued, to secure the performance of the obligations of one of the parties to that transaction.- 23/07/2013
collateral rules
- 01/12/2004
collective insurance
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph VIII of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance), of a kind referred to in article 2(2)(e) of the
Consolidated Life Directive
("the operations carried out by insurance companies such as those referred to in Chapter 1, Title 4 of Book IV of the French "Code des assurances"").
- 06/11/2008
collective investment scheme
a collective investment scheme, as defined in section 235 of the Act (Collective Investment Schemes), which is in summary:
(a) any arrangements with respect to property of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income; and
(c) which are not excluded by the Financial Services and Markets Act (Collective Investment Schemes) Order 2001 (SI 2001/1062).
- 01/12/2004
collective investment undertaking other than the closed-end type
(in PR) (as defined in Article 2.1(o) of the prospectus directive) unit trusts and investment companies:
(a) the object of which is the collective investment of capital provided by the public, and which operate on the principle of risk-spreading;
(b) the units of which are, at the holder's request, repurchased or redeemed, directly or indirectly, out of the assets of these undertakings.
- 01/07/2005
collective investment undertaking PRR
the part of the market risk capital requirement calculated in accordance with BIPRU 7.7.5 R (Calculation of the collective investment undertaking PRR).
- 01/01/2007
collective portfolio management
in relation to a management company, the activity of management of UCITS schemes, EEA UCITS schemes or other collective investment undertakings not covered by the UCITS Directive that the firm is permitted to carry on in accordance with article 6(2) of the UCITS Directive. This includes the functions mentioned in Annex II to that directive.
- 01/07/2011
collective portfolio management firm
a firm which:
(a)
(i) is a full-scope UK AIFM; and
(ii) does not have a Part 4A permission to carry on any regulated activities other than those in connection with, or for the purpose of, managing collective investment undertakings; or
- 23/07/2013
collective portfolio management investment firm
a firm which has a Part 4A permission for managing investments and which is:
(a) an AIFM investment firm; or
(b) a UCITS investment firm.
- 23/07/2013
COLLG
the Collective Investment Scheme Information Guide.
- 01/12/2004
Combined Code
- 06/08/2010
combined initial disclosure document
information about the breadth of advice,
scope of advice or scope of basic advice and the nature and costs of the services offered by a firm in relation to either:
(a) two or more of the following:
which contains the keyfacts logo, headings and text in the order shown in, and in accordance with the notes in, COBS 6 Annex 2. (i) packaged products or, for basic advice, stakeholder products that are not a grouppersonal pension scheme or a group stakeholder pension scheme (but only if a consultancy charge will be made);
- 26/04/2014
commencement
the beginning of the commencement day.
- 01/12/2004
commencement day
- 01/04/2005
commission
any form of commission or remuneration, including a benefit of any kind, offered or given in connection with:
(a) designated investment business (other than commission equivalent);
- 14/01/2005
commission equivalent
the cash payments, benefits and services listed in COBS 6 Annex 6 which satisfy the criteria in COBS 6.4.3 R.
- 01/11/2007
commitment
a commitment represented by insurance business of any of the classes (as defined for the purposes of
INSPRU
and SUP) of long-term insurance business.
- 06/10/2007
commodity
(1)(except for (2) and (3)) a physical asset (other than a financial instrument or cash) which is capable of delivery.
(2) (for the purpose of calculating position risk requirements) any of the following (but excluding gold):
(a) a commodity within the meaning of paragraph (1); and
(b) any:
(i) physical or energy product; or
(ii) of the items referred to in paragraph 10 of Section C of Annex I of the MIFID as an underlying with respect to the derivatives mentioned in that paragraph;
which is, or can be, traded on a secondary market. (3) (in relation to the MiFID Regulation, including the definitions of a financial instrument and an ancillary service) any goods of a fungible nature that are capable of being delivered, including metals and their ores and alloys, agricultural products, and energy such as electricity, not including services or other items that are not goods, such as currencies or rights in real estate, or that are entirely intangible.
[Note: article 2(1) of the MiFID Regulation]- 01/11/2007
commodity extended maturity ladder approach
the method of calculating the commodity PRR in BIPRU 7.4.32 R (Extended maturity ladder approach).
- 01/01/2007
commodity maturity ladder approach
the method of calculating the commodity PRR in BIPRU 7.4.25 R (Maturity ladder approach).
- 01/01/2007
commodity PRR
the part of the market risk capital requirement calculated in accordance with BIPRU 7.4 (Commodity PRR) or, in relation to a particular position, the portion of the overall commodity PRR attributable to that position.
- 01/01/2007
commodity simplified approach
the method of calculating the commodity PRR in BIPRU 7.4.24 R (Simplified approach).
- 01/01/2007
common platform firm
(A) In the PRA Handbook:
(a) a BIPRU firm; or
(aa) a bank; or
(ab) a building society; or
(ac) a designated investment firm; or
(ad) an IFPRU investment firm; or
(b) an exempt CAD firm; or
(c) a UK MiFID investment firm which falls within the definition of 'local firm' in Article 3.1P of the Capital Adequacy Directive
(B) In the FCA Handbook:
(a) a BIPRU firm; or
(aa) a bank; or
(ab) a building society; or
(ac) a designated investment firm; or
(ad) an IFPRU investment firm; or
(b) an exempt CAD firm; or
(c) a UK MiFID investment firm which falls within the definition of 'local firm' in Article 3.1P of the Capital Adequacy Directive
- 01/01/2014
common platform outsourcing rules
- 01/11/2007
common platform record-keeping requirements
the record-keeping requirements applicable to common platform firms set out in SYSC 9.
- 01/11/2007
common platform requirements on financial crime
- 01/11/2007
communicate
(in relation to a financial promotion) to communicate in any way, including causing a communication to be made or directed.[Note: section 21(13) of the Act (Restrictions on financial promotion) and article 6(d) of the Financial Promotion Order (Interpretation: communications)]
- 01/11/2007
communicated to a person inside the United Kingdom
- 01/11/2007
communicated to a person outside the United Kingdom
In this definition:
(c) If the conditions set out in (f)(i), (ii), (iii) and (iv) are met, a financial promotion directed from a place inside the United Kingdom will be regarded as directed only atpersons outside the United Kingdom.
(d) If the conditions set out in (f)(iii) and (iv) are met, a financial promotion directed from a place outside the United Kingdom will be regarded as directed only atpersons outside the United Kingdom.
(e) In any other case in which one or more of the conditions in (f)(i) to (v) is met, that fact will be taken into account in determining whether a financial promotion is directed only atpersons outside the United Kingdom (but a financial promotion may still be regarded as directed only atpersons outside the United Kingdom even if none of these conditions is met).
(f) The conditions are that:
(i) the financial promotion is accompanied by an indication that it is directed only atpersons outside the United Kingdom;
(ii) the financial promotion is accompanied by an indication that it must not be acted upon by persons in the United Kingdom;
(iii) the financial promotion is not referred to in, or directly accessible from, any other financial promotion which is made to a person or directed atpersons in the United Kingdom by the same communicator;
(iv) there are in place proper systems and procedures to prevent recipients in the United Kingdom (other than those to whom the financial promotion might otherwise lawfully have been made) engaging in the investment activity to which the financial promotion relates with the person directing the financial promotion, a close relative of his or a member of the same group;
(v) the financial promotion is included in:
(A) a website, newspaper, journal, magazine or periodical publication which is principally accessed in or intended for a market outside the United Kingdom;
(B) a radio or television broadcast or teletext service transmitted principally for reception outside the United Kingdom.
- 01/11/2007
Community Co-Insurance Directive
the Council Directive of 30 May 1978 on the coordination of laws, regulations and administrative provisions relating to Community co-insurance (No 78/473/EEC).
- 01/12/2004
community co-insurance operation
an operation to which the Community Co-Insurance Directive applies, as modified by article 26 of the Second Non-Life Directive.
- 01/12/2004
community finance organisation
a community benefit society, a registered charity or a community interest company limited by guarantee (within the meaning of Part 2 of the Companies (Audit, Investigations and Community Enterprise) Act 2004).
- 01/04/2014
COMP
the Compensation sourcebook.
- 01/12/2004
company
any body corporate.
- 01/12/2004
Company Announcements Office
the Company Announcements Office of the London Stock Exchange, the information dissemination provider approved by the UKLA.
- 01/12/2004
compensation costs
the costs incurred:
(a) in paying compensation; or
(b) as a result of making the arrangements contemplated in COMP 3.3.1 R or taking the measures contemplated in COMP 3.3.3 R; or
(c) in making payments or giving indemnities under COMP 11.2.3 R; or
(d) under section 214B or section 214D of the Act; or
(e) by virtue of section 61 (Sources of compensation) of the Banking Act 2009;
(including the costs of paying interest, principal and other costs of borrowing to pay such costs).- 01/04/2013
compensation costs levy
a levy imposed by the FSCS on participant firms to meet compensation costs, each participant firm's share being calculated in accordance with
FEES 6.5
- 01/01/2006
compensation fund
any policyholder compensation scheme in any EEA State.
- 31/12/2004
compensation scheme
the Financial Services Compensation Scheme established under section 213 of the Act (The compensation scheme) for compensating persons in cases where authorised persons and appointed representatives, or, where applicable, a tied agent of a firm, are unable, or are likely to be unable, to satisfy claims against them.
- 01/11/2007
compensation transitionals order
the Financial Services and Markets Act 2000 (Transitional Provisions, Repeals and Savings) (Financial Services Compensation Scheme) Order 2001 (SI 2001/2967).
- 01/12/2004
competent authority
(A) In the PRA Handbook:
(1) (in relation to the functions referred to in Part VI of the Act)
(a) the FCA, or the functions referred to in Part VI of the Act under the laws of
(b) an authority exercising functions corresponding to the functions referred to in Part VI of the Act under the laws of another EEA State.
(2) (in relation to the exercise of an EEA right and the exercise of the overseas financial stability information power) a competent authority for the purposes of the relevant Single Market Directive or the auction regulation.
(3) (in relation to a group, and for the purposes of SYSC 12 (Group risk systems and controls requirement), GENPRU, BIPRU and INSPRU, any national authority of an EEA State which is empowered by law or regulation to supervise regulated entities, whether on an individual or group-wide basis.
(4) the authority, designated by each EEA State in accordance with Article 48 of MiFID, unless otherwise specified in MiFID.[Note: article 4(1)(22) of MiFID]
(5) (in REC) in relation to an investment firm or credit institution, means the competent authority in relation to that firm or institution for the purposes of MiFID.
(6) (in COBS 13.4) the authority designated by each EEA State in accordance with Article 11 of the Market Abuse Directive.[Note: article 1(7) of the Market Abuse Directive]
(7) the authority designated by each EEA State in accordance with article 32 of the short selling regulation.
(8) (for an AIF) the national authorities of an EEA State which are empowered by law or regulation to supervise AIFs.
(9) (for an AIFM) a national authority in an EEA State which is empowered by law or regulation to supervise AIFMs. [Note: This definition is based on the definition contained in the CRD (Consequential Amendments) Instrument 2006 which was consulted on in the consultation paper Strengthening Capital Standards 2 (CP 06/3)]
(B) In the FCA Handbook:
(1) (in relation to the functions referred to in Part VI of the Act)
(a) the FCA, or the functions referred to in Part VI of the Act under the laws of
(b) an authority exercising functions corresponding to the functions referred to in Part VI of the Act under the laws of another EEA State.
(2) (in relation to the exercise of an EEA right and the exercise of the overseas financial stability information power) a competent authority for the purposes of the relevant Single Market Directive or the auction regulation.
(3) (in relation to a group, and for the purposes of SYSC 12 (Group risk systems and controls requirement), GENPRU,
BIPRU
and INSPRU, any national authority of an EEA State which is empowered by law or regulation to supervise regulated entities, whether on an individual or group-wide basis.
(4) the authority, designated by each EEA State in accordance with Article 48 of MiFID, unless otherwise specified in MiFID.[Note: article 4(1)(22) of MiFID]
(5) (in REC) in relation to an investment firm or credit institution, means the competent authority in relation to that firm or institution for the purposes of MiFID.
(6) (in COBS 13.4) the authority designated by each EEA State in accordance with Article 11 of the Market Abuse Directive.[Note: article 1(7) of the Market Abuse Directive]
(7) the authority designated by each EEA State in accordance with article 32 of the short selling regulation.
(8) (for an AIF) the national authorities of an EEA State which are empowered by law or regulation to supervise AIFs.
[Note: This definition is based on the definition contained in the CRD (Consequential Amendments) Instrument 2006 which was consulted on in the consultation paper Strengthening Capital Standards 2 (CP 06/3)]- 01/01/2014
competent employees rule
- 01/11/2007
complaint
(A) In the PRA Handbook:
(1) [deleted]
(2) (in SUP 10 and DISP, except DISP 1.1 and the complaints handling rules and the complaints record rule in relation to MiFID business, and in CREDS 9) any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service or a redress determination, which:
(a) alleges that the complainant has suffered (or may suffer) financial loss, material distress or material inconvenience; and
(b) relates to an activity of that respondent, or of any other respondent with whom that respondent has some connection in marketing or providing financial services or products, which comes under the jurisdiction of the Financial Ombudsman Service.
(3) (in DISP 1.1, the complaints awareness rules only in relation to collective portfolio management and the complaints handling rules and the complaints record rule only in relation to MiFID business and collective portfolio management) any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service or a redress determination, which alleges that the complainant has suffered (or may suffer) financial loss, material distress or material inconvenience.
(B) In the FCA Handbook:
(1) [deleted]
(2) (in SUP 10 and DISP, except DISP 1.1 and the complaints handling rules and the complaints record rule in relation to MiFID business, and in CREDS 9) any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service or a redress determination, which:
(a) alleges that the complainant has suffered (or may suffer) financial loss, material distress or material inconvenience; and
(b) relates to an activity of that respondent, or of any other respondent with whom that respondent has some connection in marketing or providing financial services or products, which comes under the jurisdiction of the Financial Ombudsman Service.
(3) (in DISP 1.1, the complaints awareness rules only in relation to collective portfolio management and the complaints handling rules and the complaints record rule only in relation to MiFID business and collective portfolio management) any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service or a redress determination, which alleges that the complainant has suffered (or may suffer) financial loss, material distress or material inconvenience.
(4) (in DISP) reference to a complaint includes:
(a) under all jurisdictions, part of a complaint; and
(b) under the Compulsory Jurisdiction, all or part of a relevant complaint or a relevant credit-related complaint.
- 01/04/2014
complaints data publication rules
- 06/04/2010
complaints handling rules
- 01/11/2007
complaints investigator
(1) (in relation to a UK RIE) the independent person appointed under arrangements referred to in paragraph 9(3) of the Schedule to the Recognition Requirements Regulations to investigate a complaint and to report on the result of his investigation to that RIE and to the complainant.
(2) (in relation to a UK RCH) the independent person appointed under arrangements referred to in paragraph 23(3) of the Schedule to the Recognition Requirements Regulations to investigate a complaint and to report on the result of his investigation to that RCH and to the complainant.
(3) (in relation to an RAP) the independent person appointed under arrangements referred to in regulations 22 and 23 of the RAP regulations to investigate a complaint and to report on the result of his investigation to that RAP and to the complainant.
- 22/12/2011
complaints record rule
- 06/05/2008
complaints reporting rules
- 06/02/2008
complaints resolution rules
- 01/11/2007
complaints time barring rule
- 06/01/2010
complaints time limits rules
- 01/11/2007
compliance oversight function
(in the FCA Handbook) FCA controlled function CF10 in Parts 1 and 2 of the table of FCA controlled functions, described more fully in SUP 10A.7.8 R.
- 01/04/2013
composite firm
- 31/12/2004
composite insurer
(in relation to firm type in SUP 16.10 (Confirmation of standing data)) an insurer with permission to effect or carry out both long-term insurance contracts and general insurance.
- 01/04/2005
Compulsory Jurisdiction
the jurisdiction of the Financial Ombudsman Service to which firms,
payment service providers
and electronic money issuers (and certain other persons as a result of the Ombudsman Transitional Order or section 226(2)(b) and (c) of the Act) are compulsorily subject.
- 30/04/2011
COND
the part of the Handbook in High Level Standards which has the title Threshold Conditions.
- 01/12/2004
conflicts of interest policy
(1) the policy established and maintained in accordance with SYSC 10.1.10 R; and(2) (in MAR 8) the policy established and maintained in accordance with MAR 8.2.8 G which identifies circumstances that constitute, or may give rise to, a conflict of interest arising from benchmark submissions and the process of gathering information in order to make benchmark submissions, and sets out the process to manage such conflicts.
- 02/04/2013
conglomerate capital resources
(in relation to a financial conglomerate with respect to which
GENPRU 3.1.29 R
(Application of method 1 or 2 from Annex I of the Financial Groups Directive) applies) capital resources as defined in whichever of paragraphs 1.1 or 2.1 of
GENPRU 3 Annex 1
(Capital adequacy calculations for financial conglomerates) applies with respect to that financial conglomerate.
- 10/06/2013
conglomerate capital resources requirement
(in relation to a financial conglomerate with respect to which
GENPRU 3.1.29 R
R
(Application of method 1 or 2 from Annex I of the Financial Groups Directive) applies) the capital resources requirement defined in whichever of paragraphs 1.3 or 2.4 of
GENPRU 3 Annex 1
(Capital adequacy calculations for financial conglomerates) applies with respect to that financial conglomerate.
- 10/06/2013
connected client
(in LR) in relation to a sponsor or securities house, any client of the sponsor or securities house who is:
(a) a partner, director, employee or controller (as defined in section 422 of the
Act
) of the sponsor or securities house or of an undertaking described in paragraph (d); or
(b) the spouse,
civil partner or child of any individual described in paragraph (a); or
(c) a person in his capacity as a trustee of a private trust (other than a pension scheme or an employees' share scheme) the beneficiaries of which include any person described in paragraph (a) or (b); or
(d) an undertaking which in relation to the sponsor or securities house is a group undertaking.
- 28/06/2013
connected contract
(A) In the PRA Handbook:a non-investment insurance contract which:
(a) is not a contract of long-term insurance (as defined by article 3 of the Regulated Activities Order);
(b) has a total duration (including renewals) of five years or less;
(d) covers the risk of:
(i) breakdown, loss of, or damage to, non-motor goods supplied by the provider; or
(ii) damage to, or loss of, baggage and other risks linked to the travel booked with the provider ("travel risks") in circumstances where:
(A) the travel booked with the provider relates to attendance at an event organised or managed by that provider and the party seeking insurance is not an individual (acting in his private capacity) or a small business; or
(B) the travel booked with the provider is only the hire of an aircraft, vehicle or vessel which does not provide sleeping accommodation;
(e) does not cover any liability risks (except, in the case of a contract which covers travel risks, where the cover is ancillary to the main cover provided by the contract);
(f) is complementary to the non-motor goods being supplied or service being provided by the provider; and
(g) is of such a nature that the only information that a person requires in order to carry on one of the insurance mediation activities is the cover provided by the contract.
In this definition: (h) the transfer of possession of an aircraft, vehicle or vessel under an agreement for hire which is not:
(i) a hire-purchase agreement within the meaning of section 189(1) of the Consumer Credit Act 1974; or
(ii) any other agreement which contemplates that the property in those goods will also pass at some time in the future;
is the provision of a service related to travel, not a supply of goods; (i) "small business" means a sole trader, body corporate, partnership or an unincorporated association which had a turnover in the last financial year of less than £1,000,000 (but where the small business is a member of a group within the meaning of section 262(1) of the Companies Act 1985 (and after the repeal of that section, within the meaning of section 474(1) of the Companies Act 2006), reference to its turnover means the combined turnover of the group);
(j) "turnover" means the amounts derived from the provision of goods and services falling within the business's ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived.
(B) In the FCA Handbook:a non-investment insurance contract which:
(a) is not a contract of long-term insurance (as defined by article 3 of the Regulated Activities Order);
(b) has a total duration (including renewals) of five years or less;
(d) covers the risk of:
(i) breakdown, loss of, or damage to, non-motor goods supplied by the provider; or
(ii) damage to, or loss of, baggage and other risks linked to the travel booked with the provider ("travel risks") in circumstances where:
(A) the travel booked with the provider relates to attendance at an event organised or managed by that provider and the party seeking insurance is not an individual (acting in his private capacity) or a small business; or
(B) the travel booked with the provider is only the hire of an aircraft, vehicle or vessel which does not provide sleeping accommodation;
(e) does not cover any liability risks (except, in the case of a contract which covers travel risks, where the cover is ancillary to the main cover provided by the contract);
(f) is complementary to the non-motor goods being supplied or service being provided by the provider; and
(g) is of such a nature that the only information that a person requires in order to carry on one of the insurance mediation activities is the cover provided by the contract.
(h) the transfer of possession of an aircraft, vehicle or vessel under an agreement for hire which is not:
(i) a hire-purchase agreement; or
(ii) any other agreement which contemplates that the property in those goods will also pass at some time in the future;
is the provision of a service related to travel, not a supply of goods; (i) "small business" means a sole trader, body corporate, partnership or an unincorporated association which had a turnover in the last financial year of less than £1,000,000 (but where the small business is a member of a group within the meaning of section 262(1) of the Companies Act 1985 (and after the repeal of that section, within the meaning of section 474(1) of the Companies Act 2006), reference to its turnover means the combined turnover of the group);
(j) "turnover" means the amounts derived from the provision of goods and services falling within the business's ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived.
- 01/04/2014
connected person
(1) (in relation to the
FCA or PRA's consideration of an application for, or of whether to vary or cancel, a
Part 4A permission
) (in accordance with section 55Rof the Act (Persons connected with an applicant)) any person appearing to the regulator concerned to be, or likely to be, in a relationship with the applicant or person given permission, which is relevant.
(2) (in relation to the
FCA or PRA's power to gather information under section 165 of the Act (Regulators' power to require information)) (in accordance with section 165(11) of the Act) a person who has, or has at any relevant time had, the following relationship with another person ("A"):
(a) he is a member of A's group;
(b) he is a controller of A;
(c) he is a member of a partnership of which A is a member;
(d) he is or has been an employee of A;
(e) if A is a body corporate, he is or has been an officer, or manager or agent of A or of a parent undertaking of A;
(g) if A is an unincorporated association of persons which is neither a partnership nor an unincorporated friendly society, he is or has been an officer, manager, or agent of A;
(h) if A is a friendly society, he is or has been an officer or manager of A ("officer" and "manager" having the same meaning as in section 119(1) of the Friendly Societies Act 1992);
(i) if A is a building society, he is or has been an officer of A ("officer" having the same meaning as in section 119(1) of the Building Societies Act 1986);
(j) if A is an individual, he is or has been an agent of A.
(3) (in relation to the
FCA or PRA's powers of investigation under sections 171 and 172 of the Act (Powers of persons appointed under section 167; Additional power of persons appointed as a result of section 168(1) or (4))) (in accordance with section 171(4) of the Act) a person who has, or has at any relevant time had, the following relationship with a person under investigation ("P"):
(a) he has the relationship specified in any of paragraphs (2) (a), (b) or (d) to (j) to P (where references in those paragraphs to A are taken to be references to P);
(b) it is a partnership of which P is a member;
(c) he is the partner, manager, employee, agent, appointed representative, or, where applicable, tied agent, banker, auditor, actuary or solicitor of:
(i) P; or
(ii) a parent undertaking of P; or
(iii) a subsidiary undertaking of P; or
(4) to follow
(5) (in DTR and
LR
in relation to a person discharging managerial responsibilities within an issuer) has the same meaning as in section 96B(2) of the Act.
(a) [deleted]
(b) [deleted]
(c) [deleted]
- 01/04/2013
connected travel insurance contract
a non-investment insurance contract which covers the risk of damage to, or loss of, baggage and other risks linked to the travel booked with the provider but does not otherwise meet the conditions in paragraph (d)(ii) of the definition of connected contract.
- 01/01/2009
connected travel insurance intermediary
an insurance intermediary whose permission includes a requirement that it must not conduct any regulated activity other than insurance mediation activity in relation to a connected travel insurance contract.
- 01/01/2009
consent notice
a notice given by the
FCA or PRA as the case may be to a Host State regulator under:(a) paragraph 19(4) (Establishment) of Part III of Schedule 3 to the Act (Exercise of Passport Rights by UK firms); or(b) paragraph 20(3A) (Services) of Part III of Schedule 3 to the Act (Exercise of Passport Rights by UK firms).
- 01/04/2013
Consolidated Admissions and Reporting Directive
Directive of the European Parliament and of the Council on the admission of securities to official stock exchange listing and on information to be published on those securities (No 2001/34/EC).
- 01/07/2005
consolidated capital resources
(in relation to a UK consolidation group or a non-EEA sub-group and in GENPRU and BIPRU) that group's capital resources calculated in accordance with BIPRU 8.6 (Consolidated capital resources).
- 01/01/2007
consolidated capital resources requirement
(in relation to a UK consolidation group or a non-EEA sub-group and in GENPRU and BIPRU) an amount of consolidated capital resources that that group must hold in accordance with BIPRU 8.7 (Consolidated capital resources requirement).
- 01/01/2007
consolidated credit risk requirement
(in relation to a UK consolidation group or a non-EEA sub-group and in GENPRU and BIPRU) has the meaning in BIPRU 8.7 (Consolidated capital resources requirements) which is in summary the part of that group's consolidated capital resources requirement relating to credit risk calculated in accordance with BIPRU 8.7.11 R (Calculation of the consolidated requirement components) and as adjusted under BIPRU 8.7.
- 01/01/2007
consolidated fixed overheads requirement
(in relation to a UK consolidation group or a non-EEA sub-group and in GENPRU and BIPRU) has the meaning in BIPRU 8.7 (Consolidated capital resources requirements) which is in summary the part of that group's consolidated capital resources requirement relating to the fixed overheads requirement (as referred to Article 21 of the Capital Adequacy Directive and the definition of fixed overheads requirement) calculated in accordance with BIPRU 8.7.11 R (Calculation of the consolidated requirement components) and as adjusted under BIPRU 8.7.
- 01/01/2007
consolidated indirectly issued capital
has the meaning in BIPRU 8.6.12 R (Indirectly issued capital and group capital resources), which is in summary any capital instrument issued by a member of a UK consolidation group or non-EEA sub-group where the conditions in BIPRU 8.6.12 R are met.
- 01/01/2007
Consolidated Life Directive
the Council Directive of 5 November 2002 on the taking-up and pursuit of the business of life assurance (No 2002/83/EC), which consolidates the provisions of the First, Second and Third Life Directives.
- 01/12/2004
Consolidated Life Directive
means the Council Directive of 5 November 2002 on the taking-up and pursuit of the business of life assurance (No 2002/83/EC), which consolidates the provisions of the First Life Directive, the Second Life Directive and the Third Life Directive.
- 19/06/2014
Consolidated Life Directive information
(in COBS) the Consolidated Life Directive information (COBS 13 Annex 1).
- 01/11/2007
consolidated market risk requirement
(in relation to a UK consolidation group or a non-EEA sub-group and in GENPRU and BIPRU) has the meaning in BIPRU 8.7 (Consolidated capital resources requirement) which is in summary the part of that group's consolidated capital resources requirement relating to market risk calculated in accordance with BIPRU 8.7.11 R (Calculation of the consolidated requirement components) and as adjusted under BIPRU 8.7.
- 01/01/2007
Consolidated Motor Insurance Directive
the European Parliament and Council Directive of 16 September 2009 relating to insurance against civil liability in respect of the use of motor vehicles, and the enforcement of the obligation to insure against such liability (No 2009/103/EC). This Directive codifies Council Directives 72/166/EEC, 84/5/EEC, 90/232/EEC, 2000/26/EC and 2005/14/EC.
- 01/01/2011
consolidated situation
(A) (in the PRA Handbook)the situation that results from applying the requirements of the EU CRR in accordance with Part One, Title II, Chapter 2 of the EU CRR to an institution as if that institution formed, together with one or more other institutions, a single institution. (B) (in the FCA Handbook)has the meaning in article 4(1)(47) of the EU CRR.
- 01/01/2014
consolidation Article 12(1) relationship
a relationship between one undertaking (the first undertaking) and one or more other undertakings satisfying the conditions set out in Article 12(1) of the Seventh Company Law Directive, which in summary are as follows:
(a) those undertakings are not connected, as described in article 1(1) or (2) of that Directive; and
(b) one of the following conditions is satisfied:
(i) they are managed on a unified basis pursuant to a contract concluded with the first undertaking or provisions in the memorandum or articles of association of those undertakings; or
(ii) the administrative, management or supervisory bodies of those undertakings consist, for the major part, of the same persons in office during the financial year in respect of which it is being decided whether such a relationship exists.
- 01/12/2004
consolidation group
(A) In the PRA Handbook:
(1) the following:
(a) a conventional group; or
(b) undertakings linked by a consolidation Article 12(1) relationship or (for the purposes of BIPRU) an Article 134 relationship.
If a parent undertaking or subsidiary undertaking in a conventional group (the first person) has a consolidation Article 12(1) relationship or (for the purposes of BIPRU) an Article 134 relationship with another person (the second person), the second person (and any subsidiary undertaking of the second person) is also a member of the same consolidation group. (2) (in SYSC) the undertakings included in the scope of prudential consolidation to the extent and in the manner prescribed in Part One, Title II, Chapter 2, Sections 2 and 3 of the EU CRR and IFPRU 8.1.3 R to IFPRU 8.1.4 R (Prudential consolidation) for which the FCA is the consolidating supervisor under [article 111 of the CRD].
(3) For the purposes of SUP 16, the group of undertakings which are included in the consolidated situation of a parent institution in a Member State, an EEA parent institution, an EEA parent financial holding company or an EEA parent mixed financial holding company (including any undertaking which is included in that consolidation because of an Article 12(1) relationship, Article 18(5) relationship or Article 18 relationship).
(B) In the FCA Handbook:
(1) the following:
(a) a conventional group; or
(b) undertakings linked by a consolidation Article 12(1) relationship or (for the purposes of BIPRU) an Article 134 relationship.
If a parent undertaking or subsidiary undertaking in a conventional group (the first person) has a consolidation Article 12(1) relationship or (for the purposes of BIPRU) an Article 134 relationship with another person (the second person), the second person (and any subsidiary undertaking of the second person) is also a member of the same consolidation group. (2) (for the purposes of SUP 16) the undertakings included in the scope of prudential consolidation to the extent and in the manner prescribed in Part One, Title II, Chapter 2, Sections 2 and 3 of the EU CRR and IFPRU 8.1.3 R to IFPRU 8.1.4 R (Prudential consolidation) for which the FCA is the consolidating supervisor under article 111 of the CRD.
- 01/01/2014
constable
a police officer in the United Kingdom or a person commissioned by the Commissioners for HM Revenue and Customs.
- 21/04/2005
constitution
(in LR) memorandum and articles of association or equivalent constitutional document.
- 01/07/2005
consultancy charge
any charge payable by or on behalf of an employee to a firm or other intermediary (whether or not that intermediary is an employee benefit consultant) in respect of advice given, or services provided, by the firm or intermediary to the employer or employee in connection with a group personal pension scheme or group stakeholder pension scheme, where those charges have been agreed between the firm or intermediary and the employer in accordance with the rules on consultancy charging and remuneration (COBS 6.1C).
- 31/12/2012
consumer
(A) In the PRA Handbook:
(1) (except as specified in this definition) any natural person acting for purposes outside his trade, business or profession. [Note: article 2 of the Distance Marketing Directive, article 2 of the Unfair Terms in Consumer Contracts Directive (93/13/EEC), article 2 of the E-Commerce Directive, and article 4(11) of the Payment Services Directive].
(2) (as further defined in section 1G of the Act) (in relation to the discharge of the FCA's general functions (sections 1B to 1E of the Act), the application of the regulatory principles by the regulators in section 3B of the Act and references by scheme operators or regulated persons (section 234D of the Act)) a person:
(a) who uses, has used, or may use:
(i) regulated financial services; or
(ii) services that are provided by other than authorised persons but are provided in carrying on regulated activities; or
(b) who has relevant rights or interests in relation to any of those services; or
(c) who has invested, or may invest, in financial instruments; or
(ca) who has relevant rights or interests in relation to financial instruments; or
(d) (in relation to the FCA's power to make general rules (section 137A of the Act (The FCA's general rules)) a person within the extended definition of consumer in article 7 of the Financial Services Act 2012 (Transitional Provisions) (Miscellaneous Provisions) Order 2013 (SI 442/2013 Definition of "consumer");
(e) [deleted]
(2A) (as further defined in section 425A of the Act) (in relation to the issue of statements or codes under section 64 of the Act), general exemptions to consultation by the FCA (section 138L of the Act) in the publication of notices (section 391 of the Act) and the exercise of Treaty rights (Schedule 4 to the Act) a person who uses, has used, may have used, or has relevant rights or interests in relation to any services provided by:
for the purposes of this definition: (a) authorised persons in carrying on regulated activities;
(b) authorised persons who are investment firms, or credit institutions, in providing relevant ancillary services; or
(c) persons acting as appointed representatives.
(A) if a person is providing a service within (2)(a) or (2A) as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or may use the service;
(AA) a person has a "relevant right or interest" in relation to any services within (2)(a) or (2A) if that person has a right or interest:
(i) which is derived from, or is otherwise attributable to, the use of the services by others; or
(B) a person who deals with another person ("A") in the course of A providing a service within (2)(a) or (2A) is to be treated as using the service;
(C) a person has a "relevant right or interest" in relation to any financial instrument within (2)(ca) if that person has a right or interest:
(i) which is derived from, or is otherwise attributable to, investment in the instrument by others; or
(D) (for the purposes of (2A)(b)):
(a) "credit institution" means:
(i) a credit institution authorised under the CRD ; or
(ii) an institution which would satisfy the requirements for authorisation as a credit institution under that directive if it had its registered office (or if it does not have one, its head office) in an EEA State;
(b) "relevant ancillary service" means any service of a kind mentioned in Section B of Annex I to MiFID the provision of which does not involve the carrying on of a regulated activity.
(3) [deleted]
(4) (as further defined in section 425A and 425B of the Act) (in relation to the establishment and maintenance of the Consumer Panel (section 1Q of the Act (The Consumer Panel))) (as defined in section 1Q of the Act), complaints by consumer bodies (section 234C of the Act):
(b) (in relation to regulated activities carried on otherwise than by authorised persons) a person, other than an authorised person, who would have been a "consumer" within (2A) if the activities were carried on by an authorised person.
(5) [deleted]
(5A) (as further defined in sections 425A and 425B of the Act) until 31 March 2014, with respect to the publication of information in relation to activities carried on by Northern Ireland credit unions (section 391 of the Act and article 5 of the Financial Services and Markets Act 2000 (Permissions, Transitional Provisions and Consequential Amendments) (Northern Ireland Credit Unions) Order 2011 (SI 2832/2011) a person within (4)(b).
(6) [deleted]
(B) In the FCA Handbook:
(1) (except as specified in this definition) any natural person acting for purposes outside his trade, business or profession. [Note: article 2 of the Distance Marketing Directive, article 2 of the Unfair Terms in Consumer Contracts Directive (93/13/EEC), article 2 of the E-Commerce Directive, article 4(11) of the Payment Services Directive andarticle 3 of the Consumer Credit Directive.
]
(2) (as further defined in section 1G of the Act) (in relation to the discharge of the FCA's general functions (sections 1B to 1E of the Act), the application of the regulatory principles by the regulators in section 3B of the Act and references by scheme operators or regulated persons (section 234D of the Act)) a person:
(a) who uses, has used, or may use:
(i) regulated financial services; or
(ii) services that are provided by other than authorised persons but are provided in carrying on regulated activities; or
(b) who has relevant rights or interests in relation to any of those services; or
(c) who has invested, or may invest, in financial instruments; or
(ca) who has relevant rights or interests in relation to financial instruments; or
(d) (in relation to the FCA's power to make general rules (section 137A of the Act (The FCA's general rules)) a person within the extended definition of consumer in article 7 of the Financial Services Act 2012 (Transitional Provisions) (Miscellaneous Provisions) Order 2013 (SI 442/2013 Definition of "consumer");
(e) [deleted]
(2A) (as further defined in section 425A of the Act) (in relation to the issue of statements or codes under section 64 of the Act), general exemptions to consultation by the FCA (section 138L of the Act) in the publication of notices (section 391 of the Act) and the exercise of Treaty rights (Schedule 4 to the Act) a person who uses, has used, may have used, or has relevant rights or interests in relation to any services provided by:
for the purposes of this definition: (a) authorised persons in carrying on regulated activities;
(b) authorised persons who are investment firms, or credit institutions, in providing relevant ancillary services; or
(c) persons acting as appointed representatives.
(A) if a person is providing a service within (2)(a) or (2A) as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or may use the service;
(AA) a person has a "relevant right or interest" in relation to any services within (2)(a) or (2A) if that person has a right or interest:
(i) which is derived from, or is otherwise attributable to, the use of the services by others; or
(B) a person who deals with another person ("A") in the course of A providing a service within (2)(a) or (2A) is to be treated as using the service;
(C) a person has a "relevant right or interest" in relation to any financial instrument within (2)(ca) if that person has a right or interest:
(i) which is derived from, or is otherwise attributable to, investment in the instrument by others; or
(D) (for the purposes of (2A)(b)):
(a) "credit institution" means:
(i) a credit institution authorised under the CRD; or
(ii) an institution which would satisfy the requirements for authorisation as a credit institution under that directive if it had its registered office (or if it does not have one, its head office) in an EEA State;
(b) "relevant ancillary service" means any service of a kind mentioned in Section B of Annex I to MiFID the provision of which does not involve the carrying on of a regulated activity.
(3) [deleted]
(4) (as further defined in section 425A and 425B of the Act) (in relation to the establishment and maintenance of the Consumer Panel (section 1Q of the Act (The Consumer Panel))) (as defined in section 1Q of the Act), complaints by consumer bodies (section 234C of the Act):
(b) (in relation to regulated activities carried on otherwise than by authorised persons) a person, other than an authorised person, who would have been a "consumer" within (2A) if the activities were carried on by an authorised person.
(5) [deleted]
(5A) (as further defined in sections 425A and 425B of the Act) until 31 March 2014, with respect to the publication of information in relation to activities carried on by Northern Ireland credit unions (section 391 of the Act and article 5 of the Financial Services and Markets Act 2000 (Permissions, Transitional Provisions and Consequential Amendments) (Northern Ireland Credit Unions) Order 2011 (SI 2832/2011) a person within (4)(b).
(6) [deleted]
- 01/04/2014
consumer awareness rules
- 01/11/2007
Consumer Panel
- 01/04/2013
consumer redress scheme
a scheme imposed:
(a) by rules on authorised persons, payment service providers or electronic money issuers under section 404 (Consumer redress schemes) of the Act; or
(b) on a particular firm by a requirement imposed on its permission, or on a particular payment service provider or electronic money issuer by a requirement imposed on its authorisation, as envisaged by section 404F(7) of the Act but only to the extent that section 404B of the Act is engaged by the scheme.
- 01/08/2011
contingency funding plan
(1) (in SYSC 11) a plan for taking action to ensure that a firm has adequately liquid financial resources to meet its liabilities as they fall due, prepared under SYSC 11.1.24 E.
(2) (in BIPRU 12 and BSOCS) a plan for dealing with liquidity crises as required by BIPRU 12.4.10 R.
- 01/04/2010
contingent liability investment
a derivative under the terms of which the client will or may be liable to make further payments (other than charges, and whether or not secured by margin) when the transaction falls to be completed or upon the earlier closing out of his position.
- 01/12/2004
contract for differences
the investment, specified in article 85 of the Regulated Activities Order (Contracts for differences etc), which is in summary rights under:
(a) a contract for differences; or
(b) any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in:
(i) the value or price of property of any description; or
(ii) an index or other factor designated for that purpose in the contract; or
(c) a derivative instrument for the transfer of credit risk to which article 85(3) of the Regulated Activities Order applies.[Note: paragraph 8 of Section C of Annex 1 to MiFID]
- 31/12/2007
contract of insurance
(1) (in relation to a specified investment) the investment, specified in article 75 of the Regulated Activities Order (Contracts of insurance), which is rights under a contract of insurance in (2).
(2) (in relation to a contract) (in accordance with article 3(1) of the Regulated Activities Order (Interpretation)) any contract of insurance which is a long-term insurance contract or a general insurance contract, including:
but not including a funeral plan contract (or a contract which would be a funeral plan contract but for the exclusion in article 60 of the Regulated Activities Order (Plans covered by insurance or trust arrangements)); in this definition, "annuities on human life" does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged, or who have been engaged, in any particular profession, trade or employment, or of the dependants of such persons. (a) fidelity bonds, performance bonds, administration bonds, bail bonds, customs bonds or similar contracts of guarantee, where these are:
(i) effected or carried out by a person not carrying on a banking business;
(ii) not effected merely incidentally to some other business carried on by the person effecting them; and
(iii) effected in return for the payment of one or more premiums;
(b) tontines;
(c) capital redemption contracts or pension fund management contracts, where these are effected or carried out by a person who:
(i) does not carry on a banking business; and
(ii) otherwise carries on the regulated activity of effecting or carrying out contracts of insurance;
(d) contracts to pay annuities on human life;
(e) contracts of a kind referred to in article 2(2)(e) of the Consolidated Life Directive (Collective insurance etc); and
(f) contracts of a kind referred to in article 2(3) of the Consolidated Life Directive (Social insurance);
- 14/01/2005
contract of significance
(in LR) a contract which represents in amount or value (or annual amount or value) a sum equal to 1% or more, calculated on a group basis where relevant, of:
(a) in the case of a capital transaction or a transaction of which the principal purpose or effect is the granting of credit, the aggregate of the group's share capital and reserves; or
(b) in other cases, the total annual purchases, sales, payments or receipts, as the case may be, of the group.
- 01/07/2005
contracts of general insurance
has the meaning given in article 3(1) of the Regulated Activities Order.
- 19/06/2014
contracts of large risks
(in ICOB) contracts of insurance covering risks within the following categories, in accordance with article 5(d) of the First Non-Life Directive:
(a) railway rolling stock, aircraft, ships (sea, lake, river and canal vessels), goods in transit, aircraft liability and liability of ships (sea, lake, river and canal vessels);
(b) credit and suretyship, where the policyholder is engaged professionally in an industrial or commercial activity or in one of the liberal professions, and the risks relate to such activity;
(c) land vehicles (other than railway rolling stock), fire and natural forces, other damage to property, motor vehicle liability, general liability, and miscellaneous financial loss, in so far as the policyholder exceeds the limits of at least two of the following three criteria:
(i) balance sheet total: €6.2 million;
(ii) net turnover: €12.8 million;
(iii) average number of employees during the financial year: 250.
- 01/12/2004
contracts of long-term insurance
has the meaning given in article 3(1) of the Regulated Activities Order.
- 19/06/2014
contractual cross product netting agreement
(for the purpose of BIPRU 13.7 (Contractual netting)) has the meaning set out in BIPRU 13.7.2 R, which is in summary a written bilateral agreement between a firm and a counterparty which creates a single legal obligation covering all included bilateral master agreements and transactions belonging to different product categories.
- 01/01/2007
contractually based investment
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation)):
(a) a life policy (except a long-term care insurance contract which is not a qualifying contract of insurance);
(c) rights to or interests in an investment falling within (a) or (b).
- 01/12/2004
control
(1) (except in (2) and (2A)) (in relation to the acquisition, increase or reduction of control of a firm) the relationship between a person and the firm or other undertaking of which the person is a controller.
(2) (in SYSC 8 and SYSC 10) control as defined in Article 1 of the Seventh Council Directive 83/349/EEC (The Seventh Company Law Directive).
[Note: article 4 (1)(30) of MiFID] (2A) (in relation to a management company carrying on collective portfolio management or an AIFM) control as defined in articles 1 and 2 of the Seventh Council Directive 83/349/EEC (The Seventh Company Law Directive).
(3) (except in (2) and (2A)) (in accordance with section 182 of the Act) a controller ("A") (whether acting alone or in concert) increases control over a firm ("B") when:
(a) the percentage of shares A holds in B or a parent undertaking ("P") of B increases by any of the following steps:
(i) from less than 20% to 20% or more;
(ii) from less than 30% to 30% or more;
(iii) from less than 50% to 50% or more;
(b) the percentage of voting power A holds in B or P increases by any of the steps mentioned above; or
(c) A becomes a parent undertaking of B.
(4) (except in (2) and (2A)) (in accordance with section 183 of the Act) a controller ("A") (whether alone or acting in concert) reduces control over a firm ("B") whenever:
(a) the percentage of shares which A holds in B or a parent undertaking ("P") of B decreases by any of the following steps:
(i) from 50% or more to less than 50%;
(ii) from 30% or more to less than 30%;
(iii) from 20% or more to less than 20%;
(b) the percentage of voting power which A holds in B or P decreases by any of the steps mentioned above; or
(c) A ceases to be a parent undertaking of B.
(5) (except in (2) and (2A)) (in accordance with section 183 of the Act) a controller ("A") (whether acting alone or in concert) ceases to have control over a firm ("B") if A ceases to hold any of the following:
(b) 10% or more of the voting power in B or P;
(c) shares or voting power in B or in P as a result of which A is able to exercise significant influence over the management of B.
(6) (for the purposes of the calculations in (3) to (5)) the holding of shares or voting power by a person ("A1") includes any shares or voting power held by another ("A2") if A1 and A2 are acting in concert.
- 23/07/2013
controlled agreement
(as defined in section 30 of the Act (Enforceability of agreements resulting from unlawful communications)) an agreement the making or performance of which by either party constitutes a controlled activity.
- 01/12/2004
controlled function
means a function, relating to the carrying on of a regulated activity by a firm, which is specified by either the FCA or the PRA, under section 59 of FSMA (Approval for particular arrangements).
- 19/06/2014
controlled function
a function, relating to the carrying on of a regulated activity by a firm, which is specified by either the FCA (in the table of FCA controlled functions) or the PRA (in the table of PRA controlled functions), under section 59 of the Act (Approval for particular arrangements).
- 01/04/2013
controlled investment
(A) In the PRA Handbook:(in accordance with section 21(10) of the Act (Restrictions on financial promotion) and article 4 of the Financial Promotion Order (Definitions of controlled activities and controlled investments)) an investment specified in Part II of Schedule 1 to the Financial Promotion Order (Controlled investments).
(B) In the FCA Handbook:(in accordance with section 21(10) of the Act (Restrictions on financial promotion) and article 4 of the Financial Promotion Order (Definitions of controlled activities and controlled investments)) an investment specified in Part II of Schedule 1 to the Financial Promotion Order (Controlled investments) (having regard to the effect of paragraph 4C (10) of that Schedule).
- 01/04/2014
controlled undertaking
- 06/06/2008
controller
(A) In the PRA Handbook
(1) (in relation to a firm or other undertaking ("B"), other than a non-directive firm) a person ("A") who (whether acting alone or in concert):
(b) holds 10% or more of the voting power in B or in P; or
(c) holds shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B.
(2) (in relation to a non-directive firm ("B")) a person ("A") who (whether acting alone or in concert):
(b) holds 20% or more of the voting power in B or in P; or
(c) holds shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B.
(3) for the purposes of calculations relating to (1) and (2), the holding of shares or voting power by a person ("A1") includes any shares or voting power held by another ("A2") if A1 and A2 are acting in concert.
(4) shares and voting power that a person holds in a firm ("B") or in a parent undertaking of B ("P") are disregarded for the purposes of determining control in the following circumstances:
(a) shares held for the sole purposes of clearing and settling within a short settlement cycle;
(b) shares held by a custodian or its nominee in its custodian capacity are disregarded, provided that the custodian or nominee is only able to exercise voting power attached to the shares in accordance with instructions given in writing;
(c) shares representing no more than 5% of the total voting power in B or P held by an investment firm, provided that:
(ii) it is authorised by its Home State regulator under MIFID; and
(iii) it does not intervene in the management of B or P nor exerts any influence on B or P to buy the shares or back the share price;
(d) shares held by a credit institution or investment firm in its trading book are disregarded, provided that:
(ii) the credit institution or investment firm ensures that the voting power is not used to intervene in the management of B or P;
(e) shares held by a credit institution or an investment firm are disregarded, provided that:
(A) underwriting share issues; or
(B) placing shares on a firm commitment basis in accordance with Annex I, section A.6 of MIFID; and
(A) does not exercise voting power represented by the shares or otherwise intervene in the management of the issuer; and
(B) retains the holding for a period of less than one year;
(f) where a management company and its parent undertaking both hold shares or voting power, each may disregard holdings of the other, provided that each exercises its voting power independently of the other;
(g) but (f) does not apply if the management company:
(i) manages holdings for its parent undertaking or an undertaking in respect of which the parent undertaking is a controller;
(ii) has no discretion to exercise the voting power attached to such holdings; and
(iii) may only exercise the voting power in relation to such holdings under direct or indirect instruction from:
(A) its parent undertaking; or
(h) where an investment firm and its parent undertaking both hold shares or voting power, the parent undertaking may disregard holdings managed by the investment firm on a client by client basis and the investment firm may disregard holdings of the parent undertaking, provided that the investment firm:
(i) has permission to provide portfolio management;
(iii) may only exercise the voting power under instructions given in writing, or has appropriate mechanisms in place for ensuring that individual portfolio management services are conducted independently of any other services.
(B) In the FCA Handbook
(1) (in relation to a firm or other undertaking ("B"), other than a non-directive firm or a firm within (2A)) a person ("A") who (whether acting alone or in concert):
(b) holds 10% or more of the voting power in B or in P; or
(c) holds shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B.
(2) (in relation to a non-directive firm ("B"), other than a firm within (2A)), a person ("A") who (whether acting alone or in concert):
(b) holds 20% or more of the voting power in B or in P; or
(c) holds shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B.
(2A) (in relation to a firm ("B") with limited permission where the only regulated activities (other than ones in relation to which sections 20(1) and (1A) and 23(1A) of the Act do not apply under section 39(1D) of the Act) that B carries on, or seeks to carry on, are relevant credit activities within article 6A of the Financial Services and Markets Act 2000 (Controllers) (Exemption) Order 2009) a person ("A") who (whether acting alone or in concert):
(b) holds 33% or more of the voting power in B or P; or
(c) holds shares or voting power in B or P as a result of which A is able to exercise significant influence over the management of B.
(3) for the purposes of calculations relating to (1), (2) and (2A), the holding of shares or voting power by a person ("A1") includes any shares or voting power held by another ("A2") if A1 and A2 are acting in concert.
(4) shares and voting power that a person holds in a firm ("B") or in a parent undertaking of B ("P") are disregarded for the purposes of determining control in the following circumstances:
(a) shares held for the sole purposes of clearing and settling within a short settlement cycle;
(b) shares held by a custodian or its nominee in its custodian capacity are disregarded, provided that the custodian or nominee is only able to exercise voting power attached to the shares in accordance with instructions given in writing;
(c) shares representing no more than 5% of the total voting power in B or P held by an investment firm, provided that:
(ii) it is authorised by its Home State regulator under MIFID; and
(iii) it does not intervene in the management of B or P nor exerts any influence on B or P to buy the shares or back the share price;
(d) shares held by a credit institution or investment firm in its trading book are disregarded, provided that:
(ii) the credit institution or investment firm ensures that the voting power is not used to intervene in the management of B or P;
(e) shares held by a credit institution or an investment firm are disregarded, provided that:
(A) underwriting share issues; or
(B) placing shares on a firm commitment basis in accordance with Annex I, section A.6 of MIFID; and
(A) does not exercise voting power represented by the shares or otherwise intervene in the management of the issuer; and
(B) retains the holding for a period of less than one year;
(f) where a management company and its parent undertaking both hold shares or voting power, each may disregard holdings of the other, provided that each exercises its voting power independently of the other;
(g) but (f) does not apply if the management company:
(i) manages holdings for its parent undertaking or an undertaking in respect of which the parent undertaking is a controller;
(ii) has no discretion to exercise the voting power attached to such holdings; and
(iii) may only exercise the voting power in relation to such holdings under direct or indirect instruction from:
(A) its parent undertaking; or
(h) where an investment firm and its parent undertaking both hold shares or voting power, the parent undertaking may disregard holdings managed by the investment firm on a client by client basis and the investment firm may disregard holdings of the parent undertaking, provided that the investment firm:
(i) has permission to provide portfolio management;
(iii) may only exercise the voting power under instructions given in writing, or has appropriate mechanisms in place for ensuring that individual portfolio management services are conducted independently of any other services.
- 01/04/2014
conventional group
- 01/01/2007
convertible
- 01/01/2014
convertible securities
(in LR and FEES) a security which is:
(a) convertible into, or exchangeable for, other securities; or
- 01/04/2013
coordinator
means, in relation to a financial conglomerate, the competent authority appointed as coordinator in accordance with Article 10(1) of the Financial Groups Directive.
- 19/06/2014
coordinator
(in relation to a financial conglomerate) the competent authority which has been appointed, in accordance with Article 10 of the Financial Groups Directive (Competent authority responsible for exercising supplementary supervision (the coordinator)), as the competent authority which is responsible for the co-ordination and exercise of supplementary supervision of that financial conglomerate.
- 01/12/2004
co-ownership scheme
(as defined in section 235A(2) of the Act (Contractual schemes)) a collective investment scheme which satisfies the conditions in section 235A(3) and which is authorised for the purposes of the Act by an authorisation order.
- 23/07/2013
core market participant
an entity of a type listed in BIPRU 5.4.64 R (The financial collateral comprehensive method: Conditions for applying a 0% volatility adjustment).
- 01/01/2007
core provision
(as defined in section 316(3) of the Act (Direction by a regulator)) a provision of the Act mentioned in section 317 of the Act (The core provisions) which applies to the carrying on of an insurance market activity by a member, or the members of the Society taken together, if the
appropriate regulator
so directs.
- 01/04/2013
core tier one capital
an item of capital that is stated in stage A of the
capital resources table (Core tier one capital) to be core tier one capital.
- 01/01/2007
core UK group
(A) In the PRA Handbook: has the meaning given in the PRA Rulebook: Large Exposures rules.
(B) In the FCA Handbook:
(1) (in relation to a BIPRU firm) all undertakings which, in relation to the firm, satisfy the conditions set out in BIPRU 3.2.25 R (Zero risk-weighting for intra-group exposures: core UK group).
(2) (in relation to an IFPRU investment firm) all counterparties which:
(a) are listed in the firm's core UK group permission;
(b) satisfy the conditions in article 113(6) of the EU CRR (Calculation of risk-weighted exposure amounts: intragroup); and
(c) (unless it is an IFPRU limited-activity firm or IFPRU limited-licence firm, or an exempt IFPRU commodities firm to which article 493(1) of the EU CRR (Transitional provision for large exposures) apply) for which exposures are exempted, under article 400(1)(f) of the EU CRR (Large exposures: exemptions), from the application of article 395(1) of the EU CRR (Limits to large exposures).
- 01/02/2014
core UK group eligible capital
(A) In the PRA Handbookhas the meaning given in the PRA Rulebook: Large Exposure rules.
(B) In the FCA Handbook
means the eligible capital in the core UK group calculated in line with IFPRU 8.2.7 R.
- 01/01/2014
core UK group permission
- 01/01/2014
core UK group waiver
(A) In the PRA Handbook:a waiver that has the result of requiring a firm to apply:
(a) (in relation to the credit risk capital requirement) BIPRU 3.2.25 R (Zero risk-weighting for intra-group exposures: core UK group), which in summary allows a firm to assign a risk weight of 0% to exposures to members of its core UK group instead of complying with BIPRU 3.2.20 R (Calculation of risk-weighted exposure amounts under the standardised approach); or
(b) (in relation to large exposures) BIPRU 10.8A (Intra-group exposures: core UK group), which in summary exempts all exposures between members of a core UK group from the limits described in BIPRU 10.5 (Limits on exposures).
(B) In the FCA Handbook:(in BIPRU) a waiver that has the result of requiring a firm to apply:
(a) (in relation to the credit risk capital requirement) BIPRU 3.2.25 R (Zero risk-weighting for intra-group exposures: core UK group), which in summary allows a firm to assign a risk weight of 0% to exposures to members of its core UK group instead of complying with BIPRU 3.2.20 R (Calculation of risk-weighted exposure amounts under the standardised approach); or
(b) [deleted]
- 01/01/2014
corporate
(in relation to the IRB approach or the standardised approach to credit risk) a person an exposure to whom is a corporate exposure.
- 01/01/2007
corporate exposure
(1) (in relation to the IRB approach) an exposure falling into BIPRU 4.3.2 R (3) (IRB exposure classes).
(2) (in relation to the standardised approach to credit risk) an exposure falling into BIPRU 3.2.9 R (7) (Standardised approach to credit risk exposure classes).
- 01/01/2007
corporate finance advisory firm
a firm whose permission includes a requirement that the firm must not conduct designated investment business other than corporate finance business.
- 01/12/2004
corporate finance business
(a) designated investment business carried on by a firm with or for:
(i) any issuer, holder or owner of designated investments, if that business relates to the offer, issue, underwriting, repurchase, exchange or redemption of, or the variation of the terms of, those investments, or any related matter;
(ii) any
eligible counterparty
or
professional client
, or other body corporate, partnership or supranational organisation, if that business relates to the manner in which, or the terms on which, or the persons by whom, any business, activities or undertakings relating to it, or any associate, are to be financed, structured, managed, controlled, regulated or reported upon;
(iii) any person in connection with:
(A) a proposed or actual takeover or related operation by or on behalf of that person, or involving investments issued by that person (being a body corporate), its holding company, subsidiary or associate; or
(B) a merger, de-merger, reorganisation or reconstruction involving any investments issued by that person (being a body corporate), its holding company, subsidiary or associate;
(iv) any shareholder or prospective shareholder of a body corporate established or to be established for the purpose of effecting a takeover or related operation, where that business is in connection with that takeover or related operation;
(v) any person who, acting as a principal for his own account:
(A) is involved in negotiations or decisions relating to the commercial, financial or strategic intentions or requirements of a business or prospective business; or
(B) (provided he is acting otherwise than solely in his capacity as an investor) assists the interests of another person with or for whom the firm, or another authorised person or overseas person, is undertaking business as specified in (a)(i), (ii), (iii) or (iv), by himself undertaking all or part of any transactions involved in such business;
(b) designated investment business carried on by a firm as a principal for its own account where such business:
(i) is in the course of, or arises out of, activities undertaken in accordance with (a); and
(ii) does not involve transactions with or for, or advice on investments to, any other person who is a
retail client
in respect of such business;
(c) designated investment business carried on by a firm as principal for its own account if such business:
in this definition, "share warrants" and "debenture warrants" mean any warrants which relate to shares in the firm concerned or, as the case may be, debentures issued by the firm. (i) is in the course of, or arises out of:
(A) the offer, issue, underwriting, repurchase, exchange or redemption of, or the variation of the terms of, shares, share warrants, debentures or debenture warrants issued by the firm, or any related matter; or
(B) a proposed or actual takeover or related operation by or on behalf of the firm, or involving shares, share warrants, debentures or debenture warrants issued by the firm; or
(C) a merger, de-merger, reorganisation or reconstruction involving any shares, share warrants, debentures or debenture warrants issued by the firm; and
- 01/11/2007
corporate finance contact
(when a firm carries on
regulated activities
with or for a person in the course of or as a result of either carrying on corporate finance business with or for a client, or carrying on corporate finance business for the firm's own account) that person in connection with that
regulated activity
if:
- 01/11/2007
corporate governance rules
(in accordance with sections 73A(1) and 89O(1) of the Act) rules for the purpose of implementing, enabling the implementation of or dealing with matters arising out of or related to, any
EU law obligation relating to the corporate governance of issuers who have requested or approved admission to trading of their securities and about corporate governance in relation to such issuers for the purpose of implementing, or dealing with matters arising out of or related to, any
EU lawobligation. The corporate governance rules are located in chapters 1B, 4 and 7 of DTR.
- 06/04/2010
corporate member
a member that is a body corporate or a Scottish Limited partnership.
- 01/01/2005
correlation trading portfolio
(in BIPRU 7) a portfolio consisting of securitisation positions and nth-to-default credit derivatives that meet the criteria set out at BIPRU 7.2.42A R, or other positions which may be included in accordance with BIPRU 7.2.42B R.
- 31/12/2011
Council
means the governing body of the Society constituted by section 3 of the Lloyd’s Act 1982.
- 19/06/2014
Council
the governing body of the Society constituted by section 3 of Lloyd's Act 1982.
- 01/01/2005
counterparty
(A) In the PRA Handbook:
(1) (in UPRU) any person with or for whom a firm carries on designated investment business or an ancillary activity.
(2) (for the purposes of the rules relating to insurers in GENPRU and INSPRU) (in relation to an insurer, the Society, a syndicate or member ('A')):
(a) any one individual; or
(b) any one unincorporated body of persons; or
(d) any group of companies excluding:
(i) (for the purposes of INSPRU 2.1) any companies within the group which are subsidiary undertakings of A and which fall within GENPRU 1.3.43 R; and
(ii) (for all other purposes) any companies within the group which are subsidiary undertakings of A; or
(e) any government of a State together with all the public bodies, local authorities or nationalised industries of that State,in which A, or any of its subsidiary undertakings, has made investments or against whom, or in respect of whom, it, or any of its subsidiary undertakings, has rights or obligations under a contract entered into by A or any of its subsidiary undertakings.
(3) (for the purposes of the rules relating to BIPRU firms in GENPRU and BIPRU and in relation to an exposure of a person ('A')) the counterparty with respect to thatexposure or, if the context requires, another person in respect of whom, under that exposure, A is exposed to credit risk or the risk of loss if that person fails to meet its obligations, such as the issuer of the underlying security in relation to a derivative held by A.
(B) In the FCA Handbook:
(1) [deleted]
(2) (for the purposes of the rules relating to insurers in GENPRU and INSPRU) (in relation to an insurer, the Society, a syndicate or member ('A')):
(a) any one individual; or
(b) any one unincorporated body of persons; or
(d) any group of companies excluding:
(i) (for the purposes of INSPRU 2.1) any companies within the group which are subsidiary undertakings of A and which fall within GENPRU 1.3.43 R; and
(ii) (for all other purposes) any companies within the group which are subsidiary undertakings of A; or
(e) any government of a State together with all the public bodies, local authorities or nationalised industries of that State,in which A, or any of its subsidiary undertakings, has made investments or against whom, or in respect of whom, it, or any of its subsidiary undertakings, has rights or obligations under a contract entered into by A or any of its subsidiary undertakings.
(3) (for the purposes of the rules relating to BIPRU firms in GENPRU and BIPRU and in relation to an exposure of a person ('A')) the counterparty with respect to thatexposure or, if the context requires, another person in respect of whom, under that exposure, A is exposed to credit risk or the risk of loss if that person fails to meet its obligations, such as the issuer of the underlying security in relation to a derivative held by A.
- 28/02/2014
counterparty credit risk
(A) In the PRA Handbook:
(in accordance with Part 1 of Annex III of the Banking Consolidation Directive (Definitions) and for the purposes of BIPRU) the risk that the counterparty to a transaction could default before the final settlement of the transaction's cash flows.
(2) (other than in (1)) has the meaning as used in the EU CRR.
(B) In the FCA Handbook:
(1) (in accordance with Part 1 of Annex III of the Banking Consolidation Directive (Definitions) and for the purposes of BIPRU) the risk that the counterparty to a transaction could default before the final settlement of the transaction's cash flows.
(2) (other than in (1)) has the meaning as used in the EU CRR.
- 01/01/2014
counterparty risk capital component
the part of the credit risk capital requirement calculated in accordance with BIPRU 14.2.1 R (Calculation of the counterparty risk capital component).
- 01/01/2007
country of origin
in relation to an electronic commerce activity, the EEA State in which the establishment from which the service in question is provided is situated.
- 01/12/2004
coupon
a dividend, interest payment or any similar payment.
- 31/12/2004
covered bond
(A) In the PRA Handbook:
(1) (in accordance with Article 52(4) of the UCITS Directive and except for the purposes of the IRB approach or the standardised approach to credit risk) a bond that is issued by a credit institution which has its registered office in an EEA State and is subject by law to special public supervision designed to protect bondholders and in particular protection under which sums deriving from the issue of the bond must be invested in conformity with the law in assets which, during the whole period of validity of the bond, are capable of covering claims attaching to the bond and which, in the event of failure of the issuer, would be used on a priority basis for the reimbursement of the principal and payment of the accrued interest.
(2) (in accordance with point 68 of Part 1 of Annex VI of the Banking Consolidation Directive (Exposures in the form of covered bonds) and for the purposes of the IRB approach or the standardised approach to credit risk in BIPRU) a covered bond as defined in (1) collateralised in accordance with BIPRU 3.4.107 R (Exposures in the form of covered bonds).
(3) (in RCB) (as defined in Regulation 1(2) of the RCB Regulations) a bond in relation to which the claims attaching to that bond are guaranteed to be paid by an owner from an asset pool it owns.
(4) (in accordance with Article 22(4) of the Third Non-Life Directive and Article 24(4) of the Consolidated Life Directive and for the purposes of INSPRU 2.1) a debenture that is issued by a credit institution which:
(a) has its head office in an EEA State; and
(b) is subject by law to special official supervision designed to protect the holders of the debenture; in particular, sums deriving from the issue of the debenture must be invested in accordance with the law in assets which, during the whole period of validity of the debenture, are capable of covering claims attaching to the debenture and which, in the event of failure of the issuer, would be used on a priority basis for the reimbursement of the principal and payment of the accrued interest.
(B) In the FCA Handbook:
(1) (in accordance with Article 52(4) of the UCITS Directive and except for the purposes of the IRB approach or the standardised approach to credit risk) a bond that is issued by a credit institution which has its registered office in an EEA State and is subject by law to special public supervision designed to protect bondholders and in particular protection under which sums deriving from the issue of the bond must be invested in conformity with the law in assets which, during the whole period of validity of the bond, are capable of covering claims attaching to the bond and which, in the event of failure of the issuer, would be used on a priority basis for the reimbursement of the principal and payment of the accrued interest.
(2) (in accordance with point 68 of Part 1 of Annex VI of the Banking Consolidation Directive (Exposures in the form of covered bonds) and for the purposes of the IRB approach or the standardised approach to credit risk in BIPRU) a covered bond as defined in (1) collateralised in accordance with BIPRU 3.4.107 R (Exposures in the form of covered bonds).
(3) (in RCB) (as defined in Regulation 1(2) of the RCB Regulations) a bond in relation to which the claims attaching to that bond are guaranteed to be paid by an owner from an asset pool it owns.
(4) (in accordance with Article 22(4) of the Third Non-Life Directive and Article 24(4) of the Consolidated Life Directive andfor the purposes of INSPRU 2.1) a debenture that is issued by a credit institution which:
(a) has its head office in an EEA State; and
(b) is subject by law to special official supervision designed to protect the holders of the debenture; in particular, sums deriving from the issue of the debenture must be invested in accordance with the law in assets which, during the whole period of validity of the debenture, are capable of covering claims attaching to the debenture and which, in the event of failure of the issuer, would be used on a priority basis for the reimbursement of the principal and payment of the accrued interest.
- 01/01/2014
CRD
means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
- 01/01/2014
CRD
(A) In the PRA Handbook:the Capital Adequacy Directive and the Banking Consolidation Directive.
(B) In the FCA Handbook:
(1) (in GENPRU (except GENPRU 3) and BIPRU (except BIPRU 12)) the Capital Adequacy Directive and the Banking Consolidation Directive.
(2) (except in (1)) the Directive of the European Parliament and the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (No 2013/36/EU) and amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
- 01/01/2014
CRD bank
- 01/01/2014
CRD credit institution
(A) In the PRA Handbook:
a credit institution that has its registered office (or, if it has no registered office, its head office) in an EEA State, excluding an institution to which the CRD does not apply under article 2 of the CRD (see also full CRD credit institution).
(B) In the FCA Handbook:
a credit institution that has its registered office (or, if it has no registered office, its head office) in an EEA State, excluding an institution to which the CRD does not apply under article 2 of the CRD (see also full CRD credit institution).
- 01/01/2014
CRD credit institution
means a credit institution that has its registered office (or, if it has no registered office, its head office) in an EEA State, excluding an institution to which the CRD does not apply under Article 2 of the CRD.
- 19/06/2014
CRD financial instrument
has the meaning set out in BIPRU 1.2.7 R to BIPRU 1.2.8 R (CRD financial instruments), which is in summary any contract that gives rise to both a financial asset of one party and a financial liability or equity instrument of another party.
- 01/01/2007
CRD implementation measure
(A) In the PRA Handbook:
(in relation to an person and for the purposes of GENPRU and BIPRU (except in GENPRU 3)), a provision of the Banking Consolidation Directive or the Capital Adequacy Directive and an EEA State other than the United Kingdom) a measure implementing that provision of that Directive for that type of person in that EEA State.
(B) In the FCA Handbook:
(in relation to an person and for the purposes of GENPRU and BIPRU (except in GENPRU 3 and BIPRU 12), a provision of the Banking Consolidation Directive or the Capital Adequacy Directive and an EEA State other than the United Kingdom) a measure implementing that provision of that Directive for that type of person in that EEA State.
- 01/01/2014
CRED
the Credit Unions sourcebook.
- 01/12/2004
credit
(A) In the PRA Handbook:
(1) (except in relation to a class of contract of insurance) any kind of loan, deferment of repayment of any loan or of interest on any loan, guarantee or indemnity, and any other kind of accommodation or facility in the nature of credit.
(2) (in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 14 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against risks of loss to the persons insured arising from the insolvency of debtors of theirs or from the failure (otherwise than through insolvency) of debtors of theirs to pay their debts when due.
(B) In the FCA Handbook:
(1) (except in relation to a class of contract of insurance and a credit-related regulated activity) any kind of loan, deferment of repayment of any loan or of interest on any loan, guarantee or indemnity, and any other kind of accommodation or facility in the nature of credit.
(2) (in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 14 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against risks of loss to the persons insured arising from the insolvency of debtors of theirs or from the failure (otherwise than through insolvency) of debtors of theirs to pay their debts when due.
(3) (in relation to a credit-related regulated activity) includes a cash loan and any other form of financial accommodation, but an item entering into the total charge for credit is not treated as credit even though time is allowed for its payment.
- 01/04/2014
credit equalisation provision
the provision required to be established by INSPRU 1.4.43R.
- 31/12/2006
credit institution
(A) In the PRA Handbook:
(1) (except in REC)
(a) has the meaning in article 4(1)(1) of the EU CRR; or
(b) [deleted]
(c) [deleted]
(d) [deleted]
(2) (in
REC and in
SUP 11 (Controllers and close links) and SUP 16 (Reporting requirements)):
(a) a credit institution authorised under the CRD; or
(3) (in relation to the definition of electronic money issuer) a credit institution as defined by (1)(a) and includes a branch of the credit institution within the meaning of article 4(1)(17) of the EU CRR which is situated within the EEA and which has its head office in a territory outside the EEA in accordance with article 47 of the CRD.