Term

Definition

Letter: A

ABCP internal assessment approachHandbook

ABCP programmeHandbook

(for the purposes of BIPRU 9 (Securitisation)) an asset backed commercial paper programme.

accepted channel for dissemination of informationHandbook

(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.

accepted market practiceHandbook

(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.

accepting depositsHandbook

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
(b) any other activity of the person accepting the deposit is financed, wholly or to a material extent, out of the capital of or interest on money received by way of deposit.

accepting deposits

means the regulated activity specified in article 5 of the Regulated Activities Order (Accepting deposits).

accidentHandbook

(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).

accountHandbook

(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
(b) in relation to a building society, it includes an account representing shares in the society, other than:
(i) preferential shares; or
(ii) deferred shares within the meaning given in section 119(1) of the Building Societies Act 1986.

accountable functionsHandbook

(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:
(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:in relation to the PRA-authorised persons in relation to which that person is an approved person.

accountable significant-influence functionHandbook

accounting reference dateHandbook

(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.

accounting reference date

(1) in relation to a company incorporated in the UK under the Companies Acts, means the accounting reference date of that company determined in accordance with section 391 of the Companies Act 2006; and
(2) in relation to any other body, means the last day of its financial year.

accredited bodyHandbook

(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.

accumulating with-profits policyHandbook

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.

accumulation unitHandbook

a unit in respect of which income is credited periodically to capital property under COLL 6.8.3 R (Income allocation and distribution).

acting as the depositary or sole director of an open-ended investment companyHandbook

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.

acting as trustee of an authorised unit trust schemeHandbook

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.

acting as trustee or depositary of a UCITSHandbook

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.

acting as trustee or depositary of an AIFHandbook

the regulated activity, specified in article 51ZD of the Regulated Activities Order, which is, in summary, acting as:
(a) a depositary of an AIF falling within article 51ZD(2) of the Regulated Activities Order;
(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.

actuarial bodyHandbook

the Institute andFaculty of Actuaries.

actuarial body

means the Institute and Faculty of Actuaries.

actuarial functionHandbook

actuarial health insuranceHandbook

(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 .

actuarial investigationHandbook

an investigation to which IPRU-INS rule 9.4 applies.

actuarial valuation dateHandbook

the date as at which the mathematical reserves are calculated.

actuaryHandbook

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.

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.

actuating purposeHandbook

a purpose which motivates or incites a person to act.

adequate public disclosureHandbook

(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.

administering a home purchase planHandbook

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.

administering a home reversion planHandbook

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.

administering a regulated lifetime mortgage contractHandbook

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.

administering a regulated mortgage contractHandbook

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.

administering a regulated sale and rent back agreementHandbook

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.

administrative expensesHandbook

has the meaning set out in the insurance accounts rules.

administrative functionsHandbook

(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; (iv) ISA or CTF administration; (v) investment trust savings scheme administration; (b) (in relation to effecting or carrying out life policies): (i) new business administration; (ii) policy alterations including surrenders and policy loans; (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.

admissible assetHandbook

(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.

admission or admission to listingHandbook

admission to tradingHandbook

(1) (in LR) admission of securities to trading on an RIE's market for listed securities.
(2) (in PR and DTR ) admission to trading on a regulated market.
(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.

advanced IRB approachHandbook

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.

advanced measurement approachHandbook

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.

advanced prudential calculation approachHandbook

one of the following:
(a) the IRB approach; or
(c) the VaR model approach; or
including, in each case, whatever corresponds to that approach under the rules of or administered by a regulatory body other than the appropriate regulator .

advertisementHandbook

(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.

adviserHandbook

(1) (except in IPRU(INV) 13) an individual who is: a representative, an appointed representative or a tied agent

adviser chargeHandbook

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.

advising on a home purchase planHandbook

the regulated activity, specified in article 53C of the Regulated Activities Order, which is in summary: advising a person if the advice:
(a) is given to him in his capacity as a home purchaser or potential home purchaser; and
(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.

advising on a home reversion planHandbook

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.

advising on a regulated sale and rent back agreementHandbook

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.

advising on investmentsHandbook

(A) In the PRA Handbook:
(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.
(B) In the FCA Handbook:
(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 (other than a P2P agreement), 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.

advising on investments

means the regulated activity, specified in article 53 of the Regulated Activities Order (Advising on investments).

advising on investments (except pension transfers and pension opt-outs)Handbook

advising on pension transfers and pension opt-outsHandbook

advising on investments in respect of pension transfers and pension opt-outs.

advising on pension transfers and pension opt-outs

means advising on investments in respect of pension transfers and pension opt-outs.

advising on regulated mortgage contractsHandbook

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.

advising on syndicate participation at Lloyd'sHandbook

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.

affiliated companyHandbook

(in relation to a person) an undertaking in the same group as that person.

affiliated company

means (in relation to a person) an undertaking in the same group as that person.

agentHandbook

(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]

agreeing to carry on a regulated activityHandbook

(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:
(e)[deleted]
(f)[deleted]
(ff)[deleted]

agreeing to carry on a regulated activity

means the regulated activity, specified in article 64 of the Regulated Activities Order (Agreeing to carry on specified kinds of activity).

AIFM investment firmHandbook

a firm which:
(a) is:
(b) has a Part 4A permission (or an equivalent permission from its Home State regulator) for managing investments where:
(i) the investments managed include one or more financial instruments; and
(ii) the permission is limited to the activities permitted by article 6(4) of AIFMD.

AIFM investment management functions

means investment management functions of an AIFM as set out in 1(a) (portfolio management) or (b) (risk management) of Annex I to AIFMD.

AIFM management functionsHandbook

the management functions of an AIFM listed in Annex I to AIFMD.

AIFM qualifierHandbook

an EEA AIFM which is marketing, or has marketed, an AIF in the UK by:
(a) exercising its EEA right to market under Schedule 3 of the Act (EEA Passport Rights); and
(b) is not exercising a right to manage a UK AIF under Schedule 3 of the Act.

AIFMDHandbook

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) .

AIFMD

means 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.

AIFMD host state requirementsHandbook

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;

AIFMD level 2 regulationHandbook

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) .

AIFMD UK regulationHandbook

(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)

aircraftHandbook

(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.

aircraft

means the class of contract of insurance, specified in paragraph 5 of Part I of Schedule 1 to the Regulated Activities Order.

aircraft liabilityHandbook

(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.

aircraft liability

means the class of contract of insurance, specified in paragraph 11 of Part I of Schedule 1 to the Regulated Activities Order.

all price risk measureHandbook

(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.

allocation periodHandbook

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.

allotmentHandbook

(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.

alternative debentureHandbook

the investment specified in article 77A of the Regulated Activities Order (Alternative finance investment bonds).

alternative investment fundHandbook

(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.

alternative investment fund

has the meaning given in article 4(1)(a) of AIFMD.

alternative investment fund managerHandbook

(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.

alternative investment fund manager

has the meaning given in article 4(1)(b) of AIFMD.

alternative projectionHandbook

(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.

alternative standardised approachHandbook

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.

AMA permissionHandbook

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.

ancillary activityHandbook

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.

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.

ancillary insurance services undertakingHandbook

(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.

ancillary riskHandbook

(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.

ancillary serviceHandbook

(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):
(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.
[Note: article 4(1)(3) of MiFID]
(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):
(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.
[Note: article 4(1)(3) of MiFID]
(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.

ancillary service

means any of the services listed in Section B of Annex 1 to MiFID.

ancillary services undertakingHandbook

(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.

announceable informationHandbook

information which is usually the subject of a public announcement, although not subject to any formal disclosure requirement.

annual accounting periodHandbook

(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).

Annual AccountsHandbook

(A) In the PRA Handbook:
(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.
(B) In the FCA Handbook:
(1) the Council Directive of 19 December 1991 concerning the annual accounts and consolidated accounts of insurance undertakings (No. 91/674/EEC).
(2) [deleted]

annual audited fixed expenditureHandbook

(in UPRU) has the meaning given in UPRU 2.1.3 R (Annual audited fixed expenditure).

annual bonusHandbook

(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.

annual budgetHandbook

the annual budgeted costs of operating the Financial Ombudsman Service.

annual financial statementsHandbook

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.

annual incomeHandbook

(in MIPRU)the income referred to in MIPRU 4.3

annual income allocation dateHandbook

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.

annual percentage rateHandbook

the annual percentage rate of charge for a contract as calculated in accordance with MCOB 10 (Annual percentage rate).

annual report and accountsHandbook

(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.

annual report and accounts

means

(1) (in relation to a company incorporated in the UK) an annual report and annual accounts as those terms are defined in section 471 of the Companies Act 2006 together with an auditor's report prepared in relation to those accounts under sections 495 to 497A of the same Act;
(2) (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.

annualised net written premiumsHandbook

(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.

APERHandbook

the part of the Handbook in High Level Standards which has the title Statements of Principle and Code of Practice for Approved Persons.

applicable provisionsHandbook

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
(b) a UK firm is required to comply when conducting business through a branch (in accordance with paragraph 19(13) of Part III of Schedule 3 to the Act (Exercise of passport rights by UK firms)) or by providing services (as applicable) in another EEA State.

applicable sectoral consolidation rulesHandbook

(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.

applicable sectoral rulesHandbook

(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:
(a) the banking and investment services sector as set out in paragraph 6.2 of GENPRU 3 Annex 1; or
which of those sets of rules apply for the purpose of a particular calculation depends on the nature of that calculation.

applicantHandbook

(1) (in LR) an issuer which is applying for admission of securities.
(2) (in PR) an applicant for approval of a prospectus or supplementary prospectus relating to transferable securities.

appointed representativeHandbook

(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.

appointed representative

has the meaning given in s39(2) FSMA.

Appointed Representatives RegulationsHandbook

the Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 (SI 2001/1217).

apportionment and oversight functionHandbook

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 .

appropriate actuaryHandbook

an actuary appointed under SUP 4.4.1 R (Appointment of an appropriate actuary).

appropriate charges informationHandbook

(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.

appropriate position risk adjustmentHandbook

(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).

appropriate regulatorHandbook

(1) In the FCA Handbook, the FCA; and in the PRA Handbook, the PRA;
(2)
(a) in SUP 11 "appropriate regulator" has the meaning given in section 178 of the Act, and
(b) [deleted]

appropriate UK regulatorHandbook

(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.

appropriate valuerHandbook

(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) .

approveHandbook

(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).

approved bankHandbook

(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:
(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.
(in COLL) any person falling within (a-c).

approved collateralHandbook

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.

approved counterpartyHandbook

any of the following:
(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.

approved credit institutionHandbook

(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.

approved depositaryHandbook

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.

approved derivativeHandbook

(1) (in COLL) a derivative which is traded or dealt in on an eligible derivatives market.
(2) (in INSPRU ) a derivative in respect of which the conditions in INSPRU 3.2.5 R are met.

approved financial institutionHandbook

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.

approved indexHandbook

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
(ii) in respect of which a derivative contract is listed; or
(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.

approved money-market instrumentHandbook

(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.

approved personHandbook

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.

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.

approved quasi-derivativeHandbook

a quasi-derivative in respect of which the conditions in INSPRU 3.2.5 R are met.

approved reinsurance to closeHandbook

(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.

approved reporting mechanismHandbook

a trade-matching or reporting system approved by the FCA in accordance with Section 412A of the Act.

approved securityHandbook

(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.

approved stock lending transactionHandbook

a stock lending transaction in respect of which the conditions in INSPRU 3.2.36 R have been met.

APRHandbook

(A) In the PRA Handbook: annual percentage rate.
(B) In the FCA Handbook:
(1) (except in CONC) annual percentage rate.
(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.

APR rulesHandbook

arrangementHandbook

(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).

arranging (bringing about) a home purchase planHandbook

the regulated activity, specified in article 25C(1) of the Regulated Activities Order, which is in summary: making arrangements for another person to:
(a) enter into a home purchase plan as home purchaser; or
(b) vary the terms of a home purchase plan entered into by him as home purchaser on or after 6 April 2007.

arranging (bringing about) a home reversion planHandbook

the regulated activity, specified in article 25B(1) of the Regulated Activities Order, which is in summary: making arrangements for another person to:
(a) enter into a home reversion plan as reversion occupier or as plan provider; or
(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.

arranging (bringing about) a regulated sale and rent back agreementHandbook

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.

arranging (bringing about) deals in investments

means the regulated activity specified in article 25(1) of the Regulated Activities Order.

arranging (bringing about) deals in investmentsHandbook

(A) In the PRA Handbook: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 (d) membership 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).(B) In the FCA Handbook: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 (other than a P2P agreement); or (b) a funeral plan contract; or (c) the underwriting capacity of a Lloyd's syndicate; or (d) membership 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).

arranging (bringing about) regulated mortgage contractsHandbook

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.)

arranging deals in contracts of insurance written at Lloyd'sHandbook

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.

arranging qualifying creditHandbook

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.

arranging safeguarding and administration of assetsHandbook

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.

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.

arrearsHandbook

(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.

article 12(1) relationshipHandbook

(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.

Article 12(1) relationship

means a relationship where undertakings are linked by a relationship within the meaning of Article 12(1) of Directive 83/349 EEC.

Article 129 implementing measureHandbook

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.

Article 129 permissionHandbook

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.

Article 129 procedureHandbook

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.

Article 134 relationshipHandbook

(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.

article 18(5) relationshipHandbook

(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).

Article 18(5) relationship

means a relationship where undertaking are linked by participations or capital ties other than those referred to in paragraphs (1) and (2) of Article 18 of the CRR.

assessable mutualHandbook

(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.

assetHandbook

(in RCB) (as defined in Regulation 1(2) of the RCB Regulations) any property, right, entitlement or interest.

asset backed commercial paper programmeHandbook

(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.

asset backed securityHandbook

(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.

asset identification rulesHandbook

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.

asset management companyHandbook

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.

asset poolHandbook

(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.

asset pool monitorHandbook

a person appointed under regulation 17A of the RCB Regulations.

asset-related capital requirementHandbook

a component of the calculation of the ECR for a firm carrying on general insurance business as set out in INSPRU 2.2.

assistanceHandbook

(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).

assisting in the administration and performance of a contract of insuranceHandbook

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.

associateHandbook

(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):
(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;
(b) an appointed representative of A, or a tied agent of A, or of any 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):
(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:
(i) any person who is a controller ("C") of P;
(ii) any other person for whom C is a controller.
(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;
(b) an appointed representative of A, or a tied agent of A, or of any affiliated company of A;
(c) any other person 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.
(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:
(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 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.
(5) (in LR) (when used in the context of a controlling shareholder which is a company):
(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;

associate

means (in relation to a person ("A")):

(1) an affiliated company of A;
(2) an appointed representative of A, or a tied agent of A, or of any affiliated company of A; and
(3) any other whose business or domestic relationship with A or A’s 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.

associated call optionHandbook

a right to acquire a particular amount of the relevant security or of any associated security at a future date at a particular price.

associated instrumentHandbook

(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).

at the moneyHandbook

(for the purposes of BIPRU 7 (Market risk) and in relation to an option or warrant) the strike price of that option or warrant being equal to the current market value of the underlying instrument.

attached sharesHandbook

(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.

auction regulation biddingHandbook

the regulated activity of bidding in emissions auctions where it is carried on by:
(a) a firm that is exempt from MiFID under article 2(1)(i); or
(b) a MiFID investment firm (other than a UCITS investment firm) on behalf of its clients in relation to a two-day emissions spot.

Audit DirectiveHandbook

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.

authorisationHandbook

authorisation as an authorised person for the purposes of the Act.

authorisation orderHandbook

an order made by the FCA :
(a) in relation to an AUT under section 243 of the Act (Authorisation orders);
(b) in relation to an ICVC under regulation 14 of the OEIC Regulations (Authorisation);
(c) in relation to an ACS under section 261D of the Act (Authorisation orders);
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).

authorised AIFHandbook

an AIF which is an authorised fund.

authorised central counterpartyHandbook

a CCP authorised or recognised under EMIR.

authorised contractual schemeHandbook

authorised corporate directorHandbook

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.

authorised electronic money institutionHandbook

(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.

authorised fundHandbook

an ICVC, ACS or an AUT.

authorised payment institutionHandbook

(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.

authorised personHandbook

(in accordance with section 31 of the Act (Authorised persons)) one of the following:
(a) a person who has a Part 4A permission to carry on one or more regulated activities;
(e) an ICVC;
(see also GEN 2.2.18 R for the position of an authorisedpartnership or unincorporated association which is dissolved.)

authorised person

This term is defined externally, please refer to:

s417(1) FSMA

authorised primary dealerHandbook

(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.

authorised primary dealer exemptionHandbook

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.

authorised professional firmHandbook

authorised UK representativeHandbook

(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.

authorised unit trust managerHandbook

a manager of an AUT.

authorised unit trust schemeHandbook

(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.

authorised Voluntary Jurisdiction participantHandbook

a participant in the Voluntary Jurisdiction who is an authorised person.

automatic enrolment schemeHandbook

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.

AVCHandbook

a voluntary contribution arrangement paid by a member of an occupational pension scheme under the terms of the scheme or of a separate contract.

average outstanding electronic moneyHandbook

(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.

Letter: B

backtesting exceptionHandbook

(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.

backwardationHandbook

a situation in which futures prices are lower than cash prices.

balanceHandbook

(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.

balancing amountHandbook

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
(b) are not managed by or at the direction of the managing agent of the syndicate.

Balancing and Settlement CodeHandbook

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.

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.

bankHandbook

(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;
(b) an EEA bank which is a full credit institution.

Bank Accounts DirectiveHandbook

Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions.

Bank of England

This term is defined externally, please refer to:

Schedule 1 Interpretation Act 1978

banking and investment groupHandbook

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:
(ii) the sectoral rules of another competent authority; apply; or
(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).

banking and investment services conglomerateHandbook

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.

banking and investment services sectorHandbook

(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.

Banking Consolidation DirectiveHandbook

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).

banking customerHandbook

(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.

Banking Ombudsman schemeHandbook

the former scheme set up, on a voluntary basis, to handle complaints against those banks which subscribed to it.

banking sectorHandbook

a sector composed of one or more of the following entities:

base capital resources requirementHandbook

(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]

base costsHandbook

management expenses which are not attributable to any particular class.

base currencyHandbook

(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
(b) in the trust deed of an AUT as the base currency of the AUT.; or
(c) in the contractual scheme deed of an ACS as the base currency of the ACS.
(2) (in GENPRU and BIPRU) (in relation to a firm) the currency in which that firm's books of account are drawn up.

base prospectusHandbook

(in Part 6 rules) a base prospectus referred to in PR 2.2.7 R.

basic adviceHandbook

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.

basic indicator approachHandbook

the approach to calculating the ORCR set out in BIPRU 6.3 (Operational risk: Basic indicator approach).

basis riskHandbook

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.

BCOBSHandbook

the Banking: Conduct of Business sourcebook.

bearer certificateHandbook

(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:
(a) the holder of the document is entitled to the units specified in it; and
(b) no entry will be made on the register identifying the holder of those units.
(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:
(a) the holder of the document is entitled to the units specified in it; and
(b) no entry will be made on the register identifying the holder of those units.

bearer formHandbook

(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.

behaviourHandbook

any kind of conduct, including action or inaction.

bid priceHandbook

the price at which a person could sell a unit in a dual-priced authorised fund or a security.

bidding in emissions auctionsHandbook

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.

biofuelHandbook

liquid or gaseous fuel produced from biomass.

biofuel collective investment schemeHandbook

a collective investment scheme, the property of which consists only of property which is biofuel or a biofuel investment or cash awaiting investment.

biofuel investmentHandbook

any of the following:
(b) an option to acquire or dispose of a biofuel investment;
(c) a future where the commodity in question is biofuel;
(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;

biomassHandbook

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.

biomass collective investment schemeHandbook

a collective investment scheme, the property of which consists only of property which is biomass or a biomass investment or cash awaiting investment.

biomass investmentHandbook

any of the following:
(b) an option to acquire or dispose of a biomass investment;
(c) a future where the commodity in question is biomass;
(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;

BIPRUHandbook

the Prudential sourcebook for Banks, Building Societies and Investment Firms.

BIPRU 125K firmHandbook

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;
(5) it does not operate a multilateral trading facility.

BIPRU 50K firmHandbook

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;
(d) it does not operate a multilateral trading facility.

BIPRU 730K firmHandbook

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.

BIPRU firmHandbook

(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
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).

BIPRU investment firmHandbook

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: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).

BIPRU limited activity firmHandbook

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).

BIPRU limited licence firmHandbook

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).

BIPRU Remuneration CodeHandbook

SYSC 19C (BIPRU Remuneration Code).

body corporate

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

body corporateHandbook

(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.

bonded investmentHandbook

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;
(b) which the firm may sell or procure the sale of without the signature or other action of the customer or an independent third party; and
(c) where the proceeds of such a sale are or could be payable to the firm or its associate.

book value of propertyHandbook

(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.

borrow backHandbook

a feature of a regulated mortgage contract under which the customer has the ability to re-borrow monies paid by him.

branchHandbook

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

branch

means

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

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

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

(2) (in relation to an investment firm) has the meaning given in Article 4(1)(26) of MiFID.

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

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

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

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

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

(a) 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;

(b) 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.

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

(a) 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;

(b) 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.

breachHandbook

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;
(5) a contravention of any directly applicable EU regulation made under MiFID;
(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;
(11) a contravention in respect of which the FCA is empowered to take action pursuant to section 312E (Public censure) or section 312F (Financial penalties) of the Act; or
(12) a contravention in respect of which the FCA is empowered to take action pursuant to section 345 (Disciplinary measures: FCA) of the Act.

break fee arrangementHandbook

(in LR) an arrangement falling within the definition in LR 10.2.6A R.

bridging loanHandbook

a regulated mortgage contract which has a term of twelve months or less.

brokerHandbook

(in MAR, SYSC and INSPRU ) any person when dealing as agent.

broker fundHandbook

(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; (b) a fund of a collective investment scheme, which contains or will contain cash contributions made or to be made by a client or clients of a firm in connection with the purchase of units in the scheme.

broker fund adviserHandbook

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.

brought forward amountHandbook

an amount, as defined in INSPRU 1.1.51 R , used in the calculation of the general insurance capital requirement.

BRRD

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

BRRD undertaking

buffer securities restrictionHandbook

BIPRU 12.6.16R.

building blockHandbook

(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.

Building Societies Ombudsman schemeHandbook

the former scheme set up and recognised under the Building Societies Act 1986 to handle complaints about building societies.

building society

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

building societyHandbook

(as defined in section 119(1) of the Building Societies Act 1986) a building society incorporated (or deemed to be incorporated) under that Act.

business dayHandbook

(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.

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.

business illustrationHandbook

an illustration for a regulated mortgage contract that is for a business purpose.

business offer documentHandbook

an offer document for a regulated mortgage contract that is for a business purpose.

Business OrderHandbook

the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business Order) 2001 (SI 2001/1177).

Buy-back and Stabilisation RegulationHandbook

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).

buy-back programmeHandbook

(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.

buyingHandbook

(in accordance with article 3(1) of the Regulated Activities Order (Interpretation)) any form of buying, including acquiring for valuable consideration.

byelawHandbook

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.

byelaw

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

Letter: C

CAD 1 modelHandbook

a risk management model of the type described in BIPRU 7.9 (Use of a CAD 1 model).

CAD 1 model approachHandbook

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.

CAD 1 model waiverHandbook

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.

CAD Article 22 groupHandbook

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).

CAD full scope firmHandbook

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.

CAD investment firmHandbook

(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:
(a) it is a firm as defined in article 4(1)(2)(c) of the EU CRR;
(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.

callable contributionHandbook

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.

cancellation priceHandbook

(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.

candidateHandbook

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.

capacity transfer marketHandbook

any method of transferring capacity in syndicates, including capacity auctions, bilateral arrangements, capacity offers, minority buy-outs and conversion schemes.

capital accountHandbook

(in COLL) an account relating to the capital property of an authorised fund.

Capital Adequacy DirectiveHandbook

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).

capital instrumentHandbook

(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.

capital market-driven transactionHandbook

(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.

capital planning bufferHandbook

(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.

capital propertyHandbook

(in COLL) the scheme property, other than income property and any amount for the time being standing to the credit of the distribution account.

capital redemptionHandbook

(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).

Capital Requirements Regulations

means the Capital Requirements Regulations 2013 (SI 2013/3115).

Capital Requirements Regulations 2006Handbook

the Capital Requirements Regulations 2006 (SI 2006/3221).

capital resourcesHandbook

(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:
(a) it is a BIPRU firm with a Part 4A permission; and
(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:
(a) it is a BIPRU firm with a Part 4A permission; and
(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; or

capital resources gearing rulesHandbook

(A) In the PRA Handbook:
(2) [deleted]
(3) [deleted]
(B) In the FCA Handbook:
(2) [deleted]

capital resources requirementHandbook

an amount of capital resources that:
(1) a BIPRU firm must hold as set out in the main BIPRU firm Pillar 1 rules; or
(2) an insurer must hold as set out in GENPRU 2.1.17 R to GENPRU 2.1.23 R; or

capital resources tableHandbook

(A) In the PRA Handbook:
(1) (in the case of an insurer) GENPRU 2 Annex 1.
(2) [deleted]
(3) [deleted]
(4) [deleted]
(B) In the FCA Handbook:
(1) (in the case of an insurer) GENPRU 2 Annex 1; and
(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.

captive reinsurerHandbook

a pure reinsurer owned by:
(a) a financial undertaking other than an insurance undertaking or a reinsurance undertaking; 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.

carrying out contracts of insuranceHandbook

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.

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).

cash componentHandbook

a qualifying investment prescribed in paragraph 8 of the ISA Regulations (Qualifying investments for a cash component).

cash deposit CTFHandbook

a deposit account held within a CTF.

cash deposit ISAHandbook

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.

cashbackHandbook

(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.

CASSHandbook

the Client Assets sourcebook.

CASS large firmHandbook

has the meaning in CASS 1A.2.7 R (CASS firm types).

CASS medium firmHandbook

has the meaning in CASS 1A.2.7 R (CASS firm types).

CASS operational oversight functionHandbook

(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 .

CASS resolution packHandbook

those documents and records which are specified in CASS 10.2 and CASS 10.3.

CASS small firmHandbook

has the meaning in CASS 1A.2.7 R (CASS firm types).

CAT standardsHandbook

the CAT standards for ISAs prescribed by the Treasury on 22 December 1998.

category B firmHandbook

category B2 firmHandbook

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.

category B3 firmHandbook

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
(b) which is subject to a requirement not to hold or control client money or custody assets.

causing dematerialised instructions to be sentHandbook

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.

CCPHandbook

a legal person that interposes itself between the counterparties to the contracts traded on one or more financial markets, becoming the buyer to every seller and the seller to every buyer, as defined in article 2(1) of EMIR.

CCR internal model methodHandbook

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.

CCR internal model method permissionHandbook

CCR mark to market methodHandbook

the method of calculating the amount of an exposure set out in BIPRU 13.4 (CCR mark to market method).

CCR standardised methodHandbook

the method of calculating the amount of an exposure set out in BIPRU 13.5 (CCR standardised method).

ceding insurer's waiverHandbook

(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
(ii) reinsurance for the purposes of calculating its mathematical reserves; or
(iii) reinsurance reducing its MCR; or
(b) otherwise ascribe a value to such amounts.

central assetsHandbook

the Society's own assets that are available at its discretion to meet a member's liabilities in respect of insurance business.

central bankHandbook

(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.

central counterpartyHandbook

(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.

Central FundHandbook

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).

Central Fund

means 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).

certificate representing certain securitiesHandbook

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.

certificate representing debt securitiesHandbook

(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.

certificate representing equity securitiesHandbook

(in LR) a certificate representing certain securities where the certificate or other instrument confers rights in respect of equity securities.

certificate representing sharesHandbook

(in LR) a certificate representing certain securities where the certificate or other instrument confers rights in respect of equity shares.

CESR's guidelines on a common definition of European money market fundsHandbook

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

CESR's UCITS eligible assets guidelinesHandbook

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

CFEBHandbook

the consumer financial education body originallyestablished by the FSA under section 6A(1) of the Act (Enhancing public understanding of financial matters etc) (as it had effect before the passing of the Financial Services Act 2012)and having the name Money Advice Service.

CFEB levyHandbook

the levy payable to the FCA pursuant to FEES 7.2.1 R by the persons listed in FEES 1.1.2R(5).

CFPPFMHandbook

the consumer-friendly version of a firm's PPFM, which must be produced pursuant to COBS 20.4.5 R .

CFTCHandbook

the Commodity Futures Trading Commission.

chargeHandbook

(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:
(a) a client in connection with designated investment business; or
(b) a customer in connection with any insurance mediation activities in respect of a non-investment insurance contract;
whether levied by the firm or any other person, including a mark-up or mark-down.

chargeable caseHandbook

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:
(i) the complainant is not an eligible complainant in accordance with DISP 2; or
(ii) the complaint does not fall within the jurisdiction of the Financial Ombudsman Service (as described in DISP 2); or
(iii) the Ombudsman considers that the complaint should be dismissed without consideration of its merits under DISP 3.3.4 R or DISP 3.3.4AR (2) to (5) (Dismissal of complaints without consideration of the merits); or
(b) the Ombudsman considers, at any stage, that the complaint should be dismissed under DISP 3.3.4R(2) or DISP 3.3.4AR (1) on the grounds that it is frivolous or vexatious; or
(c) the Ombudsman considers it apparent from the complaint when it is received, and from any redress determination which has been issued by the respondent, that the respondent has reviewed the subject matter of the complaint and issued a redress determination in accordance with the terms of a consumer redress scheme.

charityHandbook

(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.

chief executiveHandbook

(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.

chief executive functionHandbook

(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.

Chinese wallHandbook

an arrangement that requires information held by a person in the course of carrying on one part of its business to be withheld from, or not to be used for, persons with or for whom it acts in the course of carrying on another part of its business.

circularHandbook

(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.

CIS stakeholder productHandbook

the stakeholder product specified by regulations 5 (units in certain collective investment schemes) and 7 of the Stakeholder Regulations.

CIUHandbook

(A) In the PRA Handbook:collective investment undertaking.
(B) In the FCA Handbook:
(1) (except in IFPRU) collective investment undertaking.
(2) (in IFPRU) has the meaning in article 4(1)(7) of the EU CRR.

CIU look through methodHandbook

claimHandbook

(1) (in COMP) a valid claim made in respect of a civil liability owed by a relevant person to the claimant.
(2) (in INSPRU and SUP ) a claim under a contract of insurance.

claims amountHandbook

an amount, as defined in INSPRU 1.1.47 R , used in the calculation of the general insurance capital requirement.

classHandbook

(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):
(a) a particular class of units of an authorised fund; or
(b) all of the units relating to a single sub-fund; or
(c) a particular class of units relating to a single sub-fund; or
(d) in relation to an EEA UCITS scheme, any arrangement equivalent to (a), (b) or (c).
(3) (in COBS) a particular category or type of packaged product.
(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 in accordance with the rules of the compensation scheme.
(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):
(a) a particular class of units of an authorised fund; or
(b) all of the units relating to a single sub-fund; or
(c) a particular class of units relating to a single sub-fund; or
(d) in relation to an EEA UCITS scheme, any arrangement equivalent to (a), (b) or (c).
(3) (in COBS ) a particular category or type of packaged product.
(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 classes to which FSCS allocates levies in accordance with the rules of the compensation scheme.

class 1 acquisitionHandbook

(in LR) a class 1 transaction that involves an acquisition by the relevant listed company or its subsidiary undertaking.

class 1 circularHandbook

(in LR) a circular relating to a class 1 transaction or a transaction which must comply with the requirements of a class 1 transaction.

class 1 disposalHandbook

(in LR) a class 1 transaction that consists of a disposal by the relevant listed company or its subsidiary undertaking.

class 1 transactionHandbook

(in LRand FEES) a transaction classified as a class 1 transaction under LR 10.

class 2 transactionHandbook

(in LR) a transaction classified as a class 2 transaction under LR 10.

class meetingHandbook

(in COLL) a separate meeting of holders of a class of units.

class testsHandbook

(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.

clean-up call optionHandbook

(1) (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.
(2) (for the purposes of MIPRU and for a securitisation) 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.

clearing facilitation serviceHandbook

(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.

clearing firmHandbook

a firm which assumes primary responsibility (including legal liability) for the execution and settlement of transactions for clients.

clearing houseHandbook

a clearing house through which transactions may be cleared and for the purposes of CASS 7 and CASS 7A, includes an authorised central counterparty and a CCP

clientHandbook

(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;
(a) every client is a customer or an eligible counterparty;
(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);
(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
(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.
(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):
(a) the reversion occupier or potential reversion occupier; or
(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):
(a) the individual or trustee who is the SRB agreement seller or potential SRB agreement seller; or
(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:
(a) every client is a customer or an eligible counterparty;
(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);
(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:
(i) the borrower under the credit agreement or the hirer under the consumer hire agreement;
(ii) someone who has been the borrower or hirer under the agreement;
(iii) a person who is treated by A as a person falling within (i) or (ii);
(iv) any person providing a guarantee or indemnity under the agreement; and
(v) a person to whom the rights and duties of a person falling within (iv) have passed by assignment or operation of law; 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:
(ii) a person providing a guarantee or indemnity under the agreement; or
(iii) a person to whom the rights and duties of a person within (ii) have passed by assignment or operation of law; and
(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):
(a) the reversion occupier or potential reversion occupier; or
(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):
(a) the individual or trustee who is the SRB agreement seller or potential SRB agreement seller; or
(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.
(8) (in relation to a credit-related regulated activity) a customer.

client

has the meaning given in the FCA Handbook other than for the purposes of the part of the FCA Handbook in Specialist sourcebooks that has the title Professional Firms.

client asset rulesHandbook

CASS.

client bank accountHandbook

(A) In the PRA Handbook:
(1) (other than in CASS 7 and CASS 7A and principally in CASS 5):
(a) an account at a bank which:
(i) holds the money of one or more clients;
(ii) is in the name of the firm;
(iii) includes in its title an appropriate description to distinguish the money in the account from the firm's money; and
(iv) is a current or a deposit account; or
(b) a money market deposit of client money which is identified as being client money.
(2) (in CASS 7 and CASS 7A)
(a) an account at a bank which:
(i) holds the money of one or more clients;
(ii) is in the name of the firm; and
(iii) is a current or a deposit account; or
(b) a money market deposit account of client money which is identified as being client money.
(B) In the FCA Handbook:
(1) (other than in CASS 7 and CASS 7A and principally in CASS 5):
(a) an account at a bank which:
(i) holds the money of one or more clients;
(ii) is in the name of the firm; and
(iii) includes in its title an appropriate description to distinguish the money in the account from the firm's money; and
(iv) is a current or a deposit account; or
(b) a money market deposit account of client money which is identified as being client money.
(2) (in CASS 7 and CASS 7A)
(a) an account at a bank which:
(i)[deleted]
(ii) is expressly held in the name of the firm that is subject to the requirement in CASS 7.13.3 R; and
(iii) is a current or a deposit account; or
(b) a money market deposit account of client money which is identified as being client money; and
(3) (in CASS 11):
(a) an account at an approved bank which:
(i) holds the money of one or more clients;
(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.

client equity balanceHandbook

(A) In the PRA Handbook: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.
(B) In the FCA Handbook:the sum of money as described in CASS 7.16.28 R.

client moneyHandbook

(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) [deleted]
(a) [deleted]
(b) [deleted]
(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 or GENPRU and 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; or
(b) that,in the course of carrying on designated investment business that is not MiFID business, a firm holds for a client;or
(ba) that a firm receives or holds for, or on behalf of, a client in the course of, or in connection with, its stocks and shares ISA business; or
(c) that 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.
(4) (in COMP) client money for the purposes of the relevant client money rules.

client money (insurance) distribution rulesHandbook

the rules in CASS 5.6 (Client money distribution).

client money chapterHandbook

client money distribution rulesHandbook

client money rulesHandbook

(A) In the PRA Handbook:
(1) [deleted]
(2) (in CASS 5) CASS 5.1 to CASS 5.5.
(B) In the FCA Handbook:
(1) [deleted]
(2) (in CASS 5) CASS 5.1 to CASS 5.5.
(3) (in CASS 3, CASS 6, CASS 7, CASS 7A,, COBS and FEES) and CASS 7.15.5R (3) to CASS 7.19 .

client money segregation requirementsHandbook

(A) In the PRA Handbook: CASS 7.4.1 R and CASS 7.4.11 R(B) In the FCA Handbook: CASS 7.13.3 R and CASS 7.13.12 R

client transaction accountHandbook

(A) In the PRA Handbook:(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.(B) In the FCA Handbook:(in relation to a firm and another person) an account maintained by that other person, such as an exchange, clearing house, intermediate broker or OTC counterparty, who a firm allows to hold client money under CASS 7.14 (Client money held by a third party), which:
(a) is the name of the firm;
(b) includes in its title the word "client" (or, if the system constraints of the relevant person or the firm that holds the account (or both) make this impracticable, an appropriate abbreviation of "client" that has the same meaning); and
(c) is not a client bank account.

client's best interests ruleHandbook

close linksHandbook

(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) 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.
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]
(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
(c) CL is a parent undertaking of a subsidiary undertaking of A; or
(d) CL is a subsidiary undertaking of a parent 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) 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.
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]
(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
(c) CL is a parent undertaking of a subsidiary undertaking of A; or
(d) CL is a subsidiary undertaking of a parent 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 3 (Auditors) and 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).

close matching rulesHandbook

close outHandbook

(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.

close periodHandbook

(in LR) as defined in paragraph 1(a) of the Model Code.

close relativeHandbook

(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).

closedHandbook

(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.

closed-endedHandbook

(in LR) (in relation to investment entities) an investment company which is not an open-ended investment company.

closed-ended investment fundHandbook

(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.

closely relatedHandbook

(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.

closing dateHandbook

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.

CMARHandbook

a Client Money and Asset Return, containing the information specified in SUP 16 Annex 29.

COBHandbook

the Conduct of Business sourcebook up to 1 November 2007.

COBSHandbook

the Conduct of Business sourcebook from 1 November 2007.

Code of Market ConductHandbook

the provisions in MAR 1 indicated by an "E" or "C" in the margin or heading, issued by the FCA as required by section 119 of the Act (The Code).

Code of Practice for Approved PersonsHandbook

(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.

cold callHandbook

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]

COLLHandbook

the Collective Investment Schemes sourcebook.

collateralHandbook

(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);
(iv) warrants (article 79);
(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.

collateral rulesHandbook

collective insuranceHandbook

(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"").

collective investment schemeHandbook

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).

collective investment undertaking other than the closed-end typeHandbook

(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.

collective investment undertaking PRRHandbook

the part of the market risk capital requirement calculated in accordance with BIPRU 7.7.5 R (Calculation of the collective investment undertaking PRR).

collective portfolio managementHandbook

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.

collective portfolio management firmHandbook

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

collective portfolio management investment firmHandbook

a firm which has a Part 4A permission for managing investments and which is:
(b) a UCITS investment firm.

COLLGHandbook

the Collective Investment Scheme Information Guide.

Combined CodeHandbook

(in LR and DTR) in relation to an issuer the Combined Code on Corporate Governance published in June 2008 by the Financial Reporting Council.

combined initial disclosure documentHandbook

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:
(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);
which contains the keyfacts logo, headings and text in the order shown in, and in accordance with the notes in, COBS 6 Annex 2.

commencementHandbook

the beginning of the commencement day.

commencement dayHandbook

the day on which section 19 of the Act (The general prohibition) comes into force, being 1 December 2001.

commercial customerHandbook

(in ICOBS and CASS 5) a customer who is not a consumer .

commissionHandbook

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); (b) insurance mediation activity in connection with a non-investment insurance contract; or (c) the sale of a packaged product, that is offered or given by the product provider.

commission equivalentHandbook

the cash payments, benefits and services listed in COBS 6 Annex 6 which satisfy the criteria in COBS 6.4.3 R.

commitmentHandbook

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.

commodityHandbook

(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]

commodity extended maturity ladder approachHandbook

the method of calculating the commodity PRR in BIPRU 7.4.32 R (Extended maturity ladder approach).

commodity futureHandbook

a future relating to a commodity.

commodity future

has the meaning given in the PRA Handbook as at 31 July 2015.

commodity maturity ladder approachHandbook

the method of calculating the commodity PRR in BIPRU 7.4.25 R (Maturity ladder approach).

commodity optionHandbook

an option relating to a commodity.

commodity option

has the meaning given in the PRA Handbook as at 31 July 2015.

commodity PRRHandbook

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.

commodity simplified approachHandbook

the method of calculating the commodity PRR in BIPRU 7.4.24 R (Simplified approach).

common platform firmHandbook

(A) In the PRA Handbook (except SYSC 4-9):
(a) a BIPRU firm; or
(aa) a bank; or
(ab) a building society; 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
(AB) In the PRA Handbook (in SYSC 4-9), has the same meaning as in (A) except that it excludes a CRR firm (other than an incoming firm).
(B) In the FCA Handbook:
(a) a BIPRU firm; or
(aa) a bank; or
(ab) a building society; 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

common platform organisational requirementsHandbook

common platform outsourcing rulesHandbook

common platform record-keeping requirementsHandbook

the record-keeping requirements applicable to common platform firms set out in SYSC 9.

common platform requirementsHandbook

common platform requirements on financial crimeHandbook

the requirements on financial crime applicable to common platform firms set out in SYSC 6.3.

communicateHandbook

(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)]

communicated to a person inside the United KingdomHandbook

communicated to a person outside the United KingdomHandbook

(a) made to a person who receives it outside the United Kingdom; or
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.

Community Co-Insurance DirectiveHandbook

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).

community co-insurance operationHandbook

an operation to which the Community Co-Insurance Directive applies, as modified by article 26 of the Second Non-Life Directive.

community finance organisationHandbook

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).

COMPHandbook

the Compensation sourcebook.

companyHandbook

Company Announcements OfficeHandbook

the Company Announcements Office of the London Stock Exchange, the information dissemination provider approved by the UKLA.

compensation fundHandbook

any policyholder compensation scheme in any EEA State.

compensation schemeHandbook

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.

compensation scheme

means the Financial Services Compensation Scheme established under section 213 of FSMA.

compensation transitionals orderHandbook

the Financial Services and Markets Act 2000 (Transitional Provisions, Repeals and Savings) (Financial Services Compensation Scheme) Order 2001 (SI 2001/2967).

competent authorityHandbook

(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.
(9) (for an AIFM) a national authority in an EEA State which is empowered by law or regulation to supervise AIFMs.
(10) (for the purposes of IFPRU) has the meaning in article 4(1)(40) of the EU CRR.
[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)]

competent employees ruleHandbook

(a) for a firm which is not a common platform firm or a CRR firm, SYSC 3.1.6 R.
(c) for a CRR firm, Skills, Knowledge and Expertise 2.1 of the PRA Rulebook.

complaintHandbook

(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.
(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.
(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

complaints data publication rulesHandbook

complaints handling rulesHandbook

DISP 1.3.

complaints investigatorHandbook

(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.

complaints record ruleHandbook

complaints reporting rulesHandbook

complaints resolution rulesHandbook

complaints time barring ruleHandbook

complaints time limits rulesHandbook

compliance oversight functionHandbook

(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.

composite firmHandbook

Compulsory JurisdictionHandbook

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.

CONDHandbook

the part of the Handbook in High Level Standards which has the title Threshold Conditions.

conflicts of interest policyHandbook

(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.

conglomerate capital resourcesHandbook

(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.

conglomerate capital resources requirementHandbook

(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.

connected clientHandbook

(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.

connected contractHandbook

(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;
(c) has an annual premium (or the equivalent of annual premium) of €500 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;
(c) has an annual premium (or the equivalent of annual premium) of €500 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:
(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.

connected personHandbook

(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;
(f) if A is a partnership, he is or has been a member, manager or agent 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]

connected travel insurance contractHandbook

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.

connected travel insurance intermediaryHandbook

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.

consent noticeHandbook

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).

Consolidated Admissions and Reporting DirectiveHandbook

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).

consolidated basis

has the meaning in article 4(1)(48) of the CRR.

consolidated capital resourcesHandbook

(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).

consolidated capital resources requirementHandbook

(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).

consolidated credit risk requirementHandbook

(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.

consolidated fixed overheads requirementHandbook

(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.

consolidated indirectly issued capitalHandbook

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.

Consolidated Life DirectiveHandbook

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.

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.

Consolidated Life Directive informationHandbook

(in COBS) the Consolidated Life Directive information (COBS 13 Annex 1).

consolidated market risk requirementHandbook

(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.

Consolidated Motor Insurance DirectiveHandbook

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.

consolidated situationHandbook

(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.

consolidation Article 12(1) relationshipHandbook

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.

consolidation groupHandbook

(A) In the PRA Handbook:
(1) the following:
(a) a conventional group; or
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
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.

consolidation group

means the undertakings included in the scope of consolidation pursuant to Articles 18(1), 18(8), 19(1), 19(3) and 23 of the CRR and Groups 2.1- 2.3.

constableHandbook

a police officer in the United Kingdom or a person commissioned by the Commissioners for HM Revenue and Customs.

constitutionHandbook

(in LR) memorandum and articles of association or equivalent constitutional document.

consultancy chargeHandbook

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).

consumerHandbook

(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:
(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.
for the purposes of this definition:
(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
(ii) which may be adversely affected by the use of the services by persons acting on that person's behalf or in a fiduciary capacity in relation to that person;
(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
(ii) which may be adversely affected by the investment in the instrument by persons acting on that person's behalf or in a fiduciary capacity in relation to that person;
(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):
(a) a person within (2A), other than an authorised person; and
(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:
(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.
for the purposes of this definition:
(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
(ii) which may be adversely affected by the use of the services by persons acting on that person's behalf or in a fiduciary capacity in relation to that person;
(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
(ii) which may be adversely affected by the investment in the instrument by persons acting on that person's behalf or in a fiduciary capacity in relation to that person;
(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):
(a) a person within (2A), other than an authorised person; and
(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]
(7) (in the definitions of cross-border dispute, domestic dispute, sales contract and service contract, and in DISP 2.7.3 R and DISP 2.7.9A R) has the meaning in regulation 3 of the ADR Regulations, which is an individual acting for purposes which are wholly or mainly outside that individual's trade, business, craft, or profession.[Note: article 4(1) of the ADR Directive]

consumer awareness rulesHandbook

DISP 1.2

Consumer PanelHandbook

the panel of persons which section 1Qof the Act (The Consumer Panel) requires the FCA to establish and maintain, as part of its arrangements for consultation under section 1M, to represent the interests of consumers.

consumer redress schemeHandbook

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.

contingency funding planHandbook

(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) a plan for dealing with liquidity crises as required by BIPRU 12.4.10 R.

contingent liability investmentHandbook

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.

contract for differencesHandbook

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]

contract of differences

means the investment specified in article 85 of the Regulated Activities Order.

contract of insuranceHandbook

(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:
(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
(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);
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.

contract of insurance

(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) below.

(in relation to a contract) has the meaning given in Article 3(1) of the Regulated Activities Order.

contract of significanceHandbook

(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.

contracts of general insurance

has the meaning given in article 3(1) of the Regulated Activities Order.

contracts of large risksHandbook

(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.

contracts of long-term insurance

has the meaning given in article 3(1) of the Regulated Activities Order.

contractual cross product netting agreementHandbook

(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.

contractually based investment

has the meaning provided in Article 3(1) of the Regulated Activities Order.

contractually based investmentHandbook

(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); (b) an option, future, contract for differences or funeral plan contract; (c) rights to or interests in an investment falling within (a) or (b).

controlHandbook

(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:
(a) 10% or more of the shares in B or a parent undertaking ("P") of B;
(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.

controlled agreementHandbook

(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.

controlled functionHandbook

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).

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).