Glossary

The changes to this defined term are effective from 23:00 on 31/12/2020.

(1) an undertaking:

(a) with the sole object of collective investment in transferable securities or in other liquid financial instruments of capital raised from the public and which operate on the principle of risk-spreading; and

(b) with units which are, at the request of holders, repurchased or redeemed, directly or indirectly, out of those undertakings' assets (and for these purposes, action taken by the undertaking to ensure that the stock exchange value of its units does not significantly vary from their asset value is to be regarded as equivalent to such repurchase or redemption).

(2) undertakings for collective investment in transferable securities that are established in the European Economic Area in accordance with the UCITS Directive.

means the European Parliament and Council Directive of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (No 2009/65/EC) as amended.

means United Kingdom.

means a UK undertaking that has permission under Part 4A of FSMA 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.

The changes to this defined term are effective from 23:00 on 31/12/2020.

(1) has the meaning given in paragraph 10 of Schedule 3 to FSMA (EEA Passport Rights);

(2) in the Depositor Protection part and Policyholder Protection part, means an authorised person who:

(a) has permission given under Part 4A of FSMA to carry on regulated activities that consist of or include one or more PRA-regulated activities; and

(b) is incorporated in the UK.

means an undertaking with a Part 4A permission to carry on the regulated activity of insurance risk transformation.

This defined term is effective from 23:00 on 31/12/2020.

means a financial holding company firm in the UK which is not itself a subsidiary of an institution authorised in the UK, or of a financial holding company firm or mixed financial holding company set up in the UK.

This defined term is effective from 23:00 on 31/12/2020.

means a parent institution authorised in the UK which has an institution or financial institution as subsidiary or which holds a participation in such an institution or financial institution, and which is not itself a subsidiary of another institution authorised in the UK or of a financial holding company or mixed financial holding company set up in the UK.

This defined term is effective from 23:00 on 31/12/2020.

means a mixed financial holding company in the UK which is not itself a subsidiary of an institution authorised in the UK, or of a financial holding company firm or mixed financial holding company set up in the UK.

This defined term is effective from 23:00 on 31/12/2020.

means a UK parent institution, a UK parent financial holding company or a UK parent mixed financial holding company.

has the meaning given in Insurance General Application 2.

means an undertaking within the meaning of section 1161(1) of the Companies Act 2006 (meaning of “undertaking” and related expressions) whose registered office or, if the undertaking does not have a registered office, whose head office is in any part of the UK.

This defined term is effective from 23:00 on 31/12/2020.

has the meaning given to it in section 474(1) of the Companies Act 2006.

means an undertaking within the meaning of section 1161(1) of the Companies Act 2006 (meaning of “undertaking” and related expressions).

means, for the purposes of determining the SCR using the standard formula, the replacement of a subset of parameters used in the life underwriting risk module, non-life underwriting risk module or health underwriting risk module with parameters specific to a firm.

means a person admitted to the Society as an underwriting member.

means the risk of loss or of adverse change in the value of insurance obligations, due to inadequate pricing and provisioning assumptions.

[Note: Art. 13(30) of the Solvency II Directive]

means:

(1) (in relation to a collective investment scheme) the investment, specified in article 81 of the Regulated Activities Order (Units in a collective investment scheme) and defined in section 237(2) of FSMA (other definitions); and

(2) (in relation to an alternative investment fund) the right or interest (however described) of an investor in an alternative investment fund.

This term is defined externally, please refer to:

Interpretation Act 1978 Schedule 1