Glossary

The Rulebook Glossary contains defined terms used in more than one Part across the PRA Rulebook.

The full Glossary can be downloaded as a PDF or printed using the icons to the right.

Term Definition Legal instruments for this definition

technical provisions

01/01/2016

(1) (in the Solvency II Firms Sector) means the technical provisions established in accordance with Technical Provisions 2.1;

(2) (in the Non-Solvency II Firms Sector) means a technical provision established:

(a) for general insurance business, in accordance with Insurance Company - Technical Provisions 2.1; and

(b) for long-term insurance business, in accordance with Insurance Company - Technical Provisions 2.2.

Instruments

temporary high balance

01/07/2023

means that part of an eligible deposit in excess of the coverage level set out in Depositor Protection 4.2 which meets the additional criteria set out in Depositor Protection 10.2.

Additional Notes

[Note: Art. 2(1)(6) of the DGSD]

Instruments

The EU

29/04/2014

This term is defined externally, please refer to -

s1(2) Interpretation Act 1978

Instruments

third country

31/12/2020

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

means a territory or country other than the United Kingdom.

Instruments

third country branch

01/01/2016

means a third country insurance branch or a third country pure reinsurance branch.

Instruments

third country branch undertaking

01/01/2016

means:

(1) a third country insurance undertaking that has a third country insurance branch; or

(2) a third country insurance undertaking or third country reinsurance undertaking that has a third country pure reinsurance branch.

Instruments

third country CRR firm

31/12/2020

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

means an overseas firm that would be a CRR firm if it had been a UK undertaking, had carried on all of its business in the UK and had obtained whatever authorisations for doing so as are required under FSMA.

Additional Notes

[Note: Section 425(1)(a) FSMA]

Instruments

third country financial conglomerate

12/08/2022

has the meaning given in regulation 7 of the Financial Conglomerates Regulations.

Instruments

third country firm

31/12/2020

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

means an overseas firm.

Instruments

third country insurance branch

01/01/2016

means a permanent presence in the UK of a third country insurance undertaking that has a permission to effect contracts of insurance or carry out contracts of insurance (except an undertaking which pursues only the business of reinsurance in the UK).

Additional Notes

[Note: Art. 162(3) of the Solvency II Directive]

Instruments

third country insurance services provider

31/12/2020

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

means a third country insurance undertaking that has a permission to effect contracts of insurance or carry out contracts of insurance in the UK and does not have a permanent presence in the UK.

Instruments

third country insurance undertaking

31/12/2020

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

means an undertaking that has its head office outside the UK and that would require authorisation as an insurance undertaking in accordance with provisions implementing Article 14 of the Solvency II Directive if its head office was situated in the UK.

Additional Notes

[Note: Art. 13(3) of the Solvency II Directive]

Instruments

third country investment firm

31/12/2020

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

a firm which would be a MiFID investment firm if it had its head office in the UK.

Instruments

third country pure reinsurance branch

01/01/2016

means a permanent presence in the UK of a third country insurance undertaking or third country reinsurance undertaking, that has a permission to effect contracts of insurance or carry out contracts of insurance and which pursues only the business of reinsurance in the UK.

Additional Notes

[Note: Art. 162(3) of the Solvency II Directive]

Instruments

third country reinsurance undertaking

31/12/2020

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

means an undertaking that has its head office outside the UK and that would require authorisation as a reinsurance undertaking in accordance with provisions implementing Article 14 of the Solvency II Directive if its head office were situated in the UK.

Additional Notes

[Note: Art. 13(6) of the Solvency II Directive]

Instruments

Third Life Directive

19/06/2014

means the Council Directive of 10 November 1992 on the coordination of laws, etc, and amending Directives 79/267/EEC and 90/619/EEC (No 92/96/EEC).

Instruments

Third Non-Life Directive

19/06/2014

means the Council Directive of 18 June 1992 on the coordination of laws, etc, and amending Directives 73/239/EEC and 88/357/EEC (No 92/49/EEC).

Instruments

Threshold conditions

01/10/2015

This term is defined externally, please refer to -

s417 FSMA (by reference to s55B(1) FSMA)

Instruments

tied agent

02/04/2015

means a person who, under the full and unconditional responsibility of only one MiFID investment firm or third country investment firm on whose behalf it acts, promotes investment services and/or ancillary services to clients or prospective clients, receives and transmits instructions or orders from the client in respect of investment services or financial instruments, places financial instruments and/or provides advice to clients or prospective clients in respect of those financial instruments or investment services.

Instruments

Tier 1 capital

01/01/2022

has the meaning it has in Article 25 of the CRR.

Instruments

tier 1 capital (leverage)

01/01/2022

means tier 1 capital as defined in Article 25 of the CRR except that an additional tier 1 capital instrument can only be counted as tier 1 capital (leverage) if it either:

(a) converts into common equity tier 1 capital; or 

(b) writes down,

when the common equity tier 1 capital ratio of the firm falls below a level equal to either:

(a) 7%; or 
(b) a level higher than 7%,

as specified in the provisions governing the instrument.

In this definition:

(a) ‘additional tier 1 capital’ has the meaning given in Article 61 of the CRR;
(b) ‘common equity tier 1 capital’ has the meaning given in Article 50 of the CRR; and
(c) ‘common equity tier 1 capital ratio’ has the meaning given in Article 92(2)(a) of the CRR.

Instruments

Tier 1 own funds

01/01/2016

means an item of basic own funds that satisfies the conditions in Own Funds 3.1.

Instruments

Tier 2 basic own funds

01/01/2016

means an item of Tier 2 own funds that is an item of basic own funds.

Instruments

Tier 2 own funds

01/01/2016

means an item of own funds that satisfies the conditions in Own Funds 3.2.

Instruments

Tier 3 own funds

01/01/2016

means an item of own funds referred to in Own Funds 3.3.

Instruments

tier one capital

01/01/2016

means an item of capital that is specified in stages A (Core tier one capital), B (Perpetual non-cumulative preference shares) or C (innovative tier one capital) of the capital resources table.

Instruments

tier two capital resources

01/01/2016

means the sum calculated at stage I (Total tier two capital) of the calculation in the capital resources table.

Instruments

tontine

01/01/2016

means the class of contracts of insurance specified in paragraph V of part II of Schedule 1 to the Regulated Activities Order.

Instruments

total assets

01/10/2018

means:

(1) for a firm which is required to submit data item FSA001, the sum of the firm’s assets as recorded at Cells 20A plus 20B of that data item;

(2) for a firm which is required to submit data item template 1.01 of Annex III of the Supervisory Reporting ITS, the sum of the firm’s assets as recorded at row 380 of that data item; or

(3) for a firm which is required to submit data item template 1.01 of Annex IV of the Supervisory Reporting ITS, the sum of the firm’s assets as recorded at row 380 of that data item.

Instruments

total capital after deductions

01/01/2016

(1) in relation to an undertaking with a Part 4A permission, the total capital after deductions calculated as if that undertaking were required to calculate its capital resources in accordance with Insurance Company – Capital Resources Table 2.1, but with such adjustments being made to secure that the undertaking’s calculation of its total capital after deductions complies with relevant capital provisions in the PRA Rulebook or FCA Handbook;

(2) in relation to any other subsidiary, the total capital after deductions of the undertaking calculated as if the undertaking were required to calculate its total capital resources in accordance with Insurance Company – Capital Resources Table 2.1.

Instruments

total exposure measure

01/01/2022

has the meaning given in Article 429(4) of Chapter 3 of the Leverage Ratio (CRR) Part.

Instruments

transferable securities

03/01/2018

means as defined in Article 4(1)(44) of MiFID II.

Instruments

transitional deduction

01/01/2016

means the deduction from technical provisions applied in accordance with Transitional Measures 11.1.

Instruments

Transitional Order

10/12/2018

means the Financial Services (Banking Reform) Act 2013 (Transitional and Savings Provisions) Order 2015 (SI 2015/492).

Instruments

Treasury

01/01/2022

This term is defined externally, please refer to -

Schedule 1, Interpretation Act 1978

Instruments