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
capital add-on 01/01/2016	means the amount by which the SCR of a UK Solvency II firm, or the group SCR of a group (as appropriate), is increased by the PRA as a result of a standard formula significant risk profile deviation, internal model significant risk profile deviation, significant system of governance deviation, significant deviation from relevant assumptions or (if appropriate) a specific risk existing at group level.
capital redemption 01/01/2016	means the class of contract of insurance, specified in paragraph VI of Part II of Schedule 1 to the Regulated Activities Order.
Capital Requirements Regulations 19/06/2014	means the Capital Requirements Regulations 2013 (SI 2013/3115).
capital resources 01/01/2016	means the firm’s capital resources as calculated in accordance with Insurance Company – Capital Resources 2.1.
capital resources table 01/01/2016	means the capital resources calculation table at Insurance Company – Capital Resources Table 2.1.
carrying out contracts of insurance 19/06/2014	means the regulated activity specified in article 10(2) of the Regulated Activities Order (Effecting and carrying out contracts of insurance).
central assets 01/01/2016	means the Society's own assets that are available at its discretion to meet a member's liabilities in respect of insurance business.
central counterparty 01/01/2019	This term is defined externally, please refer to - Article 4(1)(34) CRR
Central Fund 03/07/2015	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).
central liabilities 01/01/2016	means the liabilities of the Society, excluding any liabilities of members (unless the Society has exercised its discretion to meet such liabilities) or any other participant at Lloyd's other than the Society.
central requirement 01/01/2016	means the calculation made by the Society pursuant to the requirements of Solvency Capital Requirement – General Provisions 7.3 .
certificate 07/03/2016	means a certificate issued under section 63F(1) of FSMA (Issuing of certificates).
certification employee 10/12/2018	means an employee (within the meaning in section 63E(9) of FSMA (certification of employees by authorised persons)) of a firm who has a valid certificate issued by that firm.
certification function 10/12/2018	means: (1) for a CRR firm, a credit union and a third country CRR firm in relation to the activities of its establishment in the UK has the meaning given in Certification 2.2 – 2.4; (2) for a UK Solvency II firm, the Society, a managing agent, a third country branch undertaking (other than a Swiss general insurer) and a UK ISPV has the meaning given in Insurance – Certification 2; (3) for a large non-directive insurer and a Swiss general insurer has the meaning given in Large Non-Solvency II Firms – Certification 2; and (4) for a small non-directive insurer has the meaning given in Non-solvency II Firms – Certification 2.
certification regime 10/12/2018	means the requirements of the regulatory system which apply to authorised persons insofar as they relate to persons performing certification functions including those set out in Certification, Fitness and Propriety, Insurance – Certification, Insurance – Fitness and Propriety, Large Non-Solvency II Firms – Certification, Large Non-Solvency II Firms – Fitness and Propriety, Non-Solvency II Firms – Certification and Non-Solvency II Firms – Fitness and Propriety and the corresponding FCA requirements in SYSC 27 and FIT of the FCA Handbook.
Chair of Audit Committee function 10/12/2018	has the meaning given in Senior Management Functions 4.4.
Chair of Remuneration Committee function 10/12/2018	has the meaning given in Senior Management Functions 4.5.
Chair of Risk Committee function 10/12/2018	has the meaning given in Senior Management Functions 4.3.
Chair of the Governing Body function 10/12/2018	has the meaning given in Senior Management Functions 4.2.
Chief Risk function 01/01/2019	has the meaning given in Senior Management Functions 3.4.
claims amount 01/01/2016	means an amount, as defined in Insurance Company – Capital Resources Requirements 9.1 in the Non-Solvency II Firms Sector, used in the calculation of the general insurance capital requirement.
class 01/01/2016	means (in relation to a contract of insurance) any class of contract of insurance listed in Schedule 1 to the Regulated Activities Order.
clearing member 01/01/2019	This term is defined externally, please refer to - Article 300(3) CRR
client 02/04/2015	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.
close links 01/01/2016	(in the Solvency II Firms Sector of the PRA Rulebook) means a situation in which two or more persons are linked by control or participation, or a situation in which two or more persons are permanently linked to one and the same person by a control relationship. Additional Notes *[Note: Art. 13(17) of the Solvency II Directive]*
collateral 01/01/2016	means (1) (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 (2) (in relation to a stock lending, repo or derivative transaction only): (a) 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 transferor; or (b) 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.
collective investment scheme 01/01/2016	This term is defined externally, please refer to - s235(1) FSMA
commodity future 03/08/2015	has the meaning given in the PRA Handbook as at 31 July 2015.
commodity option 03/08/2015	has the meaning given in the PRA Handbook as at 31 July 2015.
Community co-insurance operation 01/01/2016	means a co-insurance operation which relates to one or more risks classified under general insurance business classes 3 to 16 and which fulfils the conditions set out in Article 190(1)(a) to (f) of the Solvency II Directive.
compensation funds 01/01/2016	means any policyholder compensation scheme in any EEA State.
compensation scheme 03/07/2015	means the Financial Services Compensation Scheme established under section 213 of FSMA.
competent authority 03/01/2018	means the authority, designated by each EEA State in accordance with Article 67 of MiFID II, unless otherwise specified in MiFID II. Additional Notes *[Note: Art. 4(1)(26) of MiFID II]*
composite firm 01/01/2016	means a firm that carries on both long-term insurance business and general insurance business.
Conduct Rules non-executive director 03/07/2017	means, in relation to a firm, a person who: (1) is a member of the board of directors of the firm or, if there is no such board, the equivalent body responsible for the management of the firm; (2) is not an approved person in relation to the firm; and (3) does not perform an executive function in relation to that firm.
conduct standards 07/03/2016	(1) for a UK Solvency II firm, the Society, a managing agent and a UK ISPV, means the standards of expected conduct specified in Insurance – Conduct Standards 3; (2) for a third country branch undertaking (other than a UK-deposit insurer or a Swiss general insurer), means the standards of expected conduct specified in Insurance - Conduct Standards 3.1 to 3.3 and, taking account only of matters relevant to the operations of the third country branch, Insurance – Conduct Standards 3.4 to 3.8; (3) for a UK-deposit insurer, means the standards of expected conduct specified in Insurance - Conduct Standards 3.1 to 3.3 and, taking account only of matters relevant to the operations of the third country branch and all the third country undertaking EEA branches, Insurance – Conduct Standards 3.4 to 3.8; (4) for a small non-directive insurer, means the standards of expected conduct specified in Non-Solvency II Firms - Conduct Standards 2; (5) for a large non-directive insurer, means the standards of expected conduct specified in Large Non-Solvency II Firms - Conduct Standards 3; and (6) for a Swiss general insurer, means the standards of expected conduct specified in Large Non-Solvency II Firms - Conduct Standards 3 taking account only of matters relevant to the operations of the third country branch.
consolidated basis 03/08/2015	has the meaning in article 4(1)(48) of the CRR.
Consolidated Life Directive 19/06/2014	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.
consolidation group 30/03/2018	means the undertakings that a firm is required to include in the scope of consolidation pursuant to Articles 18, 19 and 23 of the CRR and Groups 2.1- 2.3.
contract for differences 01/01/2016	means the investment specified in article 85 of the Regulated Activities Order.
contract of differences 03/08/2015	means the investment specified in article 85 of the Regulated Activities Order.
contract of insurance 03/08/2015	(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.
contracts of general insurance 19/06/2014	has the meaning given in article 3(1) of the Regulated Activities Order.
contracts of long-term insurance 19/06/2014	has the meaning given in article 3(1) of the Regulated Activities Order.
contractually based investment 03/08/2015	has the meaning provided in Article 3(1) of the Regulated Activities Order.
contribution of input data 29/06/2018	has the meaning given in article 3.1(8) of the benchmarks regulation.
control 01/01/2016	(in the Solvency II Firms Sector of the PRA Rulebook) means the relationship between a parent undertaking and a subsidiary undertaking where that relationship falls within (1) to (7) of the definition of parent undertaking, or a similar relationship between any person and an undertaking. Additional Notes *[Note: Art. 13(18) of the Solvency II Directive]*
controlled function 19/06/2014	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).
conversion notification 10/12/2018	means a notice required to be sent to the PRA under article 2(1) or 11(b) of the Transitional Order including any update to such a notice.
coordinator 03/08/2015	means, in relation to a financial conglomerate, the competent authority appointed as coordinator in accordance with Article 10(1) of the Financial Groups Directive.
core UK group 03/08/2015	means all counterparties that: (a) are listed in a firm’s core UK group permission; (b) in relation to a firm, satisfy the conditions in Article 113(6) of the CRR; and (c) in respect of which exposures are exempted, under Article 400(1)(f) of the CRR, from the application of Article 395(1) of the CRR.
core UK group permission 03/08/2015	means a permission given by the PRA under Article 113(6) of the CRR.
Council 19/06/2014	means the governing body of the Society constituted by section 3 of the Lloyd’s Act 1982.
counterparty 01/01/2016	means in relation to an insurer: (1) any one individual; (2) any one unincorporated body of persons; (3) any one undertaking not being a member of a group; (4) any group undertakings excluding any undertakings within the group which are subsidiaries of the firm; or (5) any government of a State together with all the public bodies, local authorities or nationalised industries of that State, in which the firm has made investments or against whom it has rights whether under of a contract entered into by the firm or otherwise.
covered bonds 01/01/2016	means a debenture that is issued by a credit institution which: (1) has its head office in an EEA State; and (2) is subject by law to special official supervision designed to protect the holders of the debenture; in particular, sums deriving from the issue of the debenture must be invested in accordance with the law in assets which, during the whole period of validity of the debenture, are capable of covering claims attaching to the debenture and which, in the event of failure of the issuer, would be used on a priority basis for the reimbursement of the principal and payment of the accrued interest.
CR Requirement 01/01/2016	means an amount of capital resources that a firm must hold as set out in Insurance Company – Capital Resources Requirements 4 and 5.
CRD 01/01/2014	means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
CRD credit institution 19/06/2014	means a credit institution that has its registered office (or, if it has no registered office, its head office) in an EEA State, excluding an institution to which the CRD does not apply under Article 2 of the CRD.
credit institution 01/05/2014	has the meaning given in point (1) of Article 4(1) of the CRR.
credit risk 01/01/2016	means the risk of loss, or of adverse change, in the financial situation, resulting from fluctuations in the credit standing of issuers of securities, counterparties and any debtors to which a Solvency II undertaking is exposed, in the form of counterparty default risk, or spread risk, or market risk concentrations. Additional Notes *[Note: Art. 13(32) of the Solvency II Directive]*
credit union 06/09/2016	means a credit union as defined by: (1) the Credit Unions Act 1979; or (2) the Credit Unions (Northern Ireland) Order 1985 which is an authorised person.
credit union non-executive director 07/03/2016	means a non-executive director of a credit union who is not an approved person in relation to that credit union.
Credit Union Senior Manager function 07/03/2016	has the meaning given in Senior Management Functions 6.2.
critical services 01/01/2019	means activities, functions or services performed for one or more business units of the firm or for the firm and another member of its group, whether by the firm itself, any other group member or a person outside the firm’s group, the failure of which would lead to the collapse of or present a serious impediment to the performance of the firm’s critical functions.
cross border services 02/04/2015	means: (1) (in relation to a UK firm) services provided within an EEA State other than the UK under the freedom to provide services; and (2) (in relation to an incoming EEA firm or an incoming Treaty firm) services provided within the UK under the freedom to provide services.
CRR 01/01/2014	Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012.
CRR firm 01/01/2014	means a UK bank, a building society or a UK designated investment firm.
CRR permission 01/01/2016	means a permission given to a firm by the PRA under powers conferred on the PRA by the CRR.

Term

Definition

Legal instruments for this definition

01/01/2016

means the amount by which the SCR of a UK Solvency II firm, or the group SCR of a group (as appropriate), is increased by the PRA as a result of a standard formula significant risk profile deviation, internal model significant risk profile deviation, significant system of governance deviation, significant deviation from relevant assumptions or (if appropriate) a specific risk existing at group level.

capital redemption

01/01/2016

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

Capital Requirements Regulations

19/06/2014

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

capital resources

01/01/2016

means the firm’s capital resources as calculated in accordance with Insurance Company – Capital Resources 2.1.

capital resources table

01/01/2016

means the capital resources calculation table at Insurance Company – Capital Resources Table 2.1.

carrying out contracts of insurance

19/06/2014

means the regulated activity specified in article 10(2) of the Regulated Activities Order (Effecting and carrying out contracts of insurance).

central assets

01/01/2016

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

central counterparty

01/01/2019

This term is defined externally, please refer to -

Article 4(1)(34) CRR

Central Fund

03/07/2015

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).

central liabilities

01/01/2016

means the liabilities of the Society, excluding any liabilities of members (unless the Society has exercised its discretion to meet such liabilities) or any other participant at Lloyd's other than the Society.

central requirement

01/01/2016

means the calculation made by the Society pursuant to the requirements of Solvency Capital Requirement – General Provisions 7.3 .

certificate

07/03/2016

means a certificate issued under section 63F(1) of FSMA (Issuing of certificates).

certification employee

10/12/2018

means an employee (within the meaning in section 63E(9) of FSMA (certification of employees by authorised persons)) of a firm who has a valid certificate issued by that firm.

certification function

10/12/2018

means:

(1) for a CRR firm, a credit union and a third country CRR firm in relation to the activities of its establishment in the UK has the meaning given in Certification 2.2 – 2.4;

(2) for a UK Solvency II firm, the Society, a managing agent, a third country branch undertaking (other than a Swiss general insurer) and a UK ISPV has the meaning given in Insurance – Certification 2;

(3) for a large non-directive insurer and a Swiss general insurer has the meaning given in Large Non-Solvency II Firms – Certification 2; and

(4) for a small non-directive insurer has the meaning given in Non-solvency II Firms – Certification 2.

certification regime

10/12/2018

means the requirements of the regulatory system which apply to authorised persons insofar as they relate to persons performing certification functions including those set out in Certification, Fitness and Propriety, Insurance – Certification, Insurance – Fitness and Propriety, Large Non-Solvency II Firms – Certification, Large Non-Solvency II Firms – Fitness and Propriety, Non-Solvency II Firms – Certification and Non-Solvency II Firms – Fitness and Propriety and the corresponding FCA requirements in SYSC 27 and FIT of the FCA Handbook.

Chair of Audit Committee function

10/12/2018

has the meaning given in Senior Management Functions 4.4.

Chair of Remuneration Committee function

10/12/2018

has the meaning given in Senior Management Functions 4.5.

Chair of Risk Committee function

10/12/2018

has the meaning given in Senior Management Functions 4.3.

Chair of the Governing Body function

10/12/2018

has the meaning given in Senior Management Functions 4.2.

Chief Risk function

01/01/2019

has the meaning given in Senior Management Functions 3.4.

claims amount

01/01/2016

means an amount, as defined in Insurance Company – Capital Resources Requirements 9.1 in the Non-Solvency II Firms Sector, used in the calculation of the general insurance capital requirement.

class

01/01/2016

means (in relation to a contract of insurance) any class of contract of insurance listed in Schedule 1 to the Regulated Activities Order.

clearing member

01/01/2019

This term is defined externally, please refer to -

Article 300(3) CRR

client

02/04/2015

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.

close links

01/01/2016

(in the Solvency II Firms Sector of the PRA Rulebook) means a situation in which two or more persons are linked by control or participation, or a situation in which two or more persons are permanently linked to one and the same person by a control relationship.

[Note: Art. 13(17) of the Solvency II Directive]

collateral

01/01/2016

means

(1) (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

(2) (in relation to a stock lending, repo or derivative transaction only):

(a) 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 transferor; or

(b) 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.

collective investment scheme

01/01/2016

This term is defined externally, please refer to -

s235(1) FSMA

commodity future

03/08/2015

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

commodity option

03/08/2015

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

Community co-insurance operation

01/01/2016

means a co-insurance operation which relates to one or more risks classified under general insurance business classes 3 to 16 and which fulfils the conditions set out in Article 190(1)(a) to (f) of the Solvency II Directive.

compensation funds

01/01/2016

means any policyholder compensation scheme in any EEA State.

compensation scheme

03/07/2015

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

competent authority

03/01/2018

means the authority, designated by each EEA State in accordance with Article 67 of MiFID II, unless otherwise specified in MiFID II.

[Note: Art. 4(1)(26) of MiFID II]

composite firm

01/01/2016

means a firm that carries on both long-term insurance business and general insurance business.

Conduct Rules non-executive director

03/07/2017

means, in relation to a firm, a person who:

(1) is a member of the board of directors of the firm or, if there is no such board, the equivalent body responsible for the management of the firm;
(2) is not an approved person in relation to the firm; and
(3) does not perform an executive function in relation to that firm.

conduct standards

07/03/2016

(1) for a UK Solvency II firm, the Society, a managing agent and a UK ISPV, means the standards of expected conduct specified in Insurance – Conduct Standards 3;

(2) for a third country branch undertaking (other than a UK-deposit insurer or a Swiss general insurer), means the standards of expected conduct specified in Insurance - Conduct Standards 3.1 to 3.3 and, taking account only of matters relevant to the operations of the third country branch, Insurance – Conduct Standards 3.4 to 3.8;

(3) for a UK-deposit insurer, means the standards of expected conduct specified in Insurance - Conduct Standards 3.1 to 3.3 and, taking account only of matters relevant to the operations of the third country branch and all the third country undertaking EEA branches, Insurance – Conduct Standards 3.4 to 3.8;

(4) for a small non-directive insurer, means the standards of expected conduct specified in Non-Solvency II Firms - Conduct Standards 2;

(5) for a large non-directive insurer, means the standards of expected conduct specified in Large Non-Solvency II Firms - Conduct Standards 3; and

(6) for a Swiss general insurer, means the standards of expected conduct specified in Large Non-Solvency II Firms - Conduct Standards 3 taking account only of matters relevant to the operations of the third country branch.

consolidated basis

03/08/2015

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

Consolidated Life Directive

19/06/2014

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.

consolidation group

30/03/2018

means the undertakings that a firm is required to include in the scope of consolidation pursuant to Articles 18, 19 and 23 of the CRR and Groups 2.1- 2.3.

contract for differences

01/01/2016

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

contract of differences

03/08/2015

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

contract of insurance

03/08/2015

(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.

contracts of general insurance

19/06/2014

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

contracts of long-term insurance

19/06/2014

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

contractually based investment

03/08/2015

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

contribution of input data

29/06/2018

has the meaning given in article 3.1(8) of the benchmarks regulation.

control

01/01/2016

(in the Solvency II Firms Sector of the PRA Rulebook) means the relationship between a parent undertaking and a subsidiary undertaking where that relationship falls within (1) to (7) of the definition of parent undertaking, or a similar relationship between any person and an undertaking.

[Note: Art. 13(18) of the Solvency II Directive]

controlled function

19/06/2014

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).

conversion notification

10/12/2018

means a notice required to be sent to the PRA under article 2(1) or 11(b) of the Transitional Order including any update to such a notice.

coordinator

03/08/2015

means, in relation to a financial conglomerate, the competent authority appointed as coordinator in accordance with Article 10(1) of the Financial Groups Directive.

core UK group

03/08/2015

means all counterparties that:

(a) are listed in a firm’s core UK group permission;

(b) in relation to a firm, satisfy the conditions in Article 113(6) of the CRR; and

(c) in respect of which exposures are exempted, under Article 400(1)(f) of the CRR, from the application of Article 395(1) of the CRR.

core UK group permission

03/08/2015

means a permission given by the PRA under Article 113(6) of the CRR.

Council

19/06/2014

means the governing body of the Society constituted by section 3 of the Lloyd’s Act 1982.

counterparty

01/01/2016

means in relation to an insurer:

(1) any one individual;

(2) any one unincorporated body of persons;

(3) any one undertaking not being a member of a group;

(4) any group undertakings excluding any undertakings within the group which are subsidiaries of the firm; or

(5) any government of a State together with all the public bodies, local authorities or nationalised industries of that State,

in which the firm has made investments or against whom it has rights whether under of a contract entered into by the firm or otherwise.

covered bonds

01/01/2016

means a debenture that is issued by a credit institution which:

(1) has its head office in an EEA State; and

(2) is subject by law to special official supervision designed to protect the holders of the debenture; in particular, sums deriving from the issue of the debenture must be invested in accordance with the law in assets which, during the whole period of validity of the debenture, are capable of covering claims attaching to the debenture and which, in the event of failure of the issuer, would be used on a priority basis for the reimbursement of the principal and payment of the accrued interest.

CR Requirement

01/01/2016

means an amount of capital resources that a firm must hold as set out in Insurance Company – Capital Resources Requirements 4 and 5.

CRD

01/01/2014

means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.

CRD credit institution

19/06/2014

means a credit institution that has its registered office (or, if it has no registered office, its head office) in an EEA State, excluding an institution to which the CRD does not apply under Article 2 of the CRD.

credit institution

01/05/2014

has the meaning given in point (1) of Article 4(1) of the CRR.

credit risk

01/01/2016

means the risk of loss, or of adverse change, in the financial situation, resulting from fluctuations in the credit standing of issuers of securities, counterparties and any debtors to which a Solvency II undertaking is exposed, in the form of counterparty default risk, or spread risk, or market risk concentrations.

[Note: Art. 13(32) of the Solvency II Directive]

credit union

06/09/2016

means a credit union as defined by:

(1) the Credit Unions Act 1979; or

(2) the Credit Unions (Northern Ireland) Order 1985

which is an authorised person.

credit union non-executive director

07/03/2016

means a non-executive director of a credit union who is not an approved person in relation to that credit union.

Credit Union Senior Manager function

07/03/2016

has the meaning given in Senior Management Functions 6.2.

critical services

01/01/2019

means activities, functions or services performed for one or more business units of the firm or for the firm and another member of its group, whether by the firm itself, any other group member or a person outside the firm’s group, the failure of which would lead to the collapse of or present a serious impediment to the performance of the firm’s critical functions.

cross border services

02/04/2015

means:

(1) (in relation to a UK firm) services provided within an EEA State other than the UK under the freedom to provide services; and

(2) (in relation to an incoming EEA firm or an incoming Treaty firm) services provided within the UK under the freedom to provide services.

CRR

01/01/2014

Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012.

CRR firm

01/01/2014

means a UK bank, a building society or a UK designated investment firm.

CRR permission

01/01/2016

means a permission given to a firm by the PRA under powers conferred on the PRA by the CRR.

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Glossary

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

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

Additional Notes

Additional Notes

Additional Notes

Additional Notes