Glossary
The Rulebook Glossary contains defined terms used in more than one Part across the PRA Rulebook.
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Term | Definition | Legal instruments for this definition |
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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. |
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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. |
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Capital Requirements Regulations 19/06/2014 |
means the Capital Requirements Regulations 2013 (SI 2013/3115).
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01/01/2016 |
means the firm’s capital resources as calculated in accordance with Insurance Company – Capital Resources 2.1. |
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01/01/2016 |
means the capital resources calculation table at Insurance Company – Capital Resources Table 2.1. |
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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). |
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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. |
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01/01/2019 |
This term is defined externally, please refer to -
Article 4(1)(34) CRR |
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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). |
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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. |
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01/01/2016 |
means the calculation made by the Society pursuant to the requirements of Solvency Capital Requirement – General Provisions 7.3. |
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07/03/2016 |
means a certificate issued under section 63F(1) of FSMA (Issuing of certificates). |
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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. |
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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. |
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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. |
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Chair of Audit Committee function 10/12/2018 |
has the meaning given in Senior Management Functions 4.4. |
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Chair of Remuneration Committee function 10/12/2018 |
has the meaning given in Senior Management Functions 4.5. |
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Chair of Risk Committee function 10/12/2018 |
has the meaning given in Senior Management Functions 4.3. |
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Chair of the Governing Body function 10/12/2018 |
has the meaning given in Senior Management Functions 4.2. |
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01/01/2019 |
has the meaning given in Senior Management Functions 3.4. |
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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. |
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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. |
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01/01/2019 |
This term is defined externally, please refer to -
Article 300(3) CRR |
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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. |
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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] |
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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. |
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01/01/2016 |
This term is defined externally, please refer to -
s235(1) FSMA |
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03/08/2015 |
has the meaning given in the PRA Handbook as at 31 July 2015. |
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03/08/2015 |
has the meaning given in the PRA Handbook as at 31 July 2015. |
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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. |
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01/01/2016 |
means any policyholder compensation scheme in any EEA State. |
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03/07/2015 |
means the Financial Services Compensation Scheme established under section 213 of FSMA. |
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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] |
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01/01/2016 |
means a firm that carries on both long-term insurance business and general insurance business. |
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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; |
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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; (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. |
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03/08/2015 |
has the meaning in article 4(1)(48) of the CRR. |
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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. |
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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. |
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01/01/2016 |
means the investment specified in article 85 of the Regulated Activities Order. |
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03/08/2015 |
means the investment specified in article 85 of the Regulated Activities Order. |
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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. |
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contracts of general insurance 19/06/2014 |
has the meaning given in article 3(1) of the Regulated Activities Order. |
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contracts of long-term insurance 19/06/2014 |
has the meaning given in article 3(1) of the Regulated Activities Order. |
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contractually based investment 03/08/2015 |
has the meaning provided in Article 3(1) of the Regulated Activities Order. |
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29/06/2018 |
has the meaning given in article 3.1(8) of the benchmarks regulation. |
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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] |
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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). |
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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. |
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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. |
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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. |
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03/08/2015 |
means a permission given by the PRA under Article 113(6) of the CRR. |
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19/06/2014 |
means the governing body of the Society constituted by section 3 of the Lloyd’s Act 1982. |
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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. |
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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. |
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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. |
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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. |
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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. |
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01/05/2014 |
has the meaning given in point (1) of Article 4(1) of the CRR.
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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] |
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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. |
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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. |
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Credit Union Senior Manager function 07/03/2016 |
has the meaning given in Senior Management Functions 6.2. |
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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. |
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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. |
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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. |
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01/01/2014 |
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01/01/2016 |
means a permission given to a firm by the PRA under powers conferred on the PRA by the CRR. |