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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

real estate


means an interest in land, buildings or other immoveable property.

recognised scheme


means a scheme recognised under:

(1) section 264 of FSMA (Schemes constituted in other EEA States);

(2) section 270 of FSMA (Schemes authorised in designated countries or territories); or

(3) section 272 of FSMA (Individually recognised overseas schemes).

recovery plan



(1) (except in the Group Supervision Part of the PRA Rulebook), the Recovery Plans Part of the PRA Rulebook and the Operational Continuity Part of the PRA Rulebook), the recovery plan required to be provided by a firm to the PRA under Undertakings in Difficulty 3.1(2);

(2) (in the Group Supervision Part of the PRA Rulebook), the recovery plan required to be provided by a relevant insurance group undertaking to the PRA under Group Supervision 4.4(2); and

(3) (in the Recovery Plans Part of the PRA Rulebook and the Operational Continuity Part of the PRA Rulebook) a recovery plan drawn up by a firm in accordance with Recovery Plans 2.

Regulated Activities Order


means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544).

regulated activity


This term is defined externally, please refer to -

FSMA s22

regulated affiliated company


means an affiliated company which has a Part 4A permission.

regulated benchmark administrator


a person who has a Part 4A permission to carry on the regulated activity of administering a benchmark.

regulated collective investment scheme



(1) an ICVC;

(2) an authorised unit trust scheme;

(3) an authorised contractual scheme; or

(4) a recognised scheme.

regulated institution


means any of the following:

(1) a Solvency II undertaking, the Society, a managing agent or a third country branch undertaking; or

(2) a CRD credit institution; or

(3) a non-directive insurer; or

(4) a firm whose permission includes dealing in investments as principal with respect to derivatives which are not listed; or

(5) 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 (4).

regulated market



(1) a regulated market as defined in article 4(1)(21) of MiFID II; or

(2) a market situated outside the EEA States which is characterised by the fact that:

(a) it meets comparable requirements to those set out in (1); and

(b) the financial instruments dealt in are of a quality comparable to those in a regulated market in the UK.

regulatory system


means the arrangements for regulating a firm or other person in or under FSMA, the Bank of England Act 1998, the Banking Act 2009, the Friendly Societies Act 1974, the Friendly Societies Act 1992, the Credit Unions Act 1979, including the threshold conditions, the Fundamental Rules and other rules, the Statements of Principle, codes and guidance given by the PRA, the Bank of England or the FCA and including any relevant directly applicable provisions of an EU Directive or Regulation including those specified under section 204A(2) of FSMA.



includes retrocession.

reinsurance contract


means a contract of insurance covering all or part of a risk to which a person is exposed under a contract of insurance.

Reinsurance Directive


means the Directive of 16 November 2005 of the European Parliament and of the Council (No 2005/68/EC) on reinsurance and amending the First Non-Life Directive and the Third Non-Life Directive as well as the Insurance Groups Directive and the Consolidated Life Directive.

reinsurance distribution


has the meaning given in Article 2(1)(2) of the Insurance Distribution Directive.

reinsurance to close



(1) 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 another 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; or

(2) a similar reinsurance agreement or arrangement that has been approved by the Council as a reinsurance to close.

reinsurance undertaking


means an insurance undertaking whose insurance business is restricted to reinsurance.



means an insurance undertaking whose business includes effecting contracts of insurance or carrying out contracts of insurance that are reinsurance contracts; includes a retrocessionaire.

relevant capital sum


means the sum under a contract of insurance which is:

(1) unless (2) applies;

(a) for whole life assurances, the sum assured;

(b) for contracts of insurance where a sum is payable on maturity (including contracts where a sum is also payable on earlier death), the sum payable on maturity;

(c) for deferred annuities, the capitalised value of the annuity at the vesting date (or the cash option if it is greater);

(d) for capital redemption contracts, the sum payable at the end of the contract period; and

(e) for linked long-term contracts of insurance, notwithstanding (a) to (d), the lesser of:

(i) the amount for the time being payable on death; and

(ii) the aggregate of the value for the time being of the units allocated to the contract (or, where entitlement is not denoted by means of units, the value for the time being of any other measure of entitlement under the contract equivalent to units) and the total amount of the premiums remaining to be paid during such of the term of the contract as is appropriate for zillmerising or, if such premiums are payable beyond the age of seventy-five, until that age;

      but excluding in all cases any vested reversionary bonus; and

(2) for temporary assurances, the sum assured on the actuarial valuation date.

relevant date


means, in relation to the valuation of any asset for any purpose for which the rules in Friendly Society – Asset Valuation apply, the date when the asset falls to be valued for that purpose.

relevant insurance group undertaking


means, in relation to a group falling within Group Supervision 2.1(1) or 2.1(2), each UK Solvency II undertaking within that group.

relevant insurer


means, in relation to a Community co-insurance operation, an insurer which is concerned in the operation but is not the leading insurer.

relevant legislation



(1) FSMA;

(2) the Capital Requirements Regulations;

(3) the Solvency 2 Regulations 2015;

(4) any other enactment; or

(5) any directly applicable EU regulation.

relevant person


means any of the following:

(1) a director, partner or equivalent, manager or appointed representative (or where applicable, tied agent) of the firm;

(2) a director, partner or equivalent, or manager of any appointed representative (or where applicable, tied agent) of the firm;

(3) an employee of the firm or of an appointed representative (or where applicable, tied agent) of the firm; as well as any other natural person whose services are placed at the disposal and under the control of the firm or an appointed representative or a tied agent of the firm and who is involved in the provision by the firm of regulated activities; or

(4) a natural person who is directly involved in the provision of services to the firm or its appointed representative (or where applicable, tied agent) under an outsourcing arrangement, for the purpose of the provision by the firm of regulated activities.

relevant portfolio of insurance or reinsurance obligations


means a portfolio of insurance or reinsurance obligations falling within any long-term insurance business class, including annuities stemming from a contract of general insurance, in respect of which a firm has been granted a matching adjustment approval.

relevant risk-free interest rate term structure


means the relevant risk-free interest rate term structure, in accordance with:

(1) Technical Provisions 5 and 8.3 to 8.4;

(2) the Solvency II Regulations adopted under Article 86 of the Solvency II Directive; and

(3) any technical information made by EIOPA under Article 77e(1)(a) of the Solvency II Directive and adopted in Solvency II Regulations under Article 77e(2) of the Solvency II Directive.

relevant senior management function


means, for the purposes of section 64A of FSMA and to the extent applicable, pursuant to the FCA Handbook, to a UK Solvency II firm, the Society, a managing agent, a third country branch undertaking (other than a Swiss general insurer), an ISPV, a large non-directive insurer or a small non directive insurer:

  1. an FCA governing function; and

  2. [Deleted.];

  3. [Deleted.];

  4. [Deleted.];

  5. [Deleted.];

  6. [Deleted.];

  7. Compliance oversight function (FCA controlled function SMF 16).



means any form of remuneration, including salary, discretionary pension benefits and benefits of any kind.




(1) an agreement between a seller and buyer for the sale of securities, under which the seller agrees to repurchase the securities, or equivalent securities, at an agreed date and, usually, at a stated price; or

(2) an agreement between a buyer and a seller for the purchase of securities, under which they buyer agrees to resell the securities, or equivalent securities, at an agreed date and, usually, at a stated price.

required margin of solvency


means the amount calculated in accordance with Friendly Society – Overall Resources and Guarantee Fund 3.



means a requirement included in a firm's Part 4A permission under section 55L FSMA (Imposition of requirements by the FCA), section 55M FSMA (Imposition of Requirements by the PRA) or section 55O FSMA (Imposition of requirements on acquisition of control).

resilience capital requirement


means one of the components of the long-term insurance capital requirement as set out in Insurance Company – Capital Resources Requirements 20.

retail client


means a client who is neither a professional client or an eligible counterparty.

RFB sub-consolidated basis


means on the sub-consolidated basis of the sub-consolidation group.

ring-fenced body


This term is defined externally, please refer to -

Section 417(1) FSMA

ring-fenced holding company


means a body corporate falling within section 192JA(2) of FSMA that is the ultimate parent undertaking within a sub-consolidation group.

risk concentration


has the meaning given in point (19) of Article 2 of the Financial Groups Directive.

risk control rules


means the rules in Internal Capital Adequacy Assessment 4 to 11.

risk margin


means the portion of technical provisions calculated in accordance with Technical Provisions 4.1 to 4.2.

risk measure


means a mathematical function which assigns a monetary amount to a given probability distribution forecast and increases monotonically with the level of risk exposure underlying that probability distribution forecast.

Additional Notes

[Note: Art. 13(39) of the Solvency II Directive]

risk-free interest rate transitional measure


means a transitional adjustment to the relevant risk-free interest rate term structure, referred to in Transitional Measures 10.1.

risk-mitigation techniques


means all techniques which enable a Solvency II undertaking to transfer part or all of its risks to another party.

Additional Notes

[Note: Art. 13(36) of the Solvency II Directive]

rolling spot forex contract


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