Term
Definition
Letter: A
absolute FX exposure limit
(in ELM) the amount by which an ELMI's own funds exceed 2.5% of its e-money outstandings, calculated in accordance with ELM 3.4.6 R (FX exposure limits).
- 01/12/2004
accepted channel for dissemination of information
(in relation to any prescribed market) an approved channel of communication by which information concerning investments traded on the market is formally disseminated to other market users on a structured and equitable basis.
- 01/12/2004
accepting deposits
the regulated activity, specified in article 5 of the Regulated Activities Order (Accepting deposits), which is in summary: accepting deposits if:
(a) money received by way of deposit is lent to others; or
- 01/12/2004
accident
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 1 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of the person insured or, in the case of a contract made under section 140, 140A or 140B of the Local Government Act 1972 (or, in Scotland, section 86(1) of the Local Government (Scotland) Act 1973), a person for whose benefit the contract is made:
(a) sustaining injury as the result of an accident or of an accident of a specified class; or
(b) dying as a result of an accident or an accident of a specified class; or
(c) becoming incapacitated in consequence of disease or of disease of a specified class;
including contracts relating to industrial injury and occupational disease but excluding contracts within paragraph 2 of Part I of Schedule 1 to the Regulated Activities Order (Sickness) and contracts within paragraph IV of Part II of that Schedule (Permanent health). - 01/12/2004
accounting reference date
(1) (except in COLL and CIS):
(a) (in relation to a company incorporated in the United Kingdom under the Companies Acts) the accounting reference date of that company determined in accordance with section 224 of the Companies Act 1985;
(b) (in relation to any other body) the last day of its financial year.
- 01/12/2004
accrual interval
(in COLL and CIS) (in relation to an authorised fund manager's periodic charge) the interval specified in the instrument constituting the scheme over which the periodic charge accrues.
- 01/12/2004
accumulating with-profits policy
a with-profits insurance contract which has a readily identifiable current benefit, whether or not this benefit is currently realisable, which is adjusted by an amount explicitly related to the amount of any premium payment and to which additional benefits are added in respect of participation in profits by additions directly related to the current benefit or a policy with similar characteristics.
- 31/12/2004
accumulation share
a share in respect of which income is credited periodically to capital under CIS 9.2.4 R (Annual allocation to accumulation shares or accumulation units) or CIS 9.2.6 R (Interim allocations of income).
- 01/12/2004
accumulation unit
a unit in respect of which income is credited periodically to capital under CIS 9.2.4 R (Annual allocation to accumulation shares or accumulation units) or CIS 9.2.6 R (Interim allocations of income).
- 01/12/2004
- 01/12/2004
- 01/12/2004
acting as the depositary or sole director of an open-ended investment company
the regulated activity, specified in article 51(1)(c) of the Regulated Activities Order (Establishing etc a collective investment scheme), of acting as the depositary or sole director of an open-ended investment company.
- 01/12/2004
acting as trustee of an authorised unit trust scheme
the regulated activity, specified in article 51(1)(b) of the Regulated Activities Order (Establishing etc a collective investment scheme), of acting as a trustee of an authorised unit trust scheme.
- 01/12/2004
actuarial body
the Institute of Actuaries or theFaculty of Actuaries.
- 01/12/2004
actuarial function
controlled function
CF12 in the
table of controlled functions, described more fully in SUP 4.3.13 R and
SUP 10.7.17 R
.
- 31/12/2004
actuarial health insurance
(1) (in LLD) the type of insurance defined in LLD 11.4.1 R, which is in summary: general insurance business which is sickness insurance and satisfies certain specified conditions.(2) (in PRU) (in the context of the rules in PRU 7.2 concerning the calculation of the general insurance capital requirement), health insurance which meets all the conditions set out in PRU 7.2.72 R.
- 31/12/2004
actuarial investigation
an investigation to which IPRU-INS rule 9.4 applies.
- 31/12/2004
actuarial valuation date
(in PRU) the date as at which the mathematical reserves are calculated.
- 31/12/2004
actuary
a fellow of an actuarial body or (in connection with general insurance business) a Fellow of the Casualty Actuarial Society who is a member of an actuarial body.
- 01/12/2004
actuating purpose
a purpose which motivates or incites a person to act.
- 01/12/2004
additional voluntary contribution
(a) a voluntary contribution paid by a member of an occupational pension scheme under the terms of the scheme or of a separate contract;
(b) an additional contribution paid by a member of an occupational pension scheme to which his employer is not a contributor, under which additional benefits are provided to supplement the benefits under another occupational pension scheme of which he is also a member and to which his employer is a contributor.
- 01/12/2004
administering a regulated lifetime mortgage contract
the regulated activity, specified in article 61(2) of the Regulated Activities Order, which is in summary: administering a regulated mortgage contract (which is a lifetime mortgage) where the contract was entered into on or after 31 October 2004.
- 01/12/2004
administering a regulated mortgage contract
the regulated activity, specified in article 61(2) of the Regulated Activities Order, which is in summary: administering a regulated mortgage contract where the contract was entered into on or after 31 October 2004.
- 01/12/2004
administrative expenses
has the meaning set out in the insurance accounts rules.
- 31/12/2004
administrative functions
(a) (in relation to managing investments):
(i) arranging settlement;
(ii) monitoring and processing corporate actions;
(iii) client account administration, liaison and reporting, including valuation and performance measurement;
(v) investment trust savings scheme administration;
(b) (in relation to effecting or carrying out life policies):
(i) new business administration;
(iii) preparing projections;
(iv) processing claims including pension payments;
(v) fund switching;
(c) (in relation to the operation of a stakeholder pension scheme):
(i) new business administration;
(ii) receipt of or alteration to contributions;
(iii) preparing projections and annual statements;
(iv) administration of transfers;
(v) handling claims, including pension payments;
(vi) fund allocation and switching.
- 01/12/2004
admissible asset
(1) (in LLD) an asset that may be taken into account for the purposes of the solvency requirements in LLD 11.2.1 R in accordance with LLD 13.4.1 R.
- 31/12/2004
admission to trading
- 01/12/2004
adviser
an individual who is: a representative; or an appointed representative
- 01/12/2004
adviser on syndicate participation at Lloyd's function
controlled function CF25 in the table of controlled functions, described more fully in SUP 10.10.15 R.
- 01/12/2004
advising on investments
the regulated activity, specified in article 53 of the Regulated Activities Order (Advising on investments), which is in summary: advising a person if the advice is:
(a) given to the person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor; and
(b) advice on the merits of his doing any of the following (whether as principal or agent):
(i) buying, selling, subscribing for or underwriting a particular investment which is a security or relevant investment (that is, any designated investment, funeral plan contract, pure protection contract, general insurance contract or right to or interests in a funeral plan contract); or
(ii) exercising any right conferred by such an investment, other than a pure protection contract or a general insurance contract, to buy, sell, subscribe for or underwrite such an investment.
(2) (in (Approved Persons) and APER) the regulated activity specified in article 53 (Advising on investments) of the Regulated Activities Order. For these purposes, advising on investments includes any activities that would be included but for the exclusion in article 72AA (Managers of UCITS and AIFs) of the Regulated Activities Order.
- 01/12/2004
advising on investments (except pension transfers and pension opt-outs)
- 01/12/2004
advising on pension transfers and pension opt-outs
- 01/12/2004
advising on regulated mortgage contracts
the regulated activity, specified in article 53A of the Regulated Activities Order, which is in summary: advising a person if the advice:
(a) is given to the person in his capacity as a borrower or potential borrower; and
(b) is advice on the merits of his:
(i) entering into a particular regulated mortgage contract; or
(ii) varying the terms of a regulated mortgage contract entered into by him on or after 31 October 2004 in such a way as to vary his obligations under that contract.
- 01/12/2004
advising on syndicate participation at Lloyd's
the regulated activity, specified in article 56 of the Regulated Activities Order (Advice on syndicate participation at Lloyd's), of advising a person to become, or continue or cease to be, a member of a particular Lloyd's syndicate.
- 01/12/2004
affected person
- 01/12/2004
affiliated company
- 01/12/2004
agreeing to carry on a regulated activity
the regulated activity, specified in article 64 of the Regulated Activities Order (Agreeing to carry on specified kinds of activity), of agreeing to carry on an activity specified in Part II of that Order other than:
(a) accepting deposits;
(aa) issuing electronic money;
- 01/12/2004
aircraft
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 5 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), upon aircraft or upon the machinery, tackle, furniture or equipment of aircraft.
- 01/12/2004
aircraft liability
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 11 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against damage arising out of or in connection with the use of aircraft, including third-party risks and carrier's liability.
- 01/12/2004
allocation period
a single 24-hour period or, with the agreement of each
intermediate customer
concerned, a period spanning five consecutive business days, during which an aggregated series of transactions may be executed.
- 01/12/2004
alternative trading system
a system that brings together multiple buying and selling interests in designated investments (other than life policies or
stakeholder pension schemes or rights to or interests in
life policies or stakeholder pension schemes), in the system and according to non-discretionary rules set by the system's operator in a way that results in a contract but does not include:
(a) a system that is operated by an RIE or that is
regulated market or an EEA commodities market; or
(b) a bilateral system.
- 01/12/2004
ancillary action
action, ancillary to stabilising action, permitted under MAR 2.4.2 R.
- 01/12/2004
ancillary activity
an activity which is not a regulated activity but which is:
(a) carried on in connection with a regulated activity; or
(b) held out as being for the purposes of a regulated activity.
- 01/12/2004
ancillary banking services undertaking
(as defined in article 1.23 of the Banking Consolidation Directive (Definitions)) and in relation to an undertaking in a consolidation group, sub-group or another group of persons) an undertaking complying with the following conditions:
(a) its principal activity consists in:
(i) owning or managing property;
(ii) managing data-processing services; or
(iii) any other similar activity;
(b) the activity in (a) is ancillary to the principal activity of one or more credit institutions; and
- 01/12/2004
ancillary insurance services undertaking
(in relation to any undertaking in a consolidation group, sub-group or other group of persons) an undertaking complying with the following conditions:
(a) its principal activity consists of:
(i) owning or managing property; or
(ii) managing data-processing services; or
(iii) any other similar activity;
(b) the activity in (a) is ancillary to the principal activity of one or more insurance undertakings;
(c) those insurance undertakings are also members of that consolidation group, sub-group or other group of persons; and
(d) (for the purpose of PRU 8.4 (Cross sector groups), PRU 8.5 (Third country groups), PRU 8 Ann 1R G (Capital adequacy calculations for financial conglomerates) and PRU 8 Ann 2R (Prudential rules for third country groups) it is not an ancillary banking services undertaking.
- 01/12/2004
ancillary investment services undertaking
(in relation to any undertaking in a consolidation group, sub-group or other group of persons) an undertaking complying with the following conditions:
(a) its principal activity consists of:
(i) owning or managing property; or
(ii) managing data-processing services; or
(iii) any other similar activity;
(b) the activity in (a) is ancillary to the principal activity of one or more investment firms;
(c) those investment firms are also members of that consolidation group, sub-group or other group of persons; and
(d) (for the purpose of PRU 8.4 (Cross sector groups), PRU 8.5 (Third country groups), PRU 8 Ann 1R G (Capital adequacy calculations for financial conglomerates) and PRU 8 Ann 2R (Prudential rules for third country groups) it is not an ancillary banking services undertaking.
- 01/12/2004
ancillary risk
(in relation to an insurer with permission under the Act to insure a principal risk belonging to one class (as defined for the purposes of
AUTH,
PRU, LLD and SUP) of general insurance business) a risk included in another such class which is:
(a) connected with the principal risk,
(b) concerned with the object which is covered against the principal risk, and
(c) the subject of the same contract insuring the principal risk.
However, the risks included in classes 14, 15 and 17 may not be treated as risks ancillary to other classes, except that the risk included in class 17 (legal expenses insurance) may be regarded as an ancillary risk of class 18 where: (d) the conditions laid down in (a) to (c) are fulfilled, and
(e) the principal risk relates solely to assistance provided for persons who fall into difficulties while travelling, while away from home or while away from their permanent residence or where it concerns disputes or risks arising out of, or in connection with, the use of sea-going vessels.
- 31/12/2004
ancillary services undertaking
- 31/12/2004
announceable information
information which is usually the subject of a public announcement, although not subject to any formal disclosure requirement.
- 01/12/2004
annual accounting period
(2) (in COLL) the 12 month period stipulated in the prospectus which ends on the accounting reference date.
- 01/12/2004
Annual Accounts
the Council Directive of 19 December 1991 concerning the annual accounts and consolidated accounts of insurance undertakings (No. 91/674/EEC).
- 31/12/2004
annual bonus
(in relation to a with-profits insurance contract) a discretionary addition to policy benefits under a with-profits insurance contract made by a long-term insurer as a result of the annual actuarial investigation.
- 31/12/2004
annual budget
the annual budgeted costs of operating the Financial Ombudsman Service.
- 01/12/2004
annual eligible income
(in
COMP
) the annual income (as described in Part 2 of
SUP 20 Annex 1 R
) for the firm's last financial year preceding the date for submission of the information under COMP 16.6.11R attributable to the relevant
contribution group
; or if the firm prefers, that amount of that annual income attributable to business conducted with
eligible claimants
, but only if the firm notifies FSCS of the amount in accordance with FSCS reporting requirements.
- 01/12/2004
annual income allocation date
the date in any year stated in the most recently published prospectus as the date on or before which, in respect of each annual accounting period, an allocation of income is to be made.
- 01/12/2004
annual percentage rate
the annual percentage rate of charge for a contract as calculated in accordance with MCOB 10 (Annual percentage rate).
- 01/12/2004
annual report and accounts
(a) (in relation to a company incorporated in the United Kingdom) an annual report and annual accounts as those terms are defined in sections 261(2) and 262(1) of the Companies Act 1985, together with an auditor's report prepared in relation to those accounts under section 235 of the Companies Act 1985;
(b) (in relation to any other body) any similar or analogous documents which it is required to prepare whether by its constitution or by the law under which it is established.
- 01/12/2004
annualised net written premiums
(for the purposes of PRU 7.5) in relation to a financial year, the net written premiums received during that financial year, except that in relation to a financial year that has been validly extended beyond, or shortened from, a period of 12 months, the amount of net written premiums is the amount determined in accordance with the formula: NWP x 365/Dwhere:
(1) NWP is the amount of net written premiums received in the financial year; and
(2) D is the number of days in that financial year.
- 31/12/2004
APER
the part of the Handbook in High Level Standards which has the title Statements of Principle and Code of Practice for Approved Persons.
- 01/12/2004
applicable provisions
the Host State rules with which:
(a) an incoming EEA firm is required to comply when carrying on a permitted activity through a branch or by providing services (as applicable) in the United Kingdom, as defined in paragraphs 13(4) and 14(4) of Part II of Schedule 3 to the Act (Exercise of passport rights by EEA firms); or
- 01/12/2004
applicable sectoral consolidation rules
(in respect of a financial sector and in accordance with paragraph 6.10 of
PRU 8 Ann 1R G
(Applicable sectoral consolidation rules)) the
FSA's
sectoral rules about capital adequacy and solvency on a consolidated basis applicable to that financial sector under the table in paragraph 6.11 of PRU 8 Ann 1R G.
- 01/12/2004
applicable sectoral rules
(in respect of a financial sector) applicable sectoral consolidation rules for that financial sector and the
FSA's
sectoral rules about capital adequacy and solvency applicable to that financial sector under the table in paragraph 6.8 of PRU 8 Ann 1R Gwhich of those sets of rules apply for the purpose of a particular calculation depends on the nature of that calculation.
- 01/12/2004
applications day
- 01/12/2004
appointed representative
(in accordance with section 39 of the Act (other than an authorised person) who:
(a) is a party to a contract with an authorised person (his principal) which:
(i) permits or requires him to carry on business of a description prescribed in the Appointed Representatives Regulations; and
(ii) complies with such requirements as are prescribed in those Regulations; and
(b) is someone for whose activities in carrying on the whole or part of that business his principal has accepted responsibility in writing;
and who is therefore an exempt person in relation to any regulated activity comprised in the carrying on of that business for which his principal has accepted responsibility.- 01/12/2004
Appointed Representatives Regulations
the Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 (SI 2001/1217).
- 01/12/2004
apportionment and oversight function
controlled function
CF8 in the
table of controlled functions, described more fully in
SUP 10.7.1 R
.
- 01/12/2004
appropriate actuary
an actuary appointed under SUP 4.4.1 R (Appointment of an appropriate actuary).
- 01/12/2004
appropriate personal pension
a personal pension policy or a personal pension contract under which contributions are made to a personal pension schemewhich is an appropriate scheme under section 1(8) of the Social Security Act 1986 or article 3(8) of the Social Security (Northern Ireland) Order 1986.
- 01/12/2004
appropriate valuer
(in COLL and CIS) a person who complies with the requirements of COLL 5.6.18 R (7) (Investment in property),
COLL 8.4.11 R (4)
Investment in property) or, as the case may be, CIS 5A.8.5 R (7) (Approved immovables).
- 01/12/2004
approve
(in relation to a financial promotion) approve the content of the financial promotion for the purposes of section 21 of the Act (Restrictions on financial promotion).
- 01/12/2004
approved bank
(except in COLL and CIS) (in relation to a bank account opened by a firm):
(a) if the account is opened at a branch in the United Kingdom:
(i) the Bank of England; or
(ii) the central bank of a member state of the OECD; or
(iii) a bank; or
(iv) a building society which offers, unrestrictedly, banking services; or
(v) a bank which is supervised by the central bank or other banking regulator of a member state of the OECD; or
(b) if the account is opened elsewhere:
(i) a bank in (a); or
(ii) a credit institution established in an EEA State other than the United Kingdom and duly authorised by the relevant Home State regulator; or
(iii) a bank which is regulated in the Isle of Man or the Channel Islands; or
(c) a bank supervised by the South African Reserve Bank; or
(d) any other bank that:
(in COLL and CIS) any person falling within (a-c). (i) is subject to regulation by a national banking regulator;
(ii) is required to provide audited accounts;
(iii) has minimum net assets of £5 million (or its equivalent in any other currency at the relevant time) and has a surplus revenue over expenditure for the last two financial years; and
(iv) has an annual audit report which is not materially qualified.
- 01/12/2004
approved collateral
any form of security for the discharge of any liability arising from a contingent liability investment (other than a guarantee) which:
(a) (in relation to an on-exchange transaction) is acceptable under the rules of the relevant exchange or clearing house; and
(b) (in relation to an OTC transaction) would be acceptable for a similar transaction to the relevant exchange or clearing house.
- 01/12/2004
approved counterparty
any of the following:
(a) an approved credit institution; or
(b) a firm whose permission includes dealing in investments as principal with respect to derivatives which are not listed; or
(c) an ISD investment firm whose authorisation (as referred to in article 3 of the ISD) authorises it to carry on activities of the kind referred to in (b); or
(d) in respect of a transaction involving a new issue of securities which are to be listed, the issuer or an ISD investment firm acting on behalf of the issuer.
- 31/12/2004
approved credit institution
an institution recognised or permitted under the law of an EEA State to carry on any of the activities set out in Annex 1 to the Banking Consolidation Directive.
- 31/12/2004
approved depositary
any depositary:
(a) which is subject to regulation by a national regulatory body in connection with its custody services;
(b) which is required to prepare audited accounts;
(c) whose latest annual audit report is not materially qualified; and
(d) which
(i) has minimum net assets of £5 million (or its equivalent in any other currency at the relevant time) and has surplus revenue over expenditure for the last two financial years; or
(ii) if not, nevertheless has adequate financial resources for its business.
- 01/12/2004
approved derivative
- 31/12/2004
approved financial institution
any of the following:
(a) the European Central Bank;
(b) the central bank of an EEA State;
(c) the International Bank for Reconstruction and Development;
(d) the European Bank for Reconstruction and Development;
(e) the International Finance Corporation;
(f) the International Monetary Fund;
(g) the Inter-American Development Bank;
(h) the African Development Bank;
(i) the Asian Development Bank;
(j) the Caribbean Development Bank;
(k) the European Investment Bank;
(l) the European Community; and
(m) the European Atomic Energy Community.
- 31/12/2004
approved immovable
an interest in any land or building which satisfies the conditions in CIS 5A.8.5 R (Approved immovables).
- 01/12/2004
approved mortgage
(in COLL and CIS) a mortgage:
(a) which the trustee reasonably believes can be discharged on demand or within 28 days by repayment of all the money secured by the mortgage (including, where appropriate, any additional sum provided for under the mortgage); and
(b) on which there is not secured any property, whether immediately or contingently, other than the approved immovable in question.
- 01/12/2004
approved person
a person in relation to whom the
FSA
has given its approval under section 59 of the Act (Approval for particular arrangements) for the performance of a controlled function.
- 01/12/2004
approved quasi-derivative
a quasi-derivative in respect of which the conditions in PRU 4.3.5 R are met.
- 31/12/2004
approved security
(1) (in COLL and CIS) a transferable security that is admitted to official listing in an EEA State or is traded on or under the rules of an eligible securities market (otherwise than by the specific permission of the market authority).
(2) (in LLD and
PRU
) any of the following:
(a) any security issued or guaranteed by, or the repayment of the principal of which, or the interest on which, is guaranteed by, and any loans to or deposits with, any government, public or local authority or nationalised industry or undertaking, which belongs to a Zone A country;
(b) any loan to, or deposit with, an approved financial institution;
(c) any debenture issued before 31 December 1994 by the Agricultural Mortgage Corporation Limited or the Scottish Agricultural Securities Corporation Limited.
- 31/12/2004
approved stock lending transaction
a stock lending transaction in respect of which the conditions in PRU 4.3.36 Rhave been met.
- 31/12/2004
- 01/12/2004
arrangement
(as defined in section 59(10) of the Act (Approval for particular arrangements)) any kind of arrangement for the performance of a function of an authorised person ("A") which is entered into by A or any contractor of his with another person, including, in particular, that other person's appointment to an office, his becoming a partner, or his employment (whether under a contract of service or otherwise).
- 01/12/2004
arranger
(1) (For the purposes of PRU 8 (Group risk) a firm with permission for one or more of the following: and which:
(d) is not an insurer;
(e) is not a UCITS management company;
(f) is not a local; and
(g) does not have permission:
(i) to deal in investments as principal; or
(ii) for dealing in investments as agent; or
(iii) for managing investments.
(2) (for all other purposes) a person who is arranging (bringing about) deals in investments, making arrangements with a view to transactions in investments, or agreeing to carry on any of those regulated activity.
- 01/12/2004
arranging
- 01/12/2004
arranging (bringing about) deals in investments
the regulated activity, specified in article 25(1) of the Regulated Activities Order, which is in summary: making arrangements for another person (whether as principal or agent) to buy, sell, subscribe for or underwrite a particular investment which is:
(a) a designated investment; or
(b) a funeral plan contract; or
(c) the underwriting capacity of a Lloyd's syndicate; or
(da) a pure protection contract; or
(db) a general insurance contract; or
(e) rights to or interests in investments in (b), (c) or (d).
- 01/12/2004
arranging (bringing about) regulated mortgage contracts
the regulated activity, specified in article 25A(1) of the Regulated Activities Order, which is in summary: making arrangements for another person to:
(a) enter into a regulated mortgage contract as borrower; or
(b) vary the terms of a regulated mortgage contract entered into by him as borrower on or after 31 October 2004.
(see also arranging (in relation to regulated mortgage contracts) and making arrangements with a view to regulated mortgage contracts.)- 01/12/2004
arranging deals in contracts of insurance written at Lloyd's
the regulated activity, specified in article 58 of the Regulated Activities Order (Arranging deals in contracts of insurance written at Lloyd's), carried on by the Society of Lloyd's of arranging deals in contracts of insurance written at Lloyd's.
- 01/12/2004
arranging qualifying credit
the controlled activity, specified in paragraph 10A of Schedule 1 to the Financial Promotion Order, of making arrangements:
(a) for another person to enter as borrower into an agreement for the provision of qualifying credit; or
(b) for a borrower under a regulated mortgage contract, entered into on or after 31 October 2004, to vary the terms of that contract.
- 01/12/2004
arranging safeguarding and administration of assets
that part of safeguarding and administering investments which consists solely of arranging for one or more other persons to carry on both:
(a) the safeguarding of assets belonging to another; and
(b) the administration of those assets.
- 01/12/2004
arrears
(in relation to a regulated mortgage contract) either:
(a) a shortfall (equivalent to two or more regular payments) in the accumulated total payments actually made by the customer measured against the accumulated total amount of payments due to be received from the customer; or
(b) remaining in breach, for more than one month, of an agreed borrowing limit or of an obligation to repay where the loan does not have a regular repayment plan.
- 01/12/2004
article 9 default
(as defined in article 2(2) of the compensation transitionals order) any of the following:
(a) the passing of a resolution for the voluntary winding up of an authorised insurance company within the meaning of section 3 of the Policyholders Protection Act 1975 in circumstances falling within section 5(1)(a) of that Act;
(b) the making by the court of an order for the winding up of such a company in accordance with section 5(1)(b) of that Act;
(c) the appointment of a provisional liquidator in the circumstances falling within section 15 of that Act in respect of such a company;
(d) such a company becoming a company in financial difficulties within the meaning of section 16 of that Act;
(e) a participating deposit-taker becoming insolvent for the purposes of Part II of the Banking Act 1987;
(f) a participating institution becoming insolvent within the meaning of section 25A of the Building Societies Act 1986;
(g) the beginning of a dissolution or transfer of engagements of a member society in accordance with rule 9(2) of the Rules of the Friendly Societies Protection Scheme.
- 01/12/2004
assessable mutual
(for the purposes of PRU 7.5) a mutual where the insurance business carried on by the mutual is limited to the provision of insurance business to its members and whose articles of association, rules or bye-laws provide for the calling of additional contributions from members to meet claims.
- 31/12/2004
asset identification rules
(as defined in subsection 142(2) of the Act (Insurance business: regulations supplementing Authority's rules))
rules made by the
FSA
which require an authorised person who has permission to effecting or carry out contracts of insurance to identify assets which belong to him and which are maintained in respect of a particular aspect of his business.
- 01/12/2004
asset management company
(for the purpose of ELM and
PRU 8 (Group risk)and in accordance with Article 2(5) of the Financial Groups Directive (Definitions)) a management company within the meaning of Article 1a(2) of the UCITS Directive, as well as an undertaking the registered office of which is outside the EEA and which would require authorisation in accordance with Article 5(1) of the UCITS Directive if it had its registered office within the EEA.
- 01/12/2004
asset-related capital requirement
a component of the calculation of the ECR for a firm carrying on general insurance business as set out in
PRU 3.3
.
- 31/12/2004
assistance
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 18 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), providing either or both of the following benefits:
(a) assistance (whether in cash or in kind) for persons who get into difficulties while travelling, while away from home or while away from their permanent residence;
(b) assistance (whether in cash or in kind) for persons who get into difficulties otherwise than as in (a).
- 01/12/2004
assisting in the administration and performance of a contract of insurance
the regulated activity, specified in article 39A of the Regulated Activities Order (Assisting in the administration and performance of a contract of insurance) of assisting in the administration and performance of a contract of insurance.
- 01/12/2004
associate
(in relation to a person ("A")):
(a) an affiliated company of A;
- 01/12/2004
associated call option
a right to acquire a particular amount of the relevant security or of any associated security at a future date at a particular price.
- 01/12/2004
associated security
(a) an associated call option;(b) a security of any description:
(i) which is in all respects uniform with the relevant security; or(ii) for which the relevant security may be exchanged or into which it may be converted; or(iii) which constitutes a right to obtain delivery of the relevant security; or (iv) which the holder of the relevant security has, through his holding of that security, rights to acquire or to subscribe for; or(v) which is issued or guaranteed by the issuer, or by any guarantor, of the relevant security and the prevailing market price of which is, because of similarity with the relevant security in the terms and conditions which attach to each of them respectively, likely to have a material influence on the market price of the relevant security; or(vi) which is a certificate representing a certain security in respect of the relevant security and which is in all material respects uniform with the relevant security in terms of value, size and duration.
- 01/12/2004
- 01/12/2004
ATS operator
a firm that operates an ATS or that has accepted responsibility for the operation of an ATS by an appointed representative.
- 01/12/2004
AUT
- 01/12/2004
AUTH
the Authorisation manual.
- 01/12/2004
authorisation
authorisation as an authorised person for the purposes of the Act.
- 01/12/2004
authorisation order
an order made by the
FSA
:as a result of which the AUT becomes authorised or the body becomes incorporated as an ICVC under regulation 3 of the OEIC Regulations (Open-ended investment company).
- 01/12/2004
authorised corporate director
the director of an ICVC who is the authorised corporate director of the ICVC in accordance with COLL 6.5.3 R (Appointment of an ACD) or, as the case may be, CIS 7.2.1 R (The directors) including, if relevant, an EEA UCITS management company.
- 01/12/2004
authorised fund manager
an ACD or an authorised unit trust manager.
- 01/12/2004
authorised person
(in accordance with section 31 of the Act (Authorised persons)) one of the following:
(b) an incoming EEA firm;
(c) an incoming Treaty firm;
(d) a UCITS qualifier;
(e) an ICVC;
(f) the Society of Lloyd's.
(see also GEN 2.2.18 R for the position of an authorisedpartnership or unincorporated association which is dissolved.)- 01/12/2004
authorised professional firm
a professional firm which is an authorised person.
- 01/12/2004
authorised UK representative
(in relation to a firm) a person resident in the United Kingdom who is authorised to act generally, and to accept service of any document, on behalf of the firm.
- 01/12/2004
authorised unit trust scheme
(as defined in section 237(3) of the Act (Other definitions)) a unit trust scheme which is authorised for the purposes of the Act by an authorisation order.
- 01/12/2004
authorised Voluntary Jurisdiction participant
a participant in the Voluntary Jurisdiction who is an authorised person.
- 01/12/2004
- 01/12/2004
Letter: B
backwardation
a situation in which futures prices are lower than cash prices.
- 01/12/2004
Balancing and Settlement Code
the document designated by the Secretary of State and adopted by the National Grid Company plc as the Balancing and Settlement Code as modified from time to time in accordance with the terms of the transmission licence granted under section 6(1)(b) of the Electricity Act 1989 in respect of England and Wales, or any subsequent similar instrument or arrangements.
- 01/12/2004
bank
(a) a firm with a
Part IV permission
which includes accepting deposits, and:
(i) which is a credit institution; or
but which is not a building society, a friendly society or a credit union;- 01/12/2004
Bank Accounts Directive
Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions.
- 01/12/2004
bank consolidation rule
the FSA consolidation rule in IPRU(BANK).
- 01/12/2004
banking and investment group
a group of persons (at least one of which is an EEA regulated entity that is a credit institution or an investment firm) who:
(a) form a group in respect of which the consolidated capital adequacy requirements for the banking sector or the investment services sector under:
(b) would form such a group if the scope of those sectoral rules were amended as described in paragraph 3.1 of
PRU 8 Ann 2R
(removing restrictions relating to place of incorporation or head office of members of those financial sectors).
- 01/12/2004
banking conglomerate
a financial conglomerate identified as a banking conglomerate in the decision tree in paragraph 4.5 of PRU 8 Ann 1R G (Decision tree for types of financial conglomerate and definition of most important financial sector).
- 01/12/2004
Banking Consolidation Directive
- 01/12/2004
Banking Ombudsman scheme
the former scheme set up, on a voluntary basis, to handle complaints against those banks which subscribed to it.
- 01/12/2004
banking sector
a sector composed of one or more of the following entities:
(a) a credit institution;
(b) a financial institution; and
- 01/12/2004
base capital resources requirement
- 31/12/2004
base costs
management expenses
, other than establishment costs, which are not dependent on the level of claims made on the FSCS.
- 01/12/2004
base costs levy
a levy, forming part of the management expenses levy, to meet the base costs in the financial year of the compensation scheme to which the levy relates, each participant firm's share being calculated in accordance with
COMP 13.5.5 R
.
- 01/12/2004
base currency
(1) (in COLL and CIS) the currency specified:
(a) in the instrument of incorporation of an ICVC as the currency in which its accounts are to be prepared; or
- 01/12/2004
basis risk
the risk that the relationship between two financial variables will change, particularly between two sorts of interest rate or between a hedge and the position it ostensibly hedges.
- 31/12/2004
- 01/12/2004
BCD credit institution
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 BCD does not apply under article 2(3) of the BCD (see also full BCD credit institution.).
- 01/12/2004
bearer certificate
(in COLL and CIS) a certificate or other documentary evidence of title, for which provision is made in the instrument constituting the scheme, which indicates that:
- 01/12/2004
bearer form
(in relation to a client's certificate, share transfer or other document) in a form signed by the client so that it enables a designated investment or deposit to which it relates to be sold, transferred, surrendered or dealt with in any other way without the need to obtain further written instructions and allows the firm access to the sale proceeds.
- 01/12/2004
behaviour
any kind of conduct, including action or inaction.
- 01/12/2004
bid price
- 01/12/2004
bilateral system
a system that brings together buying and selling interests in the way described in the definition of an alternative trading system, where a single person enters into one side of every transaction effected using the system, on his own account and not merely as a central counterparty interposed between a buyer and seller, or would enter into every trade in that way but for client orders that are crossed occasionally. This definition includes such a system where, rather than a single person, it is one of a number of persons in the same group that enters into one side of every transaction effected using the system.
- 01/12/2004
body corporate
(in accordance with section 417(1) of the Act (Definitions)) any body corporate, including a body corporate constituted under the law of a country or territory outside the United Kingdom.
- 01/12/2004
bonded investment
a designated investment not held by a trustee when acting as a trustee:
(a) which, except in the case of a unit, is one of the following:
(i) a readily realisable security held for a customer, whether or not held under a discretionary arrangement; or
(iii) a designated investment held by a nominee company under the control of the firm or a person whom the firm controls; or
(iv) a designated investment to which the title is recorded in electronic form;
- 01/12/2004
borrow back
a feature of a regulated mortgage contract under which the customer has the ability to re-borrow monies paid by him.
- 01/12/2004
branch
(a) (in relation to a credit institution):
(i) a place of business which forms a legally dependent part of a credit institution and which carries out directly all or some of the transactions inherent in the business of credit institutions;
(ii) for the purposes of the Banking Consolidation Directive, any number of places of business set up in the same EEA State by a credit institution with headquarters in another EEA State are to be regarded as a single branch;
(b) (in relation to an investment firm):
(i) a place of business which is a part of an investment firm, not being the principal place of business, which has no separate legal personality and which provides investment services for which the investment firm has been authorised;
(ii) for the purposes of the Investment Services Directive, all the places of business set up in the same EEA State by an investment firm with headquarters in another EEA State are to be regarded as a single branch;
(c) (in relation to an insurance undertaking) any permanent presence of the insurance undertaking in an EEA State other than that in which it has its head office is to be regarded as a single branch, whether that presence consists of a single office which, or two or more offices each of which:
(i) is managed by the insurance undertaking's own staff; or
(ii) is an agency of the insurance undertaking; or
(iii) is managed by a person who is independent of the insurance undertaking, but has permanent authority to act for the insurance undertaking as an agency would.
(f) (in relation to an EEA UCITS management company):
(i) a place of business which is a part of an EEA UCITS management company, which has no separate legal personality and which provides the services for which the EEA UCITS management company has been authorised;
(ii) for the purposes of the UCITS Directive, all the places of business set up in the same EEA State by an EEA UCITS management company with headquarters in another EEA State are to be regarded as a single branch.
- 01/12/2004
branded fund
a life policy or a regulated collective investment scheme other than a broker fund which is available as an investment only or mainly to the clients of a particular independent intermediary firm other than a provider firm.
- 01/12/2004
broker fund
(in relation to a fund for which the firm is or will be a broker fund adviser):
(a) an actual or notional fund of a long-term insurer or overseas long-term insurer, which contains or will contain contributions made or to be made by a client or clients of a firm in connection with a life policy or policies;
- 01/12/2004
broker fund adviser
a firm which has, or whose associate being an authorised person has, an arrangement with a long-term insurer, overseas long-term insurer or operator of a regulated collective investment scheme, under which it is to be expected that the long-term insurer, overseas long-term insurer or operator will take into account the advice of that firm or its associate:
(a) in the case of a long-term insurer or overseas long-term insurer, on any matter likely to influence the performance of any of the long-term insurer's or overseas long-term insurer's funds or of any investment issued by the long-term insurer or overseas long-term insurer into which cash contributions of that firm's customers have been made;
(b) in the case of an operator, on the composition of the property of the collective investment scheme into which cash contributions of that firm's customers have been made;
in this definition associate includes any authorised person in respect of whose services the first firm receives any benefit or reward, either directly or indirectly, in connection with advice of the kind described in (a) and (b) given to a long-term insurer or overseas long-term insurer or to a collective investment schemeoperator.- 01/12/2004
broker/manager
a firm with permission for dealing in investments as agent or managing investments (including an operator of an unregulated collective investment scheme) but which:
(a) does not have permission to deal in investments as principal;
(b) is not a UCITS management company;
(c) is not an insurer; and
- 01/12/2004
brought forward amount
an amount, as defined in
PRU 7.2.51 R
, used in the calculation of the general insurance capital requirement.
- 31/12/2004
Building Societies Ombudsman scheme
the former scheme set up and recognised under the Building Societies Act 1986 to handle complaints about building societies.
- 01/12/2004
building society
(as defined in section 119(1) of the Building Societies Act 1986) a building society incorporated (or deemed to be incorporated) under that Act.
- 01/12/2004
building society conglomerate
a financial conglomerate identified as a building society conglomerate in the decision tree in paragraph 4.5 of PRU 8 Ann 1R G (Decision tree for types of financial conglomerate and definition of most important financial sector).
- 01/12/2004
business day
(1) (in relation to anything done or to be done in (including to be submitted to a place in) any part of the United Kingdom):
(a) (except in REC) any day which is not a Saturday or Sunday, Christmas Day, Good Friday or a bank holiday in that part of the United Kingdom;
(b) (in REC) (as defined in section 167 of the Companies Act 1989) any day which is not a Saturday or Sunday, Christmas Day, Good Friday or a bank holiday in any part of the United Kingdom.
(2) (in relation to anything done or to be done by reference to a market outside the United Kingdom) any day on which that market is normally open for business.
- 01/12/2004
business illustration
an illustration for a regulated mortgage contract that is for a business purpose.
- 01/12/2004
business offer document
an offer document for a regulated mortgage contract that is for a business purpose.
- 01/12/2004
Business Order
the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business Order) 2001 (SI 2001/1177).
- 01/12/2004
buying
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation)) any form of buying, including acquiring for valuable consideration.
- 01/12/2004
byelaw
(in LLD)
any Byelaw, direction, regulation, or other instrument made using the powers of the Council under section 6 of Lloyd's Act 1982 (including any regulation ratified by the Council by special resolution) and any condition or requirement made under any such Byelaw, direction, regulation or other instrument.
- 01/12/2004
Letter: C
CAD bank
a bank which uses the Capital Adequacy Directive to measure the capital requirement on its trading book.
- 01/12/2004
cancellation
- 01/12/2004
cancellation rules
COB 6.7 (Cancellation and withdrawal).
- 01/12/2004
candidate
- 01/12/2004
capacity transfer market
any method of transferring capacity in syndicates, including capacity auctions, bilateral arrangements, capacity offers, minority buy-outs and conversion schemes.
- 01/12/2004
capital account
- 01/12/2004
Capital Adequacy Directive
the Council Directive of 15 March 1993 on capital adequacy of investment firms and credit institutions (No 93/6/EEC).
- 01/12/2004
capital property
(in COLL and CIS) the scheme property, other than income property and any amount for the time being standing to the credit of the distribution account.
- 01/12/2004
capital redemption
(in relation to a class of contract of insurance) capital redemption contracts where effected or carried out by a person who does not carry on a banking business, and otherwise carries on the regulated activity of effecting or carrying out contracts of insurance, as specified in paragraph VI of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance).
- 01/12/2004
capital resources
- 31/12/2004
capital resources requirement
- 31/12/2004
carrying out contracts of insurance
the regulated activity, specified in article 10(2) of the Regulated Activities Order (Effecting and carrying out contracts of insurance), of carrying out a contract of insurance as principal.
- 01/12/2004
cash component
a qualifying investment prescribed in paragraph 8 of the ISA Regulations (Qualifying investments for a cash component).
- 01/12/2004
cash deposit ISA
a cash component of an ISA which does not include the qualifying investments prescribed in paragraphs 8(2)(c), (d), (e) or (f) of the ISA Regulations.
- 01/12/2004
cashback
(in MCOB) a cash amount paid by a mortgage lender to a customer (typically at the beginning of a contract) as an inducement to enter into a regulated mortgage contract with the mortgage lender.
- 01/12/2004
CASS
the Client Assets sourcebook.
- 01/12/2004
CAT standards
the CAT standards for ISAs prescribed by the Treasury on 22 December 1998.
- 01/12/2004
causing dematerialised instructions to be sent
the regulated activity, specified in article 45(2) of the Regulated Activities Order, which is in summary: causing dematerialised instructions relating to a security to be sent by means of a relevant system in respect of which an operator is approved under the 1995 Regulations where the person causing them to be sent is a system-participant;in this definition:
(a) "the 1995 Regulations" means the Uncertificated Securities Regulations 1995 (SI 1995/3272);
(b) "dematerialised instruction", "operator" and "system-participant" have the meaning given by regulation 3 of the 1995 Regulations.
- 01/12/2004
central assets
(in LLD) assets that the Society owns and amounts that members are liable to pay to the Society (or may by resolution of the Council be liable to pay) as contributions to the Central Fund (excluding amounts which, if paid by a member, would cause his assets to fall short (or shorter) of the required amount).
- 01/12/2004
Central Fund
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).
- 01/12/2004
certificate representing certain securities
the investment specified in article 80 of the Regulated Activities Order (Certificates representing certain securities), which is in summary: a certificate or other instrument which confers contractual or property rights (other than rights consisting of options):
(a) in respect of any share, debenture, government and public security or warrant) held by a person other than the person on whom the rights are conferred by the certificate or instrument; and
(b) the transfer of which may be effected without requiring the consent of that person;
but excluding any certificate or other instrument which confers rights in respect of two or more investments issued by different persons or in respect of two or more different government and public securities issued by the same person. - 01/12/2004
CESR ATS standards
the Standards for the Regulation of Alternative Trading Systems published by the Committee of European Securities Regulators.
- 01/12/2004
CFTC
the Commodity Futures Trading Commission.
- 01/12/2004
charge
- 01/12/2004
chargeable case
any complaint referred to the Financial Ombudsman Service, except where:
(a) the Ombudsman considers it apparent from the complaint, when it is received, and from any final response which has been issued by the firm, that the complaint should not proceed because:
(ii) the complaint does not fall within the jurisdiction of the Financial Ombudsman Service (as described in DISP 2); or
(b) the Ombudsman considers, at any stage, that the complaint should be dismissed under
DISP 3.3.1 R (2)
on the grounds that it is frivolous or vexatious.
- 01/12/2004
chief executive
(1) (in relation to an undertaking whose principal place of business is within the United Kingdom) the person who, alone or jointly with one or more others, is responsible under the immediate authority of the directors for the conduct of the whole of its business.
(2) (in relation to an undertaking whose principal place of business is outside the United Kingdom) the person who, alone or jointly with one or more others, is responsible for the conduct of its business within the United Kingdom.
- 01/12/2004
chief executive function
controlled function CF3 in the table of controlled functions, described more fully in SUP 10.6.11 R.
- 01/12/2004
Chinese wall
- 01/12/2004
CIS
the Collective Investment Schemes sourcebook.
- 01/12/2004
claim
(1) (in COMP) a valid claim made in respect of a civil liability owed by a relevant person to the claimant.
- 31/12/2004
claims amount
an amount, as defined in
PRU 7.2.47 R
, used in the calculation of the general insurance capital requirement.
- 31/12/2004
claims handling
(1) (in COB) in relation to a claim under a long-term care insurance contract, carrying out the contract (by an insurer) or paying or declining to pay a claim on behalf of a member (by a managing agent).
(2) (in ICOB) in relation to claim under a non-investment insurance contract, carrying out the contract (by an insurer) or paying or declining to pay a claim on behalf of a member (by a managing agent).
- 01/12/2004
claims representative
a person appointed by a motor vehicle liability insurer to satisfy the requirements of threshold condition 2A or COB 6.8.20 R.
- 01/12/2004
class
(1) (in
AUTH,
PRU,
LLD
and SUP) (in relation to a contract of insurance) any class of contract of insurance listed in Schedule 1 to the Regulated Activities Order (Contracts of insurance) and references to:
(a) general insurance businessclass 1, 2, 3, etc. are references to contracts of insurance of the kind mentioned in the corresponding numbered paragraph in Part I of Schedule 1 to that Order or, as the context may require, to the effecting or carrying out of contracts of insurance of that kind; and
(b) long-term insurance business class I, II, III, etc. are references to contracts of insurance of the kind mentioned in the corresponding numbered paragraph in Part II of Schedule 1 to that Order or, as the context may require, to the effecting or carrying out of contracts of insurance of that kind.
- 31/12/2004
clearing firm
- 01/12/2004
clearing house
a clearing house through which transactions on an exchangemay be cleared.
- 01/12/2004
client
(1) (except in ML;in PROF;) any person with or for whom a firm conducts or intends to conduct designated investment business or any other regulated activity; and:
(b) "client" includes:
(i) a potential client;
(ii) a client of an appointed representative of a firm with or for whom the appointed representative acts or intends to act in the course of business for which the firm has accepted responsibility under section 39 of the Act (Exemption of appointed representatives);
(iii) a
collective investment scheme
even if it does not have separate legal personality;
(iv) if a person ("C1"), with or for whom the firm is conducting or intends to conduct designated investment business, is acting as agent for another person ("C2"), either C1 or C2 in accordance with
COB 4.1.5 R (Agent as client);
(c) "client" does not include:
(i) a trust beneficiary;
(ii) a corporate finance contact;
(iii) a venture capital contact.
(2) (in ML) (in relation to a relevant firm) any person engaged in, or who has had contact with the relevant firm with a view to engaging in, any transaction with that relevant firm:
(a) on his own behalf; or
(b) as agent for or on behalf of another.
(3) (in PROF) (as defined in section 328(8) of the Act (Directions in relation to the general prohibition)) (in relation to members of a profession providing financial services under Part XX of the Act (Provision of Financial Services by Members of the Professions)):
(a) a person who uses, has used or may be contemplating using, any of the services provided by the member of a profession in the course of carrying on exempt regulated activities (including, where the member of the profession is acting in his capacity as a trustee, a person who is, has been or may be a beneficiary of the trust); or
- 01/12/2004
client agreement
terms of business which have been signed by the client or to which the client has consented in writing.
- 01/12/2004
client asset rules
CASS.
- 01/12/2004
client bank account
- 01/12/2004
client money
subject to the client money rules, money of any currency which, in the course of carrying on designated investment business, a firm holds in respect of any investment agreement entered into, or to be entered into, with or for a client, or which a firm treats as client money in accordance with the client money rules.
- 01/12/2004
Client money distribution rules
- 01/12/2004
client transaction account
(in relation to a firm and an exchange, clearing house or intermediate broker) an account maintained by the exchange, clearing house or intermediate broker, as the case may be, in respect of transactions in contingent liability investments undertaken by the firm with or for its clients.
- 01/12/2004
close links
(1) (except in SUP 3 (Auditors) and SUP 4 (Actuaries)) (in accordance with paragraph 3(2) of Schedule 6 to the Act (Close links)) the relationship between a person ("A") and another person ("CL") which exists if:
(a) CL is a parent undertaking of A; or
(b) CL is a subsidiary undertaking of A; or
(e) CL owns or controls 20% or more of the voting rights or capital of A; or
(f) A owns or controls 20% or more of the voting rights or capital of CL.
- 01/12/2004
close out
- 01/12/2004
close relative
(as defined in article 3(1) of the Regulated Activities Order and article 2(1) of the Financial Promotion Order) (in relation to any person):
(a) his spouse
(b) his children and step-children, his parents and step-parents, his brothers and sisters and his step-brothers and step-sisters; and
(c) the spouse of any person within (b).
- 01/12/2004
closed
(in LLD) (in relation to a syndicate year) closed by reinsurance to close in accordance with byelaws, either into another syndicate year or into an insurer approved by the Council for the purpose.
- 01/12/2004
closed into
(in LLD) (in relation to two syndicate years) closed into another syndicate year by way of a contract of reinsurance to close into that other syndicate year, either directly or through a succession of such contracts.
- 01/12/2004
closing date
the date specified in the earliest relevant public announcement of the offer as the last date for acceptance of the offer, or, if no such date is specified, then the date on which the issuer (or seller) of the securities offered receives any of the proceeds of the offer.
- 01/12/2004
COAF
the part of the Handbook in Redress which has the title Complaints against the FSA.
- 01/12/2004
COB
the Conduct of Business sourcebook.
- 01/12/2004
Code of Market Conduct
- 01/12/2004
Code of Practice for Approved Persons
the provisions in APER 3 and APER 4 indicated by an "E" in the margin or heading, the purpose of which is to help determine whether or not an approved person's conduct complies with the Statements of Principle and which are issued by the FSA under section 64(2) of the Act (Conduct: statements and codes).
- 01/12/2004
COLL
the New Collective Investment Schemes sourcebook.
- 01/12/2004
collateral
(1) (in COLL and CIS) any form of security, guarantee or indemnity provided by way of security for the discharge of any liability arising from a transaction.
(2) (in
COB
and CASS) any of the following:
(a) an investment specified in articles 76 to 81 of the Regulated Activities Order; that is:
(i) shares (article 76);
(ii) debentures (article 77);
(iii) government and public securities (article 78);
(iv) warrants (article 79);
(v) certificates representing certain securities (article 80);
(vi) units (article 81); or
(b) money; or
(c) a commodity warrant (however title is recorded or evidenced);
which belongs to a client and which is held or controlled by the firm under the terms of a deposit, pledge, charge or other security arrangement. (3) (in
PRU
) an asset that is subject to a mortgage, charge, pledge or other security interest.
- 31/12/2004
collateral rules
- 01/12/2004
collective insurance
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph VIII of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance), of a kind referred to in article 1(2)(e) of the
First Life Directive
("the operations carried out by insurance companies such as those referred to in Chapter 1, Title 4 of Book IV of the French "Code des assurances"").
- 01/12/2004
collective investment scheme
a collective investment scheme, as defined in section 235 of the Act (Collective Investment Schemes), which is in summary:
(a) any arrangements with respect to property of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income; and
(c) which are not excluded by the Financial Services and Markets Act (Collective Investment Schemes) Order 2001 (SI 2001/1062).
- 01/12/2004
COLLG
the Collective Investment Scheme Information Guide.
- 01/12/2004
combined initial disclosure document (CIDD)
information about the scope and nature of the services offered by a firm in relation to a combination of two or more of the following:
(a) packaged products;
(c) regulated mortgage contracts; or
- 01/12/2004
commencement
the beginning of the commencement day.
- 01/12/2004
- 01/12/2004
commercial customer
- 01/12/2004
commission
any form of commission, including a benefit of any kind, offered or given in connection with designated investment business.
- 01/12/2004
commission equivalent (equivalent)
the cash payments, benefits and services listed in COB 5.7.16 E which satisfy the criteria in COB 5.7.5 R (2).
- 01/12/2004
commitment
a commitment represented by insurance business of any of the classes (as defined for the purposes of
AUTH,
PRU, LLDand SUP) of long-term insurance business.
- 31/12/2004
commodity
a physical asset (other than a financial instrument or cash) which is capable of delivery.
- 01/12/2004
communicate
(in relation to a financial promotion) (in accordance with section 21(13) of the Act (Restrictions on financial promotion) and article 6(d) of the Financial Promotion Order (Interpretation: communications)) to communicate in any way, including causing a communication to be made or directed.
- 01/12/2004
Community Co-Insurance Directive
the Council Directive of 30 May 1978 on the coordination of laws, regulations and administrative provisions relating to Community co-insurance (No 78/473/EEC).
- 01/12/2004
community co-insurance operation
an operation to which the Community Co-Insurance Directive applies, as modified by article 26 of the Second Non-Life Directive.
- 01/12/2004
COMP
the Compensation sourcebook.
- 01/12/2004
company
any body corporate.
- 01/12/2004
Company Announcements Office
the Company Announcements Office of the London Stock Exchange, the information dissemination provider approved by the UKLA.
- 01/12/2004
compensation costs
the costs incurred:
(a) in paying compensation; or
(b) as a result of making the arrangements contemplated in COMP 3.3.1 R or taking the measures contemplated in COMP 3.3.3 R; or
(c) in making payments or giving indemnities under COMP 11.2.3 R.
- 01/12/2004
compensation costs levy
a levy imposed by the FSCS on participant firms to meet compensation costs, each participant firm's share being calculated in accordance with
COMP 13.6.
- 01/12/2004
compensation fund
any policyholder compensation scheme in any EEA State.
- 31/12/2004
compensation scheme
the Financial Services Compensation Scheme established under section 213 of the Act (The compensation scheme) for compensating persons in cases where authorised persons and appointed representatives are unable, or are likely to be unable, to satisfy claims against them.
- 01/12/2004
compensation transitionals order
the Financial Services and Markets Act 2000 (Transitional Provisions, Repeals and Savings) (Financial Services Compensation Scheme) Order 2001 (SI 2001/2967).
- 01/12/2004
competent authority
(1) (in relation to admission to an official listing):
(a) the authority designated under Schedule 8 to the Act (Transfer of functions under Part VI (Official listing)) as responsible for admitting securities to, and for removing securities from, the official list; for the time being, the FSA in its capacity as such;
(b) an authority exercising functions corresponding to those in (a) in another EEA State.
(2) (in relation to the exercise of an EEA right) a competent authority for the purposes of the relevant Single Market Directive.
(3) (for the purposes of
PRU 8.1
(Group risk systems and controls requirement), PRU 8.4 (Cross sector groups), PRU 8.5 (Third country groups), PRU 8 Ann 1R G (Capital adequacy calculations for financial conglomerates) and PRU 8 Ann 2R (Prudential rules for third country groups)) any national authority of an EEA State which is empowered by law or regulation to supervise regulated entities, whether on an individual or group-wide basis.
- 01/12/2004
complaint
- 01/12/2004
Complaints Commissioner
the person appointed by the FSA under COAF 1.3.1 G (The Complaints Commissioner) to carry out the functions conferred on him under the complaints scheme.
- 01/12/2004
complaints investigator
(1) (in relation to a UK RIE) the independent person appointed under arrangements referred to in paragraph 9(3) of the Schedule to the Recognition Requirements Regulations to investigate a complaint and to report on the result of his investigation to that RIE and to the complainant.
(2) (in relation to a UK RCH) the independent person appointed under arrangements referred to in paragraph 23(3) of the Schedule to the Recognition Requirements Regulations to investigate a complaint and to report on the result of his investigation to that RCH and to the complainant.
- 01/12/2004
complaints scheme
the arrangements made by the FSA under paragraphs 7 and 8 of Schedule 1 to the Act (The Financial Services Authority) for the investigation of complaints against the FSA arising in connection with the exercise of, or failure to exercise, any of its functions (other than its legislative functions) under the Act.
- 01/12/2004
compliance oversight function
controlled function CF10 in the table of controlled functions, described more fully in SUP 10.7.8 R.
- 01/12/2004
composite firm
- 31/12/2004
Compulsory Jurisdiction
the jurisdiction of the Financial Ombudsman Service to which firms (and certain
unauthorised persons
as a result of the Ombudsman Transitional Order or section 226(2)(b) and (c) of the Act) are compulsorily subject.
- 01/12/2004
COND
the part of the Handbook in High Level Standards which has the title Threshold Conditions.
- 01/12/2004
conglomerate capital resources
(in relation to a financial conglomerate with respect to which
PRU 8.4.29 R
(Application of methods 1, 2 or 3 from Annex I of the Financial Groups Directive) applies) capital resources as defined in whichever of paragraphs 1.1, 2.1 or 3.1 of
PRU 8 Ann 1R G
(Capital adequacy calculations for financial conglomerates) applies with respect to that financial conglomerate.
- 01/12/2004
conglomerate capital resources requirement
(in relation to a financial conglomerate with respect to which
PRU 8.4.29 R
(Application of methods 1, 2 or 3 from Annex I of the Financial Groups Directive) applies) the capital resources requirement defined in whichever of paragraphs 1.3, 2.4 or 3.3 of
PRU 8 Ann 1R G
(Capital adequacy calculations for financial conglomerates) applies with respect to that financial conglomerate.
- 01/12/2004
connected company
(in LLD) (in relation to a body corporate):
- 01/12/2004
connected person
(1) (in relation to the
FSA's
consideration of an application for, or of whether to vary or cancel, a
Part IV permission
) (in accordance with section 49(1)of the Act (Persons connected with an applicant)) any person appearing to the
FSA
to be, or likely to be, in a relationship with the applicant or person given permission, which is relevant.
(2) (in relation to the
FSA's
power to gather information under section 165 of the Act (Authority's power to require information)) (in accordance with section 165(11) of the Act) a person who has, or has at any relevant time had, the following relationship withan authorised person ("A"):
(a) he is a member of A's group;
(b) he is a controller of A;
(c) he is a member of a partnership of which A is a member;
(d) he is or has been an employee of A;
(e) if A is a body corporate, he is or has been an officer, or manager or agent of A or of a parent undertaking of A;
(g) if A is an unincorporated association of persons which is neither a partnership nor an unincorporated friendly society, he is or has been an officer, manager, or agent of A;
(h) if A is a friendly society, he is or has been an officer or manager of A ("officer" and "manager" having the same meaning as in section 119(1) of the Friendly Societies Act 1992);
(i) if A is a building society, he is or has been an officer of A ("officer" having the same meaning as in section 119(1) of the Building Societies Act 1986);
(j) if A is an individual, he is or has been an agent of A.
(3) (in relation to the FSA's powers of investigation under sections 171 and 172 of the Act (Powers of persons appointed under section 167; Additional power of persons appointed as a result of section 168(1) or (4))) (in accordance with section 171(4) of the Act) a person who has, or has at any relevant time had, the following relationship with a person under investigation ("P"):
(a) he has the relationship specified in any of paragraphs (2) (a), (b) or (d) to (j) to P (where references in those paragraphs to A are taken to be references to P);
(b) it is a partnership of which P is a member;
(c) he is the partner, manager, employee, agent, appointed representative, banker, auditor, actuary or solicitor of:
(i) P; or
(ii) a parent undertaking of P; or
(iii) a subsidiary undertaking of P; or
- 01/12/2004
consent notice
a notice given by the
FSA
to a Host State regulator underparagraph 19(4) (Establishment) of Part III of Schedule 3 to the Act (Exercise of Passport Rights by UK firms).
- 01/12/2004
Consolidated Life Directive
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, Second and Third Life Directives.
- 01/12/2004
consolidated sub-group
(in ELM) (in relation to a person):
(a) that person, and
(b) any financial services undertaking that is a member of its sub-group.
- 01/12/2004
consolidation Article 12(1) relationship
a relationship between one undertaking (the first undertaking) and one or more other undertakings satisfying the conditions set out in Article 12(1) of the Seventh Company Law Directive, which in summary are as follows:
(a) those undertakings are not connected, as described in article 1(1) or (2) of that Directive; and
(b) one of the following conditions is satisfied:
(i) they are managed on a unified basis pursuant to a contract concluded with the first undertaking or provisions in the memorandum or articles of association of those undertakings; or
(ii) the administrative, management or supervisory bodies of those undertakings consist, for the major part, of the same persons in office during the financial year in respect of which it is being decided whether such a relationship exists.
- 01/12/2004
consolidation group
the following:
(a) a conventional group; or
If a parent undertaking or subsidiary undertaking in a conventional group (the first person) has a consolidation Article 12(1) relationship with another person (the second person), the second person (and any subsidiary undertaking of the second person) is also a member of the same consolidation group.- 01/12/2004
constable
a police officer in the United Kingdom or a person commissioned by the Commissioners of Customs and Excise.
- 01/12/2004
consumer
(1) (in relation to the
FSA's
power to make general rules (section 138 of the Act (General rule-making power))) the approval requirements for controllers (section 186 of the Act (Objection to acquisition of control)), the publication of notices (section 391 of the Act (Publication)) and the exercise of Treaty rights (Schedule 4 to the Act (Treaty rights))) (as defined in section 138(7) of the Act (General rule-making power)) a person:
for the purposes of this definition: (a) who uses, has used, or is or may be contemplating using, any of the services provided by:
(b) who has rights or interests which are derived from, or are otherwise attributable to the use of, any such services by another person; or
(c) who has rights or interests which may be adversely affected by the use of any such services by a person acting on his behalf or in a fiduciary capacity in relation to him; or
(d) (in relation to the FSA's power to make general rules) a person within the extended definition of consumer in article 3 of the Financial Services and Markets Act 2000 (Consequential and Transitional Provisions) (Miscellaneous) Order 2001 (SI 2001/1821) (Application of definition of "consumer" to users of regulated services before commencement);
(e) (in relation to the FSA's power to make general rules) a person within the extended definition of consumer in article 4 of the Financial Services and Markets Act 2000 (Consequential Amendments and Transitional Provisions) (Credit Unions) Order 2002 (SI 2002/1501) (Application of definition of "consumer" to customers of credit unions before commencement);
(A) if an authorised person is carrying on a regulated activity in his capacity as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or are or may be contemplating using services provided by the authorised person in his carrying on of that activity;
(B) a person who deals with an authorised person in the course of the authorised person's carrying on of a regulated activity is to be treated as using services provided by the authorised person in carrying on those activities.
(2) (in relation to the protection of consumers objective (section 5 of the Act (The protection of consumers)) and independent inquiries (section 14 of the Act (Cases in which the Treasury may arrange independent inquiries))) (as defined in sections 5(3) and 14(5) of the Act) a person:
(a) within (1);or
(b) who, in relation to regulated activities carried on otherwise than by an authorised person, would be a consumer within (1)if the activities were carried on by an authorised person.
(3) (in relation to the establishment and maintenance of the Consumer Panel (section 10 of the Act (The Consumer Panel))) (as defined in section 10(7) of the Act) a person within (2)other than an authorised person.
(4) (in ECO and
ENF 19) an individual who is acting for purposes other than those of his trade, business or profession.
(5) (in
ENF
) any natural person who, in contracts covered by the Unfair Terms Regulations, is acting for purposes which are outside his trade, business or profession.
- 01/12/2004
consumer credit prohibition
(as defined in section 203(3) of the Act (Power to prohibit the carrying on of Consumer Credit Act business)) a prohibition on carrying on, or purporting to carry on, in the United Kingdom any Consumer Credit Act business which consists of or includes carrying on one or more listed activities or investment services.
- 01/12/2004
consumer e-money card
any consumer e-money device in the form of a plastic card, other portable device or device intended to be included in another portable device (or a function on a plastic card or on such a device) that is intended to be used by a consumer e-money holder.
- 01/12/2004
consumer e-money device
any e-money electronic device intended to be used by and in the presence of a consumer e-money holder.
- 01/12/2004
consumer e-money holder
- 01/12/2004
Consumer Panel
- 01/12/2004
contingency funding plan
a plan for taking action to ensure that a firm has adequately liquid financial resources to meet its liabilities as they fall due, prepared under
PRU 5.1.86 E
.
- 31/12/2004
contingent liability investment
a derivative under the terms of which the client will or may be liable to make further payments (other than charges, and whether or not secured by margin) when the transaction falls to be completed or upon the earlier closing out of his position.
- 01/12/2004
contract for differences
the investment, specified in article 85 of the Regulated Activities Order (Contracts for differences etc), which is rights under:
(a) a contract for differences; or
(b) any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in:
(i) the value or price of property of any description; or
(ii) an index or other factor designated for that purpose in the contract.
- 01/12/2004
contract of insurance
(1) (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).
(2) (in relation to a contract) (in accordance with article 3(1) of the Regulated Activities Order (Interpretation)) any contract of insurance which is a long-term insurance contract or a general insurance contract, including:
but not including a funeral plan contract (or a contract which would be a funeral plan contract but for the exclusion in article 60 of the Regulated Activities Order (Plans covered by insurance or trust arrangements)); in this definition, "annuities on human life" does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged, or who have been engaged, in any particular profession, trade or employment, or of the dependants of such persons. (a) fidelity bonds, performance bonds, administration bonds, bail bonds, customs bonds or similar contracts of guarantee, where these are:
(i) effected or carried out by a person not carrying on a banking business;
(ii) not effected merely incidentally to some other business carried on by the person effecting them; and
(iii) effected in return for the payment of one or more premiums;
(b) tontines;
(c) capital redemption contracts or pension fund management contracts, where these are effected or carried out by a person who:
(i) does not carry on a banking business; and
(ii) otherwise carries on the regulated activity of effecting or carrying out contracts of insurance;
(d) contracts to pay annuities on human life;
(e) contracts of a kind referred to in article 2(2)(e) of the First Life Directive (Collective insurance etc); and
(f) contracts of a kind referred to in article 2(3) of the First Life Directive (Social insurance);
- 01/12/2004
contracts of large risks
(in ICOB) contracts of insurance covering risks within the following categories, in accordance with article 5(d) of the First Non-Life Directive:
(a) railway rolling stock, aircraft, ships (sea, lake, river and canal vessels), goods in transit, aircraft liability and liability of ships (sea, lake, river and canal vessels);
(b) credit and suretyship, where the policyholder is engaged professionally in an industrial or commercial activity or in one of the liberal professions, and the risks relate to such activity;
(c) land vehicles (other than railway rolling stock), fire and natural forces, other damage to property, motor vehicle liability, general liability, and miscellaneous financial loss, in so far as the policyholder exceeds the limits of at least two of the following three criteria:
(i) balance sheet total: €6.2 million;
(ii) net turnover: €12.8 million;
(iii) average number of employees during the financial year: 250.
- 01/12/2004
contractually based investment
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation)):
(a) a life policy (except a long-term care insurance contract which is not a qualifying contract of insurance);
(c) rights to or interests in an investment falling within (a) or (b).
- 01/12/2004
contribution group
one of the groups of participant firms within a sub-scheme set out in
COMP 13.6.7 R
being groups that carry on business of a similar nature, to which compensation costs and specific costs are allocated in accordance with
COMP 13.5 and COMP 13.6.
- 01/12/2004
control
(in relation to the acquisition, increase or reduction of control of a firm) the relationship between a person and the firm or other undertaking of which the person is a controller.
- 01/12/2004
controlled activity
(in accordance with section 21(9) of the Act (The classes of activity and investment)) any of the following activities specified in Part 1 of Schedule 1 to the Financial Promotions Order (Controlled Activities):
(a) accepting deposits (paragraph 1)
(b) effecting contracts of insurance (paragraph 2(1)):
(c) carrying out contracts of insurance (paragraph 2(2));
(d) dealing in securities and contractually based investments as principal or agent (paragraph 3(1));
(e) arranging (bringing about) deals in investments (paragraph 4(1));
(f) making arrangements with a view to transactions in investments (paragraph 4(2));
(g) managing investments (paragraph 5);
(h) safeguarding and administering investments (paragraph 6);
(i) advising on investments (paragraph 7);
(j) advising on syndicate participation at Lloyd's (paragraph 8);
(k) providing funeral plan contracts (paragraph 9);
(l) providing qualifying credit (paragraph 10);
(m) arranging qualifying credit etc. (paragraph 10A -coming into force 31st October 2004);
(n) advising on qualifying credit etc. (paragraph 10B -coming into force 31st October 2004);
(o) agreeing to carry on specified kinds of activity (paragraph 11) which are specified in paragraphs 3 to 10 (10B from 31 October 2004) of Part 1 of Schedule 1 to the Financial Promotion Order.
- 01/12/2004
controlled agreement
(as defined in section 30 of the Act (Enforceability of agreements resulting from unlawful communications)) an agreement the making or performance of which by either party constitutes a controlled activity.
- 01/12/2004
controlled function
a function, relating to the carrying on of a regulated activity by a firm, which is specified under section 59 of the Act (Approval for particular arrangements), in the table of controlled functions.
- 01/12/2004
controlled investment
(in accordance with section 21(10) of the Act (Restrictions on financial promotion) and article 4 of the Financial Promotion Order (Definitions of controlled activities and controlled investments)) an investment specified in Part II of Schedule 1 to the Financial Promotion Order (Controlled investments).
- 01/12/2004
controller
(1) (in relation to a firm or other undertaking ("A")) other than an UK insurance intermediary) (in accordance with section 422 of the Act (Controller)) a person who falls within any of the following cases; the cases are where the person:
(a) holds 10% or more of the shares in A; or
(b) is able to exercise significant influence over the management of A through his shareholding in A; or
(c) holds 10% or more of the shares in a parent undertaking ("P") of A; or
(d) is able to exercise significant influence over the management of P through his shareholding in P; or
(e) is entitled to exercise, or control the exercise of, 10% or more of the voting power in A; or
(f) is able to exercise significant influence over the management of A through his voting power in A; or
(g) is entitled to exercise, or control the exercise of, 10% or more of the voting power in P; or
(h) is able to exercise significant influence over the management of P through his voting power in P;
(2) (in relation to an UK insurance intermediary) (in accordance with article 17 of the Insurance Intermediaries Order) a person who would fall within (1) if 20% were substituted for 10%;in (1) and (2) of this definition:
(i) "the person" means:
(A) the person; or
(B) any of the person's associates; or
(C) the person and any of his associates;
(ii) "associate", in relation to a person ("H") holding shares in an undertaking ("C") or entitled to exercise or control the exercise of voting power in relation to another undertaking ("D"), means:
(A) the spouse of H;
(B) a child or stepchild of H (if under 18);
(C) the trustee of any settlement under which H has a life interest in possession (or in Scotland a life interest);
(D) an undertaking of which H is a director;
(E) a person who is an employee or partner of H;
(F) if H is an undertaking:
(I) a director of H;
(II) a subsidiary undertaking of H;
(III) a director or employee of such a subsidiary undertaking; and
(G) if H has with any other person an agreement or arrangement with respect to the acquisition, holding or disposal or shares or other interests in C or D or under which they undertake to act together in exercising their voting power in relation to C or D, that other person;
(iii) "settlement" includes any disposition or arrangement under which property is held on trust (or subject to a comparable obligation);
(iv) "shares" means:
(A) in relation to an undertaking with a share capital, allotted shares;
(B) in relation to an undertaking with capital but no share capital, rights to share in the capital of the undertaking;
(C) in relation to an undertaking without capital, interests:
(I) conferring any right to share in the profits, or liability to contribute to the losses, of the undertaking, or
(II) giving rise to any obligation to contribute to the debts or expenses of the undertaking in the event of a winding up.
- 01/12/2004
conventional group
(for the purposes of PRU 8 (Group Risk)) a group of undertakings that consists of a parent undertaking and the rest of its sub-group.
- 01/12/2004
coordinator
(in relation to a financial conglomerate) the competent authority which has been appointed, in accordance with Article 10 of the Financial Groups Directive (Competent authority responsible for exercising supplementary supervision (the coordinator)), as the competent authority which is responsible for the co-ordination and exercise of supplementary supervision of that financial conglomerate.
- 01/12/2004
core investment service
a service listed in section A of the Annex to the ISD, the text of which is set out in Schedule 2 to the Regulated Activities Order (Annex to the Investment Services Directive).
- 01/12/2004
core provision
(in LLD) (as defined in section 316(3) of the Act (Direction by Authority)) a provision of the Act mentioned in section 317 of the Act (The core provisions) which applies to the carrying on of an insurance market activity by a member, or the members of the Society taken together, if the
FSA
so directs.
- 01/12/2004
core tier one capital
an item of capital that is stated in stage A of the table in PRU 2.2.14 R to be core tier one capital.
- 31/12/2004
corporate finance adviser function
controlled function CF23 in the table of controlled functions, described more fully in SUP 10.10.13 R.
- 01/12/2004
corporate finance advisory firm
a firm whose permission includes a requirement that the firm must not conduct designated investment business other than corporate finance business.
- 01/12/2004
corporate finance business
(a) designated investment business carried on by a firm with or for:
(i) any issuer, holder or owner of designated investments, if that business relates to the offer, issue, underwriting, repurchase, exchange or redemption of, or the variation of the terms of, those investments, or any related matter;
(ii) any
market counterparty
or
intermediate customer
, or other body corporate, partnership or supranational organisation, if that business relates to the manner in which, or the terms on which, or the persons by whom, any business, activities or undertakings relating to it, or any associate, are to be financed, structured, managed, controlled, regulated or reported upon;
(iii) any person in connection with:
(A) a proposed or actual takeover or related operation by or on behalf of that person, or involving investments issued by that person (being a body corporate), its holding company, subsidiary or associate; or
(B) a merger, de-merger, reorganisation or reconstruction involving any investments issued by that person (being a body corporate), its holding company, subsidiary or associate;
(iv) any shareholder or prospective shareholder of a body corporate established or to be established for the purpose of effecting a takeover or related operation, where that business is in connection with that takeover or related operation;
(v) any person who, acting as a principal for his own account:
(A) is involved in negotiations or decisions relating to the commercial, financial or strategic intentions or requirements of a business or prospective business; or
(B) (provided he is acting otherwise than solely in his capacity as an investor) assists the interests of another person with or for whom the firm, or another authorised person or overseas person, is undertaking business as specified in (a)(i), (ii), (iii) or (iv), by himself undertaking all or part of any transactions involved in such business;
(b) designated investment business carried on by a firm as a principal for its own account where such business:
(i) is in the course of, or arises out of, activities undertaken in accordance with (a); and
(ii) does not involve transactions with or for, or advice on investments to, any other person who is a
private customer
in respect of such business;
(c) designated investment business carried on by a firm as principal for its own account if such business:
in this definition, "share warrants" and "debenture warrants" mean any warrants which relate to shares in the firm concerned or, as the case may be, debentures issued by the firm. (i) is in the course of, or arises out of:
(A) the offer, issue, underwriting, repurchase, exchange or redemption of, or the variation of the terms of, shares, share warrants, debentures or debenture warrants issued by the firm, or any related matter; or
(B) a proposed or actual takeover or related operation by or on behalf of the firm, or involving shares, share warrants, debentures or debenture warrants issued by the firm; or
(C) a merger, de-merger, reorganisation or reconstruction involving any shares, share warrants, debentures or debenture warrants issued by the firm; and
- 01/12/2004
corporate finance contact
(when a firm carries on
designated investment business
with or for a person in the course of or as a result of either carrying on corporate finance business with or for a client, or carrying on corporate finance business for the firm's own account) that person in connection with that
designated investment business
if:
- 01/12/2004
Council
(in LLD) the Council constituted by section 3 of Lloyd's Act 1982.
- 01/12/2004
counterparty
(1) (in LLD) (in relation to the Society, a syndicate or member):
in which the Society, a syndicate or member has made investments or against which it has rights under a contract entered into by the Society, syndicate or member. (a) any individual; or
(b) any unincorporated body of persons; or
(d) any group of companies, excluding any companies within the group which are subsidiary undertakings of the Society, a syndicate or member; or
(e) any government of a State or any public bodies, local authorities or nationalised industries of a State;
(2) (in PRU) (in relation to an insurer):
(a) any one individual; or
(b) any one unincorporated body of persons; or
(d) any group of companies excluding any companies within the group which are subsidiary undertakings of the insurer; or
(e) any government of a State together with all the public bodies, local authorities or nationalised industries of that State,
in which the insurer, or any of its subsidiary undertakings, has made investments or against whom, or in respect of whom, it, or any of its subsidiary undertakings, has rights or obligations under a contract entered into by the insurer or any of its subsidiary undertakings.- 31/12/2004
country of origin
in relation to an electronic commerce activity, the EEA State in which the establishment from which the service in question is provided is situated.
- 01/12/2004
coupon
a dividend, interest payment or any similar payment.
- 31/12/2004
covered
(in LLD) (in relation to a contract) not requiring a significant provision to be made in respect of it.
- 01/12/2004
CRED
the Credit Unions sourcebook.
- 01/12/2004
credit
(1) (except in relation to a class of contract of insurance) any kind of loan, deferment of repayment of any loan or of interest on any loan, guarantee or indemnity, and any other kind of accommodation or facility in the nature of credit.
(2) (in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 14 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against risks of loss to the persons insured arising from the insolvency of debtors of theirs or from the failure (otherwise than through insolvency) of debtors of theirs to pay their debts when due.
- 01/12/2004
credit equalisation provision
the provision required to be established by
PRU 7.5.43 R
.
- 31/12/2004
credit institution
(as defined in article 1(1) of the BCD)
(1) an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account; or
(2) an electronic money institution within the meaning of the E-Money Directive;
but excluding an institution within (2) that does not have the right to benefit from the mutual recognition arrangements under BCD(see also BCD credit institution, full credit institution, full BCD credit institution and Zone A credit institution.)- 01/12/2004
credit insurance business
(in LLD) insurance business relating to credit contracts.
- 01/12/2004
credit union
a body corporate registered under the Industrial and Provident Societies Act 1965 as a credit union in accordance with the Credit Unions Act, which is an authorised person.
- 01/12/2004
credit unions day
- 01/12/2004
CREST
the computer-based system which enables securities to be held and transferred in uncertificated form and which is operated by CRESTCo Limited.
- 01/12/2004
cross border services
(1) (in relation to a UK firm) services provided within an EEA State other than the United Kingdom under the freedom to provide services.
(2) (in relation to an incoming EEA firm or an incoming Treaty firm) services provided within the United Kingdom under the freedom to provide services.
- 01/12/2004
cross-transaction
- 01/12/2004
- 31/12/2004
CTF
(as defined in section 1(2) of the Child Trust Funds Act 2004) a child trust fund, that is, an account which:
(1) is held by a child who is or has been an eligible child (as defined in section 2 of that Act);
(2) satisfies the requirements imposed by or under the Child Trust Funds Act 2004; and
(3) has been opened in accordance with the Child Trust Funds Act 2004.
- 01/12/2004
CTF bank account
a bank account which fulfils the requirements of Regulation 11(5) of the CTF Regulations.
- 01/12/2004
CTF provider
(in accordance with section 3(1) of the Child Trust Funds Act 2004) a person approved by the Inland Revenue in accordance with the CTF Regulations.
- 01/12/2004
CTF Regulations
the Child Trust Funds Regulations 2004 (SI 2004/1450), as amended.
- 01/12/2004
CTF transfer
a transaction resulting from a decision by a customer, made with or without advice from a firm, to transfer the investments (or their value) held in an existing CTF into another CTF whether or not provided by the same CTF provider.
- 01/12/2004
currency class share
(in relation to an ICVC) a class of share denominated in a currency that is not the base currency of the ICVC or, if permitted by CIS 2.5.4 R (1)R(1), (Currency class shares: requirements) denominated in the base currency.
- 01/12/2004
currency class unit
(in COLL) a class of unit denominated in a currency that is not the base currency of the authorised fund, or if permitted, by COLL 3.3.4 R (1) (Currency class units: requirements).
- 01/12/2004
current customer order
(b) a customer order which is to be executed only on fulfilment of a condition, after the condition has been fulfilled.
- 01/12/2004
custodian
(a) an approved bank;
(b) an approved depositary;
(e) a regulated clearing firm;
(f) where it is not feasible to use a custodian in (a) to (e), and there are reasonable grounds to show that a person outside the United Kingdom, whose business includes the provision of custodial services, is able to provide such services which are appropriate to the client and in the client's best interest to use, that person.
- 01/12/2004
custody
(in relation to clients' assets) safeguarding and administering investments.
- 01/12/2004
custody asset
(b) any other asset which is or may be held with a designated investment held for, or on behalf of, a client.
- 01/12/2004
custody rules
CASS 2
.
- 01/12/2004
customer
- 01/12/2004
customer function
any of the controlled function 21 to 27 in the table of controlled functions.
- 01/12/2004
customer order
- 01/12/2004
customer trading function
controlled function CF26 in the table of controlled functions, described more fully in SUP 10.10.16 R.
- 01/12/2004
Letter: D
daily e-money outstandings amount
- 01/12/2004
damage to property
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 9 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against loss of or damage to property (other than property to which paragraphs 3 to 7 of that Schedule (L and vehicles, Railway rolling stock, Aircraft, Ships and Goods in transit) relate) due to hail or frost or any other event (such as theft) other than those mentioned in paragraph 8 of that Schedule (Fire and natural forces).
- 01/12/2004
date of allotment
the date on which amounts of the relevant security are allotted to subscribers or purchasers and, where there is an initial or preliminary allotment subject to confirmation, the date of that initial or preliminary allotment.
- 01/12/2004
day
a period of 24 hours beginning at midnight.
- 01/12/2004
deal
a dealing transaction.
- 01/12/2004
dealing day
(in COLL and CIS) the period in a business day (in accordance with provisions of the prospectus) during which the ACD or the operator is open for business.
- 01/12/2004
dealing in investments as agent
the regulated activity, specified in article 21 of the Regulated Activities Order (Dealing in investments as agent), which is in summary: buying, selling, subscribing for or underwriting designated investments, pure protection contracts or general insurance contracts as agent.
- 01/12/2004
dealing in investments as principal
the regulated activity, specified in article 14 of the Regulated Activities Order (Dealing in investments as principal), which is in summary: buying, selling, subscribing for or underwriting designated investments as principal.
- 01/12/2004
dealing period
- 01/12/2004
debenture
the investment, specified in article 77 of the Regulated Activities Order (Instruments creating or acknowledging indebtedness), which is in summary: any of the following which are not government and public securities:
(a) debentures;
(b) debenture stock;
(c) loan stock;
(d) bonds;
(e) certificates of deposit;
(f) any other instrument creating or acknowledging indebtedness.
- 01/12/2004
debt security
(elsewhere in the handbook) any of the following:
(a) a debenture;
- 01/12/2004
DEC
the Decision Making manual.
- 01/12/2004
decision notice
- 01/12/2004
dedicated
(in relation to investments of an authorised fund) intended that the holders should participate in or receive:
(a) profits or income arising from the acquisition, holding, management or disposal of investments of the relevant description; or
(b) sums paid out of profits or income in (a); or
(c) other benefits where expressly permitted by a provision in
CIS.
- 01/12/2004
default rules
(1) (in relation to a UK RIE) the default rules which it is required to have under paragraph 10 of the Schedule to the Recognition Requirements Regulations.
(2) (in relation to a UK RCH) the default rules which it is required to have under paragraph 24 of the Schedule to the Recognition Requirements Regulations.
- 01/12/2004
deferred acquisition costs
deferred acquisition costs as defined in the insurance accounts rules.
- 01/12/2004
defined benefits pension scheme
(1) (except in PRU) a pension policy or pension contract under which the only money-purchase benefits are benefits ancillary to other benefits which are not money-purchase benefits;
(2) (in PRU) an occupational pension scheme under which the only money-purchase benefits are benefits ancillary to other benefits which are not money-purchase benefits.
- 31/12/2004
delivery by value
a transaction type, described as "delivery by value", used to deliver and receive securities within CREST.
- 01/12/2004
deposit
(1) (except in COMP) the investment, specified in article 74 and defined in articles 5(2) and 5(3) of the Regulated Activities Order, which is in summary: a sum of money (other than one excluded by any of articles 6 to 9 of the Regulated Activities Order) paid on terms:
(a) under which it will be repaid, with or without interest or a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and
(b) which are not referable to the provision of property (other than currency) or services or the giving of security; in this definition, money is paid on terms which are referable to the provision of property or services or the giving of security if, and only if:
(i) it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided; or
(ii) it is paid by way of security for the performance of a contract or by way of security in respect of loss which may result from the non-performance of a contract; or
(iii) without prejudice to (ii), it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise.
(2) (in COMP) the investment within (1), but including a sum of money that would otherwise be excluded:
(a) by article 6(1)(a)(ii) of the Regulated Activities Order, where the person making the payment is a credit union (unless the person receiving the payment is also a credit union); or
(b) by article 6(1)(d) of the Regulated Activities Order, where the person receiving it is a credit union.
- 01/12/2004
deposit back arrangement
(in relation to any contract of reinsurance) an arrangement whereby an amount is deposited by the reinsurer with the cedant.
- 31/12/2004
Deposit Guarantee Directive
the Council Directive of 13 May 1994 on deposit-guarantee schemes (No 94/19/EC).
- 01/12/2004
depositary
(a) (in relation to an ICVC) the person to whom is entrusted the safekeeping of all of the scheme property of the ICVC and who has been appointed for this purpose in accordance with regulation 5 (Safekeeping of scheme property by depositary) of and Schedule 1 (Depositaries) to the OEIC Regulations;
(c) (in relation to any other unit trust scheme) the person holding the property of the scheme on trust for the participants;
(d) (in relation to any other
collective investment scheme
) any person to whom the property subject to the scheme is entrusted for safekeeping.
- 01/12/2004
deposit-taking firm
- 01/12/2004
derivative
- 01/12/2004
designated client bank account
a client bank account with the following characteristics:
(a) the account holds the money of one or more clients;
(b) the account includes in its title the word "designated";
(c) the clients whose money is in the account have each consented in writing to the use of the bank with which the client money is to be held; and
(d) in the event of the failure of that bank, the account is not pooled with any other type of account unless a primary pooling event occurs.
- 01/12/2004
designated client fund account
a client bank account with the following characteristics:
(a) the account holds at least part of the client money of one or more clients, each of whom has consented to that money being held in the same client bank accounts at the same banks (the client money of such clients constituting a designated fund);
(b) the account includes in its title the words "designated fund"; and
(c) in the event of the failure of a bank with which part of a designated fund is held, each designated client fund account held with the failed bank will form a pool with any other designated client fund account containing part of that same designated fund unless a primary pooling event occurs.
- 01/12/2004
designated investment
a security or a contractually-based investment (other than a funeral plan contract and a right to or interest in a funeral plan contract), that is, any of the following investments, specified in Part III of the Regulated Activities Order (Specified Investments), and a long-term care insurance contract which is a pure protection contract:
(a) life policy (subset of article 75 (Contracts of insurance));
(b) share (article 76);
(c) debenture (article 77);
(d) government and public security (article 78);
(e) warrant (article 79);
(f) certificate representing certain securities (article 80);
(g) unit (article 81);
(h) stakeholder pension scheme (article 82);
(i) option (article 83); for the purposes of the permission regime, this is sub-divided into:
(j) future (article 84); for the purposes of the permission regime, this is sub-divided into:
(ii) commodity future;
(iii) rolling spot forex contract;
(k) contract for differences (article 85); for the purposes of the permission regime, this is sub-divided into:
(ii) spread bet;
(iii) rolling spot forex contract;
(l) rights to or interests in investments in (a) to (k) (article 89) but not including rights to or interests in rights under a long-term care insurance contract which is a pure protection contract.
- 01/12/2004
designated investment business
any of the following activities, specified in Part II of the Regulated Activities Order (Specified Activities), which is carried on by way of business:
(a) dealing in investments as principal (article 14), but disregarding the exclusion in article 15 (Absence of holding out etc);
(b) dealing in investments as agent (article 21)
(c) arranging (bringing about) deals in investments (article 25(1)), but only in relation to designated investments;
(d) making arrangements with a view to transactions in investments (article 25(2)), but only in relation to designated investments;
(e) managing investments (article 37), but only if the assets consist of or include (or may consist of or include) designated investments;
(ea) assisting in the administration and performance of a contract of insurance, but only if the contract of insurance is a designated investment.
(f) safeguarding and administering investments (article 40), but only if the assets consist of or include (or may consist of or include) designated investments; for the purposes of the permission regime, this is sub-divided into:
(g) sending dematerialised instructions (article 45(1));
(h) causing dematerialised instructions to be sent (article 45(2));
(i) establishing, operating or winding up a collective investment scheme (article 51(1)(a)); for the purposes of the permission regime, this is sub-divided into:
(j) acting as trustee of an authorised unit trust scheme (article 51(1)(b));
(k) acting as the depositary or sole director of an open-ended investment company (article 51(1)(c));
(l) establishing, operating or winding up a stakeholder pension scheme (article 52);
(m) advising on investments (article 53), but only in relation to designated investments; for the purposes of the permission regime, this is sub-divided into:
(n) agreeing to carry on a regulated activity in (a) to (h) and (m) (article 64).
- 01/12/2004
designated investment exchange
Any of the following investment exchanges:
American Stock Exchange
Australian Stock Exchange
Bolsa Mexicana de Valores
Bourse de Montreal Inc
Channel Islands Stock Exchange
Chicago Board of Trade
Chicago Board Options Exchange
Chicago Stock Exchange
Coffee, Sugar and Cocoa Exchange, Inc
Euronext Amsterdam Commodities Market
Hong Kong Exchanges and Clearing Limited
International Securities Market Association
Johannesburg Stock Exchange
Kansas City Board of Trade
Korea Stock Exchange
Mid-America Commodity Exchange
Minneapolis Grain Exchange
New York Cotton Exchange
New York Futures Exchange
New York Stock Exchange
New Zealand Stock Exchange
Osaka Securities Exchange
Pacific Exchange
Philadelphia Stock Exchange
Singapore Exchange
South African Futures Exchange
Tokyo International Financial Futures Exchange
Tokyo Stock Exchange
Toronto Stock Exchange
- 01/12/2004
designated non-member
- 01/12/2004
designated professional body
a professional body designated by the Treasury under section 326 of the Act (Designation of professional bodies) for the purposes of Part XX of the Act (Provision of Financial Services by Members of the Professions); as at 21 June 2001the following professional bodies have been designated in the Financial Services and Markets Act 2000 (Designated Professional Bodies) Order 2001 (SI 2001/1226):
(a) The Law Society (England and Wales);.
(b) The Law Society of Scotland;
(c) The Law Society of Northern Ireland;
(d) The Institute of Chartered Accountants in England and Wales;
(e) The Institute of Chartered Accountants of Scotland;
(f) The Institute of Chartered Accountants in Ireland;
(g) The Association of Chartered Certified Accountants;
(h) The Institute of Actuaries.
- 01/12/2004
designated State or territory
any EEA State (other than the United Kingdom), Australia, Canada or a province of Canada, Hong Kong, Singapore, South Africa, Switzerland, a State in the United States of America, the District of Columbia or Puerto Rico.
- 01/12/2004
- 01/12/2004
DGD claim
a claim, in relation to a protected deposit, against a BCD credit institution, whether established in the United Kingdom or in another EEA State.
- 01/12/2004
dilution
(in COLL and CIS) the amount of dealing costs incurred, or expected to be incurred, byan ICVC or for the account of a
single-priced AUT
to the extent that these costs may reasonably be expected to result, or have resulted, from the acquisition or disposal of investments by the ICVCor for the account of the
single-priced AUT
as a consequence (whether or not immediate) of the increase or decrease in the cash resources of the
ICVC or
single-priced AUT
resulting from the issue or cancellation of units over a period; for the purposes of this definition, dealing costs include both the costs of dealing in an investment, professional fees incurred, or expected to be incurred, in relation to the acquisition or disposal of
approved immovables
and, where there is a spread between the buying and selling prices of the investment, the indirect cost resulting from the differences between those
prices
.
- 01/12/2004
dilution adjustment
an adjustment to the price of a unit determined by the
ACD, or the manager of a single-priced AUT, under COLL 6.3.8 R (Dilution)or, as the case may be, CIS 4.6.4 R (Dilution adjustment) for the purpose of reducing dilution.
- 01/12/2004
dilution levy
a charge of such amount or at such rate as is determined by an ACD of an ICVC or a manager of a single-priced AUTto be made for the purpose of reducing the effect of dilution.
- 01/12/2004
Diploma Directives
the First and Second Diploma Directives, that is:
(a) the Council Directive of 21 December 1988 on a general system for the recognition of higher-education diplomas, awarded on completion of professional education and training of at least three years' duration (No 89/48/EEC);
(b) the Council Directive of 18 June 1992 on a second general system for the recognition of professional education and training to supplement Directive 89/48/EEC (No 92/51/EEC).
- 01/12/2004
direct offer financial promotion
a financial promotion which:
(a) contains:
(i) an offer by the firm or another person to enter into a controlled agreement with anyone who responds to the financial promotion; or
(ii) an invitation to anyone who responds to the financial promotion to make an offer to the firm or another person to enter into a controlled agreement;
(b) specifies the manner of response or includes a form in which any response is to be made (for example by providing a tear-off slip); and
(c) is not a real time financial promotion.
- 01/12/2004
directive friendly society
a friendly society other than a non-directive friendly society.
- 01/12/2004
director
(1) (except in COLLand
CIS
) (in relation to any of the following (whether constituted in the United Kingdom or under the law of a country or territory outside it)):
(a) an unincorporated association;
(b) a body corporate;
(c) (in SYSC, PRU 9.1 (Responsibility for insurance mediation activity) and SUP 10 (Approved persons)) a partnership;
any person appointed to direct its affairs, including a person who is a member of its governing body and (in accordance with section 417(1) of the Act): (i) a person occupying in relation to it the position of a director (by whatever name called); and
- 01/12/2004
director function
- 01/12/2004
director of unincorporated association function
controlled function CF5 in the table of controlled functions, described more fully in SUP 10.6.24 R.
- 01/12/2004
Disciplinary Tribunal
(in LLD) a Tribunal appointed under Schedule 2 to Lloyd's Disciplinary Committees Byelaw (No 31 of 1996).
- 01/12/2004
disclosable information
any information which has to be disclosed in the market in accordance with any legal or regulatory requirement.
- 01/12/2004
discounting
(in LLD and in PRU) discounting or deductions to take account of investment income as set out in paragraph 48 of the insurance accounts rules.
- 31/12/2004
DISP
Dispute Resolution: the Complaints sourcebook.
- 01/12/2004
distance contract
any contract concerning financial services, the making or performance of which constitutes or is part of a regulated activity, concluded under an organised distance sales or service provision scheme run by the contractual provider of the servicewho, for the purpose of that contract, makes exclusive use (directly or through an intermediary) of one or more
means of distance communication
up to and including the time at which the contract is concluded.
- 01/12/2004
Distance Marketing Directive
The Directive of the Council and Parliament of 23 September 2002 on distance marketing of consumer financial services (No 2002/65/EC).
- 01/12/2004
Distance Marketing Regulations
The Financial Services (Distance Marketing) Regulations 2004 (SI 2004/2095).
- 01/12/2004
distance mortgage mediation contract
a distance contract, the making or performance of which constitutes, or is part of:
(d) agreeing to carry on a regulated mortgage activity in (a) to (c).
- 01/12/2004
distribution account
(in COLL and CIS) the account to which the income property of an authorised fund must be transferred as at the end of each annual accounting period under COLL 6.8.3 R (Income allocation and distribution),
COLL 8.5.15 R (Income) or, as the case may be, CIS 9.2.3 R (Annual allocation of income).
- 01/12/2004
- 01/12/2004
document
any piece of recorded information, including (in accordance with section 417(1) of the Act (Interpretation)) information recorded in any form; in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form.
- 01/12/2004
document evidencing title
any means of evidencing title whether in documentary form or otherwise.
- 01/12/2004
domestic ECA provider
a firm which provides an electronic commerce activity, from an establishment which it has in the United Kingdom, with or for a UK ECA recipient or an ECA recipient in a non-EEA State.
- 01/12/2004
drawdown mortgage
a lifetime mortgage contract where:
(a) the amount borrowed is paid by the mortgage lender to the customer in instalments during the life of the mortgage; and
(b) the size and frequency of the instalments are:
(2) set by reference to an index or interest rate (such as the Bank of England repo rate).
- 01/12/2004
durable medium
(a) paper; or
(b) (in accordance with article 2(f) of the Distance Marketing Directive and article 2(12) of the Insurance Mediation Directive)any instrument which enables the recipient to store information in a way accessible for future reference for a period of time adequate for the purposes of the information and which allows the unchanged reproduction of the information stored; this includes, In particular, floppy disks, CD-ROMs, DVDs and the hard drive of the recipient's computeron which electronic mail is stored, but not Internet websites unless they fulfil the criteria in this definition.
- 01/12/2004
Letter: E
early repayment charge
(in MCOB) a charge levied by the mortgage lender on the customer in the event that the amount of the loan is repaid in full or in part before a date specified in the contract.
- 01/12/2004
ECA recipient
a person who is a user of an electronic commerce activity.
- 01/12/2004
ECA Regulations
the Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996 (SI 1996/2827).
- 01/12/2004
ECD Regulations
the Electronic Commerce Directive (Financial Services and Markets) Regulations 2002 (SI 2002/1775).
- 01/12/2004
ECO
the E-Commerce Directive sourcebook.
- 01/12/2004
E-Commerce Directive
the Council Directive of 8 June 2002 on legal aspects of information society services, in particular electronic commerce, in the Internal Market (No 2000/31/EC).
- 01/12/2004
- 31/12/2004
EEA
the European Economic Area(see also EEA State.)
- 01/12/2004
EEA authorisation
(in accordance with paragraph 6 of Schedule 3 to the Act (EEA Passport Rights))
(a) in relation to an IMD insurance intermediary or an IMD reinsurance intermediary, registration with its Home State regulator under article 3 of the Insurance Mediation Directive;
(b) in relation to any other EEA firm, authorisation granted to an EEA firm by its Home State regulator for the purpose of the relevant Single Market Directive.
- 01/12/2004
EEA bank
an incoming EEA firm which is a BCD credit institution.
- 01/12/2004
EEA banking and investment group
a banking and investment group that satisfies one or more of the following conditions:
(a) it is headed by:
(i) an investment firm or credit institution that is authorised and incorporated in an EEA State; or
(b) it has as a member an investment firm or credit institution that:
(i) is authorised and incorporated in an EEA State; and
(ii) is linked with another member that is in the banking sector or the investment services sector by a consolidation Article 12(1) relationship; or
(c) it is otherwise required by EEA prudential sectoral legislation for the banking sector or the investment services sector (except Article 56a of the Banking Consolidation Directive (Third-country parent undertakings)) to be subject to consolidated supervision by a competent authority.
- 01/12/2004
EEA commodities market
a market that facilitates trading in derivatives relating to commodities (other than a market operated by an RIE) and which is operated by an entity that has its head office situated in the EEA and that is regulated as an exchange.
- 01/12/2004
EEA consolidated group
(in ELM) (in relation to an ELMI) the consolidated sub-group of the ELMI's EEA financial parent undertaking, as established in accordance with ELM 7 (Consolidated financial supervision).
- 01/12/2004
EEA ECA recipient
- 01/12/2004
EEA financial conglomerate
a financial conglomerate that is of a type that falls under Article 5(2) of the Financial Groups Directive (Scope of supplementary supervision of regulated entities referred to in Article 1 of that Directive) which in summary means a financial conglomerate:
(a) that is headed by an EEA regulated entity; or
(b) in which the parent undertaking of an EEA regulated entity is a mixed financial holding company which has its head office in the EEA; or
(c) in which an EEA regulated entity is linked with a member of the financial conglomerate in the overall financial sector by a consolidation Article 12(1) relationship.
- 01/12/2004
EEA financial parent undertaking
- 01/12/2004
EEA firm
(in accordance with paragraph 5 of Schedule 3 to the Act (EEA Passport Rights)) any of the following, if it does not have its head office in the United Kingdom:
(a) an investment firm (as defined in article 1(2) of the Investment Services Directive) which is authorised (within the meaning of article 3) by its Home State regulator; which is authorised (within the meaning of article 1) by its Home State regulator;
(b) a credit institution
(c) a financial institution (as defined in article 1 of the Banking Consolidation Directive) which is a subsidiary of the kind mentioned in article 19 and which fulfils the conditions in articles 18 and 19 ;
(d) an undertaking pursuing the activity of direct insurance (within the meaning of article 1of the
First Life Directive
or of the First Non-Life Directive (No. 73/239/EEC)) which has received authorisation under article 6 from its Home State regulator.
(f) (from 13 February 2004) a management company (as defined in article 1a of the UCITS Directive) which has been authorised under article 5 of that directive by its Home State regulator.
- 01/12/2004
EEA group large exposure
- 01/12/2004
EEA group risk own funds
(in ELM) (in relation to an ELMI) are identified and calculated by applying the definition of own funds to the ELMI's EEA consolidated group in accordance with ELM 7.5.1 R (EEA group risk own funds).
- 01/12/2004
EEA group risk own funds requirement
(in ELM) (in relation to an ELMI) is calculated by applying the definition of own funds requirement to an ELMI's EEA consolidated group in accordance with ELM 7.5.2 R (EEA group risk own funds requirement).
- 01/12/2004
EEA insurance parent undertaking
an insurance parent undertaking that has its head office in the United Kingdom or another EEA State.
- 31/12/2004
EEA insurer
an insurer, other than a pure reinsurer or a non-directive insurer, whose head office is in any EEA State except the United Kingdom and which has received authorisation under article 6 of the First Life Directive or article 4 of the Consolidated Life Directive or article 6 of the First Non-Life Directive from its Home State Regulator.
- 31/12/2004
EEA investment business oversight function
- 01/12/2004
EEA MCR
the MCR in relation to business carried on in all EEA States, taken together, calculated by a UK-deposit insurer in accordance with
PRU 7.6.46 R
.
- 31/12/2004
EEA Passport Rights Regulations
the Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001 (SI 2001/2511).
- 01/12/2004
EEA prudential sectoral legislation
(in relation to a financial sector) requirements applicable to persons in that financial sector in accordance with EEA legislation about prudential supervision of regulated entities in that financial sector and so that:
(a) (in relation to the banking sector and the investment services sector) in particular this includes the requirements laid down in the Banking Consolidation Directive and the Capital Adequacy Directive; and
(b) (in relation to the insurance sector) in particular this includes requirements laid down in the First Non-Life Directive, the Consolidated Life Directive and the Insurance Groups Directive.
- 01/12/2004
EEA regulated entity
- 01/12/2004
EEA regulator
a competent authority for the purposes of any of the Single Market Directives.
- 01/12/2004
EEA right
(in accordance with paragraph 7 of Schedule 3 to the Act (EEA Passport Rights)) the entitlement of a person to establish a branch or provide services in an EEA State other than that in which he has his relevant office:
(b) subject to the conditions of the relevant Single Market Directive.
in this definition, relevant office means: (i) in relation to a person who has a registered office and whose entitlement is subject to the conditions of the Insurance Mediation Directive, his registered office; and
(ii) in relation to any other person, his head office.
- 01/12/2004
EEA State
(in accordance with paragraph 8 of Schedule 3 to the Act (EEA Passport Rights)) a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on 2 May 1992, as it has effect for the time being; as at 1 May 2004, the following are the EEA States: Austria, Belgium, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden and the United Kingdom.
- 01/12/2004
EEA UCITS management company
(as defined in article 1a (2) of the UCITS Directive) any incoming EEA firm, the regular business of which is the management of UCITS in the form of unit trusts or common funds or of investment companies (collective portfolio management of UCITS) or of both; this includes the functions mentioned in Annex II.
- 01/12/2004
EEA-deposit insurer
a
non-EEA insurer
that has made a deposit in an EEA State (other than the United Kingdom) under article 23 of the First Non-Life Directive (as amended) in accordance with article 26 of that Directive or under article 51 of the Consolidated Life Directive in accordance with article 56 of that Directive.
- 31/12/2004
effecting contracts of insurance
the regulated activity, specified in article 10(1) of the Regulated Activities Order (Effecting and carrying out contracts of insurance), of effecting a contract of insurance as principal.
- 01/12/2004
- 01/12/2004
EIS fund
an arrangement, specified in paragraph 2 of the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (SI 2001/1062), which is in summary: an arrangement in relation to EIS shares that would have been a collective investment scheme if the scheme arrangements had not provided that:
(a) the operator will, so far as practicable, make investments which, subject to each participant's individual circumstances, qualify for relief under Chapter III of Part VII of the Income and Corporation Taxes Act 1988; and
(b) the minimum subscription to the arrangements by each participant must be not less than £2,000.
- 01/12/2004
EIS managed portfolio
a managed portfolio which is, or is to be, invested wholly or mainly in EIS shares.
- 01/12/2004
EIS manager
(a) (in relation to an EIS managed portfolio) the investment manager;
(b) (in relation to an EIS fund) the manager of the fund.
- 01/12/2004
EIS particulars
a document containing particulars of an Enterprise Investment Scheme.
- 01/12/2004
EIS share
a share in respect of which the beneficial owner may, subject to his individual circumstances, be qualified, or has been qualified, for relief under Chapter III of Part VII of the Income and Corporation Taxes Act 1988.
- 01/12/2004
EIS subscription
any money which is subscribed:
(a) in the case of an EIS managed portfolio, by the client of the EIS manager whose portfolio it is;
- 01/12/2004
Electing Participants Order
the Financial Services and Markets Act 2000 (Compensation Scheme: Electing Participants) Regulations 2001 (SI 2001/1783).
- 01/12/2004
Electing Participants Regulations
the Financial Services and Markets Act 2000 (Compensation Scheme: Electing Participants) Regulations 2001 (SI 2001/1783).
- 01/12/2004
electricity
(a) electricity in any form, including electricity as deliverable through the Balancing and Settlement Code;
(b) any right that relates to electricity, for example the right under a contract or otherwise to require a person to take any action in relation to electricity, including:
(i) supplying electricity to any person or accepting supply of electricity; or
(ii) providing any information or notice in relation to electricity; or
(iii) making any payment in relation to the supply or nonsupply, or acceptance or non-acceptance of supply, of electricity.
- 01/12/2004
electronic commerce activity
an activity which:
(a) consists of the provision of an information society service from an establishment in an EEA State; and
(b) is, or but for article 72A (Information society services) of the Regulated Activities Order (Information society services) (and irrespective of the effect of article 72 of that Order (Overseas persons)) would be, a regulated activity.
- 01/12/2004
electronic commerce activity direction
a direction made, or proposed to be made, by the
FSA
under regulation 6 of the ECD Regulations.
- 01/12/2004
electronic commerce activity provider
a person who carries on an electronic commerce activity.
- 01/12/2004
electronic commerce communication
(in accordance with article 6 of the Financial Promotion Order) a communication, the making of which constitutes the provision of an information society service.
- 01/12/2004
electronic money
The investment, specified in article 74A of the Regulated Activities Order (Electronic money), which is monetary value, as represented by a claim on the issuer, which is:
(a) stored on an electronic device;
(b) issued on receipt of funds; and
(c) accepted as a means of payment by persons other than the issuer.
- 01/12/2004
eligible
(in COLL and CIS) (in relation to a securities or a derivatives market) a market that satisfies the requirements in COLL 5.2.10 R (Eligible markets: requirements), CIS 5.2.12 R or CIS 5A.3.3 R (Eligible markets: requirements) in relation to schemes falling under COLL 5, CIS 5 or CIS 5A respectively.
- 01/12/2004
eligible claimant
- 01/12/2004
eligible complainant
a person eligible to have a complaint considered under the Financial Ombudsman Service, as defined in
DISP 2.4 (Who can refer a complaint to the Financial Ombudsman Service).
- 01/12/2004
eligible investment trust
an investment trust that satisfies the requirements of CIS 5A.10.4 R (Feeder fund investing in a single eligible investment trust).
- 01/12/2004
ELM
the Electronic Money sourcebook.
- 01/12/2004
ELM financial rules
- 01/12/2004
ELMI
- 01/12/2004
e-money
- 01/12/2004
E-Money Directive
the Council Directive of 18 September 2000 relating to the taking up, pursuit of and prudential supervision of the business of electronic money institutions (No 2000/46/EC).
- 01/12/2004
e-money electronic device
an electronic device referred to in paragraph (a) of the definition of electronic money and any other device that a holder of electronic money uses to hold or to spend or otherwise use his electronic money.
- 01/12/2004
e-money firm
- 01/12/2004
e-money float
(in ELM) (in relation to an ELMI) qualifying liquid assets owned by an ELMI except those that, taking into account ELM 3.3.13 R (Establishment of the e-money float), the ELMI does not need in order to comply with ELM 3.3.1 R (Asset-liability management).
- 01/12/2004
e-money float exposure
(in ELM) the risks of loss set out in ELM 3.5.3 R (Large exposure risk).
- 01/12/2004
e-money issue price
(in respect of e-money issued by an e-money firm) the amount paid to the e-money firm for the issue of that e-money before or on the issue of that e-money.
- 01/12/2004
e-money issuer
(in accordance with the definition of an "electronic money institution" in article 1.3 of the E-Money Directive) an undertaking or any other legal person, other than a full credit institution, which issues means of payment in the form of e-money.
- 01/12/2004
e-money outstandings
(in ELM) (in relation to an ELMI and at any time) the total amount (actual or contingent) of the ELMI's financial liabilities related to outstanding e-money at that time, including the total amount that would be payable by the ELMI if all the e-money in respect of which persons have, against the ELMI, a redemption right or any other right to require e-money to be redeemed were then due for redemption.
- 01/12/2004
e-money scheme rules
(in ELM) (in relation to a scheme under which a firm issues e-money) the contracts between the participants in that scheme relating to the issue, circulation and redemption of e-money, including the contracts referred to in ELM 6.7.2 R (Terms of reference).
- 01/12/2004
employee
(1) (for all purposes except those in (2)) an individual:
(a) who is employed or appointed by a person in connection with that person's business, whether under a contract of service or for services or otherwise; or
(b) whose services, under an arrangement between that person and a third party, are placed at the disposal and under the control of that person;
but excluding an appointed representative of that person. (2) (for the purposes of:
(a)
COB 7.13
(Personal account dealing);
(aa) GEN 4 (Statutory status disclosure);
(b) SUP 12 (Appointed representatives); and
(c) TC)
an individual: (i) within (1); or
(ii) who is:
(B) employed or appointed by an appointed representative of that person, whether under a contract of service or for services or otherwise, in connection with the business of the appointed representative for which that person has accepted responsibility.
- 01/12/2004
employers' liability insurance
a contract of insurance against risks of the persons insured incurring liabilities to their employees.
- 01/12/2004
EMPS
the Handbook Guide for energy market participants.
- 01/12/2004
endowment assurance
a life policy which pays a sum of money on the survival of the life assured to a specific date or on his earlier death.
- 01/12/2004
energy
- 01/12/2004
energy collective investment scheme
a collective investment scheme, the property of which consists only of energy, energy investments, greenhouse gas emissions allowances, tradable renewable energy credits or cash awaiting investment.
- 01/12/2004
energy investment
any of the following:
(c) a future or a contract for differences where the commodity or property of any other description in question is:
(i) energy; or
(ii) an energy investment; or
(iii) a greenhouse gas emissions allowance; or
(iv) a tradable renewable energy credit;
(d) a contract for differences where the index or other factor in question is linked to or otherwise dependent upon fluctuations in the value or price of any of (c)(i) to (iv) (including any prices or charges in respect of imbalances under the Network Code or the Balancing and Settlement Code);
(e) a weather derivative;
(h) rights to or interests in investments in (a)-(g).
- 01/12/2004
energy market activity
(a) any regulated activityin relation to an energy investment or to energy which:
(i) is the executing of own account transactions on any recognised investment exchange or designated investment exchange; or
(ii) if it is not the executing of transactions on such exchanges, is performed in connection with or for persons who are not
private customers
;
(b) establishing, operating or winding up a collective investment scheme which is an energy collective investment scheme in which
private customers
do not participate.
- 01/12/2004
energy market participant
a firm:
(a) whose permission:
(i) includes a requirement that the firm must not carry on any designated investment business other than energy market activity;
(ii) does not include a requirement that it comply with IPRU-INV -link- 5 (Investment management firms) or 13 (Personal investment firms); and
(b) which is not an authorised professional firm, bank,
building society, credit union, friendly society, ICVC, insurer,
ISD investment firm
, media firm, oil market participant, service company, insurance intermediary,
mortgage administrator
,
mortgage lender
, incoming EEA firm (without a top-up permission), or incoming Treaty firm (without a top-up permission).
- 01/12/2004
ENF
the Enforcement manual.
- 01/12/2004
engage in investment activity
(as defined in section 21(8) of the Act) (Restrictions on financial promotion)):
(a) enter or offer to enter into an agreement the making or performance of which by either party constitutes a controlled activity; or
(b) exercise any rights conferred by a controlled investment to acquire, dispose of, underwrite or convert a controlled investment.
- 01/12/2004
enhanced capital requirement
(1) (in relation to a firm carrying on general insurance business) the amount calculated in accordance with
PRU 2.3.11 R
.
(2) (in relation to a firm carrying on long-term insurance business) an amount of capital resources that a firm must hold as set out in
PRU 2.1.34 R
.
- 31/12/2004
entering as provider into a funeral plan contract
the regulated activity, specified in article 59 of the Regulated Activities Order (Funeral plan contracts) which comes into force on 1 January 2002, of entering as provider into a funeral plan contract.
- 01/12/2004
entering into a regulated mortgage contract
the regulated activity, specified in article 61(1) of the Regulated Activities Order, which is in summary: entering into a regulated mortgage contract as lender.
- 01/12/2004
Enterprise Investment Scheme
an arrangement which is an EIS managed portfolio or an EIS fund.
- 01/12/2004
Enterprise Zone Property Unit Trust
an unregulated collective investment scheme of which the underlying assets are industrial and commercial buildings in an Enterprise Zone in accordance with section 749(2) of the Finance Act 1980.
- 01/12/2004
- 31/12/2004
equity market adjustment ratio
(2) (in relation to the market risk scenario for the risk capital margin of a with-profits fund) has the meaning set out in
PRU 7.4.71 R
.
- 31/12/2004
equity stake
(in relation to a company) any kind of equity stake in that company, including shares in it (including non-voting and non-equity shares, debt securities that are convertible or exchangeable into such shares, a call option on such shares or an in-the-money put option on such shares, but excluding a contract for differences or other investment that provides merely an economic exposure to movement in the price of the company's shares).
- 01/12/2004
established surplus
has the meaning in IPRU-INS 3.3(4).
- 31/12/2004
establishing, operating or winding up a collective investment scheme
the regulated activity, specified in article 51(1)(a) of the Regulated Activities Order (Establishing etc a collective investment scheme), of establishing, operating or winding up a collective investment scheme.
- 01/12/2004
establishing, operating or winding up a regulated collective investment scheme
- 01/12/2004
establishing, operating or winding up a stakeholder pension scheme
the regulated activity, specified in article 52 of the Regulated Activities Order (Establishing etc. a stakeholderpension scheme), of establishing, operating or winding up a stakeholder pension scheme.
- 01/12/2004
establishing, operating or winding up an unregulated collective investment scheme
- 01/12/2004
establishment
(in relation to an information society service) the place at which the provider of the service effectively pursues an economic activity for an indefinite period; in this definition:
(a) the presence or use in a particular place of equipment or other technical means of providing an information society service does not, of itself, constitute that place as an establishment; and
(b) where it is unclear from which of a number of establishments a particular information society service is provided, that service is to be regarded as provided from the establishment where the provider has the centre of his activities relating to the service.
- 01/12/2004
establishment conditions
(in relation to the establishment of a branch in the United Kingdom) the conditions specified in paragraph 13 of Schedule 3 to the Act (EEA Passport Rights), which are that:
(a) if the firm falls within paragraph (a), (b), (c), (d) or (f) in the definition of "EEA firm":
(i)...
(b) if the firm falls within paragraph (e) in the definition of "EEA firm":
(i) the EEA firm has given its Home State regulator notice of its intention to establish a branch in the United Kingdom;
(ii) the
FSA
has received notice ("a regulator's notice") from the firm's Home State regulator that the firm intends to establish a branch in the United Kingdom;
(iii) the EEA firm's Home State regulator has informed it that the regulator's notice has been sent to the
FSA
; and
(c) the EEA firm has been informed of the applicable provisions or two months have elapsed beginning with the date when the
FSA
received the consent notice.
- 01/12/2004
establishment costs
(1) (in COMP) the costs of establishing the compensation scheme.
(2) (in DISP) the costs of establishing the Financial Ombudsman Service.
- 01/12/2004
establishment costs levy
a levy, forming part of the management expenses levy, to meet the establishment costs, each participant firm's share being calculated in accordance with
COMP 13.5.10 G
.
- 01/12/2004
European Economic Area
the area established by the agreement on the European Economic Area signed at Oporto on 2 May 1992, as it has effect for the time being and which consists of the EEA States.
- 01/12/2004
evidential provision
a rule, contravention of which does not give rise to any of the consequences provided for by other provisions of the Act; and which provides, in accordance with section 149(2)of the Act, that:
(a) contravention may be relied on as tending to establish contravention of such other rule as may be specified; or
(b) compliance may be relied on as tending to establish compliance with such other rule as may be specified; or
(c) both (a) and (b).
- 01/12/2004
excluded material
(in relation to access to
FSA
material) (as defined in section 394(7) of the Act (Access to Authority material)) material which:
(a) has been intercepted in obedience to a warrant issued under any enactment relating to the interception of communications; or
(b) indicates that such a warrant has been issued or that material has been intercepted in obedience to such a warrant; or
(c) is a protected item.
- 01/12/2004
execute
- 01/12/2004
execution-only transaction
a transaction executed by a firm upon the specific instructions of a client where the firm does not give advice on investments relating to the merits of the transaction.
- 01/12/2004
executive procedures
the procedures relating to the giving of warning notices, decision notices and supervisory notices that the FSA proposes to follow in the circumstances specified in DEC 4.1.6 G (Decisions to be taken by executive procedures), and that are described in
DEC 4.3 (Executive procedures for statutory notice decisions and statutory notice associated decisions).
- 01/12/2004
exempt activity
(in relation to a recognised body) any regulated activity in respect of which the body is exempt from the general prohibition as a result of section 285(2) or (3) of the Act (Exemption for recognised investment exchanges and clearing houses).
- 01/12/2004
exempt CAD firm
(in accordance with Article 2(2) of the Capital Adequacy Directive (Definitions)) a firm that satisfies the following conditions:
(a) it is an ISD investment firm;
(c) its permission is subject to a limitation or requirement preventing it from holding client money or clients' assets and for that reason it may not at any time place itself in debit with its clients; and
(d) the only core investment service for which it has permission is receiving and transmitting on behalf of investors orders in relation to one or more of the instruments listed in Section B of the Annex to the ISD.
- 01/12/2004
exempt person
(as defined in section 417(1) of the Act (Definitions)) (in relation to a regulated activity) a person who is exempt from the general prohibition in respect of that activity as a result of:
(a) the Exemption Order; or
(b) being an appointed representative; or
(c) section 285(2) or (3) of the Act (Exemption for recognised investment exchanges and clearing houses).
- 01/12/2004
exempt professional firm
a person to whom, under section 327 of the Act, the general prohibition does not apply; guidance is given in PROF 2.1 (Exempt regulated activities).
- 01/12/2004
exempt regulated activity
(as defined in section 325(2) of the Act (Authority's general duty)) a regulated activity which may, as a result of Part XX of the Act (Provision of Financial Services by Members of the Professions), be carried on by members of a profession which is supervised and regulated by a designated professional body without breaching the general prohibition.
- 01/12/2004
Exemption Order
the Financial Services and Markets Act 2000 (Exemption) Order 2001 (SI 2001/1201).
- 01/12/2004
exposure
- 01/12/2004
ex-section 43 firm
a firm that was a listed institution, as defined in section 43 of the Financial Services Act 1986, immediately before commencement.
- 01/12/2004
ex-section 43 lead regulated firm
an ex-section 43 firm for which the FSA (in its capacity as the regulatory body under section 43 of the Financial Services Act 1986) was lead regulator for financial supervision purposes, and that was subject to the section 43 capital requirements, immediately before commencement.
- 01/12/2004
extraordinary resolution
(in COLL and CIS) a resolution passed by a majority of not less than three-quarters of the votes validly cast (whether on a show of hands or on a poll) for and against the resolution at a general meeting or (as the case may be) class meeting of holders, of which notice specifying the intention to propose the resolution as an extraordinary resolution has been duly given.
- 01/12/2004
- 01/12/2004
Letter: F
facilities
(in relation to a recognised body) the facilities and services which it provides in the course of carrying on exempt activities.
- 01/12/2004
failure
(in CASS) the appointment of a liquidator, receiver or administrator, or trustee in bankruptcy, or any equivalent procedure in any relevant jurisdiction.
- 01/12/2004
fee
any payment or remuneration offered or made by a client to a firm in connection with designated investment business or with any other business of the firm, including (where applicable) any mark-up or mark-down.
- 01/12/2004
feeder fund
an AUT that is a relevant pension scheme and dedicated to units in a single regulated collective investment scheme or to shares or debentures of a single eligible investment trust.
- 01/12/2004
fees and commission statement
a statement which a firm is required to maintain in accordance with COB 4.3.11 R.
- 01/12/2004
field representative
an appointed representative of the firm, or an employee of the firm (or of its appointed representative), whose normal fixed place of business is not a business address of the firm which appears on the firm's stationery.
- 01/12/2004
final bonus
(in relation to a with-profits insurance contract) a discretionary payment which might be made by a long-term insurer, in addition to the guaranteed benefits, when the benefits under the with-profits insurance contract become payable.
- 31/12/2004
final response
a written response from the firm which:
(a) accepts the complaint, and, where appropriate, offers redress; or
(b) offers redress without accepting the complaint; or
(c) rejects the complaint and gives reasons for doing so;
and which informs the complainant that, if he remains dissatisfied with the firm's response, he may now refer his complaint to the Financial Ombudsman Service and must do so within six months.- 01/12/2004
final transfer value
the sum of money available at retirement to provide retirement benefits through the open market option.
- 01/12/2004
finance function
controlled function CF13 in the table of controlled functions, described more fully in SUP 10.8.1 R.
- 01/12/2004
Financial Action Task Force
the inter-governmental body responsible for developing and promoting policies, both nationally and internationally, to combat money laundering.
- 01/12/2004
financial conglomerate
(in accordance with Article 2(14) of the Financial Groups Directive (Definitions)) a consolidation group that is identified as a financial conglomerate by the financial conglomerate definition decision tree.
- 01/12/2004
financial conglomerate definition decision tree
the decision tree in
PRU 8 Ann 4R
.
- 01/12/2004
financial crime
(in accordance with section 6(3)of the Act) any kind of criminal conduct relating to money or to financial services or markets, including any offence involving:
(a) fraud or dishonesty; or
(b) misconduct in, or misuse of information relating to, a financial market; or
(c) handling the proceeds of crime;
in this definition, "offence" includes an act or omission which would be an offence if it had taken place in the United Kingdom.- 01/12/2004
Financial Groups Directive
Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate.
- 01/12/2004
Financial Groups Directive Regulations
[To be included in the Glossary when those Regulations are made]
- 01/12/2004
financial holding company
a financial institution that fulfils the following conditions:
(a) its subsidiary undertakings are either exclusively or mainly credit institutions, investment firms or financial institutions;
(b) at least one of those subsidiary undertakings is a credit institution or an investment firm; and
(c) it is not a mixed financial holding company.
- 01/12/2004
financial institution
(1) (in accordance with paragraph 5(c) of Schedule 3 to the Act (EEA Passport Rights: EEA firm) and article 1(5) of the Banking Consolidation Directive (Definitions)), but not for the purposes of
ELM
or PRU 8 (Group Risk)), an undertaking, other than a credit institution, the principal activity of which is to acquire holdings or to carry on one or more of the listed activities listed in points 2 to 12 of Annex I to the BCD, which is a subsidiary of the kind mentioned in article 19of the BCD and which fulfils the conditions in articles 18 and 19 of the BCD.
(2) for the purposes of
ELM
and PRU 8 (Group risk) and in accordance with Articles 1(5) (Definitions) and 2(2) (Scope)of the Banking Consolidation Directive):
(a) an undertaking, other than a credit institution, the principal activity of which is to acquire holdings or to carry on one or more of the listed activities listed in points 2 to 12 of Annex I to the Banking Consolidation Directive;
(b) those institutions permanently excluded by paragraph 2(3) of the Banking Consolidation Directive (Scope), with the exception of the central banks of Member States, but so that, so far as this paragraph (b) applies for the purposes of ELM, it only applies for the purposes of chapter 7 (Consolidated financial supervision) of ELM; and
- 01/12/2004
financial instrument
as defined in Annex B of the Investment Services Directive, the following instruments:
(a)
(i) transferable securities;
(ii) units in collective investment undertakings;
(c) financial futures contracts, including equivalent cash-settled instruments;
(d) forward interest rate agreements (FRAs);
(e) interest rate, currency and equity swaps; and
(f) options to acquire or dispose of any of the instruments in (a) to (e), including equivalent cash-settled instruments (including in particular options on currency and options on interest rates).
- 31/12/2004
Financial Ombudsman Service
- 01/12/2004
Financial Ombudsman Service Limited
the body corporate established by the FSA under paragraph 2(1) of Schedule 17 to the Act (The Scheme Operator) to administer the Financial Ombudsman Service.
- 01/12/2004
financial promotion
(in accordance with section 21(1) of the Act (Restrictions on financial promotion)) an invitation or inducement to engage in investment activity.
- 01/12/2004
Financial Promotion Order
the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (SI 2001/1335)
- 01/12/2004
financial promotion rules
COB 3
.
- 01/12/2004
financial sector
- 01/12/2004
Financial Services and Markets Tribunal
the Tribunal established under section 132 of the Act (The Financial Services and Markets Tribunal) and run by the Lord Chancellor's Department.
- 01/12/2004
Financial Services Compensation Scheme Limited
the body corporate established by the FSA under section 212 of the Act (The scheme manager) to administer the compensation scheme.
- 01/12/2004
financial services undertaking
(in ELM) a financial institution, ancillary banking services undertaking, financial holding company or relevant financial services company.
- 01/12/2004
financial system
(as defined in section 3 of the Act (Market confidence)) the financial system operating in the United Kingdom including:
(a) financial markets and exchanges;
(b) regulated activities; and
(c) other activities connected with financial markets and exchanges.
- 01/12/2004
financial year
- 31/12/2004
financial year in question
(for the purposes of
PRU 7.2
and of the definition of non-directive insurer) the last financial year to end before the date on which the latest accounts of the insurer are required to be deposited with the
FSA
; the preceding financial year and previous financial years are construed accordingly.
- 31/12/2004
financing cost amount
(in relation to a share, debenture or other investment in, or external contribution to the capital of, a firm) an amount that represents a reasonable estimate of the part of the coupon on that instrument that reflects the cost of financing generally but excludes costs reflecting factors relating to the issuer, guarantor or other person to whom the instrument creates an exposure.
- 31/12/2004
fire and natural forces
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 8 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against loss of or damage to property (other than property to which paragraphs 3 to 7 of Part I of Schedule 1 to the Regulated Activities Order (Land vehicles; railway rolling stock; aircraft; ships; goods in transit) relate) due to fire, explosion, storm, natural forces other than storm, nuclear energy or land subsidence.
- 01/12/2004
firm
an authorised person, but not a professional firm unless it is an authorised professional firm.(see also GEN 2.2.18 R for the position of an authorised partnership or unincorporated association which is dissolved.)
- 01/12/2004
firm in run-off
a firm whose
Part IV permission
has been varied so as to remove the regulated activity of effecting contracts of insurance.
- 31/12/2004
First Life Directive
the Council Directive of 5 March 1979 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance (No 79/267/EEC).
- 01/12/2004
First Non-Life Directive
the Council Directive of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct insurance other than life insurance (No 73/239/EEC).
- 01/12/2004
FIT
the part of the Handbook in High Level Standards which has the title the Fit and Proper test for Approved Persons.
- 01/12/2004
fixed-sum credit
(in accordance with section 10(1)(b) of the Consumer Credit Act 1974) any facility under a contract, other than running-account credit, by which the customer is enabled to receive credit (whether in one amount or by instalments).
- 01/12/2004
flat rate benefits business friendly society
a friendly society whose insurance business is restricted to the provision of benefits which vary according to the resources available and in which the contributions of members are determined on a flat rate basis.
- 01/12/2004
foreign currency
- 01/12/2004
former member
- 01/12/2004
former Ombudsman
an ombudsman, arbitrator or independent investigator appointed under a former scheme.
- 01/12/2004
former scheme
(1) (except in relation to a relevant transitional complaint) any of the following:
(a) the Banking Ombudsman scheme;
(b) the Building Societies Ombudsman scheme;
(c) the FSA scheme;
(d) the IMRO scheme;
(e) the Insurance Ombudsman scheme;
(g) the PIA Ombudsman scheme;
(h) the SFA scheme;
(2) (in relation to a relevant transitional complaint)
(a) the GISC facility; or
(b) the MCAS scheme.
- 01/12/2004
former underwriting member
(as defined in section 324(1) of the Act (Interpretation of Part XIX: Lloyd's)) a person ceasing to be an underwriting member on, or at any time after, 24 December 1996.
- 01/12/2004
forward price
(in relation to units) a price calculated by reference to the valuation point next following the authorised fund manager's agreement to sell or, as the case may be, to redeem the units in question.
- 01/12/2004
FOS Ltd
- 01/12/2004
Fourth Motor Insurance Directive
the Directive of the European Parliament and the Council of 16 May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC (No 2000/26/EC).
- 01/12/2004
free-standing additional voluntary contribution
an additional voluntary contribution to a private pension policy or pension contract separate from but associated with an occupational pension scheme which is an approved arrangement under section 591(2)(h) of the Income and Corporation Taxes Act 1988.
- 01/12/2004
friendly society
- 01/12/2004
front end loaded
(in relation to an investment) one where deductions for charges and expenses are loaded disproportionately on the early years.
- 01/12/2004
FSA
the Financial Services Authority.
- 01/12/2004
FSA consolidation rule
- 01/12/2004
FSA Register
the public record, as required by section 347 of the Act (The public record), of every:
(a) authorised person;
(b) AUT;
(c) ICVC;
(d) recognised scheme;
(g) individual to whom a prohibition order relates;
(h) approved person; and
- 01/12/2004
FSA regulated EEA financial conglomerate
a financial conglomerate (other than a third-country financial conglomerate) that satisfies one of the following conditions:
(a)
PRU 8.4.26 R or PRU 8.4.29 R (Capital adequacy calculations for financial conglomerates) applies with respect to it; or
(b) a firm that is a member of that financial conglomerate is subject to obligations imposed through its Part IV permission to ensure that financial conglomerate meets levels of capital adequacy based or stated to be based on Annex I of the Financial Groups Directive.
- 01/12/2004
FSA scheme
the former scheme operated by the FSA under paragraph 4 of Schedule 7 to the Financial Services Act 1986 for the investigation of complaints arising out of the conduct of investment business.
- 01/12/2004
FSAVC
free-standing additional voluntary contribution.
- 01/12/2004
- 01/12/2004
full BCDD credit institution
a BCD credit institution that falls within paragraph (1) of the definition of credit institution.
- 01/12/2004
full credit institution
a credit institution that falls within paragraph (1) of the definition of credit institution.
- 01/12/2004
fund of funds scheme
an authorised fund dedicated to units in a number of regulated collective investment schemes or sub-funds of one or more regulated collective investment schemes (or both).
- 01/12/2004
funds at Lloyd's
assets of members held by the Society, not being part of their premium trust funds, available to meet the liabilities arising from their insurance business at Lloyd's.
- 01/12/2004
funeral plan contract
the investment, specified in articles 59(2), 60 and 87 of the Regulated Activities Order which come into force on 1 January 2002, which is in summary: rights under a contract under which:
(b) the provider undertakes to provide, or secure that another person provides, a funeral in the United Kingdom for the customer (or some other person who is living at the date when the contract is entered into) on his death;
unless, at the time of entering into the contract, the customer and the provider intend or expect the funeral to occur within one month; but excluding certain contracts under which sums paid will be applied towards a contract of insurance or will be held on trust.- 01/12/2004
future
the investment, specified in article 84 of the Regulated Activities Order (Futures), which is in summary: rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed on when the contract is made.
- 01/12/2004
future policy-related liabilities
(in relation to a with-profits fund) the future policy-related liabilities of the with-profits fund calculated in accordance with the rules in PRU 7.4.137 R to PRU 7.4.189 G.
- 31/12/2004
futures and options scheme
an authorised fund dedicated to derivatives (where most or all of the transactions in derivatives are fully covered by cash, securities or derivatives), with or without transferable securities.
- 01/12/2004
FX exposure
(in ELM) (in relation to an ELMI) its net FX open position multiplied by 8%, calculated in accordance with ELM 3.4 (Foreign exchange risk).
- 01/12/2004
FX exposure limit
- 01/12/2004
Letter: G
- 31/12/2004
- 31/12/2004
geared futures and options scheme
an authorised fund dedicated to derivatives (where most or all of the extent of the investment is limited by the amount of property available to put up as initial outlay), whether with or without transferable securities.
- 01/12/2004
geared scheme
a regulated collective investment scheme where the policies which the operator adopts or proposes to adopt mean that as a result of investment in warrants or derivatives, or through borrowing that is not temporary in nature, movements in prices of units are likely to be amplified significantly.
- 01/12/2004
gearing
(in COB) a strategy, with a view to enhancing the return for, or the value of, a security without increasing the amount invested by the holders of the security, involving one or more of the following:
(a) borrowing money;
(b) investing in one or more instruments, such as (but not limited to) warrants or derivatives, for which a relatively small movement in the value or price of the underlying rights or assets to which the instrument relates, whether favourable or adverse, results in a larger movement in the value or price of the instrument; and
- 01/12/2004
GEN
the part of the Handbook in High Level Standards which has the title General Provisions.
- 01/12/2004
general client bank account
a client bank account that holds client money of one or more clients and which is not:
(a) a designated client bank account; or
- 01/12/2004
general insurance business
the business of effecting or carrying out general insurance contracts.
- 01/12/2004
general insurance business liabilities
liabilities of a member that are not to be left out of account under LLD 12.5.4 R, and are not long-term insurance business liabilities.
- 01/12/2004
general insurance business syndicate
- 01/12/2004
general insurance capital requirement
the highest of the premiums amount, claims amount and brought forward amount as set out in
PRU 7.2
.
- 31/12/2004
general insurance contract
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation: general)) any contract of insurance within Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), namely:
(a) accident (paragraph 1);
(b) sickness (paragraph 2);
(c) land vehicles (paragraph 3);
(d) railway rolling stock (paragraph 4);
(e) aircraft (paragraph 5);
(f) ships (paragraph 6);
(g) goods in transit (paragraph 7);
(h) fire and natural forces (paragraph 8);
(i) damage to property (paragraph 9);
(j) motor vehicle liability (paragraph 10);
(k) aircraft liability (paragraph 11);
(l) liability of ships (paragraph 12);
(m) general liability (paragraph 13);
(n) credit (paragraph 14);
(o) suretyship (paragraph 15);
(p) miscellaneous financial loss (paragraph 16);
(q) legal expenses (paragraph 17);
(r) assistance (paragraph 18).
- 01/12/2004
general insurance liabilities
insurance liabilities arising from general insurance business.
- 31/12/2004
general levy
(in
DISP
) the annual fee raised from a firm under the rules to fund a part agreed between the Financial Ombudsman Service and the
FSA
of the Financial Ombudsman Service's annual budget.
- 01/12/2004
general liability
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 13 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against risks of the persons insured incurring liabilities to third parties, the risks in question not being risks to which paragraph 10 (Motor vehicle liability), 11 (Aircraft liability) or 12 (Liability of ships) of that Schedule relates.
- 01/12/2004
general prohibition
the prohibition imposed by section 19 of the Act (The general prohibition) which states that no person may carry on a regulated activity in the United Kingdom, or purport to do so, unless he is:
(a) an authorised person; or
(b) an exempt person.
- 01/12/2004
general representative
a person resident in the United Kingdom who is authorised to act generally, and to accept service of any document, on behalf of the firm.
- 01/12/2004
Gibraltar Order
the Financial Services and Markets Act 2000 (Gibraltar) Order 2001 (SI 2001/3084).
- 01/12/2004
- 31/12/2004
GISC facility
The Dispute Resolution Facility established by the General Insurance Standards Council.
- 01/12/2004
global account
the accounts produced under LLD 15.10 (The Lloyd's global account).
- 01/12/2004
Glossary
the Glossary giving the meanings of the defined expressions used in the Handbook.
- 01/12/2004
goods in transit
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 7 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against loss of or damage to merchandise, baggage and all other goods in transit, irrespective of the form of transport.
- 01/12/2004
governing body
the board of directors, committee of management or other governing body of a firm or recognised body, including, in relation to a sole trader, the sole trader.
- 01/12/2004
governing function
any of the controlled functions 1 to 7in the table of controlled functions .
- 01/12/2004
government and public security
the investment, specified in article 78 of the Regulated Activities Order (Government and public securities), which is in summary: a loan stock, bond or other instrument creating or acknowledging indebtedness, issued by or on behalf of:
(a) the government of the United Kingdom; or
(b) the Scottish Administration; or
(c) the Executive Committee of the Northern Ireland Assembly; or
(d) the National Assembly of Wales; or
(e) the government of any country or territory outside the United Kingdom; or
(f) a local authority in the United Kingdom or elsewhere; or
(g) a body the members of which comprise:
(ii) bodies whose members comprise States including the United Kingdom or another EEA State; but excluding:
(A) the instruments specified in article 77(2)(a) to (d) of the Regulated Activities Order;
(B) any instrument creating or acknowledging indebtedness in respect of:
(I) money received by the Director of Savings as deposits or otherwise in connection with the business of the National Savings Bank; or
(II) money raised under the National Loans Act 1968 under the auspices of the Director of Savings or treated as so raised under section 11(3) of the National Debt Act 1972.
- 01/12/2004
granting an e-money permission
(a) (in the case of a firm that previously had not had a Part IV permission) giving the firm a Part IV permission that includes issuing e-money;
(b) (in the case of a firm that does have a Part IV permission) a variation of a Part IV permission so that it includes issuing e-money.
- 01/12/2004
greenhouse gas emissions allowance
an allowance, licence, permit, right, note, unit, credit, asset, certificate or instrument (the "allowance") where:
(a) the allowance confers or may result in a benefit or advantage to its holder or another person; and
(b) the allowance, or the benefit or advantage in (a), is linked to the emission or non-emission of quantities of carbon dioxide or other greenhouse gases into the environment by the holder of the allowance or someone else.
- 01/12/2004
gross accumulation share
(in CIS) a share in respect of which income is credited periodically to capital under CIS 9.2.4 R (Annual allocation to accumulation shares or accumulation units) or CIS 9.2.6 R (Interim allocations of income) but, in accordance with relevant law, without deduction by the ICVC of any income tax.
- 01/12/2004
gross adjusted claims amount
(for the purposes of
PRU 7.2
) an amount, as defined in
PRU 7.2.60 R
to
PRU 7.2.65 G
, used in calculating the claims amount.
- 31/12/2004
gross adjusted premiums amount
(for the purposes of
PRU 7.2
) an amount as defined in
PRU 7.2.56 R to PRU 7.2.59 G, used in calculating the premiums amount.
- 31/12/2004
gross earned premiums
(in relation to a financial year) such proportion of gross written premiums as is attributable to risk borne by the insurer during that financial year.
- 31/12/2004
gross leverage
the ratio of total assets to total equity.
- 31/12/2004
gross written premiums
the amounts required by the insurance accounts rules to be shown in the profit and loss account of an insurerat general business technical account item I.1.(a), or for class IV insurance business, at long-term business technical account item II.1(a).
(b) (for long-term insurance business) at long term business technical account item II.1.(a).
- 31/12/2004
group
(1) (except in relation to an ICVC as defined in section 421 of the Act (Group) (in relation to a person ("A")) A and any person who is:
(a) a parent undertaking of A;
(b) a subsidiary undertaking of A;
(f) if A or an undertaking in (a) or (d) is a building society, an associated undertaking of that building society;
(g) if A or an undertaking in (a) or (d) is an incorporated friendly society, a body corporate of which that friendly society has joint control (as defined in section 13(9)(c) or (cc) of the Friendly Societies Act 1992); in this definition:
(i) "participating interest" has the same meaning as in Part VII of the Companies Act 1985 or Part VIII of the Companies (Northern Ireland) Order 1986; but also includes an interest held by an individual which would be a participating interest for the purposes of those provisions if he were an undertaking;
(ii) "associated undertaking" has the meaning given in section 119(1) of the Building Societies Act 1986.
(2) (in relation to an ICVC) a group as in (1) but (in
ML and
SYSC) including also the ICVC'sauthorised corporate director (if any).(see also immediate group)
- 01/12/2004
group capital resources
in relation to an undertaking in
PRU 8.3.17 R
, that undertaking's group capital resources as calculated in accordance with
PRU 8.3.36 R
.
- 31/12/2004
group capital resources requirement
in relation to an undertaking in
PRU 8.3.17 R
, that undertaking's group capital resources requirement as calculated in accordance with
PRU 8.3.33 R
.
- 31/12/2004
group ISA
an individual savings account of which the plan manager is the authorised fund manager, or in the same group as the authorised fund manager, of the authorised fund by reference to units in which the plan register is being, or is proposed to be, maintained.
- 01/12/2004
group of closely related counterparties
- 01/12/2004
group personal equity plan
(as defined in regulation 2 of the Personal Equity Plan Regulations 1989) a general plan:
(a) of which the plan manager is the authorised fund manager, or in the same group as the authorised fund manager, of the authorised fund by reference to units in which the plan register is being, or is proposed to be, maintained; and
(b) for the account of which there is no holding of units in a collective investment scheme other than a holding of units in one or more authorised funds managed by (or, in the case of an ICVC, whose ACD is) the plan manager or a body corporate in the same group as the plan manager.
- 01/12/2004
group personal pension scheme
a personal pension schemewhich is available to employees of the same employer or of employers within a group.
- 01/12/2004
group plan
- 01/12/2004
group policy
a non-investment insurance contract which a person enters into as legal holder of the policy on his own behalf and for other persons who are or will become policyholders and:
(a) those other persons are or become policyholders by virtue of a common employment, occupation or activity which has arisen independently of the contract of insurance;
(b) the common employment, occupation or activity is not brought about, in relation to the contract of insurance, by
(ii) any activity which if carried on by a firm would be an insurance mediation activity; and
(c) the risks insured under the policy are related to the common employment, occupation or activity of the policyholders.
- 14/01/2004
group savings plan
a savings plan:
(a) of which the plan manager is the authorised fund manager, or in the same group as the authorised fund manager, of the authorised fund by reference to units in which the plan register is being, or is proposed to be, maintained;
(b) under which investments are periodically acquired and held by a nominee for the absolute benefit of the respective subscribers to the savings plan; and
(c) under which all the investments are units in one or more authorised funds managed by (or, in the case of an ICVC, whose ACD is) the plan manager, or a body corporate in the same group as the plan manager.
- 01/12/2004
guarantee fund
(1)
(a) subject to (1)(b), in relation to a firm carrying on general insurance business, the higher of one third of the general insurance capital requirement and the base capital resources requirement applicable to that firm;
(2)
(a) subject to (2)(b), in relation to a firm carrying on long-term insurance business, the higher of one third of the long-term insurance capital requirement and the base capital resources requirement applicable to that firm;
- 31/12/2004
Letter: H
habitual residence
(a) if the policyholder is an individual, the address given by the policyholder as his residence if it reasonably appears to be a residential address and there is no evidence to the contrary;
(b) if the policyholder is not an individual or a group of individuals, the State in which the policyholder has its place of establishment, or, if it has more than one, its relevant place of establishment;
(c) in respect of the variation of a life policy, or the purchase of a pension annuity related to a life policy, unless there is evidence to the contrary, the habitual residence of the policyholder at the date on which the policyholder signed the proposal for the life policy.
- 01/12/2004
half-yearly accounting period
(in COLL and CIS) a period determined in accordance with
CIS 9.2.1 R (6) (Accounting period) or, as the case may be
COLL 6.8.2 R (2) (Accounting periods).
- 01/12/2004
Handbook
the FSA's Handbook of rules and guidance (for a table of contents, see the Reader's Guide).
- 01/12/2004
higher lending charge
a fee charged by a mortgage lender (under a regulated mortgage contract) where the amount borrowed exceeds a given percentage of the value of the property.
- 01/12/2004
higher volatility fund
a regulated collective investment scheme which is:
(b) a fund of funds scheme of which one or more of the schemes to which it is dedicated falls within (a); or
- 01/12/2004
historic price
a price calculated by reference to the valuation point immediately preceding the authorised fund manager's agreement to sell or, as the case may be, to redeem the units in question.
- 01/12/2004
holder
(a) (in relation to a unit in an authorised fund):
(i) the shareholder; or
(ii) the unitholder;
(b) (in relation to a unit in any other collective investment scheme):
- 01/12/2004
holding company
(as defined in section 736(1) of the Companies Act 1985 ("subsidiary", "holding company" and "wholly-owned subsidiary"))(in relation to another body corporate ("S")) a body corporate which:
(a) holds a majority of the voting rights in S; or
(b) is a member of S and has the right to appoint or remove a majority of its board of directors; or
(c) is a member of S and controls alone, under an agreement with other shareholders and members, a majority of the voting rights in S.
- 01/12/2004
Holloway sickness policy
a
policy
offered or effected by a friendly society under the Holloway system.
- 01/12/2004
Home State
(1) (in relation to a credit institution) the EEA State in which the credit institution has been authorised in accordance with the Banking Consolidation Directive.
(2) (in relation to an investment firm):
(b) if the investment firm is a legal person, the EEA State in which its registered office is situated
or, if under its national law it has no registered office, the EEA State in which its head office is situated.
(3) (in relation to a UCITS management company) the EEA State in which the management company's registered office is situated;
(4) (in relation to an insurance undertaking with an EEA right) the EEA State in which the registered office of the insurance undertaking is situated.
(5) (in relation to an IMD insurance intermediary or an IMD reinsurance intermediary):
(a) where the insurance intermediary is a natural person, the Member State in which his residence is situated and in which he carries on business;
(b) where the insurance intermediary is a legal person, the Member State in which its registered office is situated or, if under its national law it has no registered office, the Member State in which its head office is situated.
(6) (in relation to a market) the EEA State in which the registered office of the body which provides training facilities is situated or, if under its national law it has no registered office, the EEA State in which that body's head office is situated.
(7) (in relation to a Treaty firm) the EEA State in which its head office is situated, in accordance with paragraph 1 of Schedule 4 to the Act (Treaty Rights).
- 01/12/2004
Home State authorisation
(as defined in paragraph 3(1)(a) of Schedule 4 to the Act (Treaty Rights)) authorisation of a firm under the law of its Home State to carry on a regulated activity.
- 01/12/2004
Home State regulator
(1) (in relation to an EEA firm) (as defined in paragraph 9 of Schedule 3 to the Act (EEA Passport Rights)) the competent authority (under the relevant Single Market Directive) of an EEA State (other than the United Kingdom) in relation to the EEA firm concerned.
(3) (in relation to a Treaty firm) (as defined in paragraph 1 of Schedule 4 to the Act (Treaty Rights)) the competent authority of the firm'sHome State for the purpose of its Home State authorisation.
- 01/12/2004
home territory
(in relation to an overseas investment exchange or an overseas clearing house) the country or territory in which its head office is situated.
- 01/12/2004
Host State
the EEA State in which an EEA firm, a UK firm, or a Treaty firm is exercising an EEA right or Treaty right to establish a branch or provide cross border services.
- 01/12/2004
Host State regulator
(1) (in relation to an EEA firm or a Treaty firm exercising an EEA right or Treaty right in the United Kingdom) the
FSA.
(2) (in relation to a UK firm) (as defined in paragraph 11 of Schedule 3 to the Act (EEA Passport Rights)) the competent authority (under the relevant Single Market Directive) of an EEA State (other than the United Kingdom) in relation to a UK firm's exercise of EEA rights there.
- 01/12/2004
Letter: I
IBNR
- 31/12/2004
- 01/12/2004
ICD claim
a claim:
(a) against an ISD investment firm (including a credit institution which is an ISD investment firm), whether established in the United Kingdom or in another EEA State; and
(b) in relation to any of the investment services listed in Section A and paragraph 1 of Section C of the Annex to the ISD.
- 01/12/2004
ICOB
the Insurance: Conduct of Business sourcebook.
- 01/12/2004
- 01/12/2004
identification evidence
Evidence of the type referred to in ML 3.1.3 R (1).
- 01/12/2004
IFA pensions review claim
a claim arising from the sale of a personal pension scheme by a former member of PIA which was an independent financial adviser; in this definition:
(a) a "personal pension scheme" includes:
(i) a personal pension scheme approved under Chapter IV Part XIV of ICTA 88;
(ii) 'section 32' buy-out policies approved under Section 32 of Finance Act 1981 (now incorporated in Chapter I Part XIV of ICTA 88); and
(iii) in relation to opt-outs and non-joiners, retirement annuity contracts approved under Chapter III Part XIV of ICTA 88; and
(b) "ICTA 88" means the Income and Corporation Taxes Act 1988.
- 01/12/2004
illustration
(in MCOB) the illustration of the costs and features of a regulated mortgage contract which is required to be provided by MCOB 5 (Pre-application disclosure), MCOB 6 (Disclosure at the offer stage), MCOB 7 (Disclosure at start of contract and after sale) and MCOB 9 (Lifetime mortgages: product disclosure).
- 01/12/2004
IMA SORP
the Statement of Recommended Practice for financial statements of authorised funds issued by the Investment Management Association and effective as at 1 December 2003.
- 01/12/2004
IMD insurance intermediary
(as defined in article 2(5) of the IMD) any natural or legal person who, for remuneration, takes up or pursues insurance mediation.
- 01/12/2004
IMD insurance undertaking
(as defined in article 2(1) of the IMD) an undertaking which has received official authorisation in accordance with article 6 of the Consolidated Life Directive or article 6 of the First Non-Life Directive.
- 01/12/2004
IMD minimum implementation provisions
The following provisions in COB:
- 01/12/2004
IMD reinsurance intermediary
(as defined in article 2(6) of the
IMD
) any natural or legal person who, for remuneration, takes up or pursues reinsurance mediation.
- 01/12/2004
IMD reinsurance undertaking
(as defined in article 2(2) of the
IMD
) an undertaking, other than an IMD insurance undertaking or a non-member-country insurance undertaking, the main business of which consists in accepting risks ceded by an IMD insurance undertaking, a non-member country insurance undertaking or other IMD reinsurance undertaking.
- 01/12/2004
immediate group
(1) (in relation to an
authorised person
) (as defined in section 148(11) of the Act (Modification or waiver of rules)):
(a) the authorised person;
(2) (in
ELM 7
) has the same meaning as in paragraph (1), with the omission of (1)(e).
- 01/12/2004
implicit items
(in relation to long-term insurance business) economic reserves arising in respect of future profits, zillmerising or hidden reserves as more fully described in PRU 2 Annex 2 G.
- 31/12/2004
IMRO
the Investment Management Regulatory Organisation Limited.
- 01/12/2004
IMRO scheme
the former scheme set up by IMRO under the Financial Services Act 1986 and the Investment Ombudsman Memorandum to handle complaints against members of IMRO.
- 01/12/2004
in default
the status of being in default following a determination made under COMP 6.3.1 R.
- 01/12/2004
income account
- 01/12/2004
income equalisation
(in relation to a scheme) a capital sum which, in accordance with a power contained in the instrument constituting the scheme, is included in an allocation of income for a unit issued or sold during the accounting period in respect of which that income allocation is made.
- 01/12/2004
income property
all sums considered by an ICVC or by a manager, in each caseafter consultation with the auditor, to be in the nature of income received or receivable for the account of and in respect of the property of an authorised fund, but excluding any amount for the time being standing to the credit of the distribution account.
- 01/12/2004
income share
a share in respect of which income is allocated periodically to shareholders under CIS 9.2.3 R (Annual allocation of income) or CIS 9.2.6 R (Interim allocations of income).
- 01/12/2004
income unit
- 01/12/2004
income withdrawals
(a) income withdrawals under section 630 of the Income and Corporation Taxes Act 1988; or
(b) payments made under interim arrangements in accordance with section 28A of the Pension Schemes Act 1993;
in respect of an election to make income withdrawals, a reference to a
private customer
, an investor or a policyholder includes, after that person's death, his surviving spouse, or anyone who is, at that time, his dependant, or both.- 01/12/2004
incoming ECA provider
a person, other than an exempt person or a person who has been given a waiver in accordance with article 8(1) of the E-Money Directive, who:
(a) provides an electronic commerce activity, from an establishment in an EEA State other than the United Kingdom, with or for a UK ECA recipient; and
- 01/12/2004
incoming EEA firm
(in accordance with section 193(1)(a) of the Act (Interpretation of this Part)) an EEA firm which is exercising, or has exercised, its right to carry on a regulated activity in the United Kingdom in accordance with Schedule 3 to the Act (EEA Passport Rights).
- 01/12/2004
incoming electronic commerce activity
(in accordance with regulation 2(1) of the ECD Regulations) an activity:
(a) which consists of the provision of an information society service from an establishment in an EEA State other than the United Kingdom to a person or persons in the United Kingdom; and
(b) which would, but for article 72A of the Regulated Activities Order (Information society services) (and irrespective of the effect of article 72 of that Order (Overseas Persons)), be a regulated activity.
- 01/12/2004
incoming electronic commerce communication
(in accordance with article 6 of the Financial Promotion Order) an electronic commerce communication made from an establishment in an EEA State other than the United Kingdom.
- 01/12/2004
incoming firm
(in accordance with section 193(1) of the Act (Interpretation of this Part)) an incoming EEA firm or an incoming Treaty firm.
- 01/12/2004
incoming Treaty firm
(in accordance with section 193(1)(b) of the Act (Interpretation of this Part)) a Treaty firm which is exercising, or has exercised, its right to carry on a regulated activity in the United Kingdom in accordance with Schedule 4 to the Act (Treaty rights).
- 01/12/2004
incorporated friendly society
a society incorporated under the Friendly Societies Act 1992.
- 01/12/2004
independent expert
(in SUP 18) the person approved or nominated by the
FSA
to make the scheme report for an insurance business transfer scheme.
- 01/12/2004
Independent Investigator
the former Ombudsman under the FSA scheme.
- 01/12/2004
index-linked benefits
benefits:
(a) provided for under a linked long-term contract of insurance; and
(b) determined by reference to an index of the value of property of any description (whether specified in the contract or not).
- 31/12/2004
index-linked liabilities
insurance liabilities in respect of index-linked benefits.
- 31/12/2004
individual capital resources requirement
has the meaning in PRU 8.3.34 R.
- 31/12/2004
individual member
- 01/12/2004
individual pension account
an account for the holding of IPA eligible investments operated by a firm in accordance with the Personal Pension Schemes (Restriction on Discretion to Approve) (Permitted Investments) Regulations 2001 (SI 2001/117).
- 01/12/2004
individual pension contract
a pension policy or pension contract under which contributions are paid to:
(a) a personal pension scheme; or
(b) a retirement benefits scheme, approved under section 591(2)(g) of the Income and Corporation Taxes Act 1988, for the provision of relevant benefits by means of an annuity contract made with an insurance company of the employee's choice.
- 01/12/2004
individual savings account
an account which is a scheme of investment satisfying the conditions prescribed in the ISA Regulations.
- 01/12/2004
industrial and provident society
a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969.
- 01/12/2004
industrial assurance policy
a contract of insurance on human life, premiums in respect of which are received by means of collectors, but excluding:
(a) a contract of insurance, the premiums in respect of which are payable at intervals of two months or more;
(b) a contract of insurance, effected whether before or after the passing of the Industrial Assurance Act 1923 by a society or company established before the date of the passing of that Act which at that date had no contracts of insurance outstanding the premiums on which were payable at intervals of less than one month so long as the society or company continues not to effect any such contracts;
(c) a contract of insurance effected before the passing of the Industrial Assurance Act 1923, premiums in respect of which are payable at intervals of one month or more, and which have up to the passing of that Act been treated as part of the business transacted by a branch other than the industrial branch of the society or company; and
(d) a contract of insurance for £25 or more effected after the passing of the Industrial Assurance Act 1923, premiums in respect of which are payable at intervals of one month or more, and which are treated as part of the business transacted by a branch other than the industrial branch of the society or company, in cases where the relevant authority certified prior to 1 December 2001 under section 1(2)(d) of that Act that the terms and conditions of the contract is on the whole not less favourable to the assured than those imposed by that Act;
in this definition: (i) "collector" includes every person, however remunerated, who, by himself or by any deputy or substitute, makes house to house visits for the purpose of receiving premiums payable on policies of insurance on human life, or holds any interest in a collecting book, and includes such a deputy or substitute;
(ii) "collecting book" includes any book or document held by a collector in which payments of premiums are recorded.
- 01/12/2004
industry block
(in
DISP
) a grouping of firms by common business activity for the purposes of calculating the general levy.
- 01/12/2004
information centre
a centre established by an EEA State to meet its obligations under article 5 of the Fourth Motor Insurance Directive (Information Centres).
- 01/12/2004
information society service
An activity which falls within the scope of article 2(a) of the E-Commerce Directive, that is to say, generally speaking, and subject to the exclusions from the scope of article 3 of that Directive in the Annex to it, a service that:
(a) is normally provided for remuneration;
(b) is provided at a distance;
(c) is so provided by means of electronic equipment for the processing (including digital compression) and storage of data; and
(d) is so provided at the individual request of a recipient of the service.
- 01/12/2004
inherited estate
the excess of assets maintained within a with-profits fund over and above the amount required to meet liabilities (including liabilities which arise from the regulatory duty to treat customers fairly in setting discretionary benefits).
- 01/12/2004
initial capital
(1) (in ELM) items coming into stage A of the calculation in ELM 2.4.2 R (Calculation of initial capital and own funds).
(2) (for the purposes of the definition of matched principal dealer, in accordance with Article 2(24) of the Capital Adequacy Directive (Definitions) and with respect to a firm) capital that is recognised for the purpose of the rules about capital adequacy to which that firm is subject but excluding, in accordance with items (1) and (2) of Article 34(2) of the Banking Consolidation Directive (General principles), anything that does not fall within the following classes of capital:
In the case of a firm subject to the rules in chapter 10 of IPRU(INV), initial capital means initial capital as defined in the Glossary to that chapter. (a) capital within the meaning of Article 22 of the Bank Accounts Directive (Liabilities: Item 9 - Subscribed capital), insofar as it has been paid up, plus share premium accounts but excluding cumulative preferential shares; or
(b) reserves within the meaning of Article 23 of the Bank Accounts Directive (Liabilities: Item 11 - Reserves) and profits and losses brought forward as a result of the application of the final profit or loss. Interim profits can only be included before a formal decision has been taken only if these profits have been verified by persons responsible for the auditing of the accounts and if the amount thereof has been evaluated in accordance with the principles set out in the Bank Accounts Directive and is net of any foreseeable charge or dividend.
- 01/12/2004
initial coupon rate
(in relation to a tier one instrument) the coupon rate of the instrument at the time it is issued.
- 31/12/2004
initial credit spread
(in relation to a tier one instrument) the initial coupon rate less the original financing cost amount, and where the resulting amount is a negative figure, the initial credit spread is deemed to be zero.
- 31/12/2004
initial disclosure document (IDD)
information about the scope and nature of the services offered by a firm in relation to packaged products as required by
COB 4.3.7 R
.
- 01/12/2004
initial fund
the items of capital which are available to a mutual at authorisation.
- 31/12/2004
initial margin
(1) (in COLL and CIS) cash or other property deposited in accordance with the rules of a derivatives market.
(2) (in COB) the amount which under the rules of the relevant exchange or clearing house the firm or an intermediate broker would be required to deposit in cash as a fidelity deposit in respect of all the client's open positions in margined transactions at that time, irrespective of any unrealised profit or loss on such positions, on the assumption that those transactions were the only transactions undertaken under the rules of that exchange or that clearing house by the firm or the intermediate broker at that time.
(3) (in LLD) (in relation to a derivative contract or quasi-derivative contract) assets which, before or at the time the contract is entered into, are transferred subject to a condition that the assets (or where the assets transferred are securities, equivalent securities) will be returned on completion of that contract.
- 01/12/2004
initial offer
(in COLL and CIS) an offer for sale of units in an authorised fund or in a sub-fund (otherwise than in accordance with arrangements of the type described in COLL 5.5.9 R (3) (b) (iii) (Guarantees and indemnities) or, as the case may be, CIS 5.15.8R(3)(b)(iii) or (c) (Guarantees and indemnities)), where all or part of the consideration paid for the account of the authorised fund for the units is to be used to acquire the initial scheme property of the authorised fund or the initial scheme property attributable to the sub-fund.
- 01/12/2004
initial outlay
(in relation to an authorised fund) the amount which the authorised fund is required to provide in order to obtain rights under a transaction in derivatives, excluding any payment or transfer on exercise of rights.
- 01/12/2004
initial price
(in COLL and CIS):
(a) (in relation to a share of an ICVC or a unit in a single-priced AUT) the price to be paid for a unit of any class during the period of the initial offer under COLL 6.2.3 R (Initial offers) or, as the case may be, CIS 4.2.4 R (Issue of units: initial offer); or
(b) (in relation to a unit in a
dual-priced AUT) such amount as may be agreed by the trustee and manager as being the maximum amount, inclusive of the manager's preliminary charge, if any, whichmay be paid to the
manager, for units on an initial offer.
- 01/12/2004
injunction
- 01/12/2004
injured party
- 01/12/2004
innovative tier one capital
an item of capital that is stated in stage C of the table in PRU 2.2.14 R to be innovative tier one capital.
- 31/12/2004
innovative tier one capital resources
the amount of capital resources at stage C of the table in PRU 2.2.14 R.
- 31/12/2004
innovative tier one instrument
a potential tier one instrument that is stated in
PRU 2.2.52 R to PRU 2.2.69 R to be an innovative instrument.
- 31/12/2004
insider dealing
the activity described in section 52 of the Criminal Justice Act 1993, which is in summary:
(a) the offence of which an individual is guilty if he has information as an insider and:
(i) in the circumstances described in (b), he deals in securities that are price-affected securities in relation to the information;
(ii)
(A) he encourages another person to deal in securities that are (whether or not that other knows it) price-affected securities in relation to the information, knowing or having reasonable cause to believe that the dealing would take place in the circumstances mentioned in (b); or
(B) he discloses the information, otherwise than in the proper performance of the functions of his employment, office or profession, to another person;
(b) the circumstances referred to in (a) are that the acquisition or disposal in question occurs on a regulated market (identified in an Order made by the Treasury), or that the person dealing relies on a professional intermediary or is himself acting as a professional intermediary.
- 01/12/2004
insolvency order
an administration order, compulsory winding up order, bankruptcy order, or sequestration order.
- 01/12/2004
insolvent
(in ML) insolvent under regulation 13 of the Money Laundering Regulations.
- 01/12/2004
instrument constituting the scheme
(c) (in relation to a collective investment scheme other than an authorised fund) any instrument to which the operator is a party setting out any arrangements with any other person relating to any aspect of the operation or management of the scheme.
- 01/12/2004
instrument of incorporation
the instrument of incorporation of an ICVC (as from time to time amended) initially provided to the
FSA
in accordance with regulation 14(1)(c) of the OEIC regulations.
- 01/12/2004
insurance accounts rules
Schedule 9A to the Companies Act 1985 (Form and content of accounts of insurance companies) and Schedule 9A to the Companies Act (Northern Ireland) Order 1986.
- 01/12/2004
insurance business
the business of effecting or carrying out contracts of insurance.
- 01/12/2004
insurance business grouping
a grouping comprising descriptions of general insurance business determined in accordance with PRU 7.5.12 R.
- 31/12/2004
insurance business transfer
a transfer in accordance with an insurance business transfer scheme.
- 01/12/2004
insurance business transfer scheme
(a) a scheme, defined in section 105 of the Act, which is in summary: a scheme to transfer the whole or part of the business of an insurer (other than a friendly society) to another body;
(b) a similar scheme to transfer the whole or part of the business carried on by one or more members of the Society or former underwriting members that meets the conditions of article 4 of the Financial Services and Markets Act 2000 (Control of Transfers of Business Done at Lloyd's) Order 2001 (SI 2001/3626).
- 01/12/2004
insurance component
a qualifying investment prescribed in regulation 9 of the ISA Regulations.
- 01/12/2004
insurance conglomerate
a financial conglomerate identified as an insurance conglomerate in the decision tree in paragraph 4.5 of PRU 8 Ann 1R G (Decision tree for types of financial conglomerate and definition of most important financial sector).
- 01/12/2004
insurance death risk capital component
one of the components of the long-term insurance capital requirement as set out in
PRU 7.2.81 R to PRU 7.2.83 R.
- 31/12/2004
Insurance Directives
the First Life Directive, Second Life Directive,
Third Life Directive and
Consolidated Life Directive
and the First Non-Life Directive, Second Non-Life Directive and Third Non-Life Directive.
- 31/12/2004
insurance expense risk capital component
one of the components of the long-term insurance capital requirement as set out in PRU 7.2.88 R.
- 31/12/2004
insurance group
- 31/12/2004
Insurance Groups Directive
Directive of the European Parliament and of the Council of 27 October 1998 on the supplementary supervision of insurance undertakings in an insurance group (1998/78/EC).
- 01/12/2004
insurance health risk capital component
one of the components of the long-term insurance capital requirement as set out in PRU 7.2.85 R and PRU 7.2.86 R.
- 31/12/2004
insurance holding company
(1) a parent undertaking, other than an insurance undertaking, the main business of which is to acquire and hold participations in subsidiary undertakings and which fulfils the following conditions:
(b) at least one of those subsidiary undertakings is a UK insurer or an EEA firm that is a regulated insurance entity; and
(c) it is not a mixed financial holding company.
(2) For the purposes of:
(a) the definition of the insurance sector; and
(b)
ELM;
- 01/12/2004
Insurance Intermediaries Order
the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) (Insurance Intermediaries) Order 2003 (SI 2003/1476).
- 01/12/2004
Insurance market activity
means a regulated activity relating to contracts of insurance written at Lloyd's.
- 01/12/2004
Insurance market direction
- 01/12/2004
insurance market risk capital component
one of the components of the long-term insurance capital requirement as set out in PRU 7.2.89 R.
- 31/12/2004
Insurance Mediation Directive
the European Parliament and Council Directive of 9 December 2002 on insurance mediation (No 2002/92/EC).
- 01/12/2004
Insurance Ombudsman scheme
the former scheme set up, on a voluntary basis, to handle complaints against those insurance companies which subscribed to it.
- 01/12/2004
insurance parent undertaking
a parent undertaking which is:
(a) a participating insurance undertaking which has a subsidiary undertaking that is an insurance undertaking; or
(c) an insurance undertaking (not within (a)) which has a subsidiary undertaking which is an insurer.
- 31/12/2004
insurance sector
a sector composed of one or more of the following entities:
(a) an insurance undertaking;
(b) an insurance holding company; and
(c) (in the circumstances described in
PRU 8.4.39 R
(The financial sectors: Asset management companies)) an asset management company.
- 01/12/2004
insurance undertaking
an undertaking, or (in
COMP) a member, whether or not an insurer, which carries on insurance business.
- 01/12/2004
insurance-related capital requirement
a component of the calculation of the ECR for a firm carrying on general insurance business as set out in
PRU 7.2.76 R to PRU 7.2.79 R.
- 31/12/2004
insurer
- 01/12/2004
intended retirement date
(a) according to the most recent recorded information available to the provider, the date when the scheme member or policyholder intends to retire, or to bring the benefits in the scheme or policy into payment, whichever is the earlier; or
(b) where no such date is recorded, the scheme member's or policyholder's state pension age.
- 01/12/2004
interdict
- 01/12/2004
interested party
- 01/12/2004
interest-only mortgage
a regulated mortgage contract other than a repayment mortgage.
- 01/12/2004
interim accounting period
(in COLL and CIS) a period within an annual accounting period in respect of which an allocation of income is to be made.
- 01/12/2004
interim income allocation date
any date specified in the prospectus of an authorised fund as the date on or before which an allocation of income will be made.
- 01/12/2004
intermediaries offer
(for the purposes of the Code of Market Conduct (MAR 1)) a marketing of securities not yet in issue, by means of an offer by, or on behalf of, the issuer to intermediaries for them to allocate to their own clients.
- 01/12/2004
intermediary
- 01/12/2004
intermediate broker
(in relation to a transaction in a contingent liability investment) any person acting in the capacity of an intermediary through whom the firm undertakes that transaction.
- 01/12/2004
intermediate customer
(1) (except in COB 3) a client who is not a market counterparty and who is:
(a) a local authority or public authority;
(c) a body corporate whose shares have been listed oradmitted to trading on the primary board of any IOSCO member country official exchange;
(d) a body corporate (including a limited liability partnership) which has (or any of whose holding companies or subsidiaries has) (or has had at any time during the previous two years) called up share capital or net assets of at least £5 million (or its equivalent in any other currency at the relevant time);
(e) a special purpose vehicle;
(f) a partnership or unincorporated association which has (or has had at any time during the previous two years) net assets of at least £5 million (or its equivalent in any other currency at the relevant time) and calculated in the case of a limited partnership without deducting loans owing to any of the partners;
(g) a trustee of a trust (other than an occupational pension scheme, SSAS or stakeholder pension scheme) which has (or has had at any time during the previous two years) assets of at least £10 million (or its equivalent in any other currency at the relevant time) calculated by aggregating the value of the cash and designated investments forming part of the trust's assets, but before deducting its liabilities;
(h) a trustee of an occupational pension scheme
or stakeholder pension scheme where the trusthas (or has had at any time during the previous two years):
(i) at least 50 members; and
(ii) assets under management of at least £10 million (or its equivalent in any other currency at the relevant time);
(i) another firm, or an overseas financial services institution, when, in relation to designated investment business, or related ancillary activities, conducted with or for that firm or institution, that firm or institution is an intermediate customer in accordance with COB 4.1.7 R (Classification of another firm or an overseas financial services institution);
(k) a client when he is classified as an intermediate customer in accordance with COB 4.1.9 R (Expert private customer classified as intermediate customer);
(l) a recognised investment exchange, designated investment exchange, regulated market or clearing house, except when it is classified as a market counterparty in accordance with COB 4.1.8A R (Classification of an exchange or clearing house);
but excluding: (i) [deleted]
(ii) a client who would otherwise be an intermediate customer, when he is classified in accordance with:
(A) COB 4.1.12 R (Large intermediate customer classified as market counterparty); or
- 01/12/2004
Internal audit function
controlled function CF15 in the table of controlled functions, described more fully in SUP 10.8.6 R.
- 01/12/2004
internal controls
the whole system of controls, financial or otherwise, established by the management of a firm in order to:
(a) carry on the business of the firm in an orderly and efficient manner;
(b) ensure adherence to management policies;
(d) secure as far as possible the completeness and accuracy of the firm's records (including those necessary to ensure continuous compliance with the requirements or standards under the regulatory system relating to the adequacy of the firm's financial resources).
- 01/12/2004
inter-professional business
the business of a firm:
(a) when it carries on:
(i) regulated activities; or
(ii) related ancillary activities;
to the extent that the regulated activity that the firm is carrying on is: (B) dealing in investments as agent; or
(C) acting as an arranger; or
(D) giving transaction-specific advice or agreeing to do so;
but only if that activity is: (I) in or in respect of an inter-professional investment;
(II) undertaken with or for a
market counterparty
; and
(b) but excluding the carrying on of the following activities:
in this definition, the exclusion in article 15 of the Regulated Activities Order (Absence of holding out etc) is to be disregarded in determining whether dealing in investments as principal or agreeing to do so) is a regulated activity. (ii) activities carried on between operators, or between operators and depositaries, of the same collective investment scheme (when acting in that capacity);
(iii) corporate finance business;
(vi) activities relating to life policies;
- 01/12/2004
inter-professional investment
any of the following investments specified in Part III of the Regulated Activities Order (Specified investments):
(a) share (article 76);
(b) debenture (article 77);
(c) government and public security (article 78);
(d) warrant (article 79);
(e) certificate representing certain securities (article 80);
(f) option (article 83); for the purposes of the permission regime, this is sub-divided into:
(g) future (article 84); for the purposes of the permission regime, this is sub-divided into:
(ii) commodity future;
(iii) rolling spot forex contract;
(h) contract for differences (article 85); for the purposes of the permission regime, this is sub-divided into:
(ii) spread bet;
(iii) rolling spot forex contract;
(i) rights to or interests in investments in (a) to (h) (article 89).
- 01/12/2004
inter-syndicate reinsurance
reinsurance between one syndicate year and another, not being reinsurance to close.
- 01/12/2004
intra-group transactions
(in accordance with Article 2(18) of the Financial Groups Directive (Definitions)) all transactions by which regulated entities within a financial conglomerate rely either directly or indirectly upon other undertakings within the same financial conglomerate or upon any person linked to the undertakings within that financial conglomerate by close links, for the fulfilment of an obligation whether or not contractual, and whether or not for payment.
- 01/12/2004
introducer
an individual appointed by a firm or by an appointed representative, to carry out in the course of designated investment business either or both of the following activities:
(a) effecting introductions;
(b) distributing non-real time financial promotions.
- 01/12/2004
introducer appointed representative
an appointed representative appointed by a firm whose scope of appointment is limited to:
(a) effecting introductions; and
(b) distributing non-real time financial promotions.
- 01/12/2004
introducing broker
a firm which introduces transactions relating to designated investmentsarranged (brought about) for its clients to a clearing firm.
- 01/12/2004
introductory period
(in MAR 3 (Price stabilising rules)) (in relation to stabilising action) the period starting at the time of the first public announcement from which it could reasonably be deduced that the offer was intended to take place in some form and at some time, and ending with the beginning of the stabilising period.
- 01/12/2004
investment
(in accordance with sections 22(4) (The classes of activity and categories of investments) and 397(13) (Miscellaneous offences) of the Act) any investment, including any asset, right or interest.
- 01/12/2004
investment adviser
(in relation to an authorised fund) a person who is retained by an ICVC, its directors or its ACD or by a manager of an AUT under a commercial arrangement which is not a contract of service:
(a) to supply any of them with advice in relation to the authorised fund as to the merits of investment opportunities or information relevant to the making of judgements about the merits of investment opportunities; or
(b) to exercise for any of them any function concerning the management of the scheme property.
- 01/12/2004
investment adviser (trainee) function
controlled function CF22 in the table of controlled functions, described more fully in SUP 10.10.11 R.
- 01/12/2004
investment adviser function
controlled function CF21 in the table of controlled functions, described more fully in SUP 10.10.7 R.
- 01/12/2004
investment agreement
any agreement the making or performance of which by either party constitutes a regulated activity, but disregarding the exclusions in Part II of the Regulated Activities Order.
- 01/12/2004
investment analyst
- 01/12/2004
investment business compensation scheme
(as defined in article 2(2) of the compensation transitionals order) any of the following:
(a) the scheme established under section 54 of the Financial Services Act 1986 and known as the Investors Compensation Scheme;
(b) the scheme established under section 22j of the Grey Paper published by the FSA on 26 September 1998 and known as the Section 43 Compensation Scheme;
(c) the scheme established by chapter II of part L:VIII of the PIA rule book and known as the PIA Indemnity Scheme;
(d) the scheme resulting from an agreement dated 1 February 1999 between the Association of British Insurers and the Investors Compensation Scheme Limited for the making of payments by way of compensation to widows, widowers and dependants of persons (since deceased), in connection with advice given to such persons in relation to pensions, or the arranging of pensions for such persons, and known as the ABI/ICS scheme.
- 01/12/2004
investment company with variable capital
a body incorporated under the OEIC Regulations.
- 01/12/2004
investment firm
any legal person the regular occupation or business of which is the provision of core investment services for third parties on a professional basis, as defined in article 1(2) of the ISD, and (in relation to a person with his or its head office in an EEA State) a person, who is not a legal person, included as an investment firm by his or its Home State.(see also ISD investment firm and recognised third country investment firm.)
- 01/12/2004
investment management firm
, ELMI,
building society
, credit union, energy market participant, friendly society, ICVC, insurer, media firm, oil market participant, service company, incoming EEA firm (without a top-up permission), incoming Treaty firm (without a top-up permission),
UCITS management company
or UCITS qualifier (without a top-up permission), whose permission does not include a requirement that it comply with IPRU-INV 3 or IPRU-INV 10 (Securities and futures firms) or IPRU-INV 13 (Personal investment firms) and which is within (a), (b) or (c):
(a) a firm:
(ii) which was not, immediately before commencement, subject to the financial supervision requirements of the FSA (under section 43 of the Financial Services Act 1986), or PIA or SFA (under lead regulation arrangements);
(b) a firm whose permission includes a requirement that it comply with IPRU-INV 5 (Investment management firms);
(c) a firm:
(i) which was given a
Part IV permission
on or after commencement, or which was authorised under section 25 of the Financial Services Act 1986 immediately before commencement and was not a member of IMRO, PIA or the SFA; and
(ii) for which the most substantial part of its gross income, including commissions, from the
regulated activities
included in its
Part IV permission
is derived from one or more of the following activities (based, for a firm given a
Part IV permission
after commencement, on the business plan submitted as part of the firm's application for permission or, for a firm authorised under section 25 of the Financial Services Act 1986, on the firm's financial year preceding its authorisation under the Act):
(A) managing investments other than for
private customers
or where the assets managed are primarily derivatives;
(B) OPS activity;
(E) establishing, operating or winding up a collective investment scheme (other than an AUT or
ICVC
);
- 01/12/2004
investment management function
controlled function CF27 in the table of controlled functions, described more fully in SUP 10.10.20 R.
- 01/12/2004
investment manager
a person who, acting only on behalf of a client:
(a) manages designated investments in an account or portfolio on a discretionary basis under the terms of a discretionary management agreement; or
(b) manages designated investments in an account or portfolio on a non-discretionary basis under the terms of a non-discretionary management agreement.
- 01/12/2004
Investment Ombudsman
the former Ombudsman under the IMRO scheme.
- 01/12/2004
investment professional
(in accordance with article 19(5) of the Financial Promotion Order) (in relation to a financial promotion):
(a) an authorised person;
(b) an exempt person when the financial promotion relates to a controlled activity which is a regulated activity in relation to which the person is exempt;
(c) any other person:
(i) whose ordinary activities involve him in carrying on the controlled activity to which the financial promotion relates for the purposes of a business carried on by him; or
(ii) who it is reasonable to expect will carry on that activity for the purposes of a business carried on by him;
(d) a government, a local authority (whether in the United Kingdom or elsewhere) or an international organisation;
(e) a person ("A") who is a director, officer or employee of a person ("B") falling within any of (a) to (d) where the financial promotion is made to A in that capacity and where A's responsibilities when acting in that capacity involve him in the carrying on by B of controlled activities.
- 01/12/2004
investment research
a document (other than a personal recommendation), or material the substance of which is common to a number of documents although worded as if they are personal recommendations, which contains one or more of the following:
(b) analysis of factors likely to influence the future performance of a designated investment or its issuer; and
(c) advice or recommendations based on those results or that analysis.
- 01/12/2004
investment service
- 01/12/2004
investment services conglomerate
a financial conglomerate identified as an investment services conglomerate in the decision tree in paragraph 4.5 of PRU 8 Ann 1R G (Decision tree for types of financial conglomerate and definition of most important financial sector).
- 01/12/2004
Investment Services Directive
the Council Directive of 10 May 1993 on investment services in the securities field (No 93/22/EEC).
- 01/12/2004
investment services sector
a sector composed of one or more of the following entities:
(a) an investment firm;
(b) a financial institution; and
(c) (in the circumstances described in
PRU 8.4.39 R
(The financial sectors: Asset management companies)) an asset management company.
- 01/12/2004
investment transaction
a transaction to buy, sell, subscribe for or underwrite a security or contractually based investment.
- 01/12/2004
investment trust
a company listed in the United Kingdom or another EEA State which:
(a) is approved by the Inland Revenue Commissioners under section 842 of the Income and Corporation Taxes Act 1988 (or, in the case of a newly formed company, has declared its intention to conduct its affairs so as to obtain such approval); or
(b) is resident in an EEA State other than the United Kingdom and would qualify for such approval if resident and listed in the United Kingdom.
- 01/12/2004
investment trust savings scheme
(a) a dealing service (whether or not held within a pension contract) dedicated to the securities of one or more investment trusts;
(b) securities to be acquired through an investment trust savings scheme in (a).
- 01/12/2004
Investor Compensation Directive
the Council Directive of 3 March 1997 on investor compensation schemes (No 97/9/EC).
- 01/12/2004
IOSCO
the International Organisation of Securities Commissions.
- 01/12/2004
IPA
individual pension account.
- 01/12/2004
IPA eligible investment
a type of investment specified in regulation 4.(6) of The Personal Pension Schemes (Restriction on Discretion to Approve) (Permitted Investments) Regulations 2001 (SI 2001/117).
- 01/12/2004
IPRU
the Interim Prudential sourcebook, comprising IPRU(BANK),
IPRU(BSOC),
IPRU(FSOC), IPRU(INS) and IPRU(INV), or according to the context one of these Interim Prudential sourcebooks.
- 01/12/2004
IPRU(BANK)
the Interim Prudential sourcebook for Banks.
- 01/12/2004
IPRU(BSOC)
the Interim Prudential sourcebook for Building Societies.
- 01/12/2004
IPRU(FSOC)
the Interim Prudential sourcebook for Friendly Societies.
- 01/12/2004
IPRU(INS)
- 31/12/2004
IPRU(INV)
the Interim Prudential sourcebook for Investment Businesses.
- 01/12/2004
ISA
- 01/12/2004
ISA manager
a person who is approved by the Inland Revenue for the purposes of the ISA Regulations as an account manager.
- 01/12/2004
ISA Regulations
the Individual Savings Account Regulations 1998 (SI 1998/1870).
- 01/12/2004
ISA transfer
a transaction resulting from a decision, made with or without advice from a firm, by a customer who is an individual, to transfer the investments (or their value) held in his existing ISA in favour of another ISA which may or may not be managed by the same ISA manager.
- 01/12/2004
- 01/12/2004
ISD instrument
(in accordance with Schedule B of the Annex to the ISD) any of the following investments:
(a) transferable securities;
(b) units in collective investment undertakings;
(c) money-market instruments;
(d) financial-futures contracts, including equivalent cash-settled instruments;
(e) forward interest-rate agreements;
(f) interest-rate, currency and equity swaps; and
(g) options to acquire or dispose of any instruments falling within (a) to (f), including equivalent cash-settled instruments and options on currency and on interest rates.
- 01/12/2004
ISD investment firm
an investment firm that has its registered office (or, if it has no registered office, its head office) in an EEA State:
(b) including a BCD credit institution whose Home State authorisation includes a core investment service.
- 01/12/2004
issue
- 01/12/2004
issue price
- 01/12/2004
issuer
(1) (in relation to any security) (other than a unit in a collective investment scheme) the person by whom it is or is to be issued;
(4) (in relation to certificates representing certain securities) the person who issued or is to issue the security to which the certificate or other instrument relates.
- 01/12/2004
issuing e-money
the activity specified in article 9B of the Regulated Activities Order (Issuing electronic money), which is issuing e-money.
- 01/12/2004
Letter: J
joint enterprise
(as defined in article 3(1) of the Regulated Activities Order (Interpretation)) an enterprise into which two or more persons ("the participators") enter for commercial purposes related to a business or businesses (other than the business of engaging in a regulated activity) carried on by them; where a participator is a member of a group, each other member of the group is also to be regarded as a participator in the enterprise.
- 01/12/2004
Letter: K
key features
information about a life policy,
scheme, or stakeholder pension scheme which is required to be produced in the format specified in COB 6.1 (Packaged products and ISA disclosure) to COB 6.5 (Content of key features and important information: life policies, schemes, cash deposit ISAs and stakeholder pension schemes).
- 01/12/2004
key individual
(in relation to a UK recognised body):
(a) its chairman or president;
(b) its chief executive;
(c) a member of its governing body;
(d) a person who, alone or jointly with one or more others, is responsible under the immediate authority of a person in (a), (b) or (c) or a committee of the governing body for the conduct of any relevant function.
- 01/12/2004
kind of control
(in relation to a firm) (in accordance with section 179(4) of the Act (Acquiring control)):
(c) control arising as a result of the entitlement to exercise or control the exercise of voting power in the firm;
(d) control arising as a result of the entitlement to exercise or control the exercise of voting power in a parent undertaking of the firm;
in this definition, "shares" has the meaning given in the definition of "controller".- 01/12/2004
know your business information
(in ML) information which a relevant firm has about:
(a) the financial circumstances of a client or any person on whose behalf the client has been acting or is acting; and
(b) the features of the transactions which the relevant firm has entered into with or for the client (or that person).
- 01/12/2004
Letter: L
land vehicles
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 3 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against loss of or damage to vehicles used on land, including motor vehicles but excluding railway rolling stock.
- 01/12/2004
large business customer
(in relation to a regulated mortgage contract or qualifying credit, and in relation to an activity to be carried on by a firm) a client, if the credit is for the purposes of a business which has a group annual turnover of £1 million or more.
- 01/12/2004
large company
a body corporate which does not qualify as a small company under section 247 of the Companies Act 1985.
- 01/12/2004
large deal
(in CIS) a transaction (or series of transactions in one dealing period) by any person to buy, sell or exchange units in an authorised fund at a total value of £15,000 or its equivalent in the base currency of the authorised fund, or;
(a) for the purpose of SDRT provision, such other value; or
(b) for all or any other specified purposes, such greater value;
as may be specified in the prospectus; (in COLL) a transaction (or series of transactions) in one dealing period) by any person to buy, sell or exchange units in an authorised fund, of any value as set out in the prospectus, for the purposes of: (a) an SDRT provision;
(b) a dilution levy; or
(c) a dilution adjustment.
- 01/12/2004
large e-money float exposure
(in ELM) an e-money float exposure or e-money float exposures that exceeds or together exceed 10% of an ELMI's own funds as specified in more detail in ELM 3.5.7 R (Calculation of large exposure).
- 01/12/2004
large mutual association
a mutual association or unincorporated association with net assets of more than £1.4 million (or its equivalent in any other currency at the relevant time).
- 01/12/2004
large order, quote or transaction
(in relation to an ATS) an order, quote or transaction relating to an investment traded on an ATS, the publication of details of which at the time of the order, quote or transaction might significantly affect the price of the relevant investment to the detriment of the person placing the order, providing the quote or entering into the transaction (as the case may be).
- 01/12/2004
large partnership
a partnership or unincorporated association with net assets of more than £1.4 million (or its equivalent in any other currency at the relevant time).
- 01/12/2004
larger denomination share
any share that is not a smaller denomination share.
- 01/12/2004
lead regulated firm
a firm which is the subject of the financial supervision requirements of an overseas regulator in accordance with an agreement between the
FSA
and that regulator relating to the financial supervision of firms whose head office is within the country of that regulator.
- 01/12/2004
leading insurer
(in relation to a community co-insurance operation) has the same meaning as in the Community Co-Insurance Directive.
- 01/12/2004
legal expenses
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 17 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against risks of loss to the persons insured attributable to their incurring legal expenses (including costs of litigation).
- 01/12/2004
liability of ships
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 12 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against damage arising out of or in connection with the use of vessels on the sea or on inland water, including third party risks and carrier's liability.
- 01/12/2004
liability subject to compulsory insurance
any liability required under any of the following enactments to be covered by insurance or (as the case may be) by insurance or by some other provisions for securing its discharge:
(a) section 1(4A)(d) of the Riding Establishments Act 1964 (or any corresponding enactment for the time being in force in Northern Ireland);
(b) section 1 of the Employers' Liability (Compulsory Insurance) Act 1969 or Article 5 of the Employers' Liability Order (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972;
(c) Part VI of the Road Traffic Act 1988 or Part VIII of the Road Traffic (Northern Ireland) Order 1981;
(d) section 19 of the Nuclear Installations Act 1965.
- 01/12/2004
liability to a policyholder
(in relation to a firm carrying out contracts of insurance) any liability or obligation of that firm to, or in respect of, a policyholder, including any liability or obligation arising:
(a) from the requirement to treat customers fairly under Principle 6, including with respect to policyholders' reasonable expectations; or
(b) from a determination of liability by an Ombudsman; or
(c) from any requirement to pay compensation under the regulatory system.
- 01/12/2004
life and annuity
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph I of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance), on human life or a contract to pay annuities on human life, but excluding (in each case) contracts within paragraph III of Part II of that Schedule (Linked long-term).
- 01/12/2004
life policy
(1) (except in COB, AUTH App 1 and AUTH App 5):
(a) (in accordance with the definition of "qualifying contract of insurance" in article 3(1) of the Regulated Activities Order) a long-term insurance contract other than a reinsurance contract and a pure protection contract; or
(2) (in COB except COB 3):
(a) a long-term insurance contract in (1) or
(b) a pension policy.
(3) (in COB 3, AUTH App 1 and AUTH App 5) a long-term insurance contract in (1) (a) or a pension policy.
- 01/12/2004
lifetime mortgage
a regulated mortgage contract under which:
(a) entry into the mortgage is restricted to older customers above a specified age;
and (b) the
mortgage lender
may or may not specify a mortgage term, but will not seek full repayment of the loan (including interest, if any, outstanding) until the occurrence of one or more of the following:
and (i) the death of the customer; or
(ii) the customer leaves the mortgaged land to live elsewhere and has no reasonable prospect of returning (for example by moving into residential care); or
(iii) the customer acquires another dwelling for use as his main residence; or
(iv) the customer sells the mortgaged land; or
(v) the mortgage lender exercises its legal right to take possession of the mortgaged land under the terms of the contract.
(c) while the customer continues to occupy the mortgaged land as his main residence:
(i) no instalment repayments of the capital and no payment of interest on the capital (other than interest charged when all or part of the capital is repaid voluntarily by the customer), are due or capable of becoming due; or
(ii) although interest payments may become due, no full or partial repayment of the capital is due or capable of becoming due; or
(iii) although interest payments and partial repayment of the capital may become due, no full repayment of the capital is due or capable of becoming due.
- 01/12/2004
LIFFE
the London International Financial Futures and Options Exchange.
- 01/12/2004
limit of indemnity
- 01/12/2004
limitation
a limitation incorporated in a
Part IV permission
under section 42(7)(a)of the Act (Giving permission) or section 45(4)of the Act (Variation etc on the Authority's own initiative).
- 01/12/2004
limited issue share
- 01/12/2004
limited issue unit
- 01/12/2004
limited liability partnership
(a) a body corporate incorporated under the Limited Liability Partnerships Act 2000;
(b) a body corporate incorporated under legislation having the equivalent effect to the Limited Liability Partnerships Act 2000.
- 01/12/2004
limited redemption arrangements
the arrangements operated by an authorised fund manager for the redemption of units in an authorised fund where the authorised fund manager holds himself out to redeem units in that scheme less frequently than twice in a calendar month in accordance with COLL 6.2.19 R (Limited redemption).
- 01/12/2004
linked benefit
a benefit payable under a life policy or a regulated collective investment scheme the amount of which is determined by reference to:
(a) the value of the property of any description (whether specified or not); or
(b) fluctuations in the value of any such property; or
(c) income from such property; or
(d) fluctuations in an index of the value of such property.
- 01/12/2004
linked borrowing
additional credit facilities (which may be secured, unsecured, or both) that are integral to a regulated mortgage contract but which may be the subject of a separate contract.
- 01/12/2004
linked deposits
additional facilities (which may be a current account, a savings account, or both) that are linked to a regulated mortgage contract but which may be the subject of a separate contract.
- 01/12/2004
linked life stakeholder product
the stakeholder product specified by regulations 6 and 7 (rights under certain linked long-term contracts) of the Stakeholder Regulations;
- 06/04/2004
linked long-term
(in relation to a
class of
contract of insurance) the class of contract of insurance, specified in paragraph III of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance), on human life or contracts to pay annuities on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contract) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified).
- 01/12/2004
liquidity risk
the risk that a firm, although solvent, either does not have available sufficient financial resources to enable it to meet its obligations as they fall due, or can secure such resources only at excessive cost.
- 31/12/2004
listed
(2) (in
LLD
and
PRU
)
(a) included in an official list; or
- 31/12/2004
listed activity
an activity listed in Annex 1 to the Banking Consolidation Directive.
- 01/12/2004
listed security
any security that is admitted to an official list.
- 01/12/2004
listing rules
- 01/12/2004
LLD
the Lloyd's sourcebook.
- 01/12/2004
Lloyd's actuary
- 01/12/2004
Lloyd's Arbitration Scheme
the Lloyd's Arbitration Scheme (Members and Underwriting Agents Arbitration Scheme) established under Lloyd's Arbitration Scheme (Members and Underwriting Agents Scheme) Byelaw (No 15 of 1992).
- 01/12/2004
Lloyd's Members' Ombudsman
the office of Ombudsman established under Lloyd's Members' Ombudsman Scheme Byelaw (No 13 of 1987).
- 01/12/2004
Lloyd's policy
a contract of insurance written at Lloyd's.
- 01/12/2004
Lloyd's Return
- 01/12/2004
local
a firm which is a member of a futures and options exchange and whose permission includes a requirement that:
(a) the firm will not conduct designated investment business other than:
- 01/12/2004
long-term admissible asset
a long-term insurance asset which is an admissible asset.
- 31/12/2004
long-term care insurance contract
(in accordance with article 1 of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No 2) Order 2003) a contract of insurance in respect of which the following conditions are met:
(a) the purpose (or one of the purposes) of the policy is to protect the policyholder against the risk of becoming unable to live independently without assistance in consequence of a deterioration of mental or physical health, injury, sickness or other infirmity;
(b) benefits under the contract are payable in respect of:
(i) services,which are (or which is) necessary or desirable due to a deterioration of mental or physical health, injury, sickness or other infirmity;
(ii) accommodation, or
(iii) goods,
(c) the contract is expressed to be in effect until the death of the policyholder (except that the contract may give the policyholder the option to surrender the policy); and
(d) the benefits under the contract are capable of being paid throughout the life of the policyholder.
- 01/12/2004
long-term insurance asset
has the meaning set out in PRU 7.6.21 R.
- 31/12/2004
long-term insurance business
the business of effecting or carrying out long-term insurance contracts.
- 01/12/2004
long-term insurance business assets
assets of a member that are:
(b) funds at Lloyd's that are, for the time being, identified as available to meet long-term insurance business liabilities of the member.
- 01/12/2004
long-term insurance business liabilities
liabilities of a member that are attributable to his long-term insurance business.
- 01/12/2004
long-term insurance business syndicate
- 01/12/2004
long-term insurance capital requirement
(in relation to a firm carrying on long-term insurance business) an amount of capital resources that the firm must hold calculated in accordance with PRU 2.1.32 R.
- 31/12/2004
long-term insurance contract
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation: general)) any contract of insurance within Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance), namely:
(a) life and annuity (paragraph I);
(b) marriage and birth (paragraph II);
(c) linked long-term (paragraph III);
(d) permanent health (paragraph IV);
(e) tontines (paragraph V);
(f) capital redemption (paragraph VI);
(g) pension fund management (paragraph VII);
(g) collective insurance etc (paragraph VIII);
(h) social insurance (paragraph IX).
- 01/12/2004
long-term insurance fund
has the meaning set out in
PRU 7.6.22 R
.
- 31/12/2004
long-term insurance liabilities
insurance liabilities arising from long-term insurance business.
- 31/12/2004
long-term insurer
an insurer with permission to effect or carry out long-term insurance contracts.
- 01/12/2004
lower required amount
the lower required amount as defined in LLD 11.2.13 R or LLD 11.2.14 R.
- 01/12/2004
lower tier two capital
- 31/12/2004
lower tier two capital resources
the sum calculated at stage H of the calculation in
PRU 2.2.14 R
.
- 31/12/2004
lower tier two instrument
an item of capital that meets the conditions in
PRU 2.2.108 R
and is eligible to form part of a firm'slower tier two capital resources.
- 31/12/2004
- 31/12/2004
Letter: M
main investment services undertaking
(for the purpose of PRU 8 (Group Risk) and in relation to a financial conglomerate):
(b) (if there is more than one investment firm in that financial conglomerate) the member of the financial conglomerate identified in the same way as the main firm for the purposes of rule 14.4.2 of Chapter 14 of IPRU(INV) (Group Financial Resources), but so that the comparison required by that rule must be carried out with respect to all investment firms in the financial conglomerate.
- 01/12/2004
making arrangements with a view to regulated mortgage contracts
the regulated activity, specified in article 25A(2) of the Regulated Activities Order, which is in summary: making arrangements with a view to a person who participates in the arrangements entering into a regulated mortgage contract as borrower.(see also arranging (in relation to regulated mortgage contracts) and arranging (bringing about) regulated mortgage contracts.)
- 01/12/2004
making arrangements with a view to transactions in investments
the regulated activity, specified in article 25(2) of the Regulated Activities Order (Arranging deals in investments), which is in summary: making arrangements with a view to a person who participates in the arrangements buying, selling, subscribing for or underwriting any of the following investments (whether as principal or agent):
(a) a designated investment; or
(b) a funeral plan contract; or
(c) the underwriting capacity of a Lloyd's syndicate; or
(e) rights to or interests in investments in (b), (c) or (d); or
- 01/12/2004
management accounts
(in relation to a UK recognised body) accounts showing the actual and budgeted income and expenditure of that body over any period.
- 01/12/2004
management expenses
(1) (except in
PRU
) (in accordance with section 223 of the Act (Management expenses)) expenses incurred or expected to be incurred by the FSCS in connection with its function under
COMP, other than compensation costs; for the purposes of
COMP
these are subdivided into base costs, specific costs and establishment costs.
(2) (in
PRU
) in relation to long-term insurance business, means all expenses, other than commission, incurred in the administration of an insurer or its business.
- 31/12/2004
management expenses levy
a levy imposed by the FSCS on participant firms to meet the management expenses and which is made up of one or more of a base cost levy, a specific costs levy and an establishment costs levy, each participant firm's share being calculated in accordance with COMP 13.5.
- 01/12/2004
manager
(1) (in relation to an AUT) the firm which is the manager of the AUT in accordance with the trust deed.
(1A) (in relation to an OEIC which is an undertaking for collective investment in transferable securities within the meaning of the UCITS Directive and which has appointed a person to manage the scheme) the person appointed to manage the scheme.
(2) (as defined in section 423(1) and (2) of the Act (Manager)) (except in relation to a unit trust scheme or an undertaking for collective investment in transferable securities within the meaning of the UCITS Directive (other than a unit trust scheme) or a registered friendly society):
(a) an employee who:
(i) under the immediate authority of his employer, is responsible, either alone or jointly with one or more other individuals, for the conduct of his employer's business; or
(ii) under the immediate authority of his employer or of a person who is a manager in accordance with (i) exercises managerial functions or is responsible for maintaining accounts or other records of his employer;
(b) if the employer is not an individual, references in (a) to the authority of the employer are references to the authority:
(i) in the case of a body corporate, of the directors;
(ii) in the case of a partnership, of the partners; and
(iii) in the case of an unincorporated association, of its officers or the members of its governing body.
(3) (as defined in section 423(3) of the Act (Manager)) (in relation to a body corporate other than one covered at (1A) above):
(a) a person (other than an employee of the body) who is appointed by the body to manage any part of its business, including an employee of the body corporate (other than the chief executive) who under the immediate authority of a director or chief executive of the body corporate exercises managerial functions or is responsible for maintaining accounts or other records of the body corporate;
(b) for the purposes of (a) and in relation to a body corporate whose principal place of business is within the United Kingdom, the chief executive includes only a person who is an employee of the body corporate in accordance with section 417(1) of the Act (Definitions).
- 01/12/2004
managing agent
(as defined in article 3(1) of the Regulated Activities Order) a person who is permitted by the Council in the conduct of his business as an underwriting agent to perform for a member one or more of the following functions:
(a) underwriting contracts of insurance at Lloyd's;
(b) reinsuring such contracts in whole or in part;
(c) paying claims on such contracts.
- 01/12/2004
managing investments
the regulated activity, specified in article 37 of the Regulated Activities Order (Managing investments), which is in summary: managing assets belonging to another person in circumstances which involve the exercise of discretion, if:
(a) the assets consist of or include any security or contractually based investment (that is, any designated investment, funeral plan contract or right to or interest in a funeral plan contract); or
(b) the arrangements for their management are such that the assets may consist of or include such investments, and either the assets have at any time since 29 April 1988 done so, or the arrangements have at any time (whether before or after that date) been held out as arrangements under which the assets would do so.
- 01/12/2004
managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's
the regulated activity, specified in article 57 of the Regulated Activities Order (Managing the underwriting capacity of a Lloyd's syndicate), of managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's.
- 01/12/2004
mandate rules
- 01/12/2004
MAR
the Market Conduct sourcebook.
- 01/12/2004
margin
(in COLL and CIS) cash or other property paid, transferred or deposited under the terms of a derivative; for these purposes cash or property will be treated as having been paid, transferred or deposited if it must be paid, transferred or deposited in order to comply with a requirement imposed by the market on which the contract is made or traded.
- 01/12/2004
margin of solvency
the excess of the value of an insurer's assets over the amount of its liabilities, that value and amount being determined in accordance with IPRU(INS) and IPRU(FSOC).
- 31/12/2004
margined contract
- 01/12/2004
margined transaction
(1) (except in CASS 4) a transaction executed by a firm with or for a client relating to a future, option or contract for differences (or any right to or any interest in such an investment) under the terms of which the client will or may be liable to provide cash or collateral to secure performance of obligations which he may have to perform when the transaction falls to be completed or upon the earlier closing out of his position.
- 01/12/2004
market abuse regime
the regime established under the provisions of Part VIII of the Act (Penalties for market abuse).
- 01/12/2004
market contract
a market contract as described in section 155 of the Companies Act 1989 or article 80 of the Companies (No2) (Northern Ireland) Order 1990 which is in summary:
(a) a contract entered into by a member or designated non-member of an RIE which is either:
(i) a contract made on the exchange or an exchange to whose undertaking the exchange has succeeded; or
(b) a contract entered into by an RIE or RCHwith one of its members for the purpose of enabling the rights and liabilities of that member under transactions in investments to be settled.
- 01/12/2004
market counterparty
(1) (except in COB 3) a client who is:
(a) a properly constituted government (including a quasi-governmental body or a government agency) of any country or territory;
(b) a central bank or other national monetary authority of any country or territory;
(c) a supranational whose members are either countries or central banks or national monetary authorities;
(d) a State investment body, or a body charged with, or intervening in, the management of the public debt;
(e) another firm, or an overseas financial services institution, except in relation to designated investment business, and related ancillary activities, conducted with or for that firm or institution, when that firm or institution is an intermediate customer in accordance with COB 4.1.7 R (Classification of another firm or an overseas financial services institution);
(f) any associate of a firm (except an OPS firm), or of an overseas financial services institution, if the firm or institution consents;
(g) a client when he is classified as a market counterparty in accordance with COB 4.1.12 R (Large intermediate customer classified as a market counterparty);
(h) a recognised investment exchange, designated investment exchange, regulated market or clearing house when it is classified as a market counterparty in accordance with COB 4.1.8A R (Classification of an exchange or clearing house);
but excluding: (A) a regulated collective investment scheme; and
(B) (except for the purposes of DISP) a client, who would otherwise be a market counterparty, when he is classified as a private customer in accordance with COB 4.1.14 R (Client classified as private customer).
- 01/12/2004
market maker
(in relation to an investment) a person who (otherwise than in his capacity as the operator of a regulated collective investment scheme) holds himself out as able and willing to enter into transactions of sale and purchase in investments of that description at prices determined by him generally and continuously rather than in respect of each particular transaction.
- 01/12/2004
market risk
(in relation to a firm) the risks that arise from fluctuations in values of, or income from, assets or in interest or exchange rates.
- 31/12/2004
market value
the market value as determined in accordance with United Kingdom generally accepted accounting practice.
- 01/12/2004
marketable investment
(a) an investment which is traded on or under the rules of an exchange;
(b) a debt instrument which may be transferred without the consent of the issuer or any other person (including a collateralised mortgage obligation);
(c) a commodity;
(d) a warrant, option, future or other instrument which entitles the holder to subscribe for or acquire:
(ii) any currency; or
(iii) any combination of (i) and (ii);
(e) a contract for differences (including interest rate and currency swaps) relating to fluctuations in:
(ii) any currency; or
(iii) the rate of interest in any currency or any index of such rates; or
(iv) the level of any index which is derived from the prices of an investment or commodity in (a) to (c); or
(v) any combination of (i) to (iv);
- 01/12/2004
marketing
(in COLL and CIS) (in relation to marketing units in a regulated collective investment scheme in a particular country or territory):
(a) communicating to a person in that country or territory an invitation or inducement to become, or offer to become, a holder in that
authorised fund
;
(b) giving advice on investments to, or arranging (bringing about) a deal in an investment for a person in that country or territory to become a holder in that
authorised fund
.
- 01/12/2004
mark-up or mark-down
(a) (when a firm receives a customer order and takes a principal position in the relevant investment in order to fulfil that customer order (that is, when the firm takes a principal position in the relevant investment which it would not otherwise take, except to fulfil that customer order)) the difference, if any, between:
(i) the price at which the firm takes a principal position in the relevant investment in order to fulfil that customer order; and
(b) (when a firm executes a customer order against its own book and owes a duty of best execution) the difference between:
(i) the price at which best execution would be achieved; and
- 01/12/2004
marriage and birth
(in relation to a class of contract of insurance ) the class of contract of insurance , specified in paragraph II of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance), to provide a sum on marriage or on the birth of a child, being contracts expressed to be in effect for a period of more than one year.
- 01/12/2004
matched principal broker
a firm with permission to deal in investments as principal other than:
(b) a UCITS management company; or
(c) an insurer; or
(d) a local;
and which satisfies the following conditions: (e) it deals as principal only to fulfil customer orders;
(f) it holds positions for its own account only as a result of a failure to match investors' orders precisely;
(g) the total market value of the positions is no higher than 15% of the firm's initial capital; and
(h) the positions are incidental and provisional in nature and strictly limited to the time required to carry out the transaction in question.
- 01/12/2004
material holding
(in ELM) the holdings and positions set out in ELM 2.4.17 R (Material holdings).
- 01/12/2004
material interest
(in
COB
) (in relation to a transaction) any interest of a material nature, other than:
(a) disclosable commission on the transaction;
(b) goods or services which can reasonably be expected to assist in carrying on designated investment business with or for clients and which are provided or to be provided under a soft commission agreement or
- 01/12/2004
material outsourcing
outsourcing services of such importance that weakness, or failure, of the services would cast serious doubt upon the firm's continuing satisfaction of the threshold conditions or compliance with the Principles.
- 01/12/2004
mathematical reserves
(1) (in LLD) the provision made for a member to cover liabilities (excluding liabilities which have fallen due and liabilities arising from deposit back arrangements) arising under or in connection with long-term insurance contracts.
(2) (in PRU) the provision made by an insurer to cover liabilities (excluding liabilities which have fallen due and liabilities arising from deposit back arrangements) arising under or in connection with long-term insurance contracts.
- 31/12/2004
maxi-ISA
an ISA which includes a stocks and shares component and may also include other qualifying investments such as:
(a) a cash component;
(b) an insurance component;
as prescribed in paragraphs 7, 8 and 9 respectively of the ISA Regulations.- 01/12/2004
MCAS scheme
Mortgage Code Arbitration Scheme.
- 01/12/2004
MCOB
the Mortgages: Conduct of Business sourcebook.
- 01/12/2004
- 31/12/2004
means of distance communication
(in accordance with article 2(e) of the Distance Marketing Directive) any means used for the distance marketing of a service between parties which does not involve the simultaneous physical presence of those parties.
- 01/12/2004
media firm
a firm whose only permitted activities are advising on investments and agreeing to carry on that regulated activity, and whose
Part IV permission
includes requirements to the effect that the firm must advise:
(a) only through the media; and
(b) without conveying the impression that the advice is particularly suitable for any person , except when it is given in response to a specific request for advice from that person;
in this definition, "media" means: (i) newspapers, journals, magazines or other periodical publications;
(ii) services comprising regularly updated news or information;
(iii) services consisting of the broadcast or transmission of television or radio programmes.
- 01/12/2004
member
(1) (except in PROF,
ENF 18
and REC) a person admitted to membership of the Society or any person by law entitled or bound to administer his affairs.
(in REC) (in relation to a recognised body) a person who is entitled, under an arrangement or agreement between him and that body, to use that body's facilities.
- 01/12/2004
member contribution
any paid up contribution by a member of a mutual where the members' accounts meet the following criteria:
(a) the memorandum and articles of association or other constitutional documents must stipulate that payments may be made from these accounts to members only in so far as this does not cause the firm's capital resources to fall below the required level, or, if after dissolution of the firm, all the firm's other debts have been settled;
(b) the memorandum and articles of association or other constitutional documents must stipulate, with respect to the payments referred to in (a) made for reasons other than the individual termination of membership, that the
FSA
must be notified at least one month in advance of the intended date of such payments; and
(c) the
FSA
must be notified of any amendment to the relevant provisions of the memorandum and articles of association or other constitutional documents.
- 31/12/2004
member society
(as defined in article 2(2) of the compensation transitionals order ) a person who at any time before commencement was a member society within the rules of the Friendly Societies Protection Scheme established in accordance with section 141 of the Financial Services Act 1986.
- 01/12/2004
members' adviser
a firm whose permission includes advising on syndicate participation at Lloyd's, but which is not an underwriting agent.
- 01/12/2004
members' agent
an underwriting agent who carries on the regulated activity of advising on syndicate participation at Lloyd's.
- 01/12/2004
member's margin
the amount determined in accordance with LLD 11.3.1 R (General insurance business) or LLD 11.3.4 R (Long-term insurance business).
- 01/12/2004
membership of a Lloyd's syndicate
the investment , specified in article 86(2) of the Regulated Activities Order, which is a person's membership (or prospective membership) of a Lloyd's syndicate.
- 01/12/2004
MIIC
- 01/12/2004
mini-ISA
an ISA which contains only one of the following qualifying investments:
(a) a stocks and shares component;
(b) a cash component;
(c) an insurance component;
as prescribed in paragraph 7, 8 or 9 respectively of the ISA Regulations.- 01/12/2004
minimum capital requirement
- 31/12/2004
minimum guarantee fund
- 31/12/2004
minimum levy
- 01/12/2004
miscellaneous financial loss
(in relation to a class of contract of insurance ) the class of contract of insurance, specified in paragraph 16 of Part I of Schedule 1 to the Regulated Activities Order (General contracts of insurance), against any of the following risks:
(a) risks of loss to the persons insured attributable to interruptions of the carrying on of business carried on by them or to reduction of the scope of business so carried on;
(b) risks of loss to the persons insured attributable to their incurring unforeseen expense (other than loss such as is covered by contracts within paragraph 18 of Part I of Schedule 1 to the Regulated Activities Order (Assistance));
(c) risks which do not fall within paragraphs (a) or (b) and which are not of such a kind that contracts of insurance against them fall within any other provision of Schedule 1 to the Regulated Activities Order.
- 01/12/2004
misleading statements and practices offence
any of the offences described in section 397 of the Act (Misleading statements and practices), which are in summary:
(a) the offence of:
(i) making a statement, promise or forecast, which the person making the statement, promise or forecast knows to be misleading, false or deceptive in a material particular; or
(ii) dishonestly concealing any material facts whether in connection with a statement, promise or forecast made by the person concealing the facts or otherwise; or
(iii) recklessly making (dishonestly or otherwise) a statement, promise or forecast which is misleading, false or deceptive in a material particular;
where the person makes the statement, promise or forecast or conceals the facts for the purpose of inducing, or is reckless as to whether it may induce, another person (whether or not that person is the same person to whom the statement, promise or forecast is made): (A) to enter or offer to enter into, or to refrain from entering or offering to enter into, a relevant agreement; or
(B) to exercise, or refrain from exercising, any rights conferred by a relevant investment;
(b) the offence of doing any act or engaging in any course of conduct which creates a false or misleading impression as to the market in or the price or value of any relevant investments where the act was done or the course of conduct engaged in for the purpose of creating that impression and of thereby inducing another person to acquire, dispose of, subscribe for or underwrite those investments or to refrain from doing so, or to exercise, or refrain from exercising, any rights conferred by those investments;
in this definition:"relevant agreement" means an agreement: (I) the entering into or performance of which by either party constitutes an activity of a kind specified in an order made by the Treasury or one which falls within a specified class of activity; and
(II) which relates to a relevant investment;
"relevant investment" means an investment of a kind specified in an order made by the Treasury or one which falls within a class of investment prescribed in regulations made by the Treasury.- 01/12/2004
mixed financial holding company
(in accordance with Article 2(15) of the Financial Groups Directive (Definitions)) a parent undertaking, other than a regulated entity, which together with its subsidiary undertakings, at least one of which is an EEA regulated entity, and other entities, constitutes a financial conglomerate.
- 01/12/2004
mixed remittance
a remittance that is part client money and part other money.
- 01/12/2004
mixed-activity holding company
one of the following:
(a) (in accordance with Article 1(22)of the Banking Consolidation Directive (Definitions)) a parent undertaking, other than a financial holding company, a credit institution or a mixed financial holding company, the subsidiary undertakings of which include at least one credit institution; or
(b) (in accordance with Article 7(3) of the Capital Adequacy Directive (Supervision on a consolidated basis) and in relation to a banking and investment group without any credit institutions in it) a parent undertaking, other than a financial holding company, an investment firm or a mixed financial holding company, the subsidiary undertakings of which include at least one investment firm.
- 01/12/2004
mixed-activity insurance holding company
(in accordance with Article 1(j) of the Insurance Groups Directive (Definitions)) a parent undertaking, other than an insurance undertaking, an insurance holding company or a mixed financial holding company, the subsidiary undertakings of which include at least one insurance undertaking.
- 01/12/2004
ML
the Money Laundering sourcebook.
- 01/12/2004
- 01/12/2004
Model Code
The Model Code on directors' dealings in securities set out in the appendix to Chapter 16 of the listing rules.
- 01/12/2004
money
any form of money, including cheques and other payable orders.
- 01/12/2004
money laundering
any act which:
(a) constitutes an offence under section 18 (Money laundering) of the Terrorism Act 2000; or
(b) constitutes an offence under section 327 (Concealing etc), section 328 (Arrangements) or section 329 (Acquisition, use and possession) of the Proceeds of Crime Act 2002; or
(c) constitutes an attempt, conspiracy or incitement to commit an offence specified in paragraph (b); or
(d) constitutes aiding, abetting, counselling or procuring the commission of an offence specified in paragraph (b); or
(e) would constitute an offence specified in paragraph (b), (c), or (d) if done in the United Kingdom.
- 01/12/2004
Money Laundering Directive
the Council Directive of 10 June 1991 on the prevention of the use of the financial system for the purpose of money laundering (91/308/EEC) as amended by the Council Directive of 4 December 2001 (2001/97/EEC).
- 01/12/2004
Money Laundering Regulations
the Money Laundering Regulations 2003 (SI 2003/3075) (see ML).
- 01/12/2004
money laundering reporting function
controlled function CF11 in the table of controlled functions, described more fully in SUP 10.7.13 R.
- 01/12/2004
money laundering reporting officer
the individual appointed by a
relevant firm
in accordance with
ML 7.1
.
- 01/12/2004
money service business
carrying on by way of business the activity of:
(a) operating a bureau de change; or
(b) transmitting money, or any representation of monetary value, by any means; or
(c) cashing cheques which are made payable to customers.
- 01/12/2004
money service operator
a person who carries on money service business other than a firm , a BCD credit institution or a financial institution.
- 01/12/2004
money-market instrument
any of the following investments:
(a) a debenture which is issued on terms requiring repayment not later than five years from the date of issue;
(b) any government and public security which is issued on terms requiring repayment not later than one year or, if issued by a local authority in the United Kingdom , five years from the date of issue;
(d) a certificate representing certain securities or rights to or interests in investments relating, in either case, to an investment within (a) or (b);
(e) an option relating to:
(i) an instrument in (a) or (b); or
(ii) currency of the United Kingdom or of any other country or territory; or
(iii) gold or silver;
(f) a future for the sale of:
(i) an instrument in (a) or (b); or
(ii) currency of the United Kingdom or of any other country or territory; or
(iii) gold or silver;
(g) a contract for differences by reference to fluctuations in:
(i) the value or price of any instrument within any of (a) to (f); or
(ii) currency of the United Kingdom or of any other country or territory; or
(iii) the rate of interest on loans in any such currency or any index of such rates;
(h) an option to acquire or dispose of an instrument within (e), (f) or (g).
- 01/12/2004
money-market scheme
an authorised fund dedicated to:
(a) deposits; and
whether with or without securities which are transferable securities.- 01/12/2004
money-purchase benefits
- 01/12/2004
money-purchase occupational scheme
an occupational pension scheme which provides money-purchase benefits.
- 01/12/2004
month
(in accordance with the Interpretation Act 1978) a calendar month.
- 01/12/2004
mortgage administrator
a firm with permission (or which ought to have permission ) for administering a regulated mortgage contract.
- 01/12/2004
mortgage adviser
a firm with permission (or which ought to have permission ) for advising on regulated mortgage contracts.
- 01/12/2004
Mortgage and General Insurance Complaints Transitional Order
The Financial Services and Markets Act 2000 (Transitional Provisions) (Complaints Relating to General Insurance and Mortgages) Order 2004 (SI 2004/454).
- 01/12/2004
mortgage arranger
a firm with permission (or which ought to have permission) for arranging (see also arranging (bringing about) regulated mortgage contracts and making arrangements with a view to regulated mortgage contracts).
- 01/12/2004
mortgage credit card
a plastic card which is a credit card issued under a regulated mortgage contract and not regulated by the Consumer Credit Act 1974.
- 01/12/2004
mortgage intermediary
a firm with permission (or which ought to have permission ) to carry on mortgage mediation activity .
- 01/12/2004
mortgage lender
a firm with permission (or which ought to have permission) for entering into a regulated mortgage contract.
- 01/12/2004
mortgage mediation activity
(as defined in article 26 of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 1) Order 2003 (SI 2003/1475)) any of the following regulated activities:
(a) arranging (bringing about) regulated mortgage contracts (article 25A(1));
(b) making arrangements with a view to regulated mortgage contracts (article 25A(2));
(c) advising on regulated mortgage contracts (article 53A);
(d) agreeing to carry on a regulated activity in (a) to (c) (article 64).
- 01/12/2004
mortgage shortfall debt
the outstanding debt, under a regulated mortgage contract, following the sale of the mortgaged property.
- 01/12/2004
most important financial sector
(in relation to a financial sector in a consolidation group or a financial conglomerate and in accordance with
PRU 8.4
(Cross sector groups)) the financial sector with the largest average referred to in the box titled Threshold Test 2 in the financial conglomerate definition decision tree (10% ratio of balance sheet size and solvency requirements); and so that:
(a) the investment services sector and the banking sector are treated as one for the purposes set out in PRU 8.4.7 R (Definition of financial conglomerate: The financial sectors: General); and
(b) the definition is altered as set out in paragraph 4.4 and the decision tree in paragraph 4.5 of PRU 8 Ann 1R G (Types of financial conglomerate and definition of most important financial sector) for the purposes set out in paragraph 4.4 of PRU 8 Ann 1R G.
- 01/12/2004
Motor Insurers' Information Centre
the information centre appointed to meet the United Kingdom's obligations under article 5 of the Fourth Motor Insurance Directive (Information Centres).
- 01/12/2004
motor vehicle liability
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 10 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against damage arising out of or in connection with the use of motor vehicles on land, including third-party risks and carrier's liability.
- 01/12/2004
motor vehicle liability insurance business
general insurance business of class 10, other than:
(a) carrier's liability;
(b) pure reinsurance of that class.
- 01/12/2004
motor vehicle liability insurer
(b) any person carrying on the regulated activity of managing the underwriting capacity of a Lloyd's syndicate in respect of members whose insurance business at Lloyd's includes motor vehicle liability insurance business.
- 01/12/2004
multilateral development bank
any of the following:
African Development Bank (AfDB)
Asian Development Bank (ASB)
Caribbean Development Bank (CDB)
Council of Europe Development Bank
European Bank for Reconstruction & Development (EBRD)
European Investment Bank (EIB)
European Investment Fund (EIF)
Inter-American Development Bank (IADB)
Inter-American Investment Corporation (IAIC)
International Bank for Reconstruction &Development (IBRD) including International Financial Corporation (IFC)
Multilateral Investment Guarantee Agency (MIGA)
Nordic Investment Bank (NIB)
- 01/12/2004
mutual
an insurer which:
(a) if it is a body corporate has no share capital (except a wholly owned subsidiary with no share capital but limited by guarantee); or
(c) is a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies (Northern Ireland) Act 1969.
- 31/12/2004
Letter: N
name-passing broker
- 01/12/2004
national bureau
(in relation to an EEA State) a professional organisation which:
(a) has been constituted in that State in accordance with Recommendation No 5 adopted on 25 January 1949 by the Road Transport Sub-committee of the Inland Transport Committee of the United Nations Economic Commission for Europe; and
(b) groups together insurance undertakings which in that State are authorised to conduct the business of motor vehicle liability insurance.
- 01/12/2004
national guarantee fund
(in relation to an EEA State) a body which:
(a) has been set up or authorised in that State in accordance with article 1(4) of Council Directive (84/5/EEC); and
(b) provides compensation for damages to property or personal injuries caused by unidentified vehicles for which the insurance obligation provided for in article 1(1) of that Directive has not been satisfied.
- 01/12/2004
natural gas
(a) natural gas in any form, including natural gas as deliverable through the Network Code; and
(b) any right that relates to natural gas, for example the right under a contract or otherwise to require a person to take any action in relation to natural gas, including:
(i) delivering natural gas to any person or taking delivery of natural gas; or
(ii) providing any information or notice in relation to natural gas; or
(iii) making any payment in relation to the delivery or non-delivery, or the taking or non-taking of delivery, of natural gas.
- 01/12/2004
NCIS
National Criminal Intelligence Service.
- 01/12/2004
near cash
money, deposits or investments which, in each case, fall within any of the following:
(a) money which is deposited with an eligible institution or an approved bank in:
(i) a current account; or
(b) certificates of deposit issued by an eligible institution or an approved bank if immediately redeemable at the option of the holder;
(c) government and public securities , if redeemable at the option of the holder or bound to be redeemed within two years;
(d) bills of exchange which are government and public securities;
(e) deposits with a local authority of a kind which fall within paragraph 9 of Part II of the First Schedule to the Trustee Investments Act 1961, and equivalent deposits with any local authority in another EEA State , if the money can be withdrawn immediately and without payment of a penalty as described in (a).
- 01/12/2004
net accumulation share
(in relation to an ICVC ) a share in respect of which income (net of any tax deducted or accounted for by an ICVC ) is credited periodically to capital under CIS 9.2.4 R (Annual allocation to accumulation shares or accumulation units) or CIS 9.2.6 R (Interim allocations of income).
- 01/12/2004
net central assets
central assets less the liabilities of the Society (excluding the liabilities of members) valued in accordance with LLD 9 to 15.
- 01/12/2004
net earned premiums
gross earned premiums, less reinsurance premiums earned.
- 31/12/2004
net FX open currency position
- 01/12/2004
net leverage
the ratio of total assets, less those bought under reverse repo arrangements, to total equity.
- 31/12/2004
net premium
the premium that is calculated to provide the basic sum assured under a with-profits insurance contract taking into consideration only the mortality and interest rate risks and using the same assumptions as used in the calculation of the mathematical reserves.
- 31/12/2004
net written premiums
- 31/12/2004
netting
a process by which the claims and obligations between two counterparties are offset against each other to leave a single net sum.
- 31/12/2004
network
a firm:
(a) which has five or more appointed representatives; or
(b) whose appointed representatives (being fewer than five) have, between them, 26 or more representatives;
but not: (i) a product provider; or
(ii) a firm which markets the packaged products of a product provider which is in the same group as the firm and which does so other than by selecting products from the whole market; or
(iv) a mortgage lender.
- 01/12/2004
Network Code
the network code prepared by Transco plc in accordance with condition 7 of the public gas transporter licence granted or treated as granted to Transco plc under section 7(2) of the Gas Act 1986, as in force from time to time, or any subsequent similar instrument or arrangement.
- 01/12/2004
nominee company
a body corporate whose business consists solely of acting as a nominee holder of investments or other property.
- 01/12/2004
non-authorised Voluntary Jurisdiction participant
a participant in the Voluntary Jurisdiction who is not a firm.
- 01/12/2004
non-core investment service
a service listed in section C of the Annex to the ISD, the text of which is set out in Schedule 2 to the Regulated Activities Order (Annex to the Investment Services Directive).
- 01/12/2004
non-credit equalisation provision
the provision required to be established under PRU 7.5.17 R.
- 31/12/2004
non-directive friendly society
(a) a friendly society whose insurance business is restricted to the provision of benefits which vary according to the resources available and in which the contributions of the members are determined on a flat-rate basis;
(b) a friendly society whose long-term insurance business is restricted to the provision of benefits for employed and self-employed persons belonging to an undertaking or group of undertakings, or a trade or group of trades, in the event of death or survival or of discontinuance or curtailment of activity (whether or not the commitments arising from such operations are fully covered at all times by mathematical reserves);
(c) a friendly society which undertakes to provide benefits solely in the event of death where the amount of such benefits does not exceed the average funeral costs for a single death or where the benefits are provided in kind;
(d) a friendly society (carrying on long-term insurance business):
(i) whose registered rules contain provisions for calling up additional contributions from members or reducing their benefits or claiming assistance from other persons who have undertaken to provide it; and
(ii) whose annual gross premium income (other than from contracts of reinsurance) has not exceeded 5 million Euro for each of the three preceding financial years;
(e) a friendly society (carrying on general insurance business):
(i) whose registered rules contain provisions for calling up additional contributions from members or reducing their benefits;
(ii) whose gross premium income (other than from contracts of reinsurance) for the preceding financial year did not exceed 5 million Euro; and
(iii) whose members provided at least half of that gross premium income;
(f)
and in each case whose insurance business is limited to that described in any of (a) to (f). (i) a friendly society whose liabilities in respect of general insurance contracts are fully reinsured with or guaranteed by other mutuals (including friendly societies); and
(ii) the mutuals providing the reinsurance or the guarantee are subject to the rules of the First Non-Life Directive;
- 31/12/2004
non-directive insurer
(a) an insurerwhose insurance business is restricted to the provision of benefits which vary according to the resources available and in which the contributions are determined on a flat-rate basis; or
(b) an insurer whose long-term insurance business is restricted to the provision of benefits for employed and self-employed persons belonging to an undertaking or group of undertakings , or a trade or group of trades, in the event of death or survival or of discontinuance or curtailment of activity (whether or not the commitments arising from such operations are fully covered at all times by mathematical reserves ); or
(c) an insurer which undertakes to provide benefits solely in the event of death where the amount of such benefits does not exceed the average funeral costs for a single death or where the benefits are provided in kind; or
(d) a mutual (carrying on long-term insurance business ) whose:
(i) articles of association contain provisions for calling up additional contributions from members or reducing their benefits or claiming assistance from other persons who have undertaken to provide it; and
(ii) annual gross premium income (other than from contracts of reinsurance) has not exceeded 5 million Euro for each of the financial year in question and the two previous financial years; or
(e) a mutual (carrying on general insurance business) whose:
(i) articles of association contain provisions for calling up additional contributions from members or reducing their benefits;
(ii) business does not cover liability risks, other than ancillary risks, or credit or suretyship risks;
(iii) gross premium income (other than from contracts of reinsurance ) for the financial year in question did not exceed 5 million Euro; and
(iv) members provided at least half of that gross premium income; or
(f) an insurer whose insurance business (other than reinsurance) is:
(i) restricted to the provision of assistance for persons who get into difficulties while travelling, while away from home or while away from their permanent residence;
(ii) carried out exclusively on a local basis and consists only of benefits in kind; and
(iii) such that the gross premium income from the provision of assistance in the financial year in question did not exceed 200,000 Euro; or
(g)
(i) a mutual whose liabilities in respect of general insurance contracts are fully reinsured with or guaranteed by other mutuals (including friendly societies); and
(ii) the mutuals providing the reinsurance or the guarantee are subject to the rules of the First Non-Life Directive.
- 31/12/2004
non-directive mutual
a mutual that falls into (d), (e) or (g) of the definition of a non-directive insurer.
- 31/12/2004
non-discretionary management agreement
an agreement for the non-discretionary management of investments:
- 01/12/2004
non-EEA bank
a bank which is a body corporate or partnership formed under the law of any country or territory outside the EEA.
- 01/12/2004
non-EEA direct insurer
- 31/12/2004
non-executive director
a director who has no responsibility for implementing the decisions or the policies of the governing body of a firm.
- 01/12/2004
non-executive director function
- 01/12/2004
Non-Exempt Activities Order
the Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001 (SI 2001/1227).
- 01/12/2004
Non-Life Directives
- 01/12/2004
non-mainstream regulated activity
a regulated activity of an authorised professional firm in relation to which the conditions in PROF 5.2.1 R are satisfied.
- 01/12/2004
non-market-price transaction
- 01/12/2004
non-profit fund
a long-term insurance fund which is not a with-profits fund.
- 31/12/2004
non-profit insurance business
the business of effecting or carrying out non-profit insurance contracts.
- 31/12/2004
non-profit insurance contract
a long-term insurance contract which is not a with-profits insurance contract.
- 31/12/2004
non-proportional reinsurance treaty
- 31/12/2004
non-real time financial promotion
(in accordance with article 7(2) of the Financial Promotion Order) (as more fully described in
COB 3.5.5 R
("Real time" and "non-real time" financial promotions) and
AUTH App 1.10
(Types of financial promotion))) a financial promotion that is not a real time financial promotion.
- 01/12/2004
non-stakeholder CTF
a CTF that is not a stakeholder CTF.
- 01/12/2004
non-UCITS retail scheme
- 01/12/2004
non-UCITS scheme
an authorised fund that is not a UCITS scheme.
- 01/12/2004
normally resident
(in MCOB) normally resident; for the purposes of this definition:
(a) an individual (whether or not acting as trustee) is to be treated as normally resident in the country which he indicates is his country of residence, unless the firm has reason to doubt this; and
(b) a body corporate acting as trustee is to be treated as resident in the country in which its registered office (or, if it has no registered office, its head office) is located.
- 01/12/2004
notice of discontinuance
a notice given by the
FSA
in accordance with section 389 of the Act (Notices of discontinuance) which states that the
FSA
has decided not to take the action proposed in a warning notice or the action to which a decision notice relates.
- 01/12/2004
notice of intention
- 01/12/2004
notification rule
(1) (in relation to a firm) a rule requiring a firm to give the
FSA
notice of, or information regarding, an event, but excluding:
(a) a rule requiring periodic submission of a report; and
(2) (in relation to a recognised body) a rule made by the
FSA
under section 293 of the Act (Notification requirements) or section 295 of the Act (Notification: overseas investment exchanges and overseas clearing houses) requiring a recognised body to give the FSA:
(a) notice of, and specified information regarding, specified events relating to the body;
(b) specified information relating to the body at specified times or in respect of specified periods; and
(c) any other information required to be given by such a rule.
- 01/12/2004
notified point
a point that is within the two hours immediately following a valuation point and is notified in accordance with CIS 4.3.9 R (3) (Issue of units to meet authorised fund manager's obligation to sell) or CIS 15.3.4 R (4) (Issue of units: manager's instructions).
- 01/12/2004
notional principal
(a) (in relation to a contract for differences which is an index derivative):
(i) the current mark to market valuation of a contract for differences which resembles a futures contract; or
(b) (in relation to any other contract for differences) the notional lot size of the contract.
- 01/12/2004
nuclear risks
risks falling within any class of general insurance business and arising in connection with the construction and use of any nuclear reactor or nuclear installation or the carriage of any nuclear matter.
- 31/12/2004
Letter: O
occupational pension fund management business
(in COMP) the business of carrying on:
(1) pension fund management; or
(2) (other than in connection with a personal pension scheme) pension fund management, written as linked long term business , for an occupational pension scheme or for an institution falling within article 2 of the Council Directive of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision (No 2003/41/EC) but only to the extent that:
(a) there is no transfer to the participant firm of:
(i) investment, market, or credit risk;
(iii) mortality or expense risk prior to any annuity being effected; and
(b) any annuity options provide for the participant firm to change the annuity rates without prior notice.
- 01/12/2004
occupational pension scheme
(as specified in article 3(1) of the Regulated Activities Order (Interpretation)) any scheme or arrangement which is comprised in one or more instruments or agreements and which has, or is capable of having, effect in relation to one or more descriptions or categories of employment so as to provide benefits, in the form of pensions or otherwise, payable on termination of service, or on death or retirement, to or in respect of earners with a qualifying service in an employment of any such description or category.
- 01/12/2004
OECD
Organisation for Economic Co-operation and Development.
- 01/12/2004
OEIC
open-ended investment company.(see also ICVC.)
- 01/12/2004
OEIC Regulations
the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) or for an ICVC established in Northern Ireland, the Open-Ended Investment Companies Regulations (Northern Ireland) 2004 (SR 2004/335).
- 01/12/2004
offer
(2) (in MAR 2(Price stabilising rules)) an offer or an invitation to make an offer and (except in MAR 2.2.3 R, MAR 2.4.2 R (5) and MAR 2.8.2 R (1)(c) an issue.
- 01/12/2004
offer document
(in MCOB ) a document in which the
mortgage lender
offers to enter into a
regulated mortgage contract
with a customer.
- 01/12/2004
offer for cash
an offer which satisfies the conditions set out in MAR 2.1.3 R.
- 01/12/2004
offer price
(1) (except in MAR 2 (Price stabilising rules))the price at which a person could purchase a unit in a
dual-priced AUT
or a security.
(2) (in MAR 2) the specified price at which the relevant security is offered without deducting any selling concession or commission.
- 01/12/2004
offeree
(in MAR 1) an offeree as defined in the Takeover Code.
- 01/12/2004
offeror
- 01/12/2004
off-exchange
(in relation to a transaction in an investment) a transaction which is not on-exchange.
- 01/12/2004
officer
(1) (in connection with the exercise of the
FSA's power to require information) an officer of the
FSA, a member of the
FSA's staff or an agent of the
FSA.
(2) (otherwise) (in relation to a body corporate ) (as defined in section 400(5) of the Act (Offences by bodies corporate etc)) a director, member of the committee of management, chief executive , manager, secretary, or other similar officer of the body, or a person purporting to act in that capacity or a controller of the body.
- 01/12/2004
oil
mineral oil of any description and petroleum gases, whether in liquid or vapour form, including products and derivatives of oil.
- 01/12/2004
oil collective investment scheme
a collective investment scheme, the property of which consists only of property which is oil or an oil investment or cash awaiting investment.
- 01/12/2004
oil investment
any of the following:
(d) a contract for differences where the property in question is oil or an oil investment or the index or other factor in question is linked to or otherwise dependent upon fluctuations in the value or price of oil or any oil investments;
(e) rights to or interests in investments in (a) - (d).
- 01/12/2004
oil market activity
(a) any regulated activity in relation to an
oil investment or to oil which:
(i) is the executing of own account transactions on any recognised investment exchange or designated investment exchange; or
(ii) if it is not the executing of transactions on such exchanges, is performed in connection with or for persons who are not individuals; and
(b) establishing, operating or winding up a collective investment scheme which is an oil collective investment scheme in which individuals do not participate.
- 01/12/2004
oil market participant
a firm:
(a) whose permission:
(i) includes a requirement that the firm must not carry on any designated investment business other than oil market activity; and
(ii) does not include a requirement that it comply with IPRU(INV) 5 (Investment management firms) or 13 (Personal investment firms); and
(b) which is not an authorised professional firm, bank,
building society, credit union, friendly society, ICVC, insurer,
ISD
investment firm
, media firm, service company, insurance intermediary,
mortgage administrator
, mortgage intermediary,
mortgage lender
, incoming EEA firm (without a top-up permission), or incoming Treaty firm (without a top-up permission).
- 01/12/2004
Ombudsman
- 01/12/2004
Ombudsman Transitional Order
the Financial Services and Markets Act 2000 (Transitional Provisions) (Ombudsman Scheme and Complaints Scheme) Order 2001 (SI 2001/2326).
- 01/12/2004
OMPS
the Handbook Guide for oil market participants.
- 01/12/2004
one-off transaction
any transaction other than a transaction carried out in the course of an established business relationship formed by a person acting in the course of relevant financial business.
- 01/12/2004
on-exchange
(a) (in relation to a transaction in the United Kingdom) effected by means of the facilities of, or governed by the rules of, an RIE or a regulated market;
(b) (in relation to any other transaction) effected by means of the facilities of, or governed by the rules of, an exchange.
- 01/12/2004
open
in relation to a syndicate year, one which has not been closed.
- 01/12/2004
open to review
(as defined in section 391(8) of the Act (Publication)) (in relation to a supervisory notice which does not take effect immediately or on a specified date) the status of the matter to which the notice relates when:
(b) the matter has been referred to the Tribunal but has not been dealt with; or
(c) the matter has been referred to the Tribunal and dealt with but the period during which an appeal may be brought against the Tribunal's decision is still running; or
(d) such an appeal has been brought but has not been determined.
- 01/12/2004
open-ended investment company
(as defined in section 236 of the Act (Open-ended investment companies)) a collective investment scheme which satisfies both the property condition and the investment condition:
(a) the property condition is that the property belongs beneficially to, and is managed by or on behalf of, a body corporate ("BC") having as its purpose the investment of its funds with the aim of:
(i) spreading investment risk; and
(ii) giving its members the benefit of the results of the management of those funds by or on behalf of that body;
(b) the investment condition is that, in relation to BC, a reasonable investor would, if he were to participate in the scheme:
(i) expect that he would be able to realise, within a period appearing to him to be reasonable, his investment in the scheme (represented, at any given time, by the value of shares in, or securities of, BC held by him as a participant in the scheme); and
(ii) be satisfied that his investment would be realised on a basis calculated wholly or mainly by reference to the value of property in respect of which the scheme makes arrangements.
(see also investment company with variable capital.)- 01/12/2004
open-market option
the option to apply:
(b) the proceeds of a money-purchase occupational scheme for a particular occupational scheme member;
to purchase an annuity on the open market from a long-term insurer.- 01/12/2004
operator
(1) (except in
ENF
):
(ba) (in relation to any other OEIC which is an undertaking for collective investment in transferable securities within the meaning of the UCITS Directive and which has appointed a person to manage the scheme) the manager;
(c) (in relation to any other collective investment scheme that is a unit trust scheme with a separate trustee) any person who, under the trust deed establishing the scheme, is responsible for the management of the property held for or within the scheme;
(d) (in relation to any other collective investment scheme that is an open-ended investment company) that company or, if applicable, any person who, under the constitution or founding arrangements of the scheme, is responsible for the management of the property held for or within the scheme;
(e) (in relation to any other collective investment scheme) any person who, under the constitution or founding arrangements of the scheme, is responsible for the management of the property held for or within the scheme;
(f) (in relation to an investment trust savings scheme) any person appointed, by those responsible for managing the property of the investment trust, to manage the investment trust savings scheme.
- 01/12/2004
OPS activity
(a) managing investments in a case where the assets managed are:
(i) held for the purposes of an occupational pension scheme; or
(ii) held for the purposes of a welfare trust established by a person who is, or has been at any time during the last 12 months, an associate of the OPS firm; or
(iii) assets of an OPS collective investment scheme;
(b) any one or more of the following activities undertaken in the course of, or incidental to, the operation of an occupational pension scheme, welfare trust or OPS collective investment scheme:
(iii) arranging (bringing about) deals in investments;
(vi) advising on investments;
(vii) receiving or holding client money.
- 01/12/2004
OPS collective investment scheme
a collective investment scheme the contributions to which consist entirely of assets held for an occupational pension scheme.
- 01/12/2004
OPS firm
(a) (except in IPRU(INV)) a firm which:
(i) carries on OPS activity; and
(ii) is one or more of the following:
(A) a trustee of the occupational pension scheme in question;
(C) a company which is:
(I) an employer in relation to the occupational pension scheme in question in respect of its employees or former employees or their dependants; or
(III) an administering authority subject to the Local Government Superannuation Regulations 1986; or
- 01/12/2004
option
the investment, specified in article 83 of the Regulated Activities Order (Options), which is an option to acquire or dispose of:
(a) a designated investment (other than an option); or
(b) currency of the United Kingdom or of any other country or territory; or
(c) palladium, platinum, gold or silver; or
(d) an option to acquire or dispose of an option specified in (a), (b) or (c).
- 01/12/2004
organisation
a body corporate, a partnership, a trust or an unincorporated association.
- 01/12/2004
original financing costing amount
(in relation to a share, debenture or other investment in, or external contribution to the capital of, a firm that is subject to a step-up) the financing cost amount for the instrument for a period beginning on or near the date of issue of the instrument and ending on or near the date of the first step-up.
- 31/12/2004
OTC
- 01/12/2004
OTC derivative
a derivative traded solely over the counter.
- 01/12/2004
other personal wealth
(in LLD) assets of an individual member that are neither part of his funds at Lloyd's nor in a premium trust fund.
- 01/12/2004
outgoing ECA provider
a firm which:
(a) provides an electronic commerce activity , from an establishment in the United Kingdom, with or for an EEA ECA recipient; and
- 01/12/2004
outgoing electronic commerce communication
(in accordance with article 6 of the Financial Promotion Order) an electronic commerce communication made from an establishment in the United Kingdom to a person in an EEA State other than the United Kingdom.
- 01/12/2004
outsourcing
- 01/12/2004
over the counter
(in relation to a transaction in an investment) not on-exchange.
- 01/12/2004
overall financial sector
a sector composed of one or more the following types of entities:
(a) members of each of the financial sectors; and
(b) (except where
PRU 8.4
(Cross sector groups) or
PRU 8 Ann 1R G
(Capital adequacy calculations for financial conglomerates) provide otherwise) a mixed financial holding company.
- 01/12/2004
overseas clearing house
a clearing house which has neither its head office nor its registered office in the United Kingdom.
- 01/12/2004
overseas financial services institution
an institution authorised to carry on any regulated activity or other financial service by an overseas regulator.
- 01/12/2004
overseas firm
a firm which has its registered office (or, if it has no registered office, its head office) outside the United Kingdom.
- 01/12/2004
overseas introducing broker
a person, who is not an authorised person:
(a) who is resident outside the United Kingdom; and
(b) who introduces transactions relating to designated investments arranged (brought about ) for its clients to a clearing firm in the United Kingdom.
- 01/12/2004
overseas investment exchange
an investment exchange which has neither its head office nor its registered office in the United Kingdom.
- 01/12/2004
overseas long-term insurer
an insurance undertaking which is not an authorised person and which:
(a) has its head office in an EEA State other than the United Kingdom, and is entitled to carry on long-term insurance business in that EEA State; or
(b) has a branch or agency in an EEA State other than the United Kingdom and is entitled to carry on long-term insurance business in that EEA State; or
(c) is authorised to effect or carry on long-term insurance business in the Bailiwick of Jersey, the Bailiwick of Guernsey, the Isle of Man, the Commonwealth of Pennsylvania or the State of Iowa;
for the purposes of (a) and (b), Gibraltar is to be regarded as if it were an EEA State. - 01/12/2004
overseas person
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation)) a person who:
(a) carries on any of the following regulated activities:
(vii) managing investments;
(viii) safe custody and administering investments;
(xv) advising on investments;
(ixx) agreeing to carry on those regulated activities , disregarding the exclusion in article 72 of the Regulated Activities Order (Overseas persons); but
(b) does not carry on any such activities, or offer to do so, from a permanent place of business maintained by him in the United Kingdom.
- 01/12/2004
overseas regulator
(as defined in section 195(3) of the Act (Exercise of power in support of overseas regulator)) an authority in a country or territory outside the United Kingdom:
(a) which is a Home State regulator; or
(b) which exercises any of the following functions:
(ii) a function corresponding to any function exercised by the FSA in its capacity as competent authority in relation to the listing of securities;
(iii) a function corresponding to any function exercised by the Secretary of State under the Companies
Act 1985;
(iv) a function in connection with the investigation of conduct of the kind prohibited by Part V of the Criminal Justice Act 1993 (Insider Dealing), or with the enforcement of rules (whether or not having the force of law) relating to such conduct;
(v) a function prescribed by regulations made for the purposes of section 195(4) of the Act (Exercise of powers) which, in the opinion of the Treasury, relates to companies or financial services.
- 01/12/2004
own account dealer
a firm with permission to deal in investments as principal other than:
(b) an insurer; or
(c) a UCITS management company; or
(d) a matched principal broker; or
(e) an ICVC; or
(f) a local.
- 01/12/2004
own account order
an order which relates to an own account transaction.
- 01/12/2004
own account transaction
- 01/12/2004
own funds
(1) own funds as described in articles 34 to 39of the Banking Consolidation Directive.
- 01/12/2004
own funds requirement
(in ELM) (in relation to an ELMI ) 2% of the higher of the following amounts:
(a) the ELMI's e-money outstandings at that time; and
(b) the average of the ELMI's daily e-money outstandings amount for the six month period ending at that time;
calculated in accordance with ELM 2.5 (Continuing capital requirement).- 01/12/2004
ownership share
(in ELM) in accordance with the definition of a "share" in section 422(6) of the Act (Controller):
(a) (in relation to an undertaking with a share capital) an allotted share;
(b) (in relation to an undertaking with capital but no share capital) a right to share in the capital of the undertaking ;
(c) (in relation to an undertaking without capital) an interest:
(i) conferring any right to share in the profits, or liability to contribute to the losses, of the undertaking ; or
(ii) giving rise to an obligation to contribute to the debts or expenses of the undertaking in the event of a winding up.
- 01/12/2004
own-initiative power
the FSA's power under section 45 of the Act (Variation etc on the Authority's own initiative) to vary or cancel a Part IV permission otherwise than on the application of a firm.
- 01/12/2004
Letter: P
packaged product
(a) a life policy;
(c) an interest in an investment trust savings scheme;
(d) a stakeholder pension scheme;
whether or not (in the case of (a), (b) or (c)) held within a PEP, an ISA or a CTF- 01/12/2004
parent undertaking
(in accordance with section 420 of the Act (Parent and subsidiary undertaking) and section 258 of the Companies Act 1985 (Parent and subsidiary undertakings)):
(a) (in relation to whether an undertaking , other than an incorporated friendly society , is a parent undertaking and except for the purposes of PRU 8.4 (Cross sector groups), PRU 8.5 (Third country groups), PRU 8 Ann 1R G (Capital adequacy calculations for financial conglomerates) and PRU 8 Ann 2R (Prudential rules for third country groups)) an undertaking which has the following relationship to another undertaking ("S"):
(i) it holds a majority of the voting rights in S; or
(ii) it is a member of S and has the right to appoint or remove a majority of its board of directors; or
(iii) it has the right to exercise a dominant influence over S through:
(A) provisions contained in S's memorandum or articles; or
(B) a control contract; or
(iv) it is a member of S and controls alone, under an agreement with other shareholders or members, a majority of the voting rights in S; or
(v) it has a participating interest (as defined in section 260 of the Companies Act 1985) (Participating interests) in S; and
(A) actually exercises a dominant influence over S; or
(B) it and S are managed on a unified basis; or
(vii) (except in RECand LLD) he is an individual and would be a parent undertaking if he were an undertaking; or
(viii) (except in RECand LLD) it is incorporated in or formed under the law of another EEA State and is a parent undertaking within the meaning of any rule of law in that State for purposes connected with implementation of the Seventh Company Law Directive;
in relation to (ii) and (iv); the undertaking will be treated as a member of S if any of its subsidiary undertakings is a member of S, or if any shares in S are held by a person acting on behalf of the undertaking or any of its subsidiary undertakings; the provisions of Schedule 10A to the Companies Act 1985 (Parent and subsidiary undertakings: supplementary provisions) explain the expressions used in and supplement paragraphs (i) to (vi); (b) (in relation to whether an incorporated friendly society is a parent undertaking and except for the purposes of PRU 8.4 (Cross sector groups), PRU 8.5 (Third country groups), PRU 8 Ann 1R G (Capital adequacy calculations for financial conglomerates) and PRU 8 Ann 2R (Prudential rules for third country groups)) an incorporated friendly society which has the following relationship to a body corporate ("S"):
(i) it holds a majority of the voting rights in S; or
(ii) it is a member of S and has the right to appoint or remove a majority of S's board of directors; or
(iii) it is a member of S and controls alone, under an agreement with other shareholders or members, a majority of the voting rights in S; or
(iv) it is the parent undertaking of a body corporate which has the relationship in (i), (ii) or (iii) to S.
(c) (for the purposes of
PRU 8.4 (Cross sector groups), PRU 8.5 (Third country groups), PRU 8 Ann 1R G (Capital adequacy calculations for financial conglomerates) and PRU 8 Ann 2R (Prudential rules for third country groups) and in relation to whether an undertaking is a parent undertaking) an undertaking which has the following relationship to another undertaking ("S"):
(i) a relationship described in (a) other than (a)(vii); or
(ii) it effectively exercises a dominant influence over S
and so that (ii) applies also for the purpose of
PRU 8.1 (Group risk systems and controls requirement).- 01/12/2004
parental responsibility
(as defined in section 3(9) of the Child Trust Fund Act 2004):
(a) parental responsibility within the meaning of the Children Act 1989 or the Children (Northern Ireland) Order 1995 (SI 1995/755 (N.I. 2)); or
(b) parental responsibilities within the meaning of the Children (Scotland) Act 1995.
- 01/12/2004
Part 30 exemption order
an order under regulation 30.10 of the General Regulations under the US Commodity Exchange Act, issued by the Commodity Futures Trading Commission on 15 May 1989, granting a person exemption from the registration requirement contained in Part 30 of those General Regulations.
- 01/12/2004
Part IV permission
(as defined in section 40(4) of the Act (Application for permission)) a permission given by the FSA under Part IV of the Act (Permission to carry on regulated activities), or having effect as if so given.
- 01/12/2004
Part XX exemption
the exemption from the general prohibition conferred on an exempt professional firm by section 327 of the Act (Exemption from the general prohibition).
- 01/12/2004
participant
(in accordance with section 235(2) of the Act (Collective investment schemes)) a person who participates in a collective investment scheme.
- 01/12/2004
participant firm
(1) (except in COMP 13) a firm or a member other than:
(a) (in accordance with section 213(10) of the Act (The compensation scheme) and regulation 2 of the Electing Participants Regulations (Persons not to be regarded as relevant persons) an incoming EEA firm which is:
(i) a credit institution ;
(ii) an ISD investment firm ; or
(iii) a UCITS management company;
(iv) both (i) and (ii); or
in relation to its passported activities, unless it has top-up cover (and in the case of a UCITS management company , only in relation to the services referred to in Article 5(3) of the UCITS Directive , that is managing investments (other than of a collective investment scheme), advising on investments or safeguarding and administering investments); (b) a service company;
(c) [deleted]
(d) [deleted]
(e) an underwriting agent , or members' adviser , in respect of advising on syndicate participation at Lloyd's or managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's;
(f) an authorised professional firm that is subject to the rules of the Law Society (England and Wales) or the Law Society of Scotland;
(g) an ICVC;
(h) a UCITS qualifier;
- 01/12/2004
participating deposit-taker
(as defined in article 2(2) of the compensation transitionals order) a person who was at any time before commencement:
(a) a UK institution, participating institution, former UK institution or former participating institution as defined in section 52(6) of the Banking Act 1987; or
(b) a former authorised institution (as defined in section 106(1) of the Banking Act 1987 (other than a former UK institution or former participating institution as defined in section 52(6) of that Act), which was not a recognised bank or licensed institution excluded by an order under section 23(2) of the Banking Act 1979.
- 01/12/2004
participating institution
(as defined in article 2(2) of the compensation transitionals order) a person who was at any time before commencement a participating institution within the meaning of section 24(4) of the Building Societies Act 1986.
- 01/12/2004
participating insurance undertaking
an insurer which:
- 31/12/2004
participating security
a participating security as defined in regulation 3 of the Uncertificated Securities Regulations 1995 (SI 1995/3272), which enable title to participating securities to be evidenced otherwise than by a certificate and transferred otherwise than by a written instrument.
- 01/12/2004
participation
(for the purposes of
ELM
and
PRU 8 (Group risk)):
(a) a participating interest as defined in section 260 of the Companies Act 1985; or
(b) the direct or indirect ownership of 20% or more of the voting rights or capital of an undertaking;
but excluding the interest of a parent undertaking in its subsidiary undertaking.- 01/12/2004
partner
(in relation to a firm which is a partnership ) any person appointed to direct its affairs, including:
(a) a person occupying the position of a partner (by whatever name called); and
(b) a person in accordance with whose directions or instructions (not being advice given in a professional capacity) the partners are accustomed to act.
- 01/12/2004
partner function
controlled function CF4 in the table of controlled functions, described more fully in SUP 10.6.17 R.
- 01/12/2004
partnership
(in accordance with section 417(1) of the Act (Definitions)) any partnership, including a partnership constituted under the law of a country or territory outside the United Kingdom, but not including a limited liability partnership.
- 01/12/2004
- 01/12/2004
payment holiday
a feature of a regulated mortgage contract under which the mortgage lender permits the customer to make no payments for a specified period without being in arrears.
- 01/12/2004
pending application
(as defined in article 3(1) of the compensation transitionals order):
(a) an application for compensation made under an investment business compensation scheme before commencement in relation to which a terminating event did not occur before commencement; and
(b) an application made to the FSCS after commencement under an investment business compensation scheme, even if at the time of application that scheme had otherwise ceased to exist.
- 01/12/2004
penny share
a readily realisable security in relation to which the bid-offer spread is 10 per cent or more of the offer price, but not:
(a) a government and public security; or
- 01/12/2004
pension annuity
an investment purchased with the sums derived from the vesting (partial or full) of a pension policy or pension contract, for the purposes of securing the beneficiary's entitlement to immediate or future benefits.
- 01/12/2004
pension buy-out contract
an annuity contract which complies with paragraph (g) of section 591(2) of the Income and Corporation Taxes Act 1988.
- 01/12/2004
pension contract
a contract under which rights to benefits are obtained by the making of contributions to an occupational pension scheme or to a personal pension scheme, where the contributions are paid to a regulated collective investment scheme.
- 01/12/2004
pension fund management
(in relation to a class of contract of insurance) the class of contract of insurance specified in paragraph VII of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance) namely:
(a) pension fund management contracts; and
(b) pension fund management contracts which are combined with contracts of insurance covering either conservation of capital or payment of a minimum interest;
where effected or carried out by a person who does not carry on a banking business, and otherwise carries on insurance business.- 01/12/2004
pension fund management contract
(as defined in article 3(1) of the Regulated Activities Order (Interpretation)) a contract to manage the investments of pension funds (other than funds solely for the benefit of the officers or employees of the person effecting or carrying out the contract and their dependants or, in the case of a company , partly for the benefit of officers and employees of its subsidiary or holding company or a subsidiary of its holding company and their dependants; in this definition "subsidiary" and "holding company" mean either subsidiary and holding company, or subsidiary and holding company defined in accordance with article 4 of the Companies (Northern Ireland) Order 1986 (SI 1986) No 1032 (NI 6)) as amended by article 62 of the Companies (No 2) (Northern Ireland) Order 1990 (SI 1990 No 1504 (NI 10)).
- 01/12/2004
pension opt-out
a transaction resulting froma decision made, with or without advice from a firm, by a customer who is an individual, to:
(a) opt out of an occupational pension scheme of which he is a current member; or
(b) decline to become a member of an occupational pension scheme which he is eligible to join or which he will become eligible to join at the end of a waiting period;
in favour of a stakeholder pension scheme or a
personal pension scheme
(including a self-invested personal pension scheme).- 01/12/2004
pension policy
a contract under which a right to benefits results from contributions made to an occupational pension scheme or to a personal pension scheme, where the contributions are paid to a long-term insurer.
- 01/12/2004
pension scheme
a scheme under which a right to benefits results from contributions made under a pension contract or pension policy.
- 01/12/2004
pension transfer
a transaction resulting from a decision made, with or without advice from a firm, by a customerwho is an individual, to transfer deferred benefits from:
(a) an occupational pension scheme; or
(b) an
individual pension contract
providing fixed or guaranteed benefits that replaced similar benefits under a defined benefits pension scheme; or
(c)(in COB 6.7 (Cancellation and withdrawal) a stakeholder pension scheme or a
personal pension scheme
)
to a stakeholder pension scheme or to a personal pension scheme (including a self invested personal pension scheme), or to any deferred annuity policy (including a pension buy-out contract) where the eventual benefits depend in whole or in part on investment performance in the period up to the intended retirement date.- 01/12/2004
pension transfer specialist
an individual appointed by a firm to check the suitability of a pension transfer or pension opt-out who has passed the required examinations specified in the interim approved examination annexes to TC 2.
- 01/12/2004
pension transfer specialist function
controlled function CF24 in the table of controlled functions, described more fully in SUP 10.10.14 R.
- 01/12/2004
PEP
- 01/12/2004
PEP manager
the plan manager of a PEP in accordance with the Personal Equity Plan Regulations 1989.
- 01/12/2004
PEP transfer
a transaction resulting from a decision, made with or without advice from a firm, by a customer who is an individual, to transfer the investments (or their value) held in his existing PEP in favour of another PEP which may or may not be managed by the same PEP manager.
- 01/12/2004
periodic statement
- 01/12/2004
permanent health
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph IV of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance), providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity, being contracts that:
(a) are expressed to be in effect for a period of not less than five years, or until the normal retirement age of the persons concerned, or without limit of time; and
(b) either are not expressed to be terminable by the insurer, or are expressed to be so terminable only in special circumstances mentioned in the contract.
- 01/12/2004
permanent share capital
an item of capital that is stated in
PRU 2.2.36 R
to be permanent share capital.
- 31/12/2004
permission
permission to carry on regulated activities; that is, any of the following:
(a) a
Part IV permission
;
(b) the permission that an incoming EEA firm has, under paragraph 15(1) of Schedule 3 to the Act (EEA Passport Rights), on qualifying for authorisation under paragraph 12 of that Schedule;
(c) the permission that an incoming Treaty firm has, under paragraph 4(1) of Schedule 4 to the Act (Treaty Rights), on qualifying for authorisation under paragraph 2 of that Schedule;
(d) the permission that a UCITS qualifier has, under paragraph 2(1) of Schedule 5 to the Act (Persons concerned in Collective Investment Schemes);
(e) the permission that an ICVC has, under paragraph 2(2) of Schedule 5 to the Act (Persons concerned in Collective Investment Schemes);
(f) the permission that the Society of Lloyd's has, under section 315(2) of the Act (The Society: authorisation and permission), which is to be treated as a Part IV permission for the purposes of Part IVof the Act (Permission to carry on regulated activities) in accordance with section 315(3) of the Act.
- 01/12/2004
permitted activity
(2) (in AUTH 5and SUP 14) an activity identified in a consent notice, a regulator's notice or, where none is required, a notice of intention.
- 01/12/2004
permitted asset exposure limit
a permitted asset exposure limit as defined in LLD 14.5.17 R.
- 01/12/2004
permitted counterparty exposure limit
a permitted counterparty exposure limit as defined in LLD 14.6.1 R.
- 01/12/2004
permitted immovable
any immovable which falls within
CIS 5A.8.4 R (Permitted immovable) (excluding, in relation to an ICVC, immovable property that is necessary for the direct pursuit of its business).
- 01/12/2004
permitted third party
a third party who is:
(a) an authorised person; or
- 01/12/2004
person
(in accordance with the Interpretation Act 1978) any person, including a body of persons corporate or unincorporate (that is, a natural person, a legal person and, for example, a partnership).
- 01/12/2004
personal account transaction
a transaction for the account of an employee of a firm, or his associate, in a designated investment, other than:
(a) a transaction in a government and public security; or
(b) a transaction in a life policy; or
- 01/12/2004
personal equity plan
a scheme of investment satisfying the conditions prescribed in regulations made by the Treasury under section 333 of the Income and Corporation Taxes Act 1988 (the Personal Equity Plan Regulations 1989).
- 01/12/2004
Personal Insurance Arbitration Service
the former scheme set up on a voluntary basis and run by the Chartered Institute of Arbitrators to handle complaints against those insurance companies which subscribed to it.
- 01/12/2004
personal investment firm
a firm whose permitted activities include designated investment business, which is not an authorised professional firm, bank,
ELMI, building society, credit union, energy market participant, friendly society, ICVC, insurer, media firm, oil market participant, service company, incoming EEA firm (without a top-up permission ), incoming Treaty firm (without a top-up permission), UCITS management company or UCITS qualifier (without a top-up permission), whose permission does not include a requirement that it comply with IPRU(INV) 3 (Securities and futures firms), 5 (Investment management firms) or 10 (Securities and futures firms), and which is within (a), (b) or (c):
(a) a firm:
(i) which was a member of PIA immediately before commencement; and
(ii) which was not, immediately before commencement , subject to the financial supervision requirements of the FSA (under section 43 of the Financial Services Act 1986), or IMRO or SFA (under lead regulation arrangements);
(b) a firm whose permission includes a requirement that it comply with IPRU(INV) 13 (Personal investment firms);
(c) a firm:
(i) which was given a
Part IV permission
after commencement, or which was authorised under section 25 of the Financial Services Act 1986 immediately before commencement and not a member of IMRO, PIA or SFA; and
(ii) for whomthe most substantial part of its gross income, including commissions,from the
regulated activities
included in its
Part IV permission
is derived from one or more of the following activities (based, for a firm given a
Part IV permission
after commencement, on the business plan submitted as part of the firm's application for permission or, for a firm authorised under section 25 of the Financial Services Act 1986, on the firm's financial year preceding its authorisation under the Act):
(A) advising on investments , or
arranging (bringing about) deals in investments
, in relation to packaged products;
- 01/12/2004
personal pension contract
a pension contract under which contributions (single or regular) are paid to a personal pension scheme.
- 01/12/2004
personal pension policy
a pension policy under which contributions (single or regular) are paid to a personal pension scheme.
- 01/12/2004
personal pension scheme
a scheme of investment in accordance with section 630 of the Income and Corporation Taxes Act 1988.
- 01/12/2004
personal recommendation
a recommendation which is advice on investments given to a specific person.
- 01/12/2004
PIA
the Personal Investment Authority Limited.
- 01/12/2004
PIA Ombudsman scheme
the former scheme set up by PIA under the Financial Services Act 1986 and operated by the PIA Ombudsman Bureau Ltd to handle complaints against members of PIA.
- 01/12/2004
plan investor
a person entered in the plan register under COLL 6.4.9 R (Plan registers) or, as the case may be, CIS 6.5.4 R (Requirement).
- 01/12/2004
plan manager
in relation to:
- 01/12/2004
plan register
(1) (in relation to an ICVC ) a record of persons who subscribe to a group plan and for whom shares in the ICVC are held for the purposes of the group plan by the plan manager or a nominee (other than a record for the establishment or maintenance of which no payments are to be made out of the scheme property ).
(2) (in relation to an AUT) a sub- register to the register, which subregister records persons who subscribe to a group plan and for whom units in the AUT are held for the purposes of the plan by the plan manager or a nominee (other than any sub- register that has not been established and maintained in accordance with COLL 6.4.4 R (
Register: general
requirements
and contents) or, as the case may be, CIS 6.5.4 R (Requirement ) or for the establishment of which no payments are to be made out of the scheme property).
- 01/12/2004
plan shares
- 01/12/2004
plan units
- 01/12/2004
plastic card
a card, or a token with an equivalent function, which a customer can use to pay for goods and services, or to obtain cash or both, such as a credit card, charge card, debit card, cash card or electronic purse.
- 01/12/2004
policy
(as defined in article 2 of the Financial Services and Markets Act 2000 (Meaning of "Policy" and "Policyholder") Order 2001 (SI 2001/2361)) as the context requires:
(a) a contract of insurance, including one under which an existing liability has already accrued; or
(b) any instrument evidencing such a contract.
- 01/12/2004
policyholder
(as defined in article 3 of the Financial Services and Markets Act 2000 (Meaning of "Policy and "Policyholder") Order 2001 (SI 2001/2361)) the person who for the time being is the legal holder of the policy , including any person to whom, under the policy, a sum is due, a periodic payment is payable or any other benefit is to be provided or to whom such a sum, payment or benefit is contingently due, payable or to be provided.
- 01/12/2004
POS Regulations
the Public Offers of Securities Regulations 1995 (SI 1995/1537).
- 01/12/2004
post
(in relation to sending a document by post) sending pre-paid by a postal service which seeks to deliver documents by post within the United Kingdom no later than the next working day in all or the majority of cases, and to deliver by post outside the United Kingdom within such a period as is reasonable in all the circumstances.
- 01/12/2004
Post-BCCI Directive
the European Parliament and Council Directive of 29 June 1995 amending certain directives with a view to reinforcing prudential supervision (No 95/26/EC).
- 01/12/2004
post-sale notice
a notice of a right to cancel an investment agreement given under COB 6.7.30 R (2) (Giving the customer notice of a right to cancel).
- 01/12/2004
potential tier one instrument
an item of capital that falls into
PRU 2.2.27 R
.
- 31/12/2004
power of intervention
the power conferred on the FSA under section 196 of the Act (The Power of Intervention) to impose a requirement on an incoming firm.
- 01/12/2004
- 01/12/2004
precious metals
(in COLL) gold, silver or platinum.
- 01/12/2004
predecessor scheme
any of the following:
(a) The Office of the Banking Ombudsman;
(b) The Office of the Building Societies Ombudsman;
(c) The Insurance Ombudsman Bureau;
(d) The Office of the Investment Ombudsman;
(e) The Personal Investment Authority Ombudsman Bureau;
(f) The Personal Insurance Arbitration Service;
(g) The Securities and Futures Authority Complaints Bureau and Arbitration Service;
(h) The FSA Complaints Unit and Independent Investigator.
- 01/12/2004
preference share
- 31/12/2004
preliminary charge
- 01/12/2004
premium
(1) (in relation to a general insurance contract) the consideration payable under the contract by the policyholder to the insurer.
(2) (in relation to a long-term insurance contract) the consideration payable under the contract by the policyholder to the insurer; (except in SUP 16.8 (Persistency reports from insurers)) a premium is a regular premium if it is one of a series of payments under the contract:
(a)
(i) which are payable on dates that are certain or ascertainable at the time the contract is made;
(ii) which are payable over a period that exceeds one year in length; and
(b) of which the first payment is an obligation under the contract, and subsequent payments, calculated according to an agreed formula, are payable over a period which exceeds one year in length under a collateral written arrangement with the insurer or friendly society.
- 31/12/2004
premium trust fund
- 01/12/2004
premiums amount
(for the purposes of PRU 7.2), an amount, as defined in PRU 7.2.45 R, used in the calculation of the general insurance capital requirement.
- 31/12/2004
pre-sale notice
a notice of a right to cancel an investment agreement given under COB 6.7.30 R (1) (Giving the customer notice of a right to cancel).
- 01/12/2004
prescribed market
a market which has been prescribed by the Treasury in the Prescribed Markets and Qualifying Investments Order (see MAR 1.11.2 G (Prescribed markets and qualifying investments)).
- 01/12/2004
Prescribed Markets and Qualifying Investments Order
the Financial Services and Markets Act 2000 (Prescribed Markets and Qualifying Investments) Order 2001 (SI 2001/996).
- 01/12/2004
prescribed pricing basis
(in relation to a derivative contract, or quasi-derivative contract), the pricing basis set out in IPRU(INS) 4.12R(8) (Derivative contracts) as that rule was in force on 30 December 2004.
- 31/12/2004
previous regulator
(1) (in relation to a firm which was authorised under the Banking Act 1987 immediately before commencement or which was a European institution (as defined in the Banking Coordination (Second Council Directive) Regulations 1992) immediately before commencement ) the FSA.
(2) (in relation to a firm which was a building society immediately before commencement) the Building Societies Commission.
(3) (in relation to a firm which was a friendly society immediately before commencement) the Friendly Societies Commission.
(4) (in relation to a firm authorised under the Insurance Companies Act 1982 immediately before commencement) the Treasury.
(5) (in relation to an underwriting agent which obtained the permission relevant to that category under the Financial Services and Markets Act 2000 (Repeals, Transitional Provisions and Savings) Order 2001 (SI 2001/2636)) the Society of Lloyd's.
(6) (in relation to a firm which was authorised, or which was an appointed representative , under the Financial Services Act 1986 immediately before commencement or which was a European investment firm (as defined in the Investment Services Regulations 1995 (SI 1995/3275)) immediately before commencement ) any of:
(a) IMRO;
(b) PIA;
(c) SFA;
(d) a recognised professional body; and
(e) the FSA;
if the firm (or, if relevant, its principal for the purposes of section 44 of the Financial Services Act 1986) was subject in carrying on business to the rules, requirements, regulations or guidance of that body.- 01/12/2004
price
(in relation to a unitin an ICVCor a single-priced AUT) the price of the unit calculated in accordance with
COLL 6.3 (Valuation and pricing) or, as the case may be, CIS 4 (Single pricing and dealing).
(in relation to a unit in an authorised fund) the price of the unit calculated in accordance with (Valuation and pricing).
- 01/12/2004
price information
(in MCOB ) information, in a
qualifying credit promotion
, that relates to:
(a) any rate of charge; or
(b) the presence or absence of any payments, fees or charges (other than the fees for advising on or arranging a regulated mortgage contract as required by MCOB 3.6.27 R); or
(c) the amount, frequency or number of any payments, repayments, fees or charges; or
(d) any monetary amounts.
- 01/12/2004
price stabilising rules
- 01/12/2004
price taking system
- 01/12/2004
primary pooling event
an event that occurs in the circumstances described in COB 9.5.5R (Failure of the authorised firm: primary pooling event).
- 01/12/2004
PRIN
the part of the Handbook in High Level Standards that has the title Principles for Businesses.
- 01/12/2004
principal
(1) in relation to a person :
(a) a person acting on his own account;
(b) (if the person is an appointed representative) the authorised person who is party to a contract with the appointed representative resulting in him being exempt under section 39 of the Act (Exemption of
appointed representatives
).
- 01/12/2004
Principle
one of the Principles set out in PRIN 2.1.1 R (Principles for Businesses).
- 01/12/2004
Principles and Practices of Financial Management
the Principles and Practices of Financial Management which a firm carrying on with-profits business must establish, maintain and record under
COB 6.10
(Principles and Practices of Financial Management).
- 01/12/2004
private customer
(1) (except in COB 3, COB 4.2 and COB 6.4) subject to (h), a client who is not a market counterparty or an intermediate customer, including:
(a) an individual who is not a firm ;
(b) an overseas individual who is not an overseas financial services institution;
(c) [deleted]
(d) (except for the purposes of DISP) a client when he is classified as a private customer in accordance with COB 4.1.14 R (Client classified as a private customer);
(e) where the regulated activity (except for a personal recommendation relating to a contribution to a CTF ) relates to a CTF and there is a registered contact , the registered contact;
(f) (in COB 6.1 to 6.5) where the regulated activity (except for a personal recommendation relating to a contribution to a CTF ) relates to a CTF and there is no registered contact , the person to whom the annual statement must be sent in accordance with Regulation 10 of the CTF Regulations;
(g) (in COB 6.7) where the regulated activity (except for a personal recommendation relating to a contribution to a CTF) relates to a CTF and there is no registered contact, the child, via the person to whom the annual statement must be sent in accordance with Regulation 10 of the CTF Regulations;
(h) a client who would otherwise be excluded as a market counterparty or intermediate customer if the client is within (e), (f) or (g);
but excluding a client , who would otherwise be a private customer: (i) when he is classified as an intermediate customer in accordance with COB 4.1.9 R (Expert private customer classified as an intermediate customer); or
(2) (in COB 3) a person in (1) or a person excluded under (1)(h)(ii) or a person who would be such a person if he were a client.(in COB 4.2 and 6.1 to 6.5) a person in (1) and, in relation to the conclusion of a distance contract , a
retail customer
.
(3) (in COB 4.2 and 6.1 to 6.5) a person in (1) and, in relation to the conclusion of a distance contract, a
retail customer
.
- 01/12/2004
private person
(as defined in article 3 of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2000 (SI 2001/2256)):
(a) any individual, unless he suffers the loss in question in the course of carrying on:
(i) any regulated activity; or
(ii) any activity which would be a regulated activity apart from any exclusion made by article 72 of the Regulated Activities Order (Overseas persons); and
(b) any person who is not an individual, unless he suffers the loss in question in the course of carrying on business of any kind;
but not including a government, a local authority (in the United Kingdom or elsewhere) or an international organisation; for the purposes of (a), an individual who suffers loss in the course of effecting or carrying out contracts of insurance written at Lloyd's is not to be taken to suffer loss in the course of carrying on a regulated activity; in this definition: (A) "government" means:
(I) the government of the United Kingdom; or
(II) the Scottish Administration; or
(III) the Executive Committee of the Northern Ireland Assembly; or
(IV) the National Assembly for Wales; or
(V) the government of any country or territory outside the United Kingdom;
(B) "international organisation" means any international organisation the members of which include the United Kingdom or any other State;
(C) "local authority", in relation to the United Kingdom, means:
(I) in England and Wales, a local authority as defined in the Local Government Act 1972, the Greater London Authority, the Common Council of the City of London or the Council of the Isles of Scilly;
(II) in Scotland, a local authority as defined in the Local Government (Scotland) Act 1973; and
(III) in Northern Ireland, a district council as defined in the Local Government Act (Northern Ireland) 1972.
- 01/12/2004
procuration fee
the total amount paid by a
mortgage lender
to a
mortgage intermediary
, whether directly or indirectly, in connection with providing applications from customers to enter into
regulated mortgage contracts
with that
mortgage lender
.
- 01/12/2004
product provider
a firm which is:
- 01/12/2004
PROF
the Professional Firms sourcebook.
- 01/12/2004
professional firm
a person which is:
(a) an individual who is entitled to practise a profession regulated by a designated professional body and, in practising it, is subject to its rules, whether or not he is a member of that body; or
(b) a person (not being an individual) which is controlled andmanaged by one or more such individuals.
- 01/12/2004
prohibition order
- 01/12/2004
projection
- 01/12/2004
projection date
the date to which the projection is made.
- 01/12/2004
property enterprise trust
an unregulated collective investment scheme of which the underlying assets are land and buildings.
- 01/12/2004
property investment company
- 01/12/2004
property related assets
(in CIS):
(b) certificates representing certain securities which confer rights in respect of an investment within (a).
- 01/12/2004
property scheme
(in CIS) an authorised fund dedicated to permitted immovables and property related assets , whether with or without transferable securities.
- 01/12/2004
property-linked benefits
benefits other than index-linked benefits provided for under a linked long-term contract of insurance.
- 31/12/2004
property-linked liabilities
insurance liabilities in respect of property-linked benefits.
- 31/12/2004
proportional reinsurance treaty
a reinsurance treaty under which a pre-determined proportion of each claim payment by the cedant under policies subject to the treaty is recoverable from the reinsurer;
non-proportional reinsurance treaty is construed accordingly.
- 31/12/2004
prospectus
- 01/12/2004
protected claim
- 01/12/2004
protected contract of insurance
- 01/12/2004
protected deposit
- 01/12/2004
protected investment business
designated investment business which is covered by the compensation scheme, as defined in COMP 5.5.1 R.
- 01/12/2004
protected items
(as defined in section 413 of the Act (Protected items)) communications (and items which they enclose or refer to and which are in the possession of a person entitled to possession of them) between:
(a) a professional legal adviser and his client or any person representing his client; or
(b) a professional legal adviser, his client or any person representing his client and any other person;
where the communication or the item is made: (i) in connection with the giving of legal advice to the client; or
(ii) in connection with, or in contemplation of, legal proceedings and for the purposes of those proceedings; and
is not held with the intention of furthering a criminal purpose.- 01/12/2004
protected mortgage business
activities in relation to regulated mortgage contracts which are covered by the compensation scheme, as defined in COMP 5.6.1 R.
- 01/12/2004
protected non-investment insurance mediation
insurance mediation activities which are covered by the compensation scheme, as defined in COMP 5.7.1 R.
- 01/12/2004
providing qualifying credit
the controlled activity, specified in paragraph 10 of Schedule 1 to the Financial Promotion Order, of providing qualifying credit.
- 01/12/2004
proxy capital resources requirement
the minimum capital requirement to which an undertaking would have been subject if it had permission for each activity it carries on anywhere in the world, so far as that activity is a regulated activity.
- 31/12/2004
PRU
the Integrated Prudential Sourcebook
- 01/12/2004
prudential context
in relation to activities carried on by a firm, the context in which the activities have, or might reasonably be regarded as likely to have, a negative effect on:
(a) confidence inthe
financial system; or
(b) the ability of the firm to meet either:
(i) the "fit and proper" test in threshold condition 5 (Suitability); or
(ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.
- 01/12/2004
public announcement
any communication made by or on behalf of the issuer or the stabilising manager being a communication made in circumstances in which it is likely that members of the public will become aware of the communication.
- 01/12/2004
public offer
an offer of securities to the public and described in the POS Regulations.
- 01/12/2004
published recommendation
any publication by or on behalf of a firm (including publication by sound broadcasting or television or other electronic means) which contains:
(a) the results of research into investments; or
(b) analysis of factors likely to influence the future performance of investments; or
(c) advice or recommendations based on those results or analysis, including any communication of which the content is common to a number of communications although worded as if it were a personal recommendation.
- 01/12/2004
pure protection contract
a long-term insurance contract in respect of which the following conditions are met:
(a) the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or infirmity;
(b) the contract provides that benefits are payable on death (other than death due to an accident) only where the death occurs within ten years of the date on which the life of the person in question was first insured under the contract, or where the death occurs before that person attains a specified age not exceeding seventy years;
(c) the contract has no surrender value, or the consideration consists of a single premium and the surrender value does not exceed that premium;
(d) the contract makes no provision for its conversion or extension in a manner which would result in it ceasing to comply with any of (a), (b) or (c); and
(e) the contract is not a reinsurance contract.
- 01/12/2004
pure reinsurer
an insurer whose insurance business is restricted to reinsurance.
- 01/12/2004
Letter: Q
qualified investor scheme
an authorised fund whose instrument constituting the scheme contains the statement in COLL 8.2.6 R 1(2) (Table: contents of the instrument constituting the scheme) that it is a qualified investor scheme.
- 01/12/2004
qualified valuer
(in relation to any particular type of land in any particular area) a fellow or professional associate of the Royal Institution of Chartered Surveyors, a fellow or associate of the Incorporated Society of Valuers and Auctioneers, or a fellow or associate of the Rating and Valuation Association, who:
(a) has knowledge of and experience in the valuation of that particular type of land in that particular area; or
(b) has knowledge of and experience in the valuation of land and has taken advice from a valuer who he is satisfied has knowledge of and experience in the valuation of that particular type of land in that particular area; or
(c) immediately before 15 June 1981 was recognised as a qualified valuer by approval by the Secretary of State under the Insurance Companies (Valuation of Assets) Regulations 1976.
- 01/12/2004
qualifying credit
(as defined in Schedule 1 paragraph 10 (Providing qualifying credit) of the Financial Promotion Order) credit (including a cash loan and any other form of financial accommodation) provided in accordance with an agreement under which:
(a) the lender is a person who enters into or administers regulated mortgage contracts; and
(b) the obligation of the borrower to repay is secured (in whole or in part) on land.
- 01/12/2004
qualifying debt security
- 01/12/2004
qualifying investment
an investment which has been prescribed by the Treasury in the Prescribed Markets and Qualifying Investments Order (see MAR 1 (Code of market conduct)).
- 01/12/2004
qualifying liquid asset
- 01/12/2004
quantification date
the date as at which the liability of the relevant person in default is to be determined under COMP 12.3.
- 01/12/2004
quasi-derivative contract or quasi-derivative
a contract or asset having the effect of a derivative contract.
- 31/12/2004
Letter: R
railway rolling stock
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 5 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against loss of or damage to railway rolling stock.
- 01/12/2004
RCH
- 01/12/2004
- 01/12/2004
readily realisable investment
(a) a packaged product;
(b) a readily realisable security.
- 01/12/2004
readily realisable security
(b) any other security which is:
(i) admitted to official listing on an exchange in an EEA State; or
(ii) regularly traded on or under the rules of such an exchange; or
(iii) regularly traded on or under the rules of a recognised investment exchange or (except in relation to unsolicited real time financial promotions) designated investment exchange;
(c) a newly issued security which can reasonably be expected to fall within (b) when it begins to be traded.
- 01/12/2004
real estate market adjustment ratio
has the meaning set out, in relation to the resilience capital requirement, in PRU 4.2.21 R.
- 31/12/2004
real time financial promotion
(in accordance with article 7(1) of the Financial Promotion Order)(as more fully described in
COB 3.5.5 R
("Real time" and "non-real time" financial promotions) and AUTH 1.10 (Types of financial promotion))) a financial promotion made in the course of a personal visit, telephone conversation or other interactive dialogue.
- 01/12/2004
realistic basis life firm
a firm to which PRU 2.1.15 R applies (and which is therefore required to calculate a with-profits insurance capital component in accordance with PRU 7.4).
- 31/12/2004
realistic current liabilities
(in relation to a with-profits fund) the realistic current liabilities of the with-profits fund calculated in accordance with
PRU 7.4.190 R
.
- 31/12/2004
realistic excess capital
(in relation to a with-profits fund) the excess, if any, of the realistic value of assets for the with-profits fund over the sum of the realistic value of liabilities and the risk capital margin for that fund, calculated in accordance with
PRU 7.4.32 R
.
- 31/12/2004
realistic value of assets
(in relation to a with-profits fund) has the meaning set out in PRU 7.4.33 R.
- 31/12/2004
realistic value of liabilities
(in relation to a with-profits fund) the sum of the with-profits benefit reserve, the future policy related liabilities and the realistic current liabilities for the with-profits fund.
- 31/12/2004
REC
the Recognised Investment Exchange and Recognised Clearing House sourcebook.
- 01/12/2004
receivable
- 01/12/2004
recognised clearing house
a clearing house which is declared by a recognition order for the time being in force to be a recognised clearing house.
- 01/12/2004
recognised investment exchange
an investment exchange which is declared by a recognition order for the time being in force to be a recognised investment exchange.
- 01/12/2004
recognised overseas clearing house
an overseas clearing house which is declared by a recognition order for the time being in force to be a recognised clearing house.
- 01/12/2004
recognised overseas investment exchange
an overseas investment exchange which is declared by a recognition order for the time being in force to be a recognised investment exchange.
- 01/12/2004
recognised professional body
any of the following professional bodies (which were the recognised professional bodies for the purposes of the Financial Services Act 1986):
(a) The Law Society (England and Wales);
(b) The Law Society of Scotland;
(c) The Law Society of Northern Ireland;
(d) The Institute of Chartered Accountants in England and Wales;
(e) The Institute of Chartered Accountants of Scotland;
(f) The Institute of Chartered Accountants in Ireland;
(g) The Association of Chartered Certified Accountants;
(h) The Institute of Actuaries.
(see also designated professional body.)- 01/12/2004
recognised scheme
- 01/12/2004
recognised third country investment firm
(in ELM) an investment firm that:
(a) is subject to the prudential rules of one of the regulatory bodies in Appendix C in section 10 of chapter CS of IPRU(BANK); and
(b) has its registered office (or, if it has no registered office, its head office) in the state in which that regulatory body is established.
- 01/12/2004
recognition order
(in accordance with section 313 of the Act (Interpretation of Part XVIII)) an order made under section 290 or 292 of the Act which declares an investment exchange or clearing house to be a recognised body.
- 01/12/2004
recognition requirement
(1) (in relation to a UK RIE or UK RCH) any of the requirements applicable to that body under the Recognition Requirements Regulations.
- 01/12/2004
Recognition Requirements Regulations
the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001 (SI 2001/995).
- 01/12/2004
redemption
(1) (except in
ENF 17
(Collective investment schemes)) (in relation to units in an authorised fund) the purchase of them from their holder by the authorised fund manager acting as a principal.
- 01/12/2004
redemption charge
an amount levied by the operator of a scheme upon the redemption of units, in the case of an authorised fund under:
(a) COLL 6.7.7 R (Charges on buying and selling units); or
- 01/12/2004
redemption price
the authorised fund manager's price for redemption under
CIS 15.4.9 R
(Redemption price parameters).
- 01/12/2004
redemption right
(in relation to an e-money firm) the right of a holder of e-money to require the e-money firm to redeem that e-money that corresponds to the duty of the e-money firm in ELM 6.3.1 R (Duty to redeem) to redeem e-money issued by it.
- 01/12/2004
register
- 01/12/2004
registered branch
a branch of a friendly society which is separately registered under the Friendly Societies Act 1974.
- 01/12/2004
registered contact
(as defined in regulation 8(1)(d) of the CTF Regulations) the person who is capable of giving instructions to the CTF provider with respect to the management of the CTF.
- 01/12/2004
registered friendly society
a friendly society registered under section 7(1)(a) of the Friendly Societies Act 1974 or any enactment which it replaced, including any registered branches.
- 01/12/2004
regular user
(as defined in section 118(10) of the Act (Market abuse)) a person who is, in relation to a particular market, a reasonable person who regularly deals on that market in investments of the kind in question.
- 01/12/2004
Regulated Activities Order
- 01/12/2004
regulated activity
(in accordance with section 22 of the Act(The classes of activity and categories of investment)) any of the following activities specified in Part II of the Regulated Activities Order (Specified Activities):
(a) accepting deposits (article 5);
(aa) issuing electronic money (article 9B);
(b) effecting contracts of insurance (article 10(1));
(c) carrying out contracts of insurance (article 10(2));
(d) dealing in investments as principal (article 14);
(e) dealing in investments as agent (article 21);
(f) arranging (bringing about) deals in investments (article 25(1));
(g) making arrangements with a view to transactions in investments (article 25(2));
(ga) arranging (bringing about) regulated mortgage contracts (article 25A(1));
(gb) making arrangements with a view to regulated mortgage contracts (article 25A(2));
(h) managing investments (article 37);
(ha) assisting in the administration and performance of a contract of insurance (article 39A);
(i) safeguarding and administering investments (article 40); for the purposes of the permission regime, this is sub-divided into:
(j) sending dematerialised instructions (article 45(1));
(k) causing dematerialised instructions to be sent (article 45(2));
(l) establishing, operating or winding up a collective investment scheme (article 51(1)(a)); for the purposes of the permission regime, this is sub-divided into:
(m) acting as trustee of an authorised unit trust scheme (article 51(1)(b));
(n) acting as the depositary or sole director of an open-ended investment company (article 51(1)(c));
(o) establishing, operating or winding up a stakeholder pension scheme (article 52);
(p) advising on investments (article 53); for the purposes of the permission regime, this is sub-divided into:
(i) advising on investments (except pension transfers and pension opt-outs);
(pa) advising on regulated mortgage contracts (article 53A);
(q) advising on syndicate participation at Lloyd's (article 56);
(r) managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's (article 57);
(s) arranging deals in contracts of insurance written at Lloyd's (article 58);
(sa) entering into a regulated mortgage contract (article 61(1));
(sb) administering a regulated mortgage contract (article 61(2));
(t) entering as provider into a funeral plan contract (article 59);
(u) agreeing to carry on a regulated activity (article 64);
which is carried on by way of business and relates to a specified investment applicable to that activity or, in the case of (l), (m), (n) and (o), is carried on in relation to property of any kind.- 01/12/2004
regulated activity debt
an obligation to pay a sum due and payable under an agreement, the making or performance of which constitutes or is part of a regulated activity carried on by an individual who:
(a) is, or has been, an authorised person; or
(b) is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.
- 01/12/2004
regulated collective investment scheme
(a) an ICVC; or
(b) an AUT; or
(c) a recognised scheme;
whether or not the units are held within a PEP, ISA, or
pension contract.- 01/12/2004
regulated entity
one of the following:
(a) a credit institution; or
(b) a regulated insurance entity; or
(c) an investment firm;
whether or not it is incorporated in, or has its head office in, an EEA State.An asset management company is treated as a regulated entity for the purposes described in
PRU 8.4.39 R
(The financial sectors: asset management companies).- 01/12/2004
regulated institution
any of the following:
(b) an approved credit institution; or
(d) a firm whose permission includes dealing in investments as principal with respect to derivatives which are not listed; or
(e) an ISD investment firm whose authorisation (as referred to in article 3 of the
ISD
) authorises it to carry on activities of the kind referred to in (d).
- 31/12/2004
regulated insurance entity
an insurance undertaking within the meaning of Article 4 of the Consolidated Life Directive, Article 6 of the First Non-Life Directive or Article 1(b) of the Insurance Groups Directive.
- 01/12/2004
regulated lifetime mortgage contract
a regulated mortgage contract which is a lifetime mortgage.
- 01/12/2004
regulated market
(1)
(a) (as defined in article 1 of the ISD) a market for the instruments listed in Section B of the Annex to the ISD which:
(i) appears on the list of such markets drawn up by the market's Home State as required by article 16 of the ISD;
(ii) functions regularly;
(iii) is characterised by the fact that regulations issued or approved by the competent authorities define the conditions for the operation of the market, the conditions for access to the market and, where Directive 79/279/EEC is applicable, the conditions governing admission to listing imposed in that Directive and, where that Directive is not applicable, the conditions that must be satisfied by a financial instrument before it can effectively be dealt in on the market; and
(iv) requires compliance with all the reporting and transparency requirements laid down by articles 20 and 21 of the ISD;
(see Tables 1 and 2 of SUP 17 Annex 5 G for an indicative list of these markets); and (b) (in SUP 17 and, unless the context otherwise requires, elsewhere in the Handbook) a market notified under article 16 of the ISD, as included in point 30b of Annex IX to the Agreement of the European Economic Area, to the Standing Committee of the EFTA States as defined in that agreement;(see Tables 3 and 4 of SUP 17 Annex 5 G for an indicative list of these markets).
(2) (in
PRU
) a market which is characterised by:
(a) regular operation;
(b) the fact that regulations issued or approved by the appropriate authority of the state where the market is situated:
(i) define the conditions for the operation of and access to the market;
(ii) define the conditions to be satisfied by a financial instrument in order for it to be dealt in on the market; and
(iii) require compliance with reporting and transparency requirements comparable to those laid down in articles 20 and 21 of the Investment Services Directive; and
(c) in the case of a market situated outside the EEA States , the fact that the financial instruments dealt in are of a quality comparable to those in a regulated market in the United Kingdom.
- 31/12/2004
regulated mortgage activity
any of the following activities specified in Part II of the Regulated Activities Order (Specified Activities):
(a) arranging (bringing about) regulated mortgage contracts (article 25A(1));
(b) making arrangements with a view to regulated mortgage contracts (article 25A(2));
(c) advising on regulated mortgage contracts (article 53A);
(d) entering into a regulated mortgage contract (article 61(1));
(e) administering a regulated mortgage contract (article 61(2));
(f) agreeing to carry on a regulated activity in (a) to (e) (article 64).
- 01/12/2004
regulated mortgage contract
(a) (in relation to a contract) (in accordance with article 61(3) of the Regulated Activities Order) a contract which, at the time it is entered into, meets the following conditions:
(i) a lender provides credit to an individual or to trustees (the 'borrower'); and
(ii) the obligation of the borrower to repay is secured by a first legal mortgage on land (other than timeshare accommodation) in the United Kingdom , at least 40% of which is used, or is intended to be used, as or in connection with a dwelling by the borrower or (in the case of credit provided to trustees) by an individual who is a beneficiary of the trust, or by a person who is in relation to the borrower or (in the case of credit provided to trustees) a beneficiary of the trust:
(A) that person's spouse; or
(B) a person (whether or not of the opposite sex) whose relationship with that person has the characteristics of the relationship between husband and wife; or
(C) that person's parent, brother, sister, child, grandparent or grandchild.
(b) (in relation to a specified investment) the investment, specified in article 88 of the Regulated Activities Order, which is rights under a regulated mortgage contract within (a).
- 01/12/2004
regulated related undertaking
a related undertaking that is any of the following:
(a) a regulated entity; or
(c) an asset management company; or
(e) a financial holding company; or
(f) an insurance holding company.
- 31/12/2004
regulatory basis only life firm
- 31/12/2004
regulatory body
any authority, body or person having, or who has had, responsibility for the supervision or regulation of any regulated activities or other financial services, whether in the United Kingdom or overseas.
- 01/12/2004
regulatory capital resources
(in ELM) (in relation to a full credit institution) those parts of its capital that:
(a) are treated as capital for the purpose of the laws and regulations about the maintenance of adequate capital that apply to it (including those imposed by or under the regulatory system or by a regulatory body); and
(b) fall within the definition of own funds in the Banking Consolidation Directive or that the Banking Consolidation Directive allows EEA States to treat as own funds.
- 01/12/2004
regulatory costs
the periodic fees payable to the
FSA
by a participant firm in accordance with SUP 20 (Fees rules).
- 01/12/2004
regulatory current liabilities
(in relation to a with-profits fund) the regulatory current liabilities of the with-profits fund calculated in accordance with PRU 7.4.30 R.
- 31/12/2004
Regulatory Decisions Committee
- 01/12/2004
regulatory excess capital
(in relation to a with-profits fund) has the meaning set out in PRU 7.4.23 R.
- 31/12/2004
regulatory function
(as defined in section 291 of the Act (Liability in relation to recognised body's regulatory functions)) any function of a recognised body so far as relating to, or to matters arising out of, the obligations to which the body is subject under or by virtue of the Act.
- 01/12/2004
regulatory objectives
(as described in sections 2(2) and 3 to 6 of the Act):
(a) market confidence;
(b) public awareness;
(c) the protection of consumers; and
(d) the reduction of financial crime.
- 01/12/2004
regulatory provisions
(a) (in accordance with section 302 of the Act (Interpretation)) (in relation to an investment exchange or clearing house) the rules of or any guidance issued by the investment exchange or clearing house;
(b) (in relation to an investment exchange):
(i) any arrangements which it has made, or proposes to make, for the provision of clearing services in respect of transactions effected on the exchange; and
(ii) if it provides, or proposes to provide, clearing services on exchange, the criteria which it applies, or proposes to apply, when determining to whom it will provide those services;
(c) (in relation to a clearing house):
(i) if it makes, or proposes to make, clearing arrangements with an RIE, those arrangements; and
- 01/12/2004
regulatory surplus value
has the meaning set out in
PRU 1.3.36 R
.
- 31/12/2004
regulatory system
the arrangements for regulating a firm or other person in or under the Act, including the threshold conditions, the Principles and other rules, the Statements of Principle, codes and guidance.
- 01/12/2004
regulatory value of assets
(in relation to a with-profits fund) has the meaning set out in
PRU 7.4.24 R
.
- 31/12/2004
regulatory value of liabilities
(in relation to a with-profits fund) has the meaning set out in
PRU 7.4.29 R
.
- 31/12/2004
reinsurance
includes retrocession.
- 31/12/2004
reinsurance mediation
(as defined in article 2.4 of the
IMD
) the activities of introducing, proposing or carrying out other work preparatory to the conclusion of contracts of reinsurance, or of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim. These activities when undertaken by a IMD reinsurance undertaking or an employee of a IMD reinsurance undertaking who is acting under the responsibility of the IMD reinsurance undertaking shall not be considered as reinsurance mediation. The provision of information on an incidental basis in the context of another professional activity provided that the purpose of that activity is not to assist the customer in concluding or performing a reinsurance contract, the management of claims of a IMD reinsurance undertaking on a professional basis, and loss adjusting and expert appraisal of claims shall also not be considered as reinsurance mediation.
- 01/12/2004
reinsurance to close
(a) 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
(b) a similar reinsurance agreement or arrangement that has been approved by the Council as a reinsurance to close.
- 01/12/2004
reinsurer
an insurance undertaking whose business includes effecting or carrying out contracts of reinsurance; includes a retrocessionaire.
- 31/12/2004
related designated investment
(in relation to a designated investment (the "first investment")) a designated investment whose value might reasonably be expected to be directly affected by:
(a) any fluctuation in the value of the first investment; or
(b) any published recommendation that concerns the first investment.
- 01/12/2004
related undertaking
in relation to an undertaking ("U"):
(a) any subsidiary undertaking of U; or
(d) any undertaking linked by a consolidation Article 12(1) relationship to an undertaking in (a), (b) or (c).
- 31/12/2004
relevant business
(in DISP) that part of a firm's business which it conducts with private individuals and which is subject to the jurisdiction of the Financial Ombudsman Service as provided for in
DISP 2.6 (To which activities do the rules apply?), measured by reference to the appropriate tariff-base for each industry block.
- 01/12/2004
relevant capital sum
for the purposes of
PRU 7.3.43 R
, the sum under a contract of insurance which is:
(a) unless (b) applies:
(i) for whole life assurances, the sum assured;
(ii) 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;
(iii) for deferred annuities, the capitalised value of the annuity at the vesting date (or the cash option if it is greater);
(iv) for capital redemption contracts, the sum payable at the end of the contract period; and
(v) for linked long-term contracts of insurance, notwithstanding (i) to (iv), the lesser of:
but excluding in all cases any vested reversionary bonus; and (A) the amount for the time being payable on death; and
(B) 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;
(b) for temporary assurances, the sum assured on the actuarial valuation date.
- 31/12/2004
relevant charitable scheme
an authorised fund which is:
(a) a registered charity; or
(b) a charitable unit trust scheme under regulation 7(2)(d) of the Income Tax (Definition of Unit Trust Scheme) Regulations 1988.
- 01/12/2004
relevant collateral
in relation to a transaction:
(a) cash;
(b) letters of credit and guarantees to the extent of their face value, issued by an approved bank which is neither a counterparty nor an associate of a counterparty;
(c) gold and silver bullion and coinage;
(d) marketable investments;
(e) the performance guarantees issued in support of the securities lending and borrowing programmes of Euroclear and Cedel, in respect only of exposure arising from participation in such programmes;
subject in each case to: (i) the firm having an unconditional right to apply or realise the relevant collateral for the purpose of repaying a counterparty's obligations;
- 01/12/2004
relevant commencement date
(as defined in article 1 of the Mortgage and General Insurance Complaints Transitional Order):
(a) in relation to a complaint which relates to an activity to which, immediately before 14 January 2005, the GISC facility applied, the beginning of 14 January 2005;
(b) in relation to a complaint which relates to an activity to which, immediately before 31 October 2004, the MCAS scheme applied, the beginning of 31 October 2004.
- 01/12/2004
relevant competent authorities
(in relation to a financial conglomerate ) those competent authorities which are, or which have been appointed as, relevant competent authorities in relation to that financial conglomerate under Article 2(17) of the Financial Groups Directive (Definitions).
- 01/12/2004
relevant complaint
(1) (in DISP) a relevant existing complaint, a relevant new complaint or a relevant transitional complaint.
(2) (in REC) (as defined in section 299(2) of the Act (Complaints about recognised bodies)) a complaint which the
FSA
considers is relevant to the question of whether a recognised body should remain a recognised body.
- 01/12/2004
relevant date
(in MCOB 10 (Annual percentage rate)):
(a) (where a date is specified in or determinable under an agreement at the date of its making as the date on which the debtor is entitled to require provision of anything which is the subject of the agreement) the earliest such date;
(b) (in any other case) the date of making the agreement.
- 01/12/2004
relevant existing complaint
(in accordance with the Ombudsman Transitional Order) a complaint which:
(a) was referred to a former scheme at any time before commencement, by a person who was at that time entitled, under the terms of the former scheme, to refer such a complaint (whether described in that scheme as the making of a complaint, the referral of a dispute, the submission of a claim, or otherwise); and
(b) has not, before commencement, been rejected, withdrawn, settled or determined by the former Ombudsman (whether by a substantive decision, or by closure of the case without a substantive decision).
- 01/12/2004
relevant financial services company
- 01/12/2004
relevant former scheme
(as defined in article 2(2) of the compensation transitionals order):
(a) in relation to a pending application, the investment business compensation scheme under which the application was made;
(b) in relation to an article 9 default, one of the following that applied to the default before commencement:
(i) the Policyholders Protection Scheme established by the Policyholders Protection Act 1975;
(ii) the Deposit Protection Scheme established by Part II of the Banking Act 1987;
(iii) the Building Societies Investor Protection Scheme established by Part IV of the Building Societies Act 1986;
(iv) the Friendly Societies Protection Scheme established in accordance with section 141 of the Financial Services Act 1986.
- 01/12/2004
relevant function
- 01/12/2004
relevant general insurance contract
(in COMP) any general insurance contract other than:
(a) [deleted]
(b) [deleted]
(c) a contract falling within any of the following classes:
(i) aircraft;
(ii) ships;
(iii) goods in transit;
(iv) aircraft liability;
(v) liability of ships;
(vi) credit.
- 01/12/2004
relevant information
(1) (except in REC) (in relation to an investment) information which would be likely to be regarded by a regular user of the market in question as relevant when deciding the terms on which transactions in that investment should be effected.
(2) (in REC) (in relation to an investment) information which is relevant to determining the current value of that investment.
- 01/12/2004
relevant insurer
in relation to a community co-insurance operation, an insurer which is concerned in the operation but is not the leading insurer.
- 31/12/2004
relevant issuer
(a) (in relation to a designated investment that is the subject of
investment research
or a public appearance) the issuer of that designated investment; or
(b) (in relation to a related designated investment that is the subject of
investment research or a public appearance) either the issuer of the related designated investment or the issuer of a designated investment that might reasonably be expected directly to affect the value of the related designated investment.
- 01/12/2004
relevant net premium income
(1) (in relation to business which is not occupational pension fund management business) the premium income in respect of protected contracts of insurance of a firm; or
(2) (in relation to occupational pension fund management business) the remuneration retained by a firm in relation to its carrying on occupational pension fund management business
in the year preceding that in which the date for submission of the information under COMP 13.6.11R falls, net of any relevant rebates or refunds.- 01/12/2004
relevant new complaint
(in accordance with the Ombudsman Transitional Order) a complaint referred to the Financial Ombudsman Service after commencement which relates to an act or omission occurring before commencement if:
(a) the act or omission is that of a person who was, immediately before commencement, subject to a former scheme;
(b) the act or omission occurred in the carrying on by that person of an activity to which that former scheme applied; and
(c) the complainant is eligible and wishes to have the complaint dealt with under the new scheme;
for the purposes of (c), where the complainant is not eligible in accordance with DISP 2 (Jurisdiction of the Financial Ombudsman Service), an Ombudsman may, nonetheless, if he considers it appropriate, treat the complainant as eligible if he would have been entitled to refer an equivalent complaint to the former scheme in question immediately before commencement.- 01/12/2004
relevant office-holder
a relevant office-holder as defined in section 189 of the Companies Act 1989, which is in summary:
(a) the official receiver;
(b) (in relation to a company) any person acting as its liquidator, provisional liquidator, administrator or administrative receiver;
(c) (in relation to an individual or a debtor within the Bankruptcy (Scotland) Act 1985) a trustee in bankruptcy, interim receiver of property, or permanent or interim trustee in the sequestration of an estate;
- 01/12/2004
relevant pension scheme
(a) an appropriate scheme for the purposes of section 1(8) of the Social Security Act 1986 or for the purposes of article 3(8) of the Social Security (Northern Ireland) Order 1986; or
(b) an exempt approved scheme under section 592(1) of the Income and Corporation Taxes Act 1988 to which the employer is not a contributor and which provides benefits additional to those provided by:
(i) another scheme approved under Chapter 1 of Part XIV of that Act to which the employer is a contributor; or
(ii) a statutory scheme as defined in section 612(1) of that Act; or
(iii) a relevant statutory scheme as defined in section 611A(1) of that Act; or
(c) a pension scheme approved under Chapter IV of Part XIV of that Act.
- 01/12/2004
relevant person
(in COMP) a person for claims against whom the compensation scheme provides cover, as defined in COMP 6.2.1 R.
- 01/12/2004
relevant product
(in MAR) (in accordance with section 118(6) of the Act (Market abuse)) (in relation to any qualifying investment):
(a) anything which is the subject matter of that qualifying investment;
(b) an investment whose price or value is expressed by reference to the price or value of that qualifying investment;
- 01/12/2004
relevant regulated activities
(in ML) activities of the kind described in ML 1.1.4R.
- 01/12/2004
relevant scheme
a collective investment scheme managed by an EEA UCITS management company.
- 01/12/2004
- 01/12/2004
relevant transitional complaint
(in accordance with the Mortgage and General Insurance Complaints Transitional Order) a complaint referred to the Financial Ombudsman Service after the relevant commencement date which relates to an act or omission occurring before that date if:
(a) the act or omission is that of a person ("R") who, at the time of that act or omission, was subject to a former scheme;
(c) the act or omission occurred in the carrying on by R of an activity to which that former scheme applied; and
(d) the complainant is eligible and wishes to have the complaint dealt with under the new scheme.
- 01/12/2004
remedial direction
(in accordance with section 308(8) of the Act (Directions by the Treasury)) a direction requiring the FSA:
(a) to exercise its powers under section 297(2) of the Act to revoke the recognition order for a recognised body; or
(b) to exercise its powers under section 296 of the Act by giving such directions to the recognised body concerned as may be specified in the direction.
- 01/12/2004
remuneration
any form of remuneration, including benefits of any kind.
- 01/12/2004
renewal
carrying forward a contract, at the point of expiry and as a successive or separate operation of the same nature as the preceding contract, between the same contractual parties.
- 01/12/2004
repayment mortgage
a regulated mortgage contract under which the customer is obliged to make payments of interest and capital which are designed to repay the mortgage over the stated term.
- 01/12/2004
repayment vehicle
the means by which the customer will repay the capital due under the regulated mortgage contract, where all or part of that contract is an interest-only mortgage.
- 01/12/2004
repo
(a) 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;
(b) an agreement between a buyer and seller for the purchase of securities, under which the buyer agrees to resell the securities, or equivalent securities, at an agreed date and, usually, at a stated price.
- 01/12/2004
reportable large exposure
the same thing as large e-money float exposure with the following adjustments:
(a) the figure of 10% in ELM 3.5.7 R is replaced by 25%; and
(b) ELM 3.5.6 R does not apply.
- 01/12/2004
reportable transaction
a transaction defined in SUP 17.5.1 R (Transaction reporting: Reportable transaction).
- 01/12/2004
reporting accountant
an accountant appointed:
(a) by the
FSA
; or
(b) by a firm , having been nominated or approved by the
FSA
under section 166 of the Act (Reports by skilled persons); or
(c) by an applicant for
Part IV permission
;
to report on one or more aspects of the business of a firm or applicant, such as its financial position, including internal controls and reporting returns.- 01/12/2004
repossess
(in MCOB) take possession of the mortgaged property.
- 01/12/2004
required amount
(in LLD) for a member, in relation to general insurance business or long-term insurance business, the required amount determined in accordance with LLD 11.2.6R or LLD 11.2.7R.
- 01/12/2004
required function
any of controlled functions 8 to 12 in the table of controlled functions.
- 01/12/2004
requirement
- 01/12/2004
requiring or encouraging
taking or refraining from taking any action which requires or encourages another person to engage in behaviour which, if engaged in by the person requiring or encouraging, would amount to market abuse.
- 01/12/2004
requisite details
the details required in the EEA Passport Rights Regulations and set out in SUP 13 Annex 1 (Requisite details: branches) and SUP 13 Annex 1 (Requisite details: cross border services).
- 01/12/2004
resilience capital requirement
the capital component for long-term insurance business calculated in accordance with the rules in
PRU 4.2.9 G to PRU 4.2.26 R.
- 31/12/2004
responsible person
(as defined in section 3(8) of the Child Trust Funds Act 2004) a person with parental responsibility in relation to a child under 16 who is not:
(a) a local authority or, in Northern Ireland, an authority within the meaning of the Children (Northern Ireland) Order 1995 (SI 1995/755 (NI 2)); or
(b) a person under 16.
- 01/12/2004
restricted credit
a loan for which, as a result of an existing arrangement between a supplier and a firm , the customer's application to the firm is submitted through the supplier and the terms of the loan require that it be paid to the supplier for goods or services supplied to the customer , not including loans secured by a charge over land or loans or payments by plastic card (other than a store card).
- 01/12/2004
restricted-use credit agreement
- 01/12/2004
retail securitised derivative
a securitised derivative which is not a specialist securitised derivative; in this definition, a "specialist securitised derivative" is a securitised derivative which, in accordance with paragraphs 24.1(m) and 24.6 of the listing rules, is required to be admitted to listing with listing particulars which contain a clear statement on the front page that the issue is intended for a purchase by only investors who are particularly knowledgeable in investment matters.
- 01/12/2004
retirement annuity
an individual pension policy effected by a self-employed person or a person in non-pensionable employment before 1 July 1998 and which is approved under Chapter III, Part XIV of the Income and Corporation Taxes Act 1988.
- 01/12/2004
retirement fund
the amount which will be available, at the date on which the investor retires, for the provision of benefits.
- 01/12/2004
- 31/12/2004
revenue allocated CTF
a CTF opened in accordance with Regulation 6 of the CTF Regulations.
- 01/12/2004
- 01/12/2004
rights to or interests in investments
the investment, specified in article 89 of the Regulated Activities Order (Rights to or interests in investments), which is in summary: any right to or interest in any other specified investment, but excluding:
(a) interests under the trusts of an occupational pension scheme;
(b) rights to or interests in a contract of insurance of the kind referred to in paragraph (1)(a) of article 60 of the Regulated Activities Order (Plans covered by insurance or trust arrangements), or interests under a trust of the kind referred to in paragraph 1(b) of article 60 of the Regulated Activities Order (Plans covered by insurance or trust arrangements);
(c) any other specified investment.
- 01/12/2004
risk assessment function
controlled function CF14 in the table of controlled functions , described more fully in SUP 10.8.3 R.
- 01/12/2004
risk capital margin
the risk capital margin for a with-profits fund calculated in accordance with the rules in
PRU 7.4.43 R to PRU 7.4.103 G.
- 31/12/2004
risk concentration
(in accordance with Article 2(19) of the Financial Groups Directive (Definitions)) all exposures with a loss potential borne by entities within a financial conglomerate , which are large enough to threaten the solvency or the financial position in general of the regulated entities in the financial conglomerate; such exposures may be caused by counterparty risk, credit risk, investment risk, insurance risk, market risk, other risks, or a combination or interaction of these risks.
- 01/12/2004
- 01/12/2004
- 01/12/2004
rolling spot forex contract
either of the following:
(a) a future, other than a future traded or expressed to be as traded on a recognised investment exchange, where the property which is to be sold under the contract is foreign exchange or sterling; or
(b) a contract for differences where the profit is to be secured or loss avoided by reference to fluctuations in foreign exchange; and
in either case where the contract is entered into for the purpose of speculation.- 01/12/2004
roll-up of interest mortgage
a regulated mortgage contract where no payment of interest on the amount borrowed (other than interest charged when all or part of the amount borrowed is repaid voluntarily by the customer), is due or capable of becoming due while the customer continues to occupy the mortgaged property as his main residence and fulfil his obligations under the regulated mortgage contract.
- 01/12/2004
rule
(in accordance with section 417(1) of the Act (Definitions)) a rule made by the
FSA
under the Act, including:
(a) a Principle; and
(b) an evidential provision.
- 01/12/2004
running-account credit
(in accordance with section 10(1)(a) of the Consumer Credit Act 1974) a facility under a contract by which the customer is enabled to receive from time to time (whether in his own person, or by another person) from the firm or a third party cash, goods and services (or any of them) to an amount or value such that, taking into account payments made by or to the credit of the customer, the credit limit (if any) is not at any time exceeded.
- 01/12/2004
Letter: S
safe custody investment
a designated investment , which is not the property of the firm, but for which the firm, or any nominee company controlled by the firm or by its associate, is accountable; which has been paid for in full by the client ; and which ceases to be a safe custody investment when the firm has disposed of it in accordance with a valid instruction.
- 01/12/2004
safeguarding and administering investments
the regulated activity , specified in article 40 of the Regulated Activities Order (Safeguarding and administering investments), which is in summary: the safeguarding of assets belonging to another and the administration of those assets, or arranging for one or more other persons to carry on that activity, where:
(a) the assets consist of or include any security or contractually based investment (that is, any designated investment, funeral plan contract or right to or interest in a funeral plan contract); or
(b) the arrangements for their safeguarding and administration are such that the assets may consist of or include designated investments, and either the assets have at any time since 1 June 1997 done so, or the arrangements have at any time (whether before or after that date) been held out as ones under which designated investments would be safeguarded and administered.
- 01/12/2004
safeguarding and administration of assets (without arranging)
that part of safeguarding and administering investments which consists of both:
(a) the safeguarding of assets belonging to another; and
(b) the administration of those assets.
- 01/12/2004
sale
(in COLL and CIS) (in relation to units in an authorised fund) the sale of units by the authorised fund manager as principal.
- 01/12/2004
sale shortfall
the outstanding debt, under a
regulated mortgage contract
, following the sale of the mortgaged property.
- 01/12/2004
salvage right
(in LLD) any right of a member under a contract of insurance (and vested in a premium trust fund) to take possession of and to dispose of property because he has made a payment or has become liable to make a payment in respect of a loss to that property.
- 01/12/2004
SARs
the Rules Governing Substantial Acquisitions of Shares issued on the authority of the Takeover Panel.
- 01/12/2004
scheme
(2) (in
COB
, CASS and SUP)
(b) an investment trust where the relevant shares have been or are to be acquired through an
investment trust savings scheme;
(c) an investment trust where the relevant shares are to be held within an ISA or PEP which promotes one or more specific investment trusts;
- 01/12/2004
scheme holding
a holding of:
- 01/12/2004
scheme management activity
the management by an operator of the property held for or within the scheme of which it is the operator, excluding the receiving and holding of client money and safeguarding and administering investments.
- 01/12/2004
scheme of arrangement
(in COLL and CIS) an arrangement relating to an authorised fund ("transferor fund") or to a sub-fund of a scheme that is an umbrella ("transferor sub-fund") under which:
(a) either:
(i) all or part of the property of the transferor fund, or all or part of the property attributed to the transferor sub-fund, is to become the property of one or more regulated collective investment schemes ("transferee schemes"); or
(ii) all or part of the property attributed to the transferor sub-fund is to become part of the property attributed to one or more other sub-funds of the same
umbrella scheme
("transferee sub-funds"); and
(b) holders of units in the transferor fund or transferor sub-fund, the property of which is being transferred or reattributed under (a), are to receive, in exchange for their respective interests in that property, either:
(i) units in the transferee scheme or one or more of the transferee schemes, to which the property is transferred; or
(ii) units in the transferee sub-fund or one or more of the transferee sub-funds, to which the property is reattributed.
- 01/12/2004
scheme of operations
a scheme which:
(a) describes the nature of the risks which the insurer is underwriting, or intends to underwrite, and the guiding principles which it intends to follow in reinsuring or covering those risks; and
(b) contains the information required under SUP App 2.12.1 R (Content of a scheme of operations).
- 31/12/2004
scheme particulars
a document containing information about a regulated collective investment scheme.
- 01/12/2004
scheme property
(a) (in relation to an ICVC) the property subject to the collective investment scheme constituted by it;
- 01/12/2004
scheme report
(in SUP 18) the report on the terms of an insurance business transfer scheme required by section 109 of the Act (Scheme reports).
- 01/12/2004
SDRT provision
a charge of such amount or at such rate as is determined by the authorised fund manager to be made as a provision for stamp duty reserve tax for which the ICVC may become liable under the Stamp Duty and Stamp Duty Reserve Tax (Open-Ended Investment Companies)(Amendment No.2) Regulations 2000 or the trustee may become liable under Schedule 19to the Finance Act 1999 in respect of a surrender of units to the authorised fund manager.
- 01/12/2004
Second Life Directive
the Council Directive of 8 November 1990 on the coordination of laws, etc and laying down provisions relating to facilitate the effective exercise of freedom to provide services and amending Directive 79/267/EEC (No 90/619/EEC).
- 01/12/2004
Second Non-Life Directive
the Council Directive of 22 June 1988 on the coordination of laws, etc and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC (No 88/357/EEC).
- 01/12/2004
secondary material
(as more fully described in section 394 of the Act (Access to Authoritymaterial)) material, other than that which the
FSA
relied on in reaching its decision, which:
(a) the
FSA
considered in reaching its decision; or
(b) the
FSA
obtained in connection with, that is, in the investigation of, the matter in question.
- 01/12/2004
secondary pooling event
an event that occurs in the circumstances described in COB 9.5.14R (Failure of a bank, intermediate broker, settlement agent or OTC counterparty: secondary pooling events).
- 01/12/2004
section 43 capital requirements
the financial supervision requirements of the FSA for the purposes of the listing arrangements made under section 43 of the Financial Services Act 1986.
- 01/12/2004
sectoral rules
(in relation to a financial sector) rules and requirements relating to the prudential supervision of regulated entities applicable to regulated entities in that financial sector as follows:
(a) (for the purposes of
PRU 8.4.12 R
(Definition of financial conglomerate: Solvency requirement)) EEA prudential sectoral legislation for that financial sector together with as appropriate the rules and requirements in (c); or
(b) (for the purpose of calculating solo capital resources and a solo capital resources requirement):
(i) (to the extent provided for in paragraph 6.5 of PRU 8 Ann 1R G) rules and requirements that are referred to in paragraph 6.6 of PRU 8 Ann 1R G (Solo capital resources requirement: Non-EEA firms subject to equivalent regimes); and
(ii) the rules and requirements in (c); or
(c) (for all other purposes) rules and requirements:
and so that: (i) of the FSA; or
(ii) of or administered by another competent authority;
(d) (in relation to prudential rules about consolidated supervision for any financial sector) those requirements include ones relating to the form and extent of consolidation;
(e) (in relation to any financial sector) those requirements include ones relating to the eligibility of different types of capital;
(f) (in relation to any financial sector) those requirements include both ones applying on a solo basis and ones applying on a consolidated basis;
(g) (in relation to the insurance sector) references in this definition to consolidated supervision are to supplementary supervision, similar expressions being interpreted accordingly;
- 01/12/2004
secured debt
(in PRU) a debt fully secured on:
(a) assets whose value at least equals the amount of debt; or
(b) a letter of credit or guarantee from an approved counterparty.
- 31/12/2004
secured lending
lending where the mortgage lender takes security on land for the loan provided to the customer.
- 01/12/2004
securities and futures firm
a firm whose permitted activities include designated investment business, which is not an authorised professional firm, bank,
ELMI,
building society,
credit union, friendly society, ICVC, insurer, media firm, service company, incoming EEA firm (without a top-up permission), incoming Treaty firm (without a top-up permission), UCITS management company or UCITS qualifier (without a top-up permission), whose permission does not include a requirement that it comply with IPRU(INV) 5 (Investment management firms) or 13 (Personal investment firms), and which is within (a), (b), (c), (d), (e) or (f)
(a) a firm (other than one falling within (d)):
(ii) which was not, immediately before commencement, subject to the financial supervision requirements of the FSA (under section 43 of the Financial Services Act 1986), orPIA or IMRO (under lead regulation arrangements);
(b) a firm whose permission includes a requirement that it comply with IPRU(INV) 3 or 10 (Securities and futures firms);
(c) a firm:
(i) which was given a
Part IV permission
after commencement, or which was authorised under section 25 of the Financial Services Act 1986 immediately before commencement and not a member of IMRO, PIA or SFA; and
(ii) for whomthe most substantial part of its gross income, including commissions, from the
regulated activities
included in its
Part IV permission
is derived from one or more of the following activities (based, for a firm given a
Part IV permission
after commencement, on the business plan submitted as part of the firm's application for permission or, for a firm authorised under section 25 of the Financial Services Act 1986, on thefirm'sfinancial year preceding its authorisation under the Act):
(A) an activity carried on as a member of an exchange;
(E) the provision of clearing services as a clearing firm;
(G) activities relating to spread bets;
(d) a firm that is:
(i) an ex-section 43 firm which was not authorised under the Financial Services Act 1986 immediately before commencement; or
(ii) an ex-section 43 lead regulated firm;
(e) an energy market participant;
(f) an oil market participant.
- 01/12/2004
securities scheme
an authorised fund dedicated to transferable securities, excluding an authorised fund which is a feeder fund, a fund of funds scheme or a warrant scheme.
- 01/12/2004
securitisation
a process by which assets are sold to a bankruptcy-remote special purpose vehicle in return for immediate cash payment and that vehicle raises the immediate cash payment through the issue of debt securities in the form of tradable notes or commercial paper.
- 01/12/2004
securitised derivative
an option or contract for differences which, in either case, is listed under chapter 24 of the listing rules (including such an option or contract for differences which is also a debenture). (See also COB 5.4.3A G for the treatment of a securitised derivative.)
- 01/12/2004
security
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation)) any of the following investments specified in that Order:
(a) share (article 76);
(b) debenture (article 77);
(c) government and public security (article 78);
(d) warrant (article 79);
(e) certificate representing certain securities (article 80);
(f) unit (article 81);
(g) stakeholder pension scheme (article 82);
(h) rights to or interests in investments in (a) to (g) (article 89).
- 01/12/2004
segregated client
- 01/12/2004
sell
(in accordance with article 3(1) of the Regulated Activities Order (Interpretation)) (in relation to any investment) sell in any way, including disposing of the investment for valuable consideration;in this definition, "disposing" includes:
(a) (in relation to an investment consisting of rights under a contract):
(i) surrendering, assigning or converting those rights; or
(ii) assuming the corresponding liabilities under the contract;
(b) (in relation to an investment consisting of rights under other arrangements) assuming the corresponding liabilities under the arrangements; and
(c) (except in
CIS
) (in relation to any other investment) issuing or creating the investment or granting the rights or interests of which it consists.
- 01/12/2004
sending dematerialised instructions
the regulated activity, specified in article 45(1)of the Regulated Activities Order, of sending, on behalf of another person, dematerialised instructions relating to a security, where those instructions are sent by means of a relevant system in respect of which an operator is approved under the 1995 Regulations;in this definition:
(a) "the 1995 Regulations" means the Uncertificated Securities Regulations 1995 (SI 1995/3272);
(b) "dematerialised instruction" and "operator" have the meaning given by regulation 3 of the 1995 Regulations.
- 01/12/2004
senior manager
an individual other than a director:
(a) who is employed by:
(i) a firm; or
(b) to whom the governing body of the firm, or a member of the governing body of the firm, has given responsibility, either alone or jointly with others, for management and supervision;
(c) who, if the individual is employed by the firm, reports directly to:
(i) the governing body; or
(ii) a member of the governing body; or
(iii) the chief executive; or
(iv) the head of a significant business unit; and
(d) who, if the individual is employed by a body corporate within the group, reports directly to a person who is the equivalent of a body or person referred to in (c).
- 01/12/2004
senior staff committee
(in
DEC
) a committee consisting of senior
FSA
staff members that is empowered to make statutory notice decisions and statutory notice associated decisions by executive procedures.
- 01/12/2004
series of transactions
a series of transactions executed with a view to achieving one investment decision or objective.
- 01/12/2004
SERV
the Handbook Guide for service companies.
- 01/12/2004
service company
a firm whose only permitted activities are making arrangements with a view to transactions in investments, and agreeing to carry on that regulated activity, and whose
Part IV permission
:
(a) incorporates a limitation substantially to the effect that the firm carry on regulated activities only with market counterparties or intermediate customers; and
(b) includes requirements substantially to the effect that the firm must not:
(i) guarantee, or otherwise accept responsibility for, the performance, by a participant in arrangements made by the firm in carrying on regulated activities, of obligations undertaken by that participant in connection with those arrangements; or
(ii) approve any financial promotion on behalf of any other person or any specified class of persons; or
(iii) in carrying on its regulated activities, provide services otherwise than in accordance with documents (of a kind specified in the requirement) provided by the firm to the
FSA.
- 01/12/2004
service conditions
(in accordance with paragraph 14 of Schedule 3 to the Act (EEA Passport Rights)) the conditions that:
(a) the firm has given its Home State regulator notice of its intent to provide services in the United Kingdom;
(b) if the firm falls within paragraph (a), (d), (e) or (f) in the definition of "EEA firm", the
FSA
has received notice from the firm'sHome State regulator containing such information as may be prescribed;
(c) if the firm falls within paragraph (d) of that definition, its Home State regulator has informed it that the regulator's notice has been sent to the
FSA
; and
- 01/12/2004
SETS
the Stock Exchange Electronic Trading Service.
- 01/12/2004
settlement agent
- 01/12/2004
Seventh Company Law Directive
the Council Directive of 13 June 1983 on consolidated accounts (No 83/349/EEC).
- 01/12/2004
SFA
the Securities and Futures Authority Limited.
- 01/12/2004
SFA Complaints Bureau
the first stage of the SFA scheme, which aimed to resolve complaints by conciliation.
- 01/12/2004
SFA Consumer Arbitration Scheme
the second stage of the SFA scheme, which determined complaints by means of arbitration.
- 01/12/2004
SFA scheme
the former scheme (including the SFA Complaints Bureau and the SFA Consumer Arbitration Scheme) set up by the SFA to handle complaints against members of the SFA under the Financial Services Act 1986.
- 01/12/2004
share
(1) (except in
CIS
) the investment, specified in article 76 of the Regulated Activities Order (Shares etc), which is in summary: a share or stock in the share capital of:
(a) any body corporate (wherever incorporated);
(b) any unincorporated body constituted under the law of a country or territory outside the United Kingdom.
(2) (in
CIS
):
(a) (in relation to an ICVC) a share in the ICVC (including both smaller denomination shares and larger denominationshares);
(b) (otherwise) an investment within (1).
- 01/12/2004
shared appreciation mortgage
a regulated mortgage contract, a condition of which is that the mortgage lender will receive a share in any increase in value in the mortgaged property when the customer either sells the property or terminates the contract including a contract where, if there is a reduction in value, the customer is required to pay the mortgage lender all or part of the shortfall.
- 01/12/2004
shareholder
(in relation to an ICVC, and subject to CIS 11.2.2 R (Special meaning of shareholder)):
(a) (in relation to a share that is represented by a bearer certificate) the person who holds the certificate;
(b) (in relation to a share that is not represented by a bearer certificate) the person whose name is entered on the register in relation to that share.
- 01/12/2004
ships
(in relation to a class of contract of insurance ) the class of contract of insurance , specified in paragraph 6 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), upon vessels used on the sea or on inland water, or upon the machinery, tackle, furniture or equipment of such vessels.
- 01/12/2004
shortfall
(1) (in relation to cancellation of an investment agreement ) the amount a firm is entitled to charge a customer for the market loss in accordance with
COB 6.7.54 R to COB 6.7.58 R (Shortfall; Exceptions to shortfall).
- 01/12/2004
sickness
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 2 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of loss to the persons insured attributable to sickness or infirmity, but excluding contracts within paragraph IV of Part II of Schedule 1 to the Regulated Activities Order (Permanent health).
- 01/12/2004
sickness or distressed circumstances contract
any contract in accordance with which benefits are provided for the relief or maintenance of any person during sickness or when in distressed circumstances.
- 01/12/2004
SIFA
the Handbook Guide: "Using the FSA Handbook: an Overview for small IFA firms"
- 01/12/2004
significant influence function
any of the controlled functions 1 to 20in the table of controlled functions.
- 01/12/2004
significant management (designated investment business) function
controlled function CF16 in the table of controlled functions, described more fully in SUP 10.9.10 R.
- 01/12/2004
significant management (financial resources) function
controlled function CF19 in the table of controlled functions, described more fully in SUP 10.9.16 R.
- 01/12/2004
significant management (insurance underwriting) function
controlled function CF18 in the table of controlled functions, described more fully in SUP 10.9.14 R.
- 01/12/2004
significant management (other business operations) function
controlled function CF17 in the table of controlled functions , described more fully in SUP 10.9.12 R.
- 01/12/2004
significant management (settlements) function
controlled function CF20 in the table of controlled functions, described more fully in SUP 10.9.18 R.
- 01/12/2004
significant management function
any of the
controlled functions
16 to 20 in the table of controlled functions.
- 01/12/2004
Single Market Directives
(as defined in paragraph 1 of Schedule 3 to the Act (EEA Passport Rights)):
(a) the Banking Consolidation Directive;
(b) the Insurance Directives;
(c) the Investment Services Directive;
(d) the Insurance Mediation Directive; and
(e) (from 13 February 2004) the UCITS Directive.
- 01/12/2004
single-priced AUT
- 01/12/2004
skilled person
- 01/12/2004
small business
(in COMP) a partnership, body corporate, unincorporated association or mutual association with an annual turnover of less than £1 million (or its equivalent in any other currency at the relevant time).
- 01/12/2004
small e-money issuer
(as defined by article 9C(10 of the Regulated Activities Order (Persons certified as small issuers etc)) a person to whom a certificate has been given by the FSA under that article (and whose certificate has not been revoked).
- 01/12/2004
small e-money issuer certificate
a certificate given by the FSA under article 9C of the Regulated Activities Order (Persons certified as small issuers etc).
- 01/12/2004
small friendly society function
controlled function CF6 in the table of controlled functions, described more fully in SUP 10.6.26 R.
- 01/12/2004
small personal investment firm
a personal investment firm:
(a) which is not an ISD investment firm;
(b) which is not a network; and
(c) which has fewer than 26 representatives.
- 01/12/2004
small self-administered scheme
an occupational pension scheme of a kind described in article 4(4) and 4(5) of the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 (SI 2001/1177).
- 01/12/2004
smaller denomination share
a share to which are attached rights in a smaller denomination as provided by regulation 45 of the OEIC regulations.
- 01/12/2004
smallest financial sector
(in relation to a financial sector in a consolidation group or a financial conglomerate and in accordance with
PRU 8.4
(Cross sector groups)) the financial sector with the smallest average referred to in the box titled Threshold Test 2 in the financial conglomerate definition decision tree (10% ratio of balance sheet size and solvency requirements), the banking sector and investment services sector being treated as one financial sector in the circumstances set out in
PRU 8.4
.
- 01/12/2004
social housing firm
(in
PRU 9.3 (Capital resources for insurance and mortgage mediation activity and mortgage lending and administration)) a wholly-owned subsidiary of:
(a) a local authority; or
(b) a registered social landlord;
which carries on non-profit regulated activities in connection with housing.- 01/12/2004
social insurance
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph IX of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance), of a kind referred to in article 1(3) of the
First Life Directive
("operations relating to the length of human life which are prescribed by or provided for in social insurance legislation, when they are effected or managed at their own risk by assurance undertakings in accordance with the laws of an EEA State").
- 01/12/2004
Society
the society incorporated by Lloyd's Act 1871 by the name of Lloyd's.
- 01/12/2004
- 01/12/2004
Society's basic market activity
(in accordance with section 315(2)(a) of the Act (The Society: authorisation and permission)) arranging deals in contracts of insurance written at Lloyd's.
- 01/12/2004
Society's regulatory functions
the Society's powers, duties or functions in relation to members or underwriting agents which are or may be exercised for the purposes of supervising or regulating the market at Lloyd's.
- 01/12/2004
Society's secondary market activity
(in accordance with section 315(2)(b) of the Act (The Society: authorisation and permission)) arranging deals in participation in Lloyd's syndicates.
- 01/12/2004
soft commission agreement
an agreement in any form under which a firm receives goods or services in return for designated investment business put through or in the way of another person.
- 01/12/2004
sole trader
an individual who is a firm.
- 01/12/2004
sole trader function
controlled function CF7 in the table of controlled functions, described more fully in SUP 10.6.30 R.
- 01/12/2004
solicited real time financial promotion
(in accordance with article 8 of the Financial Promotion Order) (as more fully described in
COB 3.10.1 R (Meaning of "solicited" and "unsolicited" real time financial promotion) and AUTH App 1.10 (Types of financial promotion))) a real time financial promotion which is solicited, that is, it is made in the course of a personal visit, telephone call or other interactive dialogue if that call, visit or dialogue:
(a) was initiated by the recipient of the financial promotion; or
(b) takes place in response to an express request from the recipient of the financial promotion.
- 01/12/2004
solo capital resources
(for the purposes of PRU 8 (Group risk) and in relation to a member of a financial conglomerate in the overall financial sector) capital resources that are or would be eligible as capital under the sectoral rules that apply for the purpose of calculating its solo capital resources requirement. Paragraph 6.9 of PRU 8 Ann 1R G(Solo capital resources requirement: the insurance sector)applies for the purpose of this definition in the same way as it does for the definition of solo capital resources requirement.
- 01/12/2004
solo capital resources requirement
(for the purpose of PRU 8 (Group risk)) a capital resources requirement calculated on a solo basis as defined in paragraphs 6.2-6.9 of PRU 8 Ann 1R G (Solo capital resources requirement: the insurance sector).
- 01/12/2004
Solvency 1 Directive
the Directive of the European Parliament and of the Council of 5 March 2002 amending Council Directive 79/267/EEC as regards the solvency margin requirements for life assurance undertakings (No. 2002/12/EC).
- 31/12/2004
solvency deficit
(in
PRU 8 Ann 1R G
(Capital adequacy calculations with respect to financial conglomerates) and in respect of a member of the overall financial sector) the amount (if any) by which its solo capital resources fall short of its solo capital resources requirement.
- 01/12/2004
special purpose vehicle
a body corporate, explicitly established for the purpose of securitising assets, whose sole purpose (either generally or when acting in a particular capacity) is to carry out one or more of the following functions:
(b) redeeming or terminating or repurchasing (whether with a view to re-issue or to cancellation) an issue (in whole or part) of designated investments, other than life policies;
(c) entering into transactions or terminating transactions involving designated investments in connection with the issue, redemption, termination or re-purchase of designated investments, other than life policies;
- 01/12/2004
specific costs
- 01/12/2004
specific costs levy
a levy, forming part of the management expenses levy, to meet the specific costs in the financial year of the compensation scheme to which the levy relates, each participant firm's share being calculated in accordance with COMP 13.5.7R.
- 01/12/2004
specific non-real time financial promotion
a non-real time financial promotion which identifies and promotes a particular investment or service.
- 01/12/2004
specific risk
unique risk that is due to the individual nature of an asset and can potentially be diversified.
- 31/12/2004
specified investment
any of the following investments specified in Part III of the Regulated Activities Order (Specified Investments):
(a) deposit (article 74);
(aa) electronic money (article 74A);
(b) contract of insurance (article 75); for the purposes of the permission regime, this is sub-divided into:and then further sub-divided into classes of contract of insurance;
(c) share (article 76);
(d) debenture (article 77);
(e) government and public security (article 78);
(f) warrant (article 79);
(g) certificate representing certain securities (article 80);
(h) unit (article 81);
(i) stakeholder pension scheme (article 82);
(j) option (article 83); for the purposes of the permission regime, this is sub-divided into:
(k) future (article 84); for the purposes of the permission regime, this is sub-divided into:
(ii) commodity future;
(iii) rolling spot forex contract;
(l) contract for differences (article 85); for the purposes of the permission regime, this is sub-divided into:
(ii) spread bet;
(iii) rolling spot forex contract;
(m) underwriting capacity of a Lloyd's syndicate (article 86(1));
(n) membership of a Lloyd's syndicate (article 86(2));
(o) funeral plan contract (article 87);
(oa) regulated mortgage contract (article 61(3);
(p) rights to or interests in investments (article 89).
- 01/12/2004
spread bet
a contract for differences that is a gaming contract, whether or not section 412 of the Act (Gaming contracts) applies to the contract; in this definition, "gaming" has the meaning given in the Gaming Act 1968, which is in summary: the playing of a game of chance for winnings in money or money's worth, whether any person playing the game is at risk of losing any money or money's worth or not.
- 01/12/2004
spread risk
the risk that a spread (that is, the difference in price or yield) between two variables will change.
- 31/12/2004
- 01/12/2004
stabilising action
any action contemplated by MAR 2.2.3R or MAR 2.4.2R.
- 01/12/2004
stabilising manager
the single person responsible for stabilising action under MAR 2 (Price stabilising rules).
- 01/12/2004
stabilising period
(in relation to a relevant security and an associated security) the period:
(a) beginning with the date on which the earliest public announcement of the offer which states the offer price is made; and
(b) ending on the thirtieth day after the closing date or, if it is earlier than that day, the sixtieth day after the date of allotment;
except that, in relation to a debenture and a government and public security, the period begins with the date on which the earliest public announcement of the offer is made (whether or not that announcement states the offer price).- 01/12/2004
stabilising price
the initial price (at or below the offer price) up to which the stabilising manager has determined that he may wish to intervene in the market by way of stabilising action; and if the effect of MAR 2.5.4R is to raise that price above the initial stabilising price, then "stabilising price" thereafter means that new, higher, price.
- 01/12/2004
stakeholder pension scheme
(a) (in relation to a specified investment) the investment specified in article 82 of the Regulated Activities Order (Rights under a stakeholderpension scheme) which is rights under a stakeholder pension scheme in (b);
(b) (in relation to a scheme) a scheme established in accordance with Part I of the Welfare Reform and Pensions Act 1999 and the Stakeholder Pension Schemes Regulations 2000.
- 01/12/2004
standard terms
(in DISP) the contractual terms made under paragraph 18 of Schedule 17 to the Act (The Ombudsman Scheme), under which VJ participants participate in the Voluntary Jurisdiction.
- 01/12/2004
standing independent valuer
the person appointed as such under COLL 5.6.20 R (Standing independent valuer and valuation) and COLL 8.4.13R (1) (Standing independent valuer and valuation) or, as the case may be, CIS 12.3.1 R (Standing independent valuer).
- 01/12/2004
State of the commitment
(in accordance with paragraph 6(1) of Schedule 12 to the Act (Transfer schemes: certificates)) (in relation to a commitment entered into at any date):
(a) if the policyholder is an individual, the State in which he had his habitual residence at that date;
(b) if the policyholder is not an individual, the State in which the establishment of the policyholder to which the commitment relates was established at that date;
in this definition, "commitment" means (in accordance with article 2 of the Financial Services and Markets Act 2000 (Control of Business Transfers) (Requirements on Applicants) Regulations 2001 (SI 2001/36251of the
First Life Directive.- 01/12/2004
State of the risk
(in accordance with paragraph 6(3) of Schedule 12 to the Act (Transfer schemes: certificates)) (in relation to the EEA State in which a risk is situated):
(a) if the insurance relates to a building or to a building and its contents (so far as the contents are covered by the same policy), the EEA State in which the building is situated;
(b) if the insurance relates to a vehicle of any type, the EEA State of registration;
(c) in the case of policies of a duration of four months or less covering travel or holiday risks (whatever the class concerned), the EEA State in which the policyholder took out the policy;
(d) in a case not covered by (a) to (c):
(i) if the policyholder is an individual, the EEA State in which he has his habitual residence at the date when the contract is entered into; and
(ii) otherwise, the EEA State in which the establishment of the policyholder to which the policy relates is situated at that date.
- 01/12/2004
Statement of Principle
one of the Statements of Principle issued by the FSA under section 64(1) of the Act (Conduct: Statements and codes) with respect to the conduct of approved persons and set out in APER.
- 01/12/2004
statutory notice
- 01/12/2004
statutory notice associated decision
a decision which is made by the
FSA
and which is associated with a decision to give a statutory notice, including a decision:
(a) to determine or extend the period for making representations;
(b) to determine whether a copy of the statutory notice needs to be given to any third party and the period for him to make representations;
(c) to refuse access to
FSA
material;
(d) as to the information which it is appropriate to publish about the matter to which a final notice or an effective supervisory notice relates.
- 01/12/2004
statutory notice decision
a decision by the
FSA
on whether or not to give a statutory notice.
- 01/12/2004
step-up
- 31/12/2004
stochastic projection
a projection showing a summary of results from repeated simulations using an investment model, where the model uses key financial parameters which are subject to random variations and are projected into the future.
- 01/12/2004
stock lending
the disposal of a designated investment subject to an obligation or right to reacquire the same or a similar designated investment from the same counterparty.
- 01/12/2004
stock lending activity
the activity of undertaking a stock lending transaction.
- 01/12/2004
stocks and shares component
a qualifying investment as prescribed in paragraph 7 of the ISA Regulations.
- 01/12/2004
store card
a card restricted to paying for goods or services from a particular supplier or group of suppliers and where the price of the goods or services is paid directly to the supplier or group of suppliers by the customer or the firm, but excluding a plastic card used to pay for goods or services through a network such as Visa or MasterCard.
- 01/12/2004
structured capital-at-risk product
a product, other than a derivative, which provides an agreed level of income or growth over a specified investment period and displays the following characteristics:
(a) the customer is exposed to a range of outcomes in respect of the return of initial capital invested;
(b) the return of initial capital invested at the end of the investment period is linked by a pre-set formula to the performance of an index, a combination of indices, a 'basket' of selected stocks (typically from an index or indices), or other factor or combination of factors; and
(c) if the performance in (b) is within specified limits, repayment of initial capital invested occurs but if not, the customer could lose some or all of the initial capital invested.
- 01/12/2004
structured deposit
a deposit paid on terms under which any interest or premium will be paid, or is at risk, according to a formula which involves the performance of:
(a) an index (or combination of indices) (other than money market indices);
(b) a stock (or combination of stocks); or
(c) a commodity (or combination of commodities).
- 01/12/2004
sub-fund
(a) (in relation to an
umbrella scheme
) a separate part of the scheme property of that scheme that is pooled separately;
(b) (in relation to a
collective investment scheme
that is not an authorised fund) any part of that scheme that is equivalent to a sub-fund of an umbrella scheme.
- 01/12/2004
sub-group
(in relation to a person):
(a) that person; and
(b) any person that is either:
(ii) an undertaking in which that person or a subsidiary undertaking of that person holds a participation.
- 01/12/2004
sub-scheme
one of the sub-schemes to which the FSCS allocates liabilities for compensation costs, as described in COMP 13.6.7R
- 01/12/2004
subsidiary
(as defined in section 736 of the Companies Act 1985 ("Subsidiary", "holding company" and "wholly-owned subsidiary")) (in relation to another body corporate ("H")) a body corporate of which H is a holding company.
- 01/12/2004
subsidiary undertaking
(1) (except for the purposes of determining whether a person has close links with another person) an undertaking of which another undertaking is its parent undertaking.
(2) (for the purposes of determining whether a person has close links with another person) (in accordance with section 343(8) of the Act (Information given by auditor or actuary to the FSA) and paragraph 3(3) of Schedule 6 to the Act (Threshold conditions)):
(a) an undertaking in (1);
(b) an undertaking ("S") if:
(i) another undertaking (its parent) is a member of S;
(ii) a majority of S's board of directors who have held office during the financial year and during the preceding financial year have been appointed solely as a result of the exercise of the parent's voting rights; and
(iii) no one else is the parent undertaking of S under any of (a) (i) to (iii) or b(i) or (ii) in the definition of parent undertaking.
- 01/12/2004
sufficiency liquid
(in ELM) (in relation to an investment) complying with the requirements about liquidity in ELM 3.3.11 R (Test for liquidity).
- 01/12/2004
suitability letter
a letter that must be provided to a customer under COB 5.3.14 R (Requirement for a suitability letter) and that contains the information required by COB 5.3.16 R.
- 01/12/2004
SUP
the Supervision manual.
- 01/12/2004
supervisory notice
(as defined in section 395(13) of the Act (The Authority'sprocedures)) a notice given by the
FSA
in accordance with section 53(4), (7) or (8)(b); 78(2) or (5); 197(3), (6) or (7)(b); 259(3), (8) or (9)(b); 268(3), (7)(a) or (9)(a) (as a result of subsection (8)(b)); 282(3), (6) or (7)(b); or 321(2) or (5).
- 01/12/2004
supplementary levy
(in
DISP
) a levy, additional to the general levy, for the purposes of recovering the establishment costs.
- 01/12/2004
suretyship
(in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 15 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), namely:
(a) a contract of insurance against the risks of loss to the person insured arising from their having to perform contracts of guarantee entered into by them;
(b) fidelity bonds, performance bonds, administration bonds, bail bonds or customs bonds or similar contracts of guarantee where these are:
(i) effected or carried out by a person not carrying on a banking business;
(ii) not effected merely incidentally to some other business carried on by the person effecting them; and
(iii) effected in return for the payment of one or more premiums.
- 01/12/2004
surrender value
(a) where the contract is a contract of life assurance or a contract for an annuity, the amount (including a nil amount) payable by the firm or other body issuing the contract on surrender of the policy;
(b) where the contract is a
pension contract
, the amount payable on the transfer of the investor's accrued rights under that contract to another
pension contract
;
(c) where the contract is a Holloway sickness policy, the amount payable by the firm on surrender on or before the projection date for the policy;
- 01/12/2004
Swiss general insurance company
(in accordance with article 1(2) of the Financial Services and Markets Act 2000 (Variation of Threshold Conditions) Order 2001 (SI 201/2507)) a person:
(a) whose head office is in Switzerland;
(b) who is authorised by the supervisory authority in Switzerland as mentioned in article 7.1 of the Swiss Treaty Agreement; and
(c) who is seeking to carry on, or is carrying on, from a branch in the United Kingdom, a regulated activity consisting of the effecting or carrying out of contracts of insurance of a kind which is subject to that agreement.
- 01/12/2004
Swiss general insurer
a Swiss general insurance company which has permission to effect or carry out contracts of insurance of a kind which is subject to the Swiss Treaty Agreement.
- 31/12/2004
Swiss Treaty Agreement
the agreement of 10 October 1989 between the European Economic Community and the Swiss Confederation on direct insurance other than life insurance, approved on behalf of the European Economic Community by the Council Decision of 20 June 1999 (No 91/370/EEC).
- 01/12/2004
syndicate
one or more persons, to whom a particular syndicate number has been assigned by or under the authority of the Council, carrying out or effecting contracts of insurance written at Lloyd's.
- 01/12/2004
syndicate year
a year of account of a syndicate.
- 01/12/2004
synthetic cash
a position in a derivative that offsets an exposure in property to the point where that exposure has effectively been neutralised, and the effect of the combined holding of both property and the position in the derivative is the same as if the authorised fund had received or stood to receive the value of the property in cash.
- 01/12/2004
synthetic future
(b) a synthetic sold future, that is, a bought put option coupled with a written call option;provided that in either case the two options:
(i) are bought and written, whether simultaneously or not, on a single eligible derivatives market;
(ii) relate to the same underlying security or other asset;
(iii) give the purchasers of the options the same rights of exercise (whether at the same price or not); and
(iv) will expire together, if not exercised.
- 01/12/2004
SYSC
the part of the Handbook in High Level Standards which has the title Senior Management Arrangements, Systems and Controls.
- 01/12/2004
systems and controls function
any of
controlled functions
13 to 15 in the table of controlled functions.
- 01/12/2004
Letter: T
table of controlled functions
the table of controlled functions in SUP 10.4.5 R.
- 01/12/2004
takeover bid
an offer, as the term is used in the Takeover Code, or any other similar conduct governed by that code.
- 01/12/2004
Takeover Code
the City Code on Takeovers and Mergers issued by the Takeover Panel.
- 01/12/2004
takeover or related operation
(a) any transaction falling within paragraph 4(b) (Companies and Transactions to which the Code applies) of the introduction to the Takeover Code and, for this purpose, an offer for non-voting, non-equity share capital is to be regarded as falling within the Takeover Code even if not required by rule 15 of that Code;
(b) any transaction subject to the SARs;
(c) any transaction which would have fallen within (a) were it not for the fact that the company which is the subject of the transaction does not satisfy the tests set out in paragraph 4(a) (Companies and Transactions to which the Code applies) of the introduction to the Takeover Code;
(d) any transaction which would have been subject to the SARs but where the shares the subject of the transaction are in a company which does not satisfy the test of residency set out in the second and third paragraphs of Section 2 (Scope) of the Introduction to the SARs;
(e) any offer, transaction or arrangement relating to the purchase of securities with a view to establishing or increasing a strategic holding of a person, or of a person together with his associates, in the securities concerned;
(f) any transaction or arrangement entered into in contemplation or furtherance of any offer, transaction or arrangement falling within (a) to (e); and
(g) any transaction or arrangement entered into by way of defence or protection against any offer, transaction or arrangement falling within (a) to (f) which has taken place or which is contemplated.
- 01/12/2004
Takeover Panel
the Panel on Takeovers and Mergers.
- 01/12/2004
tariff of charges
a list of all the charges (including amounts) that are payable on a
regulated mortgage contract
, including the reason for, and amount of, each charge.
- 01/12/2004
tax exempt policy
any contract of assurance, offered or issued by a friendly society, which is tax exempt life or endowment business as defined in section 466 (2) of the Income and Corporation Taxes Act 1988.
- 01/12/2004
TC
the Training and Competence sourcebook.
- 01/12/2004
technical provision
(2) (in PRU) a technical provision established:
- 31/12/2004
terminating event
(as defined in article 2(1) of the compensation transitionals order) in relation to applications made under an investment business compensation scheme, the withdrawal, discontinuance or rejection of the application, or its determination by a final payment of compensation to the applicant.
- 01/12/2004
terms of business
a statement in a durable medium of the terms and conditions on which a firm will conduct designated investment business with or for a client or
retail customer
.
- 01/12/2004
Third Life Directive
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).
- 01/12/2004
Third Non-Life Directive
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).
- 01/12/2004
third-country banking and investment group
a banking and investment group that meets the following conditions:
(a) it is headed by:
(i) a credit institution; or
(ii) an asset management company; or
(iii) an investment firm; or
(iv) a financial holding company;
that has its head office outside the EEA; and (b) it is not part of a wider EEA banking and investment group.
- 01/12/2004
third-country competent authority
the authority of a country or territory which is not an EEA State that is empowered by law or regulation to supervise (whether on an individual or group-wide basis) regulated entities.
- 01/12/2004
third-country financial conglomerate
a financial conglomerate that is of a type that falls under Article 5(3) of the Financial Groups Directive, which in summary is a financial conglomerate headed by a regulated entity or a mixed financial holding company that has its head office outside the EEA.
- 01/12/2004
third-country group
- 01/12/2004
threshold condition
(in relation to a regulated activity) any of the conditions set out in or under Schedule 6 to the Act (Threshold conditions), including the additional conditions in the Financial Services and Markets Act 2000 (Variation of Threshold Conditions) Order 2001 (SI 2001/2507) (see COND).
- 01/12/2004
tied product
a product, other than linked borrowing or a linked deposit, that a customer is obliged to purchase through a mortgage lender as a condition of taking out a regulated mortgage contract with that
mortgage lender
.
- 01/12/2004
tier one capital
(1) (in ELM) the tier one capital of an ELMI calculated in accordance with ELM 2.4 (Calculation of initial capital and own funds).
(2) (in
PRU
) an item of capital that is specified in stages A, B or C of the table in PRU 2.2.14 R.
- 31/12/2004
tier one capital resources
the sum calculated at stage F of the calculation in
PRU 2.2.14 R
.
- 31/12/2004
tier one instrument
an item of capital that falls into
PRU 2.2.27 R
and is eligible to form part of a firm'stier one capital resources.
- 31/12/2004
tier two capital
- 31/12/2004
tier two capital resources
the sum calculated at stage I of the calculation in
PRU 2.2.14 R
.
- 31/12/2004
tier two instrument
an item of capital that meets the conditions in
PRU 2.2.101 R or PRU 2.2.108 R and is eligible to form part of a firm'stier two capital resources.
- 31/12/2004
tontines
(in relation to a class of contract of insurance) tontines as specified in paragraph V of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance).
- 01/12/2004
top-up cover
cover provided by the compensation scheme for claims against an incoming EEA firm (which is a credit institution, an IMD insurance intermediary, an IMD reinsurance intermediary or an ISD investment firm or a UCITS management company) in relation to the firm'spassported activities and in addition to, or due to the absence of, the cover provided by the firm'sHome State compensation scheme (see COMP 14 (Participation by EEA firms)).
- 01/12/2004
top-up permission
- 01/12/2004
total amount payable
the total charge for credit plus the total amount of credit advanced.
- 01/12/2004
total charge for credit
the total of the charges (determined as at the date of making the contract) specified in as applying in relation to the secured lending but excluding the charges specified in .
- 01/12/2004
total group tier one capital
the sum calculated at stage A of the calculation in
PRU 8.3.43 R
.
- 31/12/2004
total group tier two capital
the sum calculated at stage B of the calculation in
PRU 8.3.43 R
.
- 31/12/2004
tradable renewable energy credit
an allowance, licence, permit, right, note, unit, credit, asset, certificate or instrument (the "credit") where:
(a) the credit confers or may result in a benefit or advantage to its holder or someone else; and
(b) the credit, or the benefit or advantage in (a), is linked to the supply, distribution or consumption of energy derived from renewable sources by the holder of the credit or someone else.
- 01/12/2004
traded life policy
- 01/12/2004
traded on
(in relation to an ATS) traded by means of the system including under the rules of, or by means of the protocols or operating procedures of, the system.
- 01/12/2004
transaction
(in ML) any transaction, including the giving of advice and any other business or service undertaken in the course of carrying on a regulated activity.
- 01/12/2004
transaction report
a report of a reportable transaction which meets the requirements of SUP 17.6.2 R (Transaction report: Content).
- 01/12/2004
transaction-specific advice
advice on investments:
(a) given in connection with dealing or arranging activities carried on by the firm that fall within MAR 3.1.2 R (2)(a), (b) or (c); or
(b) with a view to carrying on any such activities;
with or for the
market counterparty
to whom the advice is given.- 01/12/2004
transfer value analysis
an analysis performed to make a comparison between the benefits which are likely (on reasonable assumptions) to be paid under an occupational pension scheme and the benefits afforded by a personal pension contract or a pension buy-out contract.
- 01/12/2004
transferable security
- 01/12/2004
transitional complaints scheme
- 01/12/2004
Treaty
the Treaty establishing the European Community.
- 01/12/2004
Treaty activity
(as defined in section 417(1) of the Act (Definitions)) an activity carried on under a permission obtained in accordance with Schedule 4 to the Act (Treaty Rights).
- 01/12/2004
Treaty firm
(as defined in paragraph 1 of Schedule 4 to the Act (Treaty Rights)) a person:
(a) whose head office is situated in an EEA State (its "Home State") other than the United Kingdom; and
(b) which is recognised under the law of that State as its national.
- 01/12/2004
Treaty right
the entitlement of a Treaty firm to qualify for authorisation under Schedule 4 to the Act (Treaty Rights).2001/7
- 01/12/2004
Tribunal
- 01/12/2004
trust deed
(in COLL and CIS) the deed referred to in COLL 3.2.3R (The trust deed for AUTs or, as the case may be, CIS 2.2.5R (The trust deed for AUTs), together with any deed expressed to be supplemental to it, made between the manager and the trustee (or, in the case of a recognised scheme that is a unit trust scheme, the instrument constituting the scheme as amended from time to time).
- 01/12/2004
trust scheme rules
- 01/12/2004
trustee
(in accordance with section 237(2) of the Act (Other definitions)) (in relation to a unit trust scheme) the person holding the property in question on trust for the participants.
- 01/12/2004
trustee firm
- 01/12/2004
Type P projection
(in relation to a pension scheme or a stakeholder pension scheme) a projection in real value terms based on prices where the period to the projection date is one year or more.
- 01/12/2004
Type Q projection
(in relation to pension scheme or a stakeholder pension scheme) a projection in real value terms based on earnings where the period to the projection date is one year or more.
- 01/12/2004
Letter: U
UCITS Directive
the Council Directive of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (No 85/611/EEC), as amended by Directives 88/220/EEC, 95/26/EC, 2000/64EC, 2001/107/EC, 2001/108/EC;
- 01/12/2004
UCITS firm
a firm which:
(a) is the operator of a UCITS scheme including where in addition the firm is also the operator of a collective investment scheme which is not a UCITS scheme; and
(b) does not have a
Part IV permission
to carry on any regulated activities other than those which are in connection with, or for the purpose of, such schemes.
- 01/12/2004
UCITS investment firm
a firm which:
(a) is the operator of a UCITS scheme including where in addition the firm is also the operator of a collective investment scheme which is not a UCITS scheme; and
(b) has a Part IV permission to manage investments where the investments managed include one or more of the instruments listed in Section B of the Annex to the ISD.
- 01/12/2004
UCITS management company
- 01/12/2004
UCITS qualifier
a firm (other than an EEA UCITS management company) which:
(a) for the time being is an operator, trustee or depositary of a scheme which is a recognised scheme under section 264 of the Act; and
(b) is an authorised person as a result of paragraph 1(1) of Schedule 5 to the Act (Persons Concerned in Collective Investment Schemes);
a reference to a firm as a UCITS qualifier applies in relation to the carrying on by the firm of activities for which it has permission in that capacity.- 01/12/2004
UCITS scheme
an authorised fund whose instrument constituting the scheme contains the statement in COLL 3.2.6 R 1(2) (Table: contents of the instrument constituting the scheme) or, if it complies with the CIS, the statement required by CIS 2.2.6R(2)(a)(i) (Matters that must be included in the trust deed) or paragraph 4 (1) (b) of Schedule 2 to the OEIC Regulations, that it is a UCITS scheme; unless:
(a) the scheme raises capital without promoting the sale of its units to the public within the EEA or any part of it; or
(b) the scheme's units under its trust deed or its instrument constituting the scheme, may be sold only to the public in non-EEA States.
- 01/12/2004
UK
- 01/12/2004
UK bank
a bank which is a body corporate or partnership formed under the law of any part of the United Kingdom.
- 01/12/2004
UK consolidated group
(in ELM) (in relation to an ELMI) the consolidated sub-group of:
(b) (if the ELMI has no UK financial parent undertaking and the ELMI is a UK domestic firm) the ELMI;
as established in accordance with ELM 7 (Consolidated financial supervision).- 01/12/2004
UK domestic firm
a firm that has its registered office (or, if it has no registered office, its head office) in the United Kingdom.
- 01/12/2004
UK ECA recipient
an ECA recipient who is present in the United Kingdom.
- 01/12/2004
UK financial parent undertaking
(in ELM) (in relation to an ELMI) the same thing as EEA financial parent undertaking except that references to another EEA State are replaced with ones to the United Kingdom.
- 01/12/2004
UK firm
(as defined in paragraph 10 of Schedule 3 to the Act (EEA Passport Rights)) a person whose head office is in the United Kingdom and who has an EEA right to carry on activity in an EEA State other than the United Kingdom.
- 01/12/2004
UK group large exposure
(in ELM) (in relation to an ELMI) the same thing as the ELMI's EEA group large exposure except that references to its EEA consolidated group are replaced with references to its UK consolidated group, as established in accordance with ELM 7 (Consolidated financial supervision).
- 01/12/2004
UK group risk own funds
(in ELM) the same thing as EEA group risk own funds, subject to the adjustments required by ELM 7.5.5 R (UK group risk own funds and UK group risk own funds requirement).
- 01/12/2004
UK group risk own funds requirement
(in ELM) the same thing as EEA group risk own funds requirement, subject to the adjustments required by ELM 7.5.5R (UK group risk own funds and UK group risk own funds requirement).
- 01/12/2004
UK insurance intermediary
a UK domestic firm which has
Part IV permission
to carry on insurance mediation activity but no other regulated activity.
- 01/12/2004
UK insurer
an insurer, other than a pure reinsurer or a non-directive insurer, whose head office is in the United Kingdom.
- 31/12/2004
UK MCR
the MCR calculated in accordance with
PRU 7.6.44 R
by a non-EEA direct insurer (except a UK-deposit insurer, an EEA-deposit insurer or a Swiss general insurer) in relation to business carried on by the firm in the United Kingdom.
- 31/12/2004
UK-deposit insurer
a non-EEA insurer that has made a deposit in the United Kingdom under article 23 of the First Non-Life Directive in accordance with article 26 of that Directive or under article 51 of the Consolidated Life Directive in accordance with article 56 of that Directive.
- 31/12/2004
UKLA
the
FSA
acting in its capacity as the competent authority for the purposes of Part VI of the Act (Official Listing).
- 01/12/2004
ultimate EEA insurance parent undertaking
an EEA insurance parent undertaking that is not itself the subsidiary undertaking of another EEA insurance parent undertaking.
- 31/12/2004
ultimate insurance parent undertaking
an insurance parent undertaking that is not itself the subsidiary undertaking of another insurance parent undertaking.
- 31/12/2004
ultimate parent undertaking
(in relation to an insurer) a parent undertaking of the insurer that is not itself the subsidiary undertaking of another undertaking.
- 01/12/2004
umbrella
(in
COLL
and CIS), a collective investment scheme under which the contributions of the participants in the scheme and the profits or income out of which payments are to be made to them are pooled separately in relation to separate parts of the scheme property.
- 01/12/2004
umbrella scheme
- 01/12/2004
unauthorised person
a person who is not an authorised person.
- 01/12/2004
undertaking
(as defined in section 259 of the Companies Act 1985 (Meaning of "undertaking" and related expressions)):
(b) an unincorporated association carrying on a trade or business, with or without a view to profit.
- 01/12/2004
- 01/12/2004
underwriting capacity of a Lloyd's syndicate
the investment, specified in article 86(1) of the Regulated Activities Order, which is the underwriting capacity of a syndicate.
- 01/12/2004
unearned premium
the amount set aside by a firm at the end of its financial year out of premiums in respect of risks to be borne by the firm after the end of the financial year under contracts of insurance entered into before the end of that year.
- 31/12/2004
Unfair Terms Regulations
the Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999/2083), as amended by SI 2001/1186 and SI 2001/3649.
- 01/12/2004
unit
the investment, specified in article 81 of the Regulated Activities Order (Units in a collective investment scheme) and defined in section 237(2) of the Act (Other definitions)), which is the right or interest (however described) of the participants in a collective investment scheme; this includes:
(a) (in relation to an AUT) a unit representing the rights or interests of the unitholders in the AUT;
- 01/12/2004
unit trust scheme
(as defined in section 237(1) of the Act (Other definitions)) a collective investment scheme under which the property in question is held on trust for the participants.
- 01/12/2004
United Kingdom
England and Wales, Scotland and Northern Ireland (but not the Channel Islands or the Isle of Man).
- 01/12/2004
unitholder
(in CIS) (in relation to an AUT, and subject to CIS 11.3.2 R (Special meaning of unitholder)):
(a) (in relation to a unit represented by a bearer certificate) the person who holds the bearer certificate;
(b) (in relation to a unit that is not represented by a bearer certificate) the person whose name is entered on the register in relation to that unit.
(in COLL) (a) (in relation to an ICVC or an AUT as appropriate, and subject to COLL 4.4.4 R (Special meaning of unitholder in COLL 4.4)):
(i) (in relation a unit which is represented by a bearer certificate) the person who holds that certificate; or(ii) (in relation to a unit that is not represented by a bearer certificate) the person whose name is entered on the register in relation to that unit; or
(b) (in relation to a unit in collective investment scheme not within (a)):
- 01/12/2004
unitisation
arrangements for a newly formed
dual-priced AUT
under which:
(a) the whole or part of the property of a body corporate (or a collective investment scheme) becomes the first property to be held on the trusts of the AUT; and
(b) the holders of
shares (or units) in the body corporate (or collective investment scheme) being wound up or property of which is being transferred become the first participants in the AUT.
- 01/12/2004
units in existence
- 01/12/2004
unpaid initial fund
part of the initial fund of a mutual which the mutual is prevented from including in its tier one capital resources as permanent share capital by reason of PRU 2.2.29R because it is not fully paid.
- 31/12/2004
unregulated activity
an activity which is not a regulated activity.
- 01/12/2004
unregulated collective investment scheme
a collective investment scheme which is not a regulated collective investment scheme.
- 01/12/2004
unsecured debt
debt that does not fall within the definition of secured debt.
- 31/12/2004
unsecured lending
lending where the mortgage lender does not take a mortgage or other form of security in respect of the credit provided to the customer.
- 01/12/2004
unsolicited real time financial promotion
(in accordance with article 8 of the Financial Promotion Order) (as more fully described in
COB 3.10.1 R
(Meaning of "solicited" and "unsolicited" real time financial promotion) and
AUTH App 1.10
(Types of financial promotion))) a real time financial promotion which is not a solicited real time financial promotion.
- 01/12/2004
upper tier two capital
- 31/12/2004
upper tier two capital resources
the sum calculated at stage G of the calculation in
PRU 2.2.14 R
.
- 31/12/2004
upper tier two instrument
an item of capital that meets the conditions in
PRU 2.2.101 R
and is eligible to form part of a firm's upper tier two capital resources.
- 31/12/2004
Letter: V
valuation point
(in COLL and CIS) a valuation point fixed by the authorised fund manager for the purpose of COLL 6.3.4R (Valuation points),COLL 8.5.9R(Valuation, pricing and dealings), CIS 4.8.5R (Regular valuation points), CIS 4.8.6R (Additional valuation points) or CIS 15.8.3(1) or (2)R (Frequency of valuation).
- 01/12/2004
venture capital business
the business of carrying on any of:
(a) investing in, advising on investments which are, managing investments which are, arranging (bringing about) transactions in, or making arrangements with a view to transactions in venture capital investments;
(b) advising on investments or managing investments in relation to portfolios, or establishing, operating or winding up collective investment schemes, where the portfolios or collective investment schemes (apart from funds awaiting investment) invest only in venture capital investments;
(c) any custody activities provided in connection with the activities in (a) and (b);
(d) any related ancillary activities.
- 01/12/2004
venture capital contact
(when a firm carries on
designated investment business
with or for a person in the course of or as a result of carrying on venture capital business) that person in connection with that
designated investment business
if:
- 01/12/2004
venture capital firm
a firm whose permission includes a requirement that it must not conduct designated investment business other than venture capital business.
- 01/12/2004
venture capital investment
a designated investment which, at the time the investment is made, is:
(a) in a new or developing company or venture; or
(b) in a management buy-out or buy-in; or
(c) made as a means of financing the investee company or venture and accompanied by a right of consultation, or rights to information, or board representation, or management rights; or
(d) acquired with a view to, or in order to, facilitate a transaction falling within (a) to (c).
- 01/12/2004
version 1 credit union
a credit union whose
Part IV permission
includes a requirement (whether for all or for particular purposes) that it must not lend more than
£10,000 in excess of a member's shareholding;in this definition a "member's shareholding" means any shares held by a member of the credit unionwithin limits set bysection 5 of the Credit Unions Act 1979 .
- 01/12/2004
version 2 credit union
a credit union which is not a version 1 credit union.
- 01/12/2004
VJ participant
a person subject to the Voluntary Jurisdiction by contract.
- 01/12/2004
volatility risk
the potential loss due to fluctuations in implied option volatilities.
- 31/12/2004
Voluntary Jurisdiction
the jurisdiction of the Financial Ombudsman Service in which persons (whether authorised or unauthorised) participate by contract.
- 01/12/2004
voting power
(in relation to an undertaking) (in accordance with section 422(7) of the Act (Controller)) voting power exercisable at a general meeting of the undertaking or, if the undertaking does not have general meetings at which matters are decided by the exercise of voting rights, the right under the constitution of the undertaking to direct the overall policy of the undertaking or to alter the terms of its constitution.
- 01/12/2004
Letter: W
waiver
a direction waiving or modifying a rule, given by the
FSA
under sections 148, 250 or 294 of the Act(Waiver or modification of rules) or regulation 7 of the OEIC Regulations(Modification or waiver of FSA rules) (see SUP 8 and REC 3.3).
- 01/12/2004
warning notice
- 01/12/2004
warrant
(1) (except in
CIS
) the investment, specified in article 79 of the Regulated Activities Order (Instruments giving entitlements to investments), which is in summary: a warrant or other instrument entitling the holder to subscribe for a share, debenture or government and public security.
(2) (in
CIS
) an investment in (1) and any other transferable security (not being a nil paid or partly paid security) which is:
(ii) akin to an investment within (1) in that it involves a down payment by the then holder and a right later to surrender the instrument and to pay more money in return for a further transferable security.
- 01/12/2004
warrant scheme
an authorised fund which invests entirely in warrants.
- 01/12/2004
weather derivative
a contract for differences where the index or other factor in question is a climatic variable.
- 01/12/2004
welfare trust
any scheme or arrangement, not being an occupational pension scheme, that is comprised in one or more instruments or agreements and operates as a benevolent fund so as to provide benefits, at the discretion of the trustees and to which the beneficiaries have no contractual rights.
- 01/12/2004
whole life assurance
a contract of insurance which, disregarding any benefit payable on surrender, secures a capital sum only on death or either on death or on disability, but does not include a term assurance.
- 01/12/2004
wholesale depositor
a person who is:
(a) a credit institution; or
(b) a large company; or
(c) a large mutual association which is:
(i) a firm; or
(ii) an overseas financial services institution; or
(iii) a collective investment scheme or an operator or trustee of a collective investment scheme; or
(iv) a pension or retirement fund, or a trustee of such a fund (except a trustee of a small self-administered scheme or an occupational scheme of an employer which is not a large company or a large partnership); or
(d) a supranational institution, government or central administrative authority; or
(e) a provincial, regional, local or municipal authority; or
- 01/12/2004
wholesale market broker
a firm when carrying out the activities of name-passing broker, or acting on a matched principal basis, with or for market counterparties.
- 01/12/2004
with-profits actuary
an actuary appointed to perform the with-profits actuary function.
- 31/12/2004
with-profits actuary function
controlled function CF12A in the table of controlled functions, described more fully in SUP 4.3.16A R and SUP 10.7.17A R.
- 31/12/2004
with-profits benefits reserve
(in relation to a with-profits fund) the with-profits benefits reserve for the with-profits fund calculated in accordance with the rules in
PRU 7.4.116 R to PRU 7.4.135 G.
- 31/12/2004
with-profits business
any business of an insurer that may affect the amount or value of the assets comprising a with-profits fund.
- 01/12/2004
with-profits fund
(1) for the purposes of COB:
(a) a long-term insurance fund (or that part of such a fund) in which policyholders are eligible to participate in any established surplus; and
(b) where it is an insurer's usual practice to restrict policyholders' participation in any established surplus to that arising from only a part of the fund (or part fund) falling within (a), that part (or that part of the part fund).
(2) for the purposes of
PRU
, a long-term insurance fund in which policyholders are eligible to participate in any established surplus.
- 31/12/2004
with-profits insurance business
the business of effecting or carrying out with-profits insurance contracts.
- 31/12/2004
with-profits insurance capital component
the capital component for with-profits insurance business of a realistic basis life firm calculated in accordance with
PRU 7.4
.
- 31/12/2004
with-profits insurance contract
a long-term insurance contract which provides for the policyholder to be eligible to participate in any surplus arising on the whole of, or any part of, the insurer's long-term insurance business.
- 31/12/2004
with-profits insurance liabilities
insurance liabilities arising from with-profits insurance business.
- 31/12/2004
with-profits policy
a contract falling within a class of long-term insurance business which is eligible to participate in any part of any established surplus.
- 01/12/2004
with-profits policyholder
a policyholder under a with-profits policy.
- 01/12/2004
with-profits practices
the with-profits practices that a firm must establish, maintain and record under
COB 6.10
(Principles and Practices of Financial Management).
- 01/12/2004
with-profits principles
the with-profits principles that a firm must establish, maintain and record under
COB 6.10
(Principles and Practices of Financial Management).
- 01/12/2004
- 31/12/2004
Letter: Z
zero weighted asset
(in ELM) an investment falling into ELM 3.3.8R (Liquid assets).
- 01/12/2004
zillmerising
the method known by that name for modifying the net premium reserve method of valuing a long-term insurance contract by increasing the part of the future premiums for which credit is taken so as to allow for initial expenses.
- 31/12/2004
Zone A country
- 01/12/2004
Zone A credit institution
(in ELM) a full BCD credit institution or a full credit institution that has its registered office (or, if it has no registered office, its head office) in a Zone A country that is not an EEA State.
- 01/12/2004