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ABCP internal assessment approach
FCAPRA
ABCP programme
FCAPRA
1(for the purposes of BIPRU 9 (Securitisation)) an asset backed commercial paper programme.
above-threshold non-EEA AIFM
FCA
a non-EEA AIFM that is not a small AIFM.
222324
accepted channel for dissemination of information
FCAPRA
2(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.
accepted market practice
FCAPRA
25(as defined in section 130A(3) of the Act) practices that are reasonably expected in the financial market or markets in question and are accepted by the20 FCA20 or, in the case of a market situated in another EEA State, the competent authority of that EEA State within the meaning of the Market Abuse Directive.
accepting deposits
FCAPRA
2the 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
(b) any other activity of the person accepting the deposit is financed, wholly or to a material extent, out of the capital of or interest on money received by way of deposit.
accident
FCAPRA
2(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).
account
FCAPRA
26(in relation to a dormant account) has the meaning given in section 9 of the Dormant Bank and Building Society Accounts Act 2008, which is in summary:
(a) an account which has at all times consisted only of money and is provided by a bank or building society as part of its activity of accepting deposits; and
(b) in relation to a building society, it includes an account representing shares in the society, other than:
(i) preferential shares; or
(ii) deferred shares within the meaning given in section 119(1) of the Building Societies Act 1986.
accountable functions
FCAPRA
27(1) (in the FCA Handbook and in relation to an approved person) the functions described in APER 1.1A.2 P, which are in summary:
(c) any other functions in relation to the carrying on of a regulated activity;
in relation to the authorised persons in relation to which that person is an approved person.
(2) (in the PRA Handbook and in relation to an approved person) the functions described in APER 1.1B.2 P, which are in summary:in relation to the PRA-authorised persons in relation to which that person is an approved person.
accountable significant-influence function
FCAPRA
accounting reference date
FCAPRA
228(1) (except in COLL29):
(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 1839118 of the Companies Act 182006;18
(b) (in relation to any other body) the last day of its financial year.
(2) (in COLL29): the date stipulated in the prospectus30 on which the annual accounting period of an authorised fund ends.
accredited body
FCAPRA
3132203334
(A) In the PRA Handbook34
any of the following bodies recognised by the FCA the purpose of providing the independent verification required under TC 2.1.27 R
(a) CFA Society of the UK;
(b) The Chartered Insurance Institute;
(c) The Institute of Financial Planning;
(d) The Chartered Institute for Securities and Investment;
(e) The Chartered Institute of Bankers in Scotland;
(f) The ifs School of Finance; [Note: The ifs School of Finance acts through its Institute of Financial Services]
(g) The Institute of Chartered Accountants in England and Wales;
(h) The Pensions Management Institute.
(B) In the FCA Handbook34
any of the following bodies recognised by the FCA the purpose of providing the independent verification required under TC 2.1.27 R
(a) CFA Society of the UK;
(b) The Chartered Insurance Institute;
(c) The Institute of Financial Planning;
(d) The Chartered Institute for Securities and Investment;
(e) The Chartered Institute of Bankers in Scotland;
(f) The ifs University College; [Note: The ifs University College acts through its Institute of Financial Services]
(g) The Institute of Chartered Accountants in England and Wales;
(h) The Pensions Management Institute.
accumulating with-profits policy
FCAPRA
16a 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.
accumulation unit
FCAPRA
2a unit in respect of which income is credited periodically to 35capital property under COLL 6.8.3 R (Income allocation and distribution)35.
acknowledgement letter fixed text
FCA
10(in CASS 11) the text in the template acknowledgement letters in CASS 11 Annex 1 that is not in square brackets.
acknowledgement letter variable text
FCA
10(in CASS 11) the text in the template acknowledgment letters in CASS 11 Annex 1 that is in square brackets.
acting as the depositary of an authorised contractual scheme
FCA
36the regulated activity, specified in article 51(1)(bb) of the Regulated Activities Order (Establishing etc. a collective investment scheme), of acting as the depositary of an authorised contractual scheme.1919
acting as the depositary or sole director of an open-ended investment company
FCAPRA
2the 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.19
acting as trustee of an authorised unit trust scheme
FCAPRA
2the 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.19
acting as trustee or depositary of a UCITS
FCAPRA
5the regulated activity, specified in article 51ZB of the Regulated Activities Order which is, in summary, acting as:
(a) a trustee of an authorised unit trust scheme; or
(b) a depositary of an open-ended investment company; or
(c) a depositary of an authorised contractual scheme;
where that company or scheme is a UCITS.
acting as trustee or depositary of an AIF
FCAPRA
5the regulated activity, specified in article 51ZD of the Regulated Activities Order, which is, in summary, acting as:
(a) a depositary of an AIF falling within article 51ZD(2) of the Regulated Activities Order;
(b) the trustee of an authorised unit trust which is an AIF that does not fall within article 51ZD(2) of the Regulated Activities Order;
(c) the depositary of an open-ended investment company or of an authorised contractual scheme which is an AIF that does not fall within article 51ZD(2) of the Regulated Activities Order.
actuarial body
FCAPRA
2the Institute of Actuaries or the Faculty of Actuaries.
actuarial function
FCAPRA
actuarial health insurance
FCAPRA
21616381(in the context of the rules in 1INSPRU 1.11 concerning the calculation of the general insurance capital requirement), health insurance which meets all the conditions set out in 1INSPRU 1.1.72 R1.38
actuarial investigation
FCAPRA
16an investigation to which IPRU-INS rule 9.4 applies.
actuarial valuation date
FCAPRA
161the date as at which the mathematical reserves are calculated.
actuary
FCAPRA
2a 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.
actuating purpose
FCAPRA
2a purpose which motivates or incites a person to act.
additional tier 1 capital
FCA
39as defined in article 61 of the EU CRR.
additional tier 1 instrument
FCA
39a capital instrument that qualifies as an additional tier 1 capital instrument under article 52 of the EU CRR.
adequate public disclosure
FCAPRA
25(as defined in Article 2 of the Buy-back and Stabilisation Regulation) disclosure made in accordance with the procedure laid down in Articles 102(1) and 103 of the Consolidated Admissions and Reporting Directive.
administering a home purchase plan
FCAPRA
11the regulated activity, specified in article 63F(2) of the Regulated Activities Order, which is in summary: administering a home purchase plan where the plan was entered into by way of business on or after 6 April 2007.
administering a home reversion plan
FCAPRA
11the regulated activity, specified in article 63B(2) of the Regulated Activities Order, which is in summary: administering a home reversion plan where the plan was entered into on or after 6 April 2007.
administering a regulated lifetime mortgage contract
FCAPRA
9the 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 2004.41
administering a regulated mortgage contract
FCAPRA
942the 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 2004.41
administering a regulated sale and rent back agreement
FCAPRA
40the regulated activity, specified in article 63J(2) of the Regulated Activities Order, which is in summary any of the following:
(a) notifying the agreement seller of changes in payment due under a regulated sale and rent back agreement or of other matters of which that agreement requires him to be notified;
(b) taking any necessary steps for the purpose of making payments to the agreement seller under that agreement; and
(c) taking any necessary steps for the purposes of collecting or recovering payments due under that agreement from the agreement seller;
but a person is not to be treated as administering a regulated sale and rent back agreement because he has, or exercises, a right to take action for the purposes of enforcing that agreement (or to require that such action is or is not taken);
and in relation to a person who acquires obligations or rights under a regulated sale and rent back agreement, an activity is a specified kind of activity for the purposes of this definition only if the agreement was entered into by the agreement provider (rather than the obligations or rights acquired) on or after 1 July 2009.
administering a specified benchmark
FCA
43The regulated activity, specified in article 63O(1)(b) of the Regulated Activities Order, which means:
(1) administering the arrangements for determining a specified benchmark, or
(2) collecting, analysing or processing information or expressions of opinion for the purpose of determining a specified benchmark, or
(3) determining a specified benchmark through the application of a formula or other method of calculation to the information or expressions of opinion provided for that purpose.
administrative expenses
FCAPRA
16has the meaning set out in the insurance accounts rules.
administrative functions
FCAPRA
2(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;
(iv) ISA44 or CTF administration;45
(b) (in relation to effecting or carrying out life policies):
(i) new business administration;
(ii) policy alterations including surrenders and policy loans;
(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.
admissible asset
FCAPRA
216
(1) (1for the purpose of the rules in GENPRU and INSPRU as they apply to members of the Society of Lloyd's, the Society and managing agents1) an asset that 1638, subject to paragraphs (2) and (3) of GENPRU 2 Annex 7 R,46 falls into one or more categories in 1paragraph (1) ofGENPRU 2 Annex 7 R1 as modified by 1GENPRU 2.3.34 R1.38
(2)16 otherwise:47
(a) (in relation to an insurer which is not a pure reinsurer) an asset that, subject to paragraphs (2) and (3) of GENPRU 2 Annex 7 R,46 falls into one or more categories in paragraph (1) of GENPRU 2 Annex 7 R461; or47
(b) (in relation to a pure reinsurer) an asset the holding of which is consistent with compliance by the firm with INSPRU 3.1.61A R.47
admission or admission to listing
FCAPRA
admission to trading
FCAPRA
(1) (in LR) admission of securities to trading on an RIE's market for listed securities.48
(248) (in PR48 and49 DTR49) admission to trading on a regulated market.
(348) (elsewhere in the Handbook)48(in relation to an investment and an exchange) the process by which the exchange permits members of the exchange to enter into transactions in that investment under and subject to the rules of the exchange.2
advance payment
FCA
10includes any deposit but does not include a repayment of credit or any insurance premium or any amount entering in the total charge for credit.
advanced IRB approach
FCAPRA
1one of the following:
(a) (in relation to the sovereign, institutional and corporate IRB exposure class) the approach under the IRB approach under which a firm supplies its own estimates of LGD and conversion factors;
(b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
(c) when the reference is to the rules of or administered by a regulatory body other than the20 appropriate regulator,20 whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.
advanced measurement approach
PRA
1one of the following:
(a) the adjusted method of calculating theoperational risk capital requirement set out in BIPRU 6.5 (Operational risk: advanced measurement approaches);
(b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
(c) when the reference is to the rules of or administered by a regulatory body other than the20 appropriate regulator,20 whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.
advanced prudential calculation approach
FCAPRA
1one of the following:
(a) the IRB approach; or
(c) the VaR model approach; or
including, in each case, whatever corresponds to that approach under the rules of or administered by a regulatory body other than the20 appropriate regulator20.
advanced prudential calculation approach permission
FCA
advertisement
FCAPRA
(in PR and LR 4) (as defined in the PD Regulation) announcements:
(a) relating to a specific offer to the public of securities or to an admission to trading on a regulated market; and
(b) aiming to specifically promote the potential subscription or acquisition of securities.48
adviser
FCAPRA
2(1) (except in IPRU(INV) 13) 50an individual who is: a representative15,15 an appointed representative or a tied agent15
adviser charge
FCAPRA
52any form of charge payable by or on behalf of a retail client to a firm in relation to the provision of a personal recommendation by the firm in respect of a retail investment product (or any related service provided by the firm) which:
(a) is agreed between that firm and the retail client in accordance with the rules on adviser charging and remuneration (COBS 6.1A); and
(b) is not a consultancy charge.53
254
advising on a home purchase plan
FCAPRA
11the regulated activity, specified in article 53C of the Regulated Activities Order, which is in summary: advising a person if the advice:
(a) is given to him in his capacity as a home purchaser or potential home purchaser; and
(b) is advice on the merits of his:
(i) entering into a particular home purchase plan; or
(ii) varying the terms of a home purchase plan entered into by him on or after 6 April 2007 in such a way as to vary his obligations under that plan.
advising on a home reversion plan
FCAPRA
11the regulated activity, specified in article 53B of the Regulated Activities Order, which is in summary: advising a person if the advice:
(a) is given to him in his capacity as reversion occupier or plan provider or potential reversion occupier or potential plan provider; and
(b) is advice on the merits of his:
(i) entering into a particular home reversion plan; or
(ii) varying the terms of a home reversion plan entered into by him on or after 6 April 2007 in such a way as to vary his obligations under that plan.
advising on a regulated sale and rent back agreement
FCAPRA
40the regulated activity, specified in article 53D of the Regulated Activities Order, which is in summary advising a person if the advice:
(a) is given to a person in his capacity as:
(i) an agreement seller or potential agreement seller; or
(ii) an agreement provider or potential agreement provider; and
(b) is advice on the merits of his doing either of the following:
(i) entering into a particular regulated sale and rent back agreement; or
(ii) varying the terms of a regulated sale and rent back agreement entered into on or after 1 July 2009 by him as agreement seller or agreement provider, in such a way as to vary his obligations under that agreement and in relation to a person who acquires obligations or rights under a regulated sale and rent back agreement, an activity is a specified kind of activity for the purposes of this part of the definition only if the agreement was entered into by the agreement provider (rather than the obligations or rights acquired) on or after 1 July 2009.
advising on investments
FCAPRA
2554256
5(1) (except in SUP 10A (Approved Persons) and APER)5 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 to buy, sell, subscribe for or underwrite such an investment.
5(2) (in SUP 10A (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.
advising on investments (except pension transfers and pension opt-outs)
FCAPRA
advising on pension transfers and pension opt-outs
FCAPRA
2advising on investments in respect of pension transfers and pension opt-outs.
advising on regulated mortgage contracts
FCAPRA
942the 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.41
advising on syndicate participation at Lloyd's
FCAPRA
2the 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.
affected person
FCA
228(in COLL29):
(a) (in relation to an ICVC):
(i) the ICVC;
(ii) its depositary;
(iii) a director of the ICVC;
(iv) any investment adviser of the ICVC;
(v) any associate of any person in (a)(i), (ii), (iii) or (iv);
(vi) the auditor of the scheme;
(b) (in relation to an AUT):
(i) the manager;
(ii) the trustee;
(iii) any investment adviser of the manager;
(iv) any associate of any person in (b)(i), (ii) or (iii);
(v) the auditor of the scheme.
3(c) (in relation to an ACS):
(ii) the depositary;
(iv) any associate of any person in (c)(i), (ii) or (iii);
(v) the auditor of the scheme;
affiliated company
FCAPRA
2(in relation to a person) an undertaking in the same group as that person.
agent
FCAPRA
5859(in relation to payment services or electronic money)2324 a person who acts on behalf of a payment institution or an electronic money institution2324 in providing payment services.

[Note: article 4(22) of the Payment Services Directive]
agreeing to carry on a regulated activity
FCAPRA
222360(A) In the PRA Handbook:

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 or Part 3A61 of that Order other than:(B) In the FCA Handbook:

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 or Part 3A61 of that Order other than:
AIF custodial assets
FCA
6financial instruments of an AIF that can be:
(a) registered in a financial instruments account opened in the depositary's books; or
(b) physically delivered to the depositary.
[Note: recital 100 and articles 88 (Financial instruments to be held in custody) and 89(3) (Safekeeping duties with regard to assets held in custody) of the AIFMD level 2 regulation.]
AIFM investment firm
FCAPRA
5a firm which:
(a) is:
(b) has a Part 4A permission (or an equivalent permission from its Home State regulator) for managing investments where:
(i) the investments managed include one or more financial instruments; and
(ii) the permission is limited to the activities permitted by article 6(4) of AIFMD.
AIFM investment management functions
FCA
6investment management functions of an AIFM as set out in 1(a) (portfolio management) or (b) (risk management) of Annex I to AIFMD.
AIFM management functions
FCAPRA
5the management functions of an AIFM listed in Annex I to AIFMD.
AIFM qualifier
FCAPRA
5an EEA AIFM which is marketing, or has marketed, an AIF in the UK by:
(a) exercising its EEA right to market under Schedule 3 of the Act (EEA Passport Rights); and
(b) is not exercising a right to manage a UK AIF under Schedule 3 of the Act.
AIFM Remuneration Code
FCA
6as set out in SYSC 19B (AIFM Remuneration Code).
AIFM Remuneration Code staff
FCA
6(for an AIFM) has the meaning given in SYSC 19B.1.3 R.
AIFM remuneration principles
FCA
6the principles set out in SYSC 19B.1.5 R to SYSC 19B.1.24 R.
AIFMD
FCAPRA
5Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:174:0001:0073:EN:PDF) .
AIFMD host state requirements
FCAPRA
5Handbook rules transposing articles 12 and 14 of AIFMD and which fall under the responsibility of the Host State to supervise where an AIFM manages or markets an AIF through a branch in that EEA State, namely:
AIFMD level 2 regulation
FCAPRA
5Commission delegated regulation (EU) No 231/2013 supplementing Directive 2011/16/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:083:0001:0095:en:PDF) .
AIFMD UK regulation
FCAPRA
57(A) In the PRA Handbook:
the Alternative Investment Fund Managers Regulations 2013 (SI 2013/....)
(B) In the FCA Handbook:
the Alternative Investment Fund Managers Regulations 2013 (SI 2013/17737)
aircraft
FCAPRA
2(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.
aircraft liability
FCAPRA
2(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.
all price risk measure
FCAPRA
62(in BIPRU 7.10 (Use of a Value at Risk Model)) has the meaning in BIPRU 7.10.116A R (Capital calculations for VaR models), which is, in relation to a business day, the all price risk measure required under the provisions in BIPRU 7.10 about specific risk for the correlation trading portfolio.
allocation period
FCAPRA
2a single 24-hour period or, with the agreement of each15 professional client15 concerned, a period spanning five consecutive business days, during which an aggregated series of transactions may be executed.
allotment
FCAPRA
25(as defined in Article 2 of the Buy-back and Stabilisation Regulation) the process or processes by which the number of relevant securities to be received by investors who have previously subscribed or applied for them is determined.
alternative debenture
FCAPRA
63the investment specified in article 77A of the Regulated Activities Order (Alternative finance investment bonds).
alternative investment fund
FCAPRA
5(in accordance with article 4(1)(a) of AIFMD) a collective investment undertaking, including investment compartments thereof, which:
(a) raises capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors; and
(b) does not require authorisation pursuant to article 5 of the UCITS Directive.
alternative investment fund manager
FCAPRA
6465
5(1) (in GENPRU 3.1) a manager of alternative investment funds within the meaning of Article 4(1)(b), (l) and (ab) of Directive 2011/61/EU or an undertaking which is outside the EEA and which would require authorisation in accordance with Directive 2011/61/EU if it had its registered office within the EEA.
5(2) (except in GENPRU 3.1 and in accordance with article 4(1)(b) of AIFMD) a legal person whose regular business is performing AIFM investment management functions for one or more AIF.
alternative projection
FCAPRA
15(in COBS) a projection calculated on the basis described in paragraph 1.5R of the projection rules (COBS 13 Annex 2), rather than in accordance with the remainder of those rules.
alternative standardised approach
FCAPRA
1one of the following:
(a) a version of the standardised approach to operational risk under which a firm uses different indicators for certain business lines as referred to in BIPRU 6.4.19 R (The alternative standardised approach);
(b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
(c) when the reference is to the rules of or administered by a regulatory body other than the20 appropriate regulator,20 whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.
6667
AMA permission
PRA
1an Article 129 implementing measure, a requirement or a waiver that requires a BIPRU firm or8a CAD investment firm8 to use theadvanced measurement approach to operational risk on a solo basis or, if the context requires, a consolidated basis.
225
ancillary activity
FCAPRA
2an 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.
22168
ancillary insurance services undertaking
FCAPRA
68(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; and1
(c) those insurance undertakings are also members of that consolidation group, sub-group or other group of persons1.1
1
168
ancillary risk
FCAPRA
16(in relation to an insurer with permission under the Act to insure a principal risk belonging to one class (as defined for the purposes of691 INSPRU1 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.
ancillary service
FCAPRA
7071(A) In the PRA Handbook:

any of the services listed in Section B of Annex I to MiFID, that is:
(a) safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;
(b) granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction;
(c) advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings;
(d) foreign exchange services where these are connected to the provision of investment services;
(e) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
(f) services related to underwriting; and
(g) investment services and activities as well as ancillary services within (a) to (f), above, related to the underlying of the derivatives included under Section C - 5, 6, 7 and 10, that is (in accordance with that Annex and Recital 21 to, and Article 39 of, the MiFID Regulation):
(i) commodities;
(ii) climatic variables;
(iii) freight rates;
(iv) emission allowances;
(v) inflation rates or other official economic statistics;
(vi) telecommunications bandwidth;
(vii) commodity storage capacity;
(viii) transmission or transportation capacity relating to commodities, where cable, pipeline or other means;
(ix) an allowance, credit, permit, right or similar asset which is directly linked to the supply, distribution or consumption of energy derived from renewable resources;
(x) a geological, environmental or other physical variable;
(xi) any other asset or right of a fungible nature, other than a right to receive a service, that is capable of being transferred;
(xii) an index or measure related to the price or value of, or volume of transactions in any asset, right, service or obligation;
where these are connected to the provision of investment services or ancillary services.

[Note: article 4(1)(3) of MiFID](B) In the FCA Handbook:

(1) (except in CONC)10 any of the services listed in Section B of Annex I to MiFID, that is:
(a) safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;
(b) granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction;
(c) advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings;
(d) foreign exchange services where these are connected to the provision of investment services;
(e) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
(f) services related to underwriting; and
(g) investment services and activities as well as ancillary services within (a) to (f), above, related to the underlying of the derivatives included under Section C - 5, 6, 7 and 10, that is (in accordance with that Annex and Recital 21 to, and Article 39 of, the MiFID Regulation):
(i) commodities;
(ii) climatic variables;
(iii) freight rates;
(iv) emission allowances;
(v) inflation rates or other official economic statistics;
(vi) telecommunications bandwidth;
(vii) commodity storage capacity;
(viii) transmission or transportation capacity relating to commodities, where cable, pipeline or other means;
(ix) an allowance, credit, permit, right or similar asset which is directly linked to the supply, distribution or consumption of energy derived from renewable resources;
(x) a geological, environmental or other physical variable;
(xi) any other asset or right of a fungible nature, other than a right to receive a service, that is capable of being transferred;
(xii) an index or measure related to the price or value of, or volume of transactions in any asset, right, service or obligation;
where these are connected to the provision of investment services or ancillary services.

[Note: article 4(1)(3) of MiFID]
10(2) (in CONC) a service that relates to entering into a regulated credit agreement as lender and includes, in particular, an insurance or payment protection policy.
ancillary services undertaking
FCAPRA
16111
(A) In the PRA Handbook72

(1) (in accordance with Article 4(21) of the Banking Consolidation Directive (Definitions) and subject to (2)) 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 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 credit institutions or investment firms; and
(c) those credit institutions or investment firms are also members of that consolidation group, sub-group or group.
(2) (for the purpose of GENPRU 1.3 (Valuation) and INSPRU 6.1 (Group Risk: Insurance Groups) an undertaking in (1) and an .

(B) In the FCA Handbook72

(1) (in accordance with Article 4(21) of the Banking Consolidation Directive (Definitions) for the purpose of GENPRU (except in GENPRU 3) and BIPRU (except in BIPRU 12) and subject to (2)) 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 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 credit institutions or investment firms; and
(c) those credit institutions or investment firms are also members of that consolidation group, sub-group or group.
2) (for the purpose of GENPRU 1.3 (Valuation) and INSPRU 6.1 (Group Risk: Insurance Groups) an undertaking in (1) and an .
(3) (except in (1)) has the meaning in article 4(1)(18) of the EU CRR.
ancillary stabilisation
FCA
25(as defined in Article 2 of the Buy-back and Stabilisation Regulation) the exercise of an overallotment facility or of a greenshoe option by investment firms or credit institutions, in the context of a significant distribution of relevant securities, exclusively for facilitating stabilisation activity.
announceable information
FCAPRA
2information which is usually the subject of a public announcement, although not subject to any formal disclosure requirement.
annual accounting period
FCAPRA
22829(1) [deleted]29
30(2) (in COLL): the period determined in accordance with COLL 6.8.2 R (3) to COLL 6.8.2 R (7) (Accounting periods).30
Annual Accounts
FCAPRA
16
17(1) the Council Directive of 19 December 1991 concerning the annual accounts and consolidated accounts of insurance undertakings (No. 91/674/EEC).
17(2) (in UPRU) accounts prepared to comply with18:18
(a) the Companies Acts 1985 to 1989, and their equivalent in Northern Ireland, where these provisions are applicable; or18
(b) the Companies Act 2006; or 18
(c) other statutory obligations.18
19
annual audited fixed expenditure
FCAPRA
17(in UPRU) has the meaning given in UPRU 2.1.3 R (Annual audited fixed expenditure).19
annual bonus
FCAPRA
16(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.
annual budget
FCAPRA
73the annual budgeted costs of operating the Financial Ombudsman Service.
annual eligible income
FCAPRA
74(in75 FEES75) (in relation to a firm and a class)7677 the annual income (as described in77 78 FEES 6 Annex 3 R77) for the firm's last financial year78 ended in the year to 31 December75 preceding the date for submission of the information79 under 78FEES 6.5.13 R7879 attributable to77 that777575 class76. A firm must calculate annual eligible income from such annual income in one of the following ways:7777777977
(a) only include such annual income if it is attributable to business conducted with or for the benefit of eligible claimants and is otherwise attributable to compensatable business; or77
(b) include all such annual income.77
1780
annual financial statements
FCAPRA
50the financial statements in respect of the year ending on the firm's annual accounting reference date, which is the date to which a corporate firm's accounts are prepared for the purposes of the Companies Acts, or, where the firm is not subject to the Companies Acts, the equivalent date chosen by the firm and notified to the20 FCA or PRA as the case may be20.
annual income
FCAPRA
81(in MIPRU)
the income referred to in MIPRU 4.3
annual income allocation date
FCAPRA
2the 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.
annual percentage rate
FCAPRA
9the annual percentage rate of charge for a contract as calculated in accordance with MCOB 10 (Annual percentage rate).
annual percentage rate of charge
FCA
83(1) (in CONC App 1.1) the rate of the total charge for credit (calculated in accordance with CONC App 1.1.7 R).
(2) (in CONC App 1.2) the rate of the total charge for credit (calculated in accordance with CONC App 1.2.4 R), expressed as an annual percentage of the total amount of credit.
annual report and accounts
FCAPRA
2(a) (in relation to a company incorporated in the United Kingdom) an annual report and annual accounts as those terms are defined in18:18
(i) section 262(1) of the Companies Act 1985, together with an auditor's report prepared in relation to those accounts under section 235 of the same Act where these provisions are applicable; or 18
(ii) section 471 of the Companies Act 2006 together with an auditor's report prepared in relation to those accounts under sections 495 to 497 of the same Act;18
(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.
annualised net written premiums
FCAPRA
16(for the purposes of 1INSPRU 1.41) 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.
APER
FCAPRA
2the part of the Handbook in High Level Standards which has the title Statements of Principle and Code of Practice for Approved Persons.
applicable provisions
FCAPRA
2the 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
(b) a UK firm is required to comply when conducting business through a branch (in accordance with paragraph 19(13) of Part III of Schedule 3 to the Act (Exercise of passport rights by UK firms)) or by providing services (as applicable) in another EEA State.
applicable sectoral consolidation rules
FCAPRA
68(in respect of a financial sector and in accordance with paragraph 6.191 of1 GENPRU 3 Annex 1 R1 (Applicable sectoral consolidation rules)) the20 appropriate regulator's20 sectoral rules about capital adequacy and solvency on a consolidated basis applicable to that financial sector under the table in paragraph 6.110 of GENPRU 3 Annex 1 R1.
applicable sectoral rules
FCAPRA
68(in respect of a financial sector) applicable sectoral consolidation rules for that financial sector and the20 appropriate regulator's20 sectoral rules about capital adequacy and solvency 1for:1
(a) the banking and investment services sector as set out in paragraph 6.2 of GENPRU 3 Annex 1 R; or1
which of those sets of rules apply for the purpose of a particular calculation depends on the nature of that calculation.
applicant
FCAPRA
(1) (in LR) an issuer which is applying for admission of securities.
(2) (in PR) an applicant for approval of a prospectus or supplementary prospectus relating to transferable securities.48
237
237
appointed representative
FCAPRA
2(A) In the PRA Handbook:

(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.
(B) In the FCA Handbook:
10(1) (in relation to cases apart from in (2) (in accordance with section 39 of the Act (other than an authorised person) a 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.
10(2) (in relation to a firm with a permission only to carry on one or more regulated activities prescribed for the purposes of section 39(1E)(a) of the Act) in accordance with section 39 of the Act, a person ("A") who:
(a) is a party to a contract with another authorised person (A's principal) which:
(i) permits or requires A to carry on business of a description prescribed in the Appointed Representatives Regulations ("the relevant business"); 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 the relevant business A's principal has accepted responsibility in writing;
and, therefore, to whom sections 20(1) and (1A) and 23(1A) of the Act do not apply in relation to the carrying on by A of a regulated activity which is not one to which A's permission relates, and is comprised in the carrying on of the business for which A's principal has accepted responsibility.
Appointed Representatives Regulations
FCAPRA
2the Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 (SI 2001/1217).
apportionment and oversight function
FCAPRA
227FCA controlled function27 CF8 in Parts 1 and Part 2 of27 the27 table of FCA controlled functions,27 described more fully in27 SUP 10A.7.1 R27.
appropriate actuary
FCAPRA
2an actuary appointed under SUP 4.4.1 R (Appointment of an appropriate actuary).
appropriate charges information
FCAPRA
15(in COBS) information about charges which is calculated and presented in accordance with the charges rules in COBS 13.4.1 R and86 COBS 13 Annexes 3 or 4.86
287605688
appropriate position risk adjustment
FCAPRA
20(1) (in relation to a position treated under BIPRU 7.6 (Option PRR)) the percentage figure applicable to that position under the table in BIPRU 7.6.8 R (Appropriate Position Risk Adjustment);
(2) (for any other purpose and in relation to a position) the position risk adjustment applicable to that position under BIPRU 7 (Market risk).
appropriate regulator
FCAPRA
20(1) in the FCA Handbook, the FCA; and in the PRA Handbook, the PRA;
(2)
(a) in SUP 11 "appropriate regulator" has the meaning given in section 178 of the Act, and
(b) in SUP 18 "appropriate regulator" has the meaning given in section 103A of the Act.
appropriate UK regulator
FCAPRA

85(1) in relation to an EEA firm (in accordance with Schedule 3 paragraph 13(4) and 14(4) to the Act), whichever of the FCA or PRA is the competent authority for the purposes of the relevant Single Market Directive;
(2) in relation to a UK firm (in accordance with Schedule 3 paragraph 18A to the Act),
(a) the PRA, where the firm is a PRA-authorised person; and
(b) in any other case, the FCA.
(3) in relation to a Treaty firm (in accordance with section 35(2A) of the Act),
(a) in the case of a PRA-authorised person, the PRA; and
(b) in any other case, the FCA.
appropriate valuer
FCAPRA
228(in COLL29) a person who complies with the requirements of COLL 5.6.18 R (7) (Investment in property)29or 29 COLL 8.4.11 R (4) (29Investment in property) 29.
approve
FCAPRA
2(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).
approved bank
FCAPRA
28928(except in COLL29) (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
(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:
(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.
(in COLL29) any person falling within (a-c).
approved collateral
FCAPRA
2any 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.
approved counterparty
FCAPRA
216any of the following: 16
(b) a firm whose permission includes dealing in investments as principal with respect to derivatives which are not listed; or16
(c)15 a MiFID investment firm whose authorisation (as referred to in article15 5 of MiFID15) authorises it to carry on activities of the kind referred to in (b); or 16
(d) in respect of a transaction involving a new issue of securities which are to be listed, the issuer or15 a MiFID investment firm15 acting on behalf of the issuer.16
approved credit institution
FCAPRA
216918(A) In the PRA Handbook:
a credit 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 CRD.(B) In the FCA Handbook:
a credit 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 CRD92.
approved depositary
FCAPRA
273any 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.
approved derivative
FCAPRA
22816
(1) (in COLL29) a derivative which is traded or dealt in on an eligible derivatives market.16
(2) (in1 INSPRU1) a derivative in respect of which the conditions in 1 INSPRU 3.2.5 R1 are met.16
approved financial institution
FCAPRA
216any of the following:16
(a) the European Central Bank; 16
(b) the central bank of an EEA State; 16
(c) the International Bank for Reconstruction and Development; 16
(d) the European Bank for Reconstruction and Development; 16
(e) the International Finance Corporation; 16
(f) the International Monetary Fund; 16
(g) the Inter-American Development Bank; 16
(h) the African Development Bank;16
(i) the Asian Development Bank; 16
(j) the Caribbean Development Bank; 16
(k) the European Investment Bank; 16
(l) the 93EU93; and 16
(m) the European Atomic Energy Community.16
approved index
FCAPRA
94in relation to permitted links:
(a) an index that is:
(i) calculated independently;
(ii) published at least once every week;
(iii) based on constituents that are permitted links; and
(iv) calculated on a basis that is made available to the public, and that includes both the rules for including and excluding constituents and the rules for valuation which must use an arithmetic average of the value of the constituents; or
(b) a national index of retail prices published by or under the authority of a government, or by a body recognised under the national legislation,95 of a 96Zone A country;96 or
(c) an index that is:
(i) based on constituents that are permitted links; and
(ii) in respect of which a derivative contract is listed97; or97
(d) the average earnings index when used for the purposes of orders made under section 148 of the Social Security Administration Act 1992 by the Department for Work and Pensions.97
approved money-market instrument
FCAPRA
98(in accordance with COLL 5.2.7F R) a money-market instrument which is normally dealt in on the money market, is liquid and has a value which can be accurately determined at any time.
approved person
FCAPRA
2a person in relation to whom the27 FCA or the PRA27 has given its approval under section 59 of the Act (Approval for particular arrangements) for the performance of a controlled function.
approved quasi-derivative
FCAPRA
16a quasi-derivative in respect of which the conditions in 1 INSPRU 3.2.5 R1 are met.
approved reinsurance to close
FCAPRA
99(a) a reinsurance to close effected before 1 January 2005; or
99(b) 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 100one other100 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 that is:
(i) effected after 1 January 2005; and
(ii) not a balance transfer between two syndicate years where the syndicate has only one member and the member is the same in each of those years100; or100
100(c) an agreement under which members of a syndicate in one syndicate year ("the reinsured members") agree with a subsidiary of the Society that that subsidiary 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 ("the reinsured liabilities") and where:
(i) that subsidiary is wholly owned by the Society and if from time to time the subsidiary has an asset or cash flow deficiency such that the subsidiary is unable to meet any of the liabilities which it has reinsured, the Society is legally obliged to pay to the subsidiary a sum equal to that deficiency; and
(ii) at the effective date of the agreement, the relevant syndicate year has been open for at least two years after the date at which it would normally have been closed in accordance with the policies and practices in relation to the syndicate concerned.
approved reporting mechanism
FCAPRA
71a trade-matching or reporting system approved by the20 FCA20 in accordance with Section 412A of the Act.
approved security
FCAPRA
228(1) (in COLL29) 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) (in381 INSPRU116) 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.
(3) (in94 COBS94) any of the following:94
(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 loan to or deposit with, any government, public or local authority or nationalised industry or undertaking that belongs to Zone A as defined in the Banking Consolidation Directive; or94
(b) any loan to, or deposit with, an approved financial institution; or94
(c) debentures issued before 31 December 1994 by the Agricultural Mortgage Corporation Ltd or the Scottish Agricultural Securities Corporation Ltd.94
approved stock lending transaction
FCAPRA
16a stock lending transaction in respect of which the conditions in 1 INSPRU 3.2.36 R1have been met.
APR
FCAPRA
9(A) In the PRA Handbook:

annual percentage rate.
(B) In the FCA Handbook:
10(2) (in CONC for a credit agreement secured on land) the annual percentage rate of charge for credit determined in accordance with the rules in CONC App 1.1 and CONC 3.6.9 R.
10(3) (in CONC for all other credit agreements) the annual percentage rate of charge for credit determined in accordance with the rules in CONC App 1.2 and CONC 3.5.13 R.
APR rules
FCAPRA
arrangement
FCAPRA
2(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).
2168
arranging (bringing about) a home purchase plan
FCAPRA
11the regulated activity, specified in article 25C(1) of the Regulated Activities Order, which is in summary: making arrangements for another person to:
(a) enter into a home purchase plan as home purchaser; or
(b) vary the terms of a home purchase plan entered into by him as home purchaser on or after 6 April 2007.
arranging (bringing about) a home reversion plan
FCAPRA
11the regulated activity, specified in article 25B(1) of the Regulated Activities Order, which is in summary: making arrangements for another person to:
(a) enter into a home reversion plan as reversion occupier or as plan provider; or
(b) vary the terms of a home reversion plan entered into by him as reversion occupier or as plan provider on or after 6 April 2007.
arranging (bringing about) a regulated sale and rent back agreement
FCAPRA
40the regulated activity, specified in article 25E(1) of the Regulated Activities Order, which is in summary making arrangements:
(a) for another person to enter into a regulated sale and rent back agreement as an agreement seller or as an agreement provider; or
(b) for another person to vary the terms of a regulated sale and rent back agreement, entered into on or after 1 July 2009 by him as agreement seller or agreement provider, in such a way so as to vary his obligations under that agreement and in relation to a person who acquires obligations or rights under a regulated sale and rent back agreement, an activity is a specified kind of activity for the purposes of this part of the definition only if the agreement was entered into by the agreement provider (rather than the obligations or rights acquired) on or after 1 July 2009;

including making arrangements with a view to a person who participates in the arrangements101 entering into a regulated sale and rent back agreement101 as agreement seller or agreement provider.
arranging (bringing about) deals in investments
FCAPRA
10255the 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:
arranging (bringing about) regulated mortgage contracts
FCAPRA
942the 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 2004.41
(see also arranging (in relation to regulated mortgage contracts) and making arrangements with a view to regulated mortgage contracts.)
arranging deals in contracts of insurance written at Lloyd's
FCAPRA
2the 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.
arranging qualifying credit
FCAPRA
9the 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.41
arranging safeguarding and administration of assets
FCAPRA
2that 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.
arrears
FCAPRA
9(in relation to a regulated mortgage contract or a home purchase plan11) 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 pay or11 repay where the loan or home purchase plan11 does not have a regular payment or11 repayment plan.
article 12(1) relationship
PRA
8(A) (in the PRA Handbook):
means a relationship where undertakings are linked by a relationship within the meaning of article 12(1) of Directive 83/349 EEC.
Article 129 implementing measure
FCAPRA
1any:
(a) measure taken by the20 appropriate regulator20 under regulations 7-9 of the Capital Requirements Regulations 2006; or
(b) corresponding measure taken by another competent authority to apply an Article 129 permission as referred to in the last paragraph of Article 129(2) of the Banking Consolidation Directive.
Article 129 permission
FCAPRA
1a permission of the type referred to in Article 129(2) of the Banking Consolidation Directive (permission to apply the IRB approach, the AMA approach or the CCR internal model method on a consolidated basis) or Article 37(2) of the Capital Adequacy Directive (permission to apply the VaR model approach on a consolidated basis) excluding an Article 129 implementing measure.
Article 129 procedure
FCAPRA
1the procedure described in Article 129(2) of the Banking Consolidation Directive (permission to apply the IRB approach, the AMA approach or the CCR internal model method on a consolidated basis) or that applies under Article 37(2) of the Capital Adequacy Directive (permission to apply the VaR model approach on a consolidated basis) for the purpose of applying for and granting or refusing an Article 129 permission or the procedure for varying of revoking an Article 129 permission in accordance with the Banking Consolidation Directive or the Capital Adequacy Directive.
Article 134 relationship
FCAPRA
1(in accordance with Article 134 of the Banking Consolidation Directive) a relationship of one of the following kinds:
(a) where a person exercises a significant influence over one or more persons, but without holding a participation or other capital ties in these persons and without being a parent undertaking of these persons; or
(b) where two or more persons are placed under single management other than pursuant to a contract or clauses of their memoranda or articles of association.
article 18(5) relationship
FCAPRA
8(A) (in the PRA Handbook)
the relationship where there are participations or capital ties other than those referred to in article 18(1) and (2) of the EU CRR (Methods for prudential consolidation).

39(B) (in the FCA Handbook)
the relationship where there are participations or capital ties other than those referred to in article 18(1) and 103(4)103of the EU CRR (Methods for prudential consolidation).
article 18(6) relationship
FCA
39(in accordance with article 18 of the EU CRR (Methods for prudential consolidation)) a relationship of one of the following kinds:
(a) where an institution exercises a significant influence over one or more institutions or financial institutions, but without holding a participation or other capital ties in these institutions; or
(b) where two or more institutions or financial institutions are placed under single management other than under a contract or clauses of their memoranda or articles of association.
article 9 default
FCAPRA
55(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.
assessable mutual
FCAPRA
16(for the purposes of 1INSPRU 1.41) 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.
asset
FCAPRA
104(in RCB) (as defined in Regulation 1(2) of the RCB Regulations) any property, right, entitlement or interest.
asset backed commercial paper programme
FCAPRA
1(for the purposes of BIPRU 9 (Securitisation) and in accordance with Part 1 of Annex IX of the Banking Consolidation Directive (Securitisation definitions)) a programme of securitisations (within the meaning of paragraph (2) of the definition of securitisation) the securities issued by which predominantly take the form of commercial paper with an original maturity of one year or less.
asset backed security
FCAPRA
(as defined in the PD Regulation) 105securities105which:
(a) represent an interest in assets, including any rights intended to assure servicing, or the receipt or timeliness of receipts by holders of assets of amounts payable thereunder; or
(b) are secured by assets and the terms of which provide for payments which relate to payments or reasonable projections of payments calculated by reference to identified or identifiable assets.48
asset identification rules
FCAPRA
220rules made by the20 appropriate regulator20 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.
asset management company
FCAPRA
689111 a management company within the meaning of Article4 2(1)(b)4 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 Article4 6(1)4 of the UCITS Directive if it had its registered office within the EEA.
asset pool
FCAPRA
104(in RCB) (as defined in Regulation 1(2) of the RCB Regulations) an asset pool within the meaning of Regulation 3 of the RCB Regulations.
asset pool monitor
FCAPRA
106a person appointed under regulation 17A of the RCB Regulations.
asset-related capital requirement
FCAPRA
16a component of the calculation of the ECR for a firm carrying on general insurance business as set out in1 INSPRU 2.21.
assignment
FCA
83in accordance with article 60L of the Regulated Activities Order, in relation to Scotland, means assignation.
assistance
FCAPRA
2(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).
assisting in the administration and performance of a contract of insurance
FCAPRA
42the 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.
associate
FCAPRA
1074810810915261
61(A) in the PRA Handbook:
(1) (in LR) (in relation to a director, substantial shareholder, or person exercising significant influence, who is an individual):
(a) that individual's spouse, civil partner or child (together the "individual's family");
(b) the trustees (acting as such) of any trust of which the individual or any of the individual's family is a beneficiary or discretionary object (other than a trust which is either an occupational pension scheme or an employees' share scheme which does not, in either case, have the effect of conferring benefits on persons all or most of whom are related parties;
(c) any company in whose equity securities the individual or any member or members (taken together) of the individual's family or the individual and any such member or members (taken together) are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they are (or would on the fulfilment of the condition or the occurrence of the contingency be) able:
(i) to exercise or control the exercise of 30% or more of the votes able to be cast at general meetings on all, or substantially all, matters; or
(ii) to appoint or remove directors holding a majority of voting rights at board meetings on all, or substantially all, matters;
(d) any partnership whether a limited partnership or limited liability partnership in which the individual or any member or members (taken together) of the individual's family are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they hold or control or would on the fulfilment of the condition or the occurrence of the contingency be able to hold or control:
(i) a voting interest greater than 30% in the partnership; or
(ii) at least 30% of the partnership.
For the purpose of paragraph (c), if more than one director of the listed company, its parent undertaking or any of is subsidiary undertakings is interested in the equity securities of another company, then the interests of those directors and their associates will be aggregated when determining whether that company is an associate of the director.
(2) (in LR) (in relation to a substantial shareholder or person exercising significant influence, which is a company):
(b) any company whose directors are accustomed to act in accordance with the substantial shareholder's or person exercising significant influence's, directions or instructions;
(c) any company in the capital of which the substantial shareholder or person exercising significant influence and any other company under paragraph (1) or (2) taken together, is (or would on the fulfilment of a condition or the occurrence of a contingency be) able to exercise power of the type described in paragraph (1)(c)(i) or (ii) of this definition.
(3) (except in LR) (in relation to a person ("A")):
(a) an affiliated company of A;
(b) an appointed representative of A, or a tied agent of A, or of any affiliated company of A;
(c) any other whose business or domestic relationship with A or his associate might reasonably be expected to give rise to a community of interest between them which may involve a conflict of interest in dealings with third parties.
61(B) in the FCA Handbook:
(1) (in LR) (in relation to a director, substantial shareholder, or person exercising significant influence, who is an individual):
(a) that individual's spouse, civil partner or child (together the "individual's family");
(b) the trustees (acting as such) of any trust of which the individual or any of the individual's family is a beneficiary or discretionary object (other than a trust which is either an occupational pension scheme or an employees' share scheme which does not, in either case, have the effect of conferring benefits on persons, all or most of whom are related parties;
(c) any company in whose equity securities the individual or any member or members (taken together) of the individual's family or the individual and any such member or members (taken together) are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they are (or would on the fulfilment of the condition or the occurrence of the contingency be) able:
(i) to exercise or control the exercise of 30% or more of the votes able to be cast at general meetings on all, or substantially all, matters; or
(ii) to appoint or remove directors holding a majority of voting rights at board meetings on all, or substantially all, matters;
(d) any partnership whether a limited partnership or limited liability partnership in which the individual or any member or members (taken together) of the individual's family are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they hold or control or would on the fulfilment of the condition or the occurrence of the contingency be able to hold or control:
(i) a voting interest greater than 30% in the partnership; or
(ii) at least 30% of the partnership.
For the purpose of paragraph (c), if more than one director of the listed company, its parent undertaking or any of its subsidiary undertakings is interested in the equity securities of another company, then the interests of those directors and their associates will be aggregated when determining whether that company is an associate of the director.
(2) (in LR) (in relation to a substantial shareholder or person exercising significant influence which is a company):
(b) any company whose directors are accustomed to act in accordance with the substantial shareholder's or person exercising significant influence's, directions or instruction;
(c) any company in the capital of which the substantial shareholder or person exercising significant influence and any other company under paragraph (1) or (2) taken together, is (or would on the fulfilment of a condition or the occurrence of a contingency be) able to exercise power of the type described in paragraph (1)(c)(i) or (ii) of this definition
(2A) (in CONC or in relation to a credit-related regulated activity), as defined in article 60L of the Regulated Activities Order, in relation to a person ("P"):
(a) where P is an individual any person who is or who has been:
(i) P's spouse or P's civil partner;
(ii) a relative7 of P, P's spouse or P's civil partner;
(iii) the spouse or civil partner of a relative7 of P or P's spouse or civil partner;
(iv) if P is a member of a partnership, any of P's partners and the spouse or civil partner of any such person;
(b) where P is a body corporate:
(i) any person who is a controller ("C") of P;
(ii) any other person for whom C is a controller.
(3) (except in LR or in relation to a credit-related regulated activity) (in relation to a person ("A")):
(a) an affiliated company of A;
(b) an appointed representative of A, or a tied agent of A, or of any affiliated company of A;
(c) any other person whose business or domestic relationship with A or his associate might reasonably be expected to give rise to a community of interest between them which may involve a conflict of interest in dealings with third parties.
associated call option
FCAPRA
2a right to acquire a particular amount of the relevant security or of any associated security at a future date at a particular price.
associated instrument
FCAPRA
25(as defined in Article 2 of the Buy-back and Stabilisation Regulation) any of the following financial instruments (including those which are not admitted to trading on a regulated market, or for which a request for admission to trading on such a market has not been made, provided that the relevant competent authorities have agreed to standards of transparency for transactions in such financial instruments):
(a) contracts or rights to subscribe for, acquire or dispose of relevant securities;
(b) financial derivatives on relevant securities;
(c) where the relevant securities are convertible or exchangeable debt instruments, the securities into which such convertible or exchangeable debt instruments may be converted or exchanged;
(d) instruments which are issued or guaranteed by the issuer or guarantor of the relevant securities and whose market price is likely to materially influence the price of the relevant securities, or vice versa; and
(e) where the relevant securities are securities equivalent to shares, the shares represented by those securities (and any other securities equivalent to those shares).
225
at the money
FCAPRA
1(for the purposes of BIPRU 7 (Market risk) and in relation to an option or warrant) the strike price of that option or warrant being equal to the current market value of the underlying instrument.
1213
1213
attached shares
FCAPRA
110(in CREDS) means any shares in the credit union (other than any deferred shares):
(a) (in relation to a Great Britain credit union) 111the withdrawal of which is not permitted by section 7(5) of the Credit Unions Act 1979 or (in relation to a Northern Ireland credit union) the withdrawal of which is not permitted by article 23(4) of the Credit Unions (Northern Ireland) Order 1985; or111
(b) (in relation to a Great Britain credit union) 111the withdrawal of which is not permitted by the terms of a loan made to a member; or
(c) the withdrawal of which is not permitted without seeking and obtaining the permission of the committee of management of the credit union.
111In relation to a Great Britain credit union, paragraph111 (c) is relevant only where the credit union made a loan to the holder of the shares before the Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 came into force.
auction platform
FCA
112a platform on which auctions of 113emissions allowances 113are held in accordance with the auction regulation.
auction regulation
FCA
112Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community.
auction regulation bidding
FCAPRA
113the regulated activity of bidding in emissions auctions where it is carried on by:
(a) a firm that is exempt from MiFID under article 2(1)(i); or
(b) a MiFID investment firm (other than a UCITS investment firm) on behalf of its clients in relation to a two-day emissions spot.
Audit Directive
FCAPRA
21Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC.
214
authorisation
FCAPRA
2authorisation as an authorised person for the purposes of the Act.
authorisation order
FCAPRA
2an order made by the20 FCA20:
(a) in relation to an AUT under section 243 of the Act (Authorisation orders);
(b) in relation to an ICVC under regulation 14 of the OEIC Regulations (Authorisation);
(c) in relation to an ACS under section 261D of the Act (Authorisation orders);3
as a result of which the AUT or ACS3 becomes authorised or the body becomes incorporated as an ICVC under regulation 3 of the OEIC Regulations (Open-ended investment company).
authorised AIF
FCAPRA
5an AIF which is an authorised fund.
authorised business overdraft agreement
FCA
10a borrower-lender agreement which provides authorisation in advance for the borrower to overdraw on a current account, where the agreement is entered into by the borrower wholly or predominantly for the purposes of the borrower's business.
authorised central counterparty
FCAPRA
a CCP authorised or recognised under EMIR.114
authorised contractual scheme
FCAPRA
authorised contractual scheme manager
FCA
36a firm, including, if relevant, an EEA UCITS management company or incoming EEA AIFM6, which is the authorised fund manager of the ACS in accordance with the contractual scheme deed.
authorised corporate director
FCAPRA
211528the 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) 29including, if relevant, an EEA UCITS management companyor incoming EEA AIFM5.
authorised electronic money institution
FCAPRA
2324(in accordance with regulation 2(1) of the Electronic Money Regulations):
(a) a person included by the20 FCA20 in the20 Financial Services Register20 as an authorised electronic money institution pursuant to regulation 4(1)(a) of the Electronic Money Regulations; or
(b) a person deemed to have been granted authorisation 20by virtue of regulation 74 of the Electronic Money Regulations.
authorised fund
FCAPRA
2an ICVC, ACS3 or an AUT.
authorised insurance company
FCAPRA
116(In COMP) (in accordance with the compensation transitionals order) a person who was, at any time before commencement, authorised under section 3 or 4 of the Insurance Companies Act 1982 to carry on insurance business of any class in the United Kingdom.
authorised non-business overdraft agreement
FCA
10a borrower-lender agreement which provides authorisation in advance for the borrower to overdraw on a current account, where:
(a) the credit must be repaid on demand or within three months;
(b) the agreement is not entered into by the borrower wholly or predominantly for the purposes of the borrower's business.
authorised payment institution
FCAPRA
5859(in accordance with regulation 2(1) of the Payment Services Regulations) a person included by the20 FCA20 in the20Financial Services Register20 as an authorised payment institution pursuant to regulation 4(1)(a), or a person deemed to have been granted authorisation20 by virtue of regulation 121 of the Payment Services Regulations.
authorised person
FCAPRA
2(in accordance with section 31 of the Act (Authorised persons)) one of the following:
(a) a person who has a 20Part 4A permission20 to carry on one or more regulated activities;
(e) an ICVC;
(see also GEN 2.2.18 R for the position of an authorised partnership or unincorporated association which is dissolved.)
authorised primary dealer
FCAPRA
117(as defined in article 2(1)(n) of the short selling regulation) a natural or legal person who has signed an agreement with a sovereign issuer or who has been formally recognised as a primary dealer by or on behalf of a sovereign issuer and who, in accordance with that agreement or recognition, has committed to dealing as principal in connection with primary and secondary market operations relating to debt issued by that sovereign issuer.
authorised primary dealer exemption
FCAPRA
117an exemption from articles 7, 13 and 14 of the short selling regulation for the activities of an authorised primary dealer pursuant to article 17 of the short selling regulation.
authorised professional firm
FCAPRA
4829
authorised UK representative
FCAPRA
2(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.
authorised unit trust manager
FCAPRA
2a manager of an AUT.
authorised unit trust scheme
FCAPRA
2(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.
authorised Voluntary Jurisdiction participant
FCAPRA
2a participant in the Voluntary Jurisdiction who is an authorised person.
automatic enrolment scheme
FCAPRA
118a scheme that meets the conditions in Part 1 of the Pensions Act 2008. In summary this is a qualifying occupational pension scheme or qualifying personal pension scheme that enables automatic enrolment arrangements to take place.
AVC
FCAPRA
215a voluntary contribution arrangement paid by a member of an occupational pension scheme under the terms of the scheme or of a separate contract.15
average outstanding electronic money
FCAPRA
2324(in accordance with regulation 2(1) of the Electronic Money Regulations) the average total amount of financial liabilities related to electronic money in issue at the end of each calendar day over the preceding six calendar months, calculated on the first calendar day of each calendar month and applied for that calendar month.