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P2P agreement
FCA
12(a) (in relation to a borrower) in accordance with article 36H of the Regulated Activities Order, an agreement between one person3 ("the borrower") and another person3 ("the lender") by which the lender provides the borrower with credit (within the meaning of article 60L of the Regulated Activities Order) and in relation to which the borrower is an individual and either:
(i) the lender provides credit (within that meaning) of less than or equal to £25,000; or
(ii) the agreement is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.
3(b) (in relation to a lender) in accordance with article 36H of the Regulated Activities Order, an agreement between one person ("the borrower") and another person ("the lender") by which the lender provides the borrower with credit (within the meaning of article 60L of the Regulated Activities Order) and in relation to which either the lender is an individual, or if the lender is not an individual, the borrower is an individual and either:
(i) the lender provides credit (within that meaning) of less than or equal to £25,000; or3
(ii) the agreement is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.3
3
packaged bank account
FCAPRA
30an arrangement under which a firm provides a retail banking service as part of a package which includes access to other goods or services, whether or not a fee is charged.
packaged product
FCAPRA
(a) a life policy;
(c) an interest in an investment trust savings scheme;
whether or not (in the case of (a), (b) or (c)) held within 8an ISA or a CTF732 and whether or not the 8packaged product8 is also a stakeholder product.33
parent financial holding company in a Member State
FCAPRA
53435
19(A) In the PRA Handbook:
(1) (in GENPRU (except GENPRU 3 and BIPRU (except BIPRU 12)) (in accordance with Article 4(15) of the Banking Consolidation Directive (Definitions) and Article 3 of the Capital Adequacy Directive (Definitions)) a financial holding company which is not itself a subsidiary undertaking of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company established in the same EEA State.
(2) (except in (1)) has the meaning in article 4(1)(30) of the EU CRR.
20(B) In the FCA Handbook:
(1) (in GENPRU (except GENPRU 3 and BIPRU (except BIPRU 12)) (in accordance with Article 4(15) of the Banking Consolidation Directive (Definitions) and Article 3 of the Capital Adequacy Directive (Definitions)) a financial holding company which is not itself a subsidiary undertaking of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company established in the same EEA State.
(2) (except in (1)) has the meaning in article 4(1)(30) of the EU CRR.
parent institution in a Member State
FCAPRA
5153435
19(A) In the PRA Handbook:
(1) (in GENPRU (except GENPRU 3 and BIPRU (except BIPRU 12)) (in accordance with Article 4(14) of the Banking Consolidation Directive and Article 3 of the Capital Adequacy Directive (Definitions)) an institution which has an institution or a financial institution as a subsidiary undertaking or which holds a participation in such an institution, and which is not itself a subsidiary undertaking of another institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company established in the same EEA State.
(2) (except in (1)) has the meaning in article 4(1)(28) of the EU CRR.
20(B) In the FCA Handbook:
(1) (in GENPRU (except GENPRU 3 and BIPRU (except BIPRU 12)) (in accordance with Article 4(14) of the Banking Consolidation Directive and Article 3 of the Capital Adequacy Directive (Definitions)) an institution which has an institution or a financial institution as a subsidiary undertaking or which holds a participation in such an institution, and which is not itself a subsidiary undertaking of another institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company established in the same EEA State.
(2) (except in (1)) has the meaning in article 4(1)(28) of the EU CRR.
parent mixed financial holding company in a Member State
FCAPRA
3435
19(A) In the PRA Handbook:
(1) (in GENPRU (except GENPRU 3 and BIPRU (except BIPRU 12)) in accordance with Article 4(15a) of the Banking Consolidation Directive (Definitions)) a mixed financial holding company which is not itself a subsidiary undertaking of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company established in the same EEA State
(2) (except in (1)) has the meaning in article 4(1)(32) of the EU CRR.
20(B) In the FCA Handbook:
(1) (in GENPRU (except GENPRU 3 and BIPRU (except BIPRU 12)) in accordance with Article 4(15a) of the Banking Consolidation Directive (Definitions)) a mixed financial holding company which is not itself a subsidiary undertaking of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company established in the same EEA State
(2) (except in (1)) has the meaning in article 4(1)(32) of the EU CRR.
parent undertaking
FCAPRA
3637383952240414272619(A) In the PRA Handbook:
(1) (in accordance with section 420 of the Act (Parent and subsidiary undertaking) and section 1162 of the Companies Act 2006 (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 described in (c)) 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)
(A) it has the power to exercise, or actually exercises, dominant influence or control over S; or
(B) it and S are managed on a unified basis; or
(vi) it is a parent undertaking of a parent undertaking of S; or
(vii) (except in REC or for the purposes of the rules in GENPRU and INSPRU as they apply to members of the Society of Lloyd's or to the Society or managing agents in respect of members) he is an individual and would be a parent undertaking if he were an undertaking; or
(viii) (except in REC or for the purposes of rules in GENPRU and INSPRU as they apply to members of the Society of Lloyd's or to the Society or managing agents in respect of members) 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 7 to the Companies Act 2006 (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 escribed in (c)) 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 BIPRU (except BIPRU 12), GENPRU (except GENPRU 3) and INSPRU as they apply on a consolidated basis and for the purposes of SYSC 12 (Group risk systems and controls requirement) and SYSC 19C (Remuneration Code for BIPRU firms) 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 (a)(v) does not apply for the purpose of BIPRU as it applies on a consolidated basis (including BIPRU 8 (Group risk - consolidation)) or BIPRU 10.
(2) a parent undertaking within the meaning of (1) of a .
(3) (for the purposes of GENPRU 3, BIPRU 12, IFPRU and SYSC 19A (Remuneration Code)) has the meaning in article 4(1)(15) of the EU CRR but so that (in accordance with article 2(9) of the Financial Groups Directive) article 4(1)(15)(b) applies for the purpose of GENPRU 3.

20(B) In the FCA Handbook:
(1) (in accordance with section 420 of the Act (Parent and subsidiary undertaking) and section 1162 of the Companies Act 2006 (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 described in (c)) 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)
(A) it has the power to exercise, or actually exercises, dominant influence or control over S; or
(B) it and S are managed on a unified basis; or
(vi) it is a parent undertaking of a parent undertaking of S; or
(vii) (except in REC or for the purposes of the rules in GENPRU and INSPRU as they apply to members of the Society of Lloyd's or to the Society or managing agents in respect of members) he is an individual and would be a parent undertaking if he were an undertaking; or
(viii) (except in REC or for the purposes of rules in GENPRU and INSPRU as they apply to members of the Society of Lloyd's or to the Society or managing agents in respect of members) 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 7 to the Companies Act 2006 (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 escribed in (c)) 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 BIPRU (except BIPRU 12), GENPRU (except GENPRU 3) and INSPRU as they apply on a consolidated basis and for the purposes of SYSC 12 (Group risk systems and controls requirement) and SYSC 19C (Remuneration Code for BIPRU firms) 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 (a)(v) does not apply for the purpose of BIPRU as it applies on a consolidated basis (including BIPRU 8 (Group risk - consolidation)) or BIPRU 10.
(2) a parent undertaking within the meaning of (1) of a .
(3) (for the purposes of GENPRU 3, BIPRU 12, IFPRU and SYSC 19A (Remuneration Code)) has the meaning in article 4(1)(15) of the EU CRR but so that (in accordance with article 2(9) of the Financial Groups Directive) article 4(1)(15)(b) applies for the purpose of GENPRU 3.
parental responsibility
FCAPRA
32(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.
Part 30 exemption order
FCAPRA
723
(A) In the PRA HAndbook:

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.
(B) In the FCA Handbook:

the order under regulation 30.10 of the General Regulations under the US Commodity Exchange Act issued by the Commodity Futures Trading Commission on 10 October 2003 (consolidating and updating relief granted to firms in prior orders), granting a person authorised under the Act exemption from certain requirements contained in Part 30 of those General Regulations.
Part 4A permission
FCAPRA
17(as defined in section 55A of the Act (Application for permission)) a permission given by the FCA or PRA under Part 4A of the Act (Permission to carry on regulated activities), or having effect as if so given.
Part 6 rules
FCAPRA
12(as defined in section 73A of the Act ) rules made for the purposes of Part VI of the Act.
Part XX exemption
FCAPRA
the exemption from the general prohibition conferred on an exempt professional firm by section 327 of the Act (Exemption from the general prohibition).7
participant
FCAPRA
(in accordance with section 235(2) of the Act (Collective investment schemes)) a person who participates in a collective investment scheme.7
participant firm
FCAPRA
43444546474849505152753545556
(A) In the PRA Handbook:

(1) (except in FEES 1 and FEES 6) 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:
(iii) [deleted]
(iv) both (i) and (ii); or
(v) an IMD insurance intermediary or an IMD reinsurance intermediary which is neither (i) or (ii);
(vi) an AIFM managing an unauthorised AIF or providing the services in article 6(4) of AIFMD;
in relation to its passported activities, unless it has top-up cover
(aa) (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 a management company other than to the extent that it carries on the following activities from a branch in the United Kingdom or under the freedom to provide cross border services:
(ii) managing investments (other than of a collective investment scheme), advising on investments or safeguarding and administering investments (the services referred to in article 6(3) of the UCITS Directive), but only if it has top-up cover;
(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 and with respect to its regulated activities participates in the relevant society's compensation scheme;
(g) an ICVC;
(h) a UCITS qualifier;
(i) [deleted]
(j) in respect of the carrying on of bidding in emissions auctions, a firm that is exempt from MiFID under article 2(1)(i).
(2) (in FEES 1 and FEES 6) a firm specified in paragraph (1) above that is not a member.
(B) In the FCA Handbook:

(1) (except in FEES 1 and FEES 6) 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:
(iii) [deleted]
(iv) both (i) and (ii); or
(v) an IMD insurance intermediary or an IMD reinsurance intermediary which is neither (i) or (ii);
(vi) an AIFM managing an unauthorised AIF or providing the services in article 6(4) of AIFMD;
in relation to its passported activities, unless it has top-up cover
(aa) (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 a management company other than to the extent that it carries on the following activities from a branch in the United Kingdom or under the freedom to provide cross border services:
(ii) managing investments (other than of a collective investment scheme), advising on investments or safeguarding and administering investments (the services referred to in article 6(3) of the UCITS Directive), but only if it has top-up cover;
(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 and with respect to its regulated activities participates in the relevant society's compensation scheme;
(g) an ICVC;
(h) a UCITS qualifier;
(i) [deleted]
(j) in respect of the carrying on of bidding in emissions auctions, a firm that is exempt from MiFID under article 2(1)(i);2
(l) an operator of an electronic system in relation to lending in respect of operating the system.
(2) (in FEES 1 and FEES 6) a firm specified in paragraph (1) above that is not a member.2
participating deposit-taker
FCAPRA
(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 1979.53
participating institution
FCAPRA
(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 1986.53
participating insurance undertaking
FCAPRA
57an insurer which:
(b) holds a participation in an insurance undertaking; or
participating security
FCAPRA
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.7
participation
FCAPRA
22505158539598
19(A) In the PRA Handbook:
(for the purposes of UPRU and GENPRU (except GENPRU 3) and for the purposes of BIPRU (except BIPRU 12) and INSPRU as they apply on a consolidated basis):
(a) a participating interest may be defined according to:
(i) section 421A of the Act where applicable; or
(ii) paragraph 11(1) of Schedule 10 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) where applicable; or
(iii) paragraph 8 of Schedule 7 to the Small Companies and Groups (Accounts and Directors' Report) Regulations 2008 (SI 2008/409) where applicable; or
(iv) paragraph 8 of Schedule 4 to the Large and Medium-sized Limited Liability Partnerships (Accounts) Regulations 2008 (SI 2008/1913) where applicable; or
(v) paragraph 8 of Schedule 5 to the Small Limited Liability Partnerships (Accounts) Regulations 2008 (SI 2008/1912) where applicable; or
(b) (otherwise) 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.
(2) (except in (1) has the meaning in article 4(1)(35) of the EU CRR.
20(B) In the FCA Handbook:
(1) (for the purposes of60 GENPRU (except GENPRU 3) and for the purposes of BIPRU (except BIPRU 12) and INSPRU as they apply on a consolidated basis):
(a) a participating interest may be defined according to:
(i) section 421A of the Act where applicable; or
(ii) paragraph 11(1) of Schedule 10 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) where applicable; or
(iii) paragraph 8 of Schedule 7 to the Small Companies and Groups (Accounts and Directors' Report) Regulations 2008 (SI 2008/409) where applicable; or
(iv) paragraph 8 of Schedule 4 to the Large and Medium-sized Limited Liability Partnerships (Accounts) Regulations 2008 (SI 2008/1913) where applicable; or
(v) paragraph 8 of Schedule 5 to the Small Limited Liability Partnerships (Accounts) Regulations 2008 (SI 2008/1912) where applicable; or
(b) (otherwise) 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.
(2) (except in (1) has the meaning in article 4(1)(35) of the EU CRR.
partner
FCAPRA
(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.7
partner function
FCAPRA
partnership
FCAPRA
(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.7
passport right
FCAPRA
5051(in accordance with regulation 2(1) of the Electronic Money Regulations) the entitlement of a person to establish a branch or provide services in an EEA State other than that in which they are authorised to provide electronic money issuance services:
(a) in accordance with the Treaty on the Functioning of the European Union as applied in the EEA; and
(b) subject to the conditions of the Electronic Money Directive.
passported activity
FCAPRA
an activity carried on by an EEA firm, or by a UK firm, under an EEA right.7
pawn
FCA
61any article subject to a pledge.
pawnee
FCA
61a person who takes any article in pawn and includes any person to whom the rights and duties of the original pawnee have passed by assignment or operation of law.
pawnor
FCA
61includes any person to whom the rights and duties of the original pawnor have passed by assignment or operation of law.
pawn-receipt
FCA
61has the meaning given by section 114 of the CCA.
payment
FCA
62includes tender.
payment holiday
FCAPRA
63a 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.
payment information
FCAPRA
44the information described in COBS 7.3.4R, that is, the amount and nature of any payments that the client will have to make, directly or indirectly, for the personal recommendation.
payment institution
FCAPRA
payment instrument
FCAPRA
64(in BCOBS) any personalised device or personalised set of procedures agreed between the banking customer and the firm used by the banking customer to initiate an instruction or request by the banking customer to the firm to make a payment.
payment leg
FCA
5(for the purposes of the CCR standardised method and as more fully defined in BIPRU 13.5.2 R (Derivation of risk position: payment legs) the contractually agreed gross payments under a financial derivative instrument, including the notional amount of the transaction.
payment protection contract
FCAPRA
65A non-investment insurance contract which has elements of a general insurance contract and the benefits of which are described as enabling a policyholder to protect his ability to continue to make payments due to third parties, or can reasonably be expected to be used in this way.
payment routing information
FCAPRA
64a combination of letters, numbers or symbols specified by a firm to be provided when instructing or requesting the firm to make a payment from an account of a banking customer for the purpose of routing the payment to the correct destination and intended recipient.
payment service
FCAPRA
2425(in accordance with regulation 2(1) of, and Schedule 1 to, the Payment Services Regulations):
(a) Any of the following activities when carried out as a regular occupation or business activity:
(i) services enabling cash to be placed on a payment account and all of the operations required for operating a payment account;
(ii) services enabling cash withdrawals from a payment account and all of the operations required for operating a payment account;
(iii) execution of the following types of payment transaction:
(A) direct debits, including one-off direct debits;
(B) payment transactions executed through a payment card or a similar device;
(C) credit transfers, including standing orders;
(iv) execution of the following types of payment transaction where the funds are covered by a credit line for the payment service user:
(A) direct debits, including one-off direct debits;
(B) payment transactions executed through a payment card or a similar device;
(C) credit transfers, including standing orders;
(v) issuing payment instruments or acquiring payment transactions;
(vii) execution of payment transactions where the consent of the payer to execute the payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods or services.
(b) The following activities do not constitute payment services:
(i) payment transactions executed wholly in cash and directly between the payer and the payee, without any intermediary intervention;
(ii) payment transactions between the payer and the payee through a commercial agent authorised to negotiate or conclude the sale or purchase of goods or services on behalf of the payer or the payee;
(iii) the professional physical transport of banknotes and coins, including their collection, processing and delivery;
(iv) payment transactions consisting of non-professional cash collection and delivery as part of a not-for-profit or charitable activity;
(v) services where cash is provided by the payee to the payer as part of a payment transaction for the purchase of goods or services following an explicit request by the payer immediately before the execution of the payment transaction;
(vi) money exchange business consisting of cash-to-cash operations where the funds are not held on a payment account;
(vii) payment transactions based on any of the following documents drawn on the payment service provider with a view to placing funds at the disposal of the payee:
(A) paper cheques of any kind, including traveller's cheques;
(B) bankers' drafts;
(C) paper-based vouchers;
(D) paper postal orders;
(viii) payment transactions carried out within a payment or securities settlement system between payment service providers and settlement agents, central counterparties, clearing houses, central banks or other participants in the system;
(ix) payment transactions related to securities asset servicing, including dividends, income or other distributions, or redemption or sale, carried out by persons referred to in (h) or by investment firms, full credit institutions, collective investment undertakings, asset management companies providing investment services or by any other entities allowed to have the custody of financial instruments;
(x) services provided by technical service providers, which support the provision of payment services, without the provider entering at any time into possession of the funds to be transferred, including:
(A) the processing and storage of data;
(B) trust and privacy protection services;
(C) data and entity authentication;
(D) information technology;
(E) communication network provision; and
(F) the provision and maintenance of terminals and devices used for payment services;
(xi) services based on instruments that can be used to acquire goods or services only:
(A) in or on the issuer's premises; or
(B) under a commercial agreement with the issuer, either within a limited network of service providers or for a limited range of goods or services,
and for these purposes the "issuer" is the person who issues the instrument in question;
(xii) payment transactions executed by means of any telecommunication, digital or IT device, where the goods or services purchased are delivered to and are to be used through a telecommunication, digital or IT device, provided that the telecommunication, digital or IT operator does not act only as an intermediary between the payment service user and the supplier of the goods and services;
(A) payment transactions carried out between payment service providers, or their agents or branches, for their own account;
(B) payment transactions between a parent undertaking and its subsidiary or between subsidiaries of the same parent undertaking, without any intermediary intervention by a payment service provider other than an undertaking belonging to the same group;
(C) services by providers to withdraw cash by means of automated teller machines acting on behalf of one or more card issuers, which are not party to the framework contract with the customer withdrawing money from a payment account, where no other payment service is conducted by the provider.
[Note: articles 3 and 4(3) of, and the Annex to, the Payment Services Directive]
payment service provider
FCAPRA
2425(1) (except in DISP) (in accordance with regulation 2(1) of the Payment Service Regulations) any of the following persons when they carry out a payment service:
(f) the Post Office Limited;
(g) the Bank of England, the European Central Bank and the national central banks of EEA States other than the United Kingdom, other than when acting in their capacity as a monetary authority or carrying out other functions of a public nature; and
(h) government departments and local authorities, other than when carrying out functions of a public nature.
[Note: article 1(1) of the Payment Services Directive]
(2) (in DISP and FEES 5.5 )66as in (1) but excluding a full credit institution.5051
payment service user
FCAPRA
2425(in accordance with regulation 2(1) of the Payment Services Regulations) a person when making use of a payment service in the capacity of either payer or payee, or both.
[Note: article 4(10) of the Payment Services Directive]
Payment Services Directive
FCAPRA
2425Directive 2007/64/EC of the European Parliament and of the Council of 13th November 2007 on payment services in the internal market.
Payment Services Regulations
FCAPRA
2425the Payment Services Regulations 2009 (SI 2009/209).
payment shortfall
FCAPRA
67the outstanding amount to be paid measured against the amount of payments which have become due during the term of a regulated mortgage contract or home purchase plan, including any arrears amount due.
PD
FCAPRA
45
(1) (except in GENPRU and BIPRU) Prospectus Directive.5
PD Regulation
FCAPRA
the Prospectus Directive Regulation (No 2004/809/EC).4
PD/LGD approach
FCAPRA
5the method for treating equity exposures under the IRB approach set out in BIPRU 4.7.14 R-BIPRU 4.7.22 R.
peak exposure
FCAPRA
5(in accordance with Part 1 of Annex III of the Banking Consolidation Directive (Definitions) and for the purpose of BIPRU 13 (The calculation of counterparty risk exposure values for financial derivatives, securities financing transactions and long settlement transactions)) a high percentile of the distribution of exposures at any particular future date before the maturity date of the longest transaction in the netting set.
pending application
FCAPRA
(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.
53
penny share
FCAPRA
a readily realisable security in relation to which the bid-offer spread is 10 per cent or more of the offer price, but not:
(b) a share in a company quoted on The Financial Times Stock Exchange 100 Index; or
(c) a security issued by a company which, at the time that the firm deals or recommends to the client to deal in the investment, has a market capitalisation of £100 million or more (or its equivalent in any other currency at the relevant time).7
pension annuity
FCAPRA
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.7
pension buy-out contract
FCAPRA
71515a pension policy bought from an insurer using funds from:
(a) a scheme that was approved under Chapter 1 of Part 14 of the Income and Corporation Taxes Act 1988 when that chapter was in force; or
(b) a scheme that is a registered pension scheme under Chapter 2 of Part 4 of the Finance Act 2004.
pension contract
FCAPRA
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.7
pension fund management
FCAPRA
(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.7
pension fund management contract
FCAPRA
(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)).7
pension opt-out
FCAPRA
a transaction,27 resulting from27the decision of a retail client27 who is an individual, to:
(a) opt out of an occupational pension scheme, group personal pension scheme or group stakeholder pension scheme to which his employer contributes and6869 of which he is a 27member; or
(b) decline to become a member of an occupational pension scheme, group personal pension scheme or group stakeholder pension scheme to which his employer contributes and of6869 which he is eligible to join27, or will be27 eligible to join at the end of a waiting period;68
in favour of a stakeholder pension scheme or27 personal pension scheme 27.
pension policy
FCAPRA
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. 7
pension scheme
FCAPRA
a scheme under which a right to benefits results from contributions made under a pension contract or pension policy.7
pension term assurance policy
FCAPRA
70a personal pension policy which is a pure protection contract and in connection with which tax relief is available under Chapter 4 of Part 4 of the Finance Act 2004.
pension transfer
FCAPRA
a transaction,27 resulting from 27the decision of a retail client 27who is an individual, to transfer deferred benefits from:
(b) an27 individual pension contract27 providing fixed or guaranteed benefits that replaced similar benefits under a defined benefits pension scheme; or
313172to:27
(f) a deferred annuity policy,14 where the eventual benefits depend on investment performance in the period up to the 14date when those benefits will come into payment.1427
pension transfer specialist
FCAPRA
an individual appointed by a firm to check the suitability of a pension transfer or pension opt-out who has passed the required examinations as73specified in 73TC73.7
747
pension wrapper
FCAPRA
27(in the cancellation rules (COBS 15)) a SIPP, pension contract or personal pension product.
78
78
78
per se eligible counterparty
FCAPRA
44a client categorised as a per se eligible counterparty in accordance with COBS 3.6.
per se professional client
FCAPRA
44a client categorised as a per se professional client in accordance with COBS 3.5.
percentage ratio
FCAPRA
(in LR) (in relation to a transaction) the figure, expressed as a percentage, that results from applying a calculation under a 69class test69 to the transaction.4
PERG
FCAPRA
9the Perimeter Guidance manual.
period rate of charge
FCA
62(in CONC App 1.1) means a percentage rate of charge for a period, comprising all charges included in the total charge for credit determined in accordance with CONC App 1.1.4 R to CONC App 1.1.6 R.
periodic information
FCAPRA
44the information identified in the table in COBS 16 Annex 2R27, and if the client has not elected to receive trade confirmation information on a transaction by transaction basis under COBS 16.3.3 R,27 the information identified in column 2 of COBS 16 Annex 1R.27
periodic statement
FCAPRA
a report which a firm is required to provide to a44 client44 under 44COBS 16.3 (Periodic reporting)441414.7
permanent health
FCAPRA
(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.7
permanent health reinsurance business
FCAPRA
permanent interest bearing shares
FCAPRA
5
19(A) In the PRA Handbook:
any shares of a class defined as deferred shares for the purposes of section 119 of the Building Societies Act 1986 which are issued as permanent interest-bearing shares and on terms which qualify them as own funds for the purposes of the EU CRR.
11(B) In the FCA Handbook:
any shares of a class defined as deferred shares for the purposes of section 119 of the Building Societies Act 1986 which are issued as permanent interest-bearing shares and on terms which qualify them as own funds for the purposes of the EU CRR.
permanent share capital
FCAPRA
57an item of capital that is stated in5 GENPRU 2.2.83R (Core tier one capital: permanent share capital)5 to be permanent share capital.
permission
FCAPRA
permission to carry on regulated activities; that is, any of the following:
(b) the permission that an incoming EEA firm has, under paragraph 15(1) or paragraph 15A(1), (3) or (4)52 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 4A of the Act (Permission to carry on regulated activities) in accordance with section 315(3) of the Act.753
permitted activity
FCAPRA
(1) (except in 76SUP 13A76and SUP 14) a regulated activity which a firm has permission to carry on.
(2) (in 76SUP 13A76and SUP 14) an activity identified in a consent notice, a regulator's notice or, where none is required, a notice of intention. 726
777
permitted business
PRA
777
permitted deposits
FCAPRA
78in relation to permitted links, deposits with any of the following:
(c) an approved investment firm.
permitted derivatives contract
FCAPRA
78in relation to permitted links, a contract involving a derivative or quasi-derivative that satisfies INSPRU 3.2.5 R to INSPRU 3.2.35A G with the exception of INSPRU 3.2.18 R, as applied in relation to assets covering liabilities in respect of linked long-term contracts of insurance.
permitted immovable
FCAPRA
any79 interest in land or buildings79 which falls within 79COLL 5.6.18 R (2) and COLL 5.6.18 R (6) (Investment in property) and which, being a leasehold interest or its equivalent, has an unexpired term of at least 20 years, but 79excluding, in relation to an ICVC, immovable property that is necessary for the direct pursuit of its business79.7
permitted land and property
FCAPRA
78in relation to permitted links, any interest in land (and any buildings situated on it) provided that:
(a) it is considered by the firm to be located in a territory with a properly functioning market, indicated by the following criteria:
(i) a lack of artificial barriers, including barriers to foreign ownership and repatriation of capital;
(ii) fair and accurate valuation;
(iii) suitably qualified and independent surveyors;
(iv) accurate financial information;
(v) enforceable contractual and other property rights;
(vi) clarity of taxation;
(vii) availability of reliable economic and property market data;
(viii) ethical transaction standards; and
(b) it is:
(i) owned directly by the firm; or
(ii) held in a structure, or a series of structures, that do not pose a materially greater risk to linked policyholders than a direct holding; and
(c) it is not geared in excess of 10% of the gross asset value of the linked fund excluding any amounts represented by holdings in property detailed in permitted scheme interests (b) (i) to (iv). But this percentage restriction does not apply if the relevant policyholder or trustee or operator acting on behalf of an individual beneficiary requests, directly or indirectly, the firm to hold those investments based on the risk profile and objectives, stipulated by and specific for that individual under an investment management agreement with that individual.
permitted links
FCAPRA
78the property in78 COBS 21.3.1 R78 that an insurer may use for the purposes of determining property-linked benefits or index-linked benefits under linked long-term contracts of insurance.
permitted loans
FCAPRA
78in relation to permitted links, a loan with any of the following:
(c) an approved investment firm; or
(d) any person, provided that the loan:
(i) is documented in a written agreement setting out the rate of interest and the amount of, and due dates for, repayments; and
(ii) is fully secured by a mortgage or charge on permitted land and property that, if made to someone other than a body corporate, is not used wholly or mainly for domestic purposes.
permitted scheme interests
FCAPRA
78(a) in respect of a firm's business with institutional linked policyholders only, any of the following:
(i) a qualified investor scheme or its EEA equivalent;
(ii) any unregulated collective investment scheme that invests only in permitted links and publishes its prices regularly;
(iii) any of the interests set out in (b)(i) to (b)(iv);
(b) in respect of a firm's business with linked policyholders other than those described in (a), any of the following:
(iii) a 80scheme falling within the UCITS Directive;80
(v) a qualified investor scheme or its EEA equivalent or any unregulated collective investment scheme that invests only in permitted links and publishes its prices regularly, provided that no more than 20% of the gross assets of the linked fund are so invested.
permitted stock lending
FCAPRA
78in relation to permitted links, a stock lending transaction (including a repo transaction) that satisfies INSPRU 3.2.36A R to INSPRU 3.2.42 G (inclusive).
permitted third party
FCAPRA
a third party who is:
(b) an exempt person for whom an authorised person is accepting responsibility; or
(c) a person lawfully carrying on a regulated activity in another EEA State.7
permitted units
FCAPRA
78in relation to permitted links, units or beneficial interests in any real or notional fund that invests only in permitted links and is managed either:
(a) wholly by the insurer; or
(b) wholly or partly by:
(i) an agent on behalf of the insurer; or
(ii) a reinsurer in relation to a reinsurance contract with the insurer;
for whom the insurer retains all responsibility towards its linked policyholders.
permitted unlisted securities
FCAPRA
78in relation to permitted links, means any investment (including a share, debt security, Treasury Bill, Tax Reserve Certificate or Certificate of Tax Deposit) that is not a listed security, but provided always that it is realisable in the short term.
person
FCAPRA
(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).7
person discharging managerial responsibilities
FCAPRA
12(in accordance with section 96B(1) of the Act):
(a) a director of an issuer:
(i) registered in the United Kingdom that has requested or approved admission of its shares to trading on a regulated market; or
(ii) not registered in the United Kingdom or any other EEA State but has requested or approved admission of its shares to trading on a regulated market and 81for whom the United Kingdom is its Home Member State81; or
(b) a senior executive of such an issuer who:
(i) has regular access to inside information relating, directly or indirectly, to the issuer; and
(ii) has power to make managerial decisions affecting the future development and business prospects of the issuer.
person exercising significant influence
FCAPRA
(in LR ) in relation to a listed company, a person or entity which exercises significant influence over that listed company37.4
person with whom a relevant person has a family relationship
FCAPRA
27any of the following:
(a) the spouse of the relevant person or any partner of that person considered by national law as equivalent to a spouse;
(b) a child or stepchild of the relevant person;
(c) any other relative of the relevant person who has shared the same household as that person for at least one year on the date of the personal transaction concerned.
[Note: article 2(7) of the MiFID implementing Directive]
447
Personal Insurance Arbitration Service
FCAPRA
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.26
personal investment firm
FCAPRA
8283555545384750514827178514
19(A) In the PRA Handbook:
a firm whose permitted activities include designated investment business, which is not an authorised professional firm, bank, IFPRU investment firm, BIPRU firm, building society, collective portfolio management firm, credit union, energy market participant, 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) 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) or 5 (Investment management 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 4A 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 which the most substantial part of its gross income (including commissions) from the designated investment business included in its Part 4A permission is derived from one or more of the following activities (based, for a firm given a Part 4A 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):
11(B) In the FCA Handbook:
a firm whose permitted activities include designated investment business, which is not an authorised professional firm, bank, IFPRU investment firm, BIPRU firm, building society, collective portfolio management firm, credit union, energy market participant, 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) 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) or 5 (Investment management 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 4A 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 which the most substantial part of its gross income (including commissions) from the designated investment business included in its Part 4A permission is derived from one or more of the following activities (based, for a firm given a Part 4A 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):
personal pension contract
FCAPRA
a pension contract under which contributions (single or regular) are paid to a personal pension scheme.7
personal pension deposit
FCAPRA
31a contract under which rights to benefits are obtained by making contributions to a personal pension scheme operated by a deposit-taking firm.
personal pension policy
FCAPRA
a pension policy under which contributions (single or regular) are paid to a personal pension scheme.7
personal pension product
FCAPRA
31 a contract under which rights to benefits are obtained by making contributions to a personal pension scheme other than a personal pension policy, a personal pension contract, a personal pension deposit or a SIPP.
personal pension scheme
FCAPRA
731273127a scheme or arrangement which is not an occupational pension scheme or stakeholder pension scheme and which is comprised in one or more instruments or agreements having or capable of having effect so as to provide benefits to or in respect of people:27
(a) on retirement; or27
(b) on having reached a particular age; or 27
(c) on termination of service in an employment.27
31
personal projection
FCAPRA
14a projection that reflects the terms of a particular contract with, or to be offered to, a particular client.
personal recommendation
FCAPRA
7158644(except in CONRED) 87a recommendation that is advice on investments, or advice on a home finance transaction15 and is presented as suitable for the person to whom it is made, or is based on a consideration of the circumstances of that person.
A recommendation is not a personal recommendation if it is issued exclusively through distribution channels or to the public.44
[Note: article 52 of the MiFID implementing Directive]44
87(in CONRED) a recommendation which is advice on investments and:
(a) where given on or before 31 October 2007, was given to a specific person; or
(b) where given on or after 1 November 2007, was presented as suitable for the person to whom the recommendation was made, or was based on a consideration of the circumstances of that person, other than a recommendation issued exclusively through distribution channels or to the public.
personal transaction
FCAPRA
44a trade in a designated investment effected by or on behalf of a relevant person, where at least one of the following criteria are met:
(1) that relevant person is acting outside the scope of the activities he carried out in that capacity;
(2) the trade is carried out for the account of any of the following persons:
(b) the spouse or civil partner of the relevant person or any partner of that person considered by national law as equivalent to a spouse;
(c) a dependent child or stepchild of the relevant person;
(d) any other relative of the relevant person who has shared the same household as that person for at least one year on the date of the personal transaction concerned;
(e) any person with whom he has close links;
(f) a person whose relationship with the relevant person is such that the relevant person has a direct or indirect material interest in the outcome of the trade, other than a fee or commission for the execution of the trade.
[Note: article 2(7) and article 11 of the MiFID implementing Directive]
physical commodities
FCAPRA
5a physical holding of a commodity, or documents evidencing title to a commodity.
PIA
FCAPRA
7the Personal Investment Authority Limited.
PIA Ombudsman scheme
FCAPRA
7the 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.
PII capital requirement
FCA
10(1) (in IPRU(INV) 11) an amount of own funds that a collective portfolio management firm must hold in relation to its professional indemnity insurance policy to cover any defined excess (as set out in article 15 of the AIFMD level 2 regulation (professional indemnity insurance) (as replicated in IPRU(INV) 11.3.15EU)) and exclusions to that policy (see IPRU(INV) 11.3.16R (Professional negligence)).
11[deleted]11
placing
FCAPRA
(in LR) a marketing of securities already in issue but not listed or not yet in issue, to specified persons or clients of the sponsor or any securities house assisting in the placing, which does not involve an offer to the public or to existing holders of the issuer's securities generally.4
plan investor
FCAPRA
7a person entered in the plan register under COLL 6.4.9 R (Plan registers)88.89
plan manager
FCA
7in relation to:
(a) 8[deleted]8
(b) a group ISA , the ISA manager ;
(c) a group savings plan, the person primarily responsible for that group savings plan.90
plan register
FCA
789(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 88AUT88 or ACS91) a sub- register to the register, which 88sub-register88 records persons who subscribe to a group plan and for whom 88units88 in the 88AUT88 or ACS 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 (88Register:88 general 88requirements 88 and contents) 88or for the establishment of which no payments are to be made out of the scheme property).90
plastic card
FCAPRA
7a 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.
platform charge
FCA
92any form of charge payable by or on behalf of a retail client to a firm in relation to the provision of a platform service and which is agreed between the platform service provider and the retail client.
platform service
FCAPRA
93a service which:
(b) distributes retail investment products which are offered to retail clients by more than one product provider;

but is neither:
(c) solely paid for by adviser charges; nor
(d) ancillary to the activity of managing investments for the retail client.
[Note: This definition applies only within the FCA Handbook.]92
platform service provider
FCAPRA
93a firm providing a platform service.
PLC Safeguards Directive
FCAPRA
12the Second Council Directive of 13 December 1976 on coordination of safeguards for the protection of the interests of members and others in respect of the formation of public limited liability companies and the maintenance and alteration of their capital, with a view to making such safeguards equivalent (No 77/91/EEC).
pledge
FCA
61a pawnee's rights over an article taken in pawn.
plus factor
FCAPRA
5(in BIPRU 7.10 (Use of a value at risk model)) an increase to the minimum multiplication factor based on backtesting exceptions as more fully defined in BIPRU 7.10.124 R (Capital calculations: Multiplication factors).
policy
FCAPRA
26(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.
9465
policy summary
FCAPRA
94a summary of a non-investment insurance contract in65the format and65 containing the information specified in65 ICOBS 6 Annex 265.
policyholder
FCAPRA
26(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.
policyholder advocate
FCAPRA
95the person appointed under 27COBS 20.2.42 R 27to negotiate with a firm on its proposals for making a reattribution of its inherited estate.
pool
FCA
23either a sub-pool or a general pool, as the context requires.
port
FCAPRA
9623
(A) In the PRA Handbook:23

means, in respect of the assets and positions recorded in a client transaction account that is an individual client account or an omnibus client account at an authorised central counterparty, action taken by that authorised central counterparty to transfer those assets and positions in accordance with article 48 of EMIR to another clearing member designated by the individual client (in the case of an individual client account) or designated by all of the clients for whom the account is held (in the case of an omnibus client account).
(B) In FCA Handbook:

in respect of the assets and positions recorded in a client transaction account that is an individual client account or an omnibus client account at an authorised central counterparty, action taken by that authorised central counterparty to transfer those assets and positions in accordance with article 48 of EMIR to another clearing member designated by the individual client (in the case of an individual client account) or designated by all of the clients for whom the account is held (in the case of an omnibus client account).
portfolio management
FCAPRA
44managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more financial instruments.
[Note: article 4(1)(9) of MiFID]
portfolio trade
FCAPRA
44a transaction in more than one security where those securities are grouped and traded as a single lot against a specific reference price.
[Note: article 2(6) of the MiFID Regulation]
POS Regulations
FCAPRA
7the Public Offers of Securities Regulations 1995 (SI 1995/1537).
position
FCAPRA
5
(A) In the PRA Handbook:
(in accordance BIPRU 1.2.4 R (Definition of the trading book: Positions)) includes proprietary positions and positions arising from client servicing and market making.
20(B) In the FCA Handbook:
(1) (in accordance BIPRU 1.2.4 R (Definition of the trading book: Positions)) includes proprietary positions and positions arising from client servicing and market making.
(2) (in IFPRU) has the meaning which it has, or is used, in the EU CRR.
position risk adjustment
FCAPRA
17a percentage applied to a position as part of the process of calculating the PRR in relation to that position as set out in the tables in BIPRU 7.2.44 R (Specific risk position risk adjustments), BIPRU 7.2.57 R (General market risk position risk adjustments), BIPRU 7.3.30 R (Simplified equity method position risk adjustments), BIPRU 7.3.34 R (Position risk adjustments for specific risk under the standard equity method) and BIPRU 7.6.8 R (The appropriate position risk adjustment) and also as set out in BIPRU 7.2.48A R to BIPRU 7.2.48L R.
position risk requirement
FCAPRA
5a capital requirement applied to a position treated under BIPRU 7 (Market risk) as part of the calculation of the market risk capital requirement or, if the relevant provision of the Handbook distinguishes between general market risk and specific risk, the portion of that capital requirement with respect to whichever of general market risk or specific risk is specified by that provision.
post
FCAPRA
7(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.
Post-BCCI Directive
FCAPRA
7the European Parliament and Council Directive of 29 June 1995 amending certain directives with a view to reinforcing prudential supervision (No 95/26/EC).
714
potential tier one instrument
FCAPRA
57an item of capital that falls into5 GENPRU 2.2.62R (Tier one capital: General)5.
power of intervention
FCAPRA
7the power conferred on 17 the FCA or the PRA17 under section 196 of the Act (The Power of Intervention) to impose a requirement on an incoming firm.
PPFM guidance table
FCAPRA
14the table in COBS 20.3.8 G (Guidance on with-profits principles and practices).
PPFM issues table
FCAPRA
14The table in COBS 20.3.6 R (Issues to be covered in PPFM).
PR
FCAPRA
the Prospectus Rules sourcebook.4
PRA
FCAPRA
5151617Prudential Regulation Authority.17
PRA chief executive function
FCAPRA
PRA controlled function
FCAPRA
18a controlled function which is specified by the PRA under section 59 of the Act (Approval for particular arrangements) in the table of PRA controlled functions.
PRA director function
FCAPRA
PRA governing function
FCAPRA
PRA Handbook
FCAPRA
17the PRA's Handbook of rules and guidance.
PRA required functions
FCAPRA
PRA's SCV requirements
FCAPRA
17(in COMP) the PRA's requirements with respect to single customer view.
PRA-approved person
FCAPRA
18an approved person in relation to whom the PRA has given its approval under section 59 of the Act (Approval for particular arrangements) for the performance of a PRA controlled function.
PRA-authorised person
FCAPRA
17as defined in section 2B(5) of the Act, an authorised person who has permission:
(a) given under Part 4A of the Act; or
(b) resulting from any other provision of the Act;
to carry on regulated activities that consist of or include one or more PRA-regulated activities.
PRA-regulated Activities Order
FCAPRA

(A) (In the PRA Handbook):19
the Financial Services and Market Act 2000 (PRA-regulated Activities) Order 2013 (SI 2013/556).
(B) (In the FCA Handbook):20
the Financial Services and Market Act 2000 (PRA-regulated Activities) Order 2013 (SI 2013/556).
PRA-regulated activity
FCAPRA
17a regulated activity specified in an order made under section 22A of the Act or specified pursuant to a power granted in such an order.
precious metals
FCAPRA
7(in COLL) gold, silver or platinum.
predecessor scheme
FCAPRA
7any 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.
pre-existing arrangements
FCA
62in relation to a borrower-lender agreement or a borrower-lender-supplier agreement, a credit agreement is entered into under pre-existing arrangements between a lender and a supplier if it is entered into in accordance with, or in connection with, arrangements previously made between the lender (or the lender's associate) and the supplier (or the supplier's associate) unless the arrangements are:
(a) for the making, in circumstances specified in the credit agreement, of payments to the supplier by the lender ("L") and L indicates that L is willing to make, in such circumstances, payments of the kind to suppliers generally, or
(b) for the electronic transfer of funds from a current account held with an authorised person with permission to accept deposits,

but if a lender is an associate of the supplier's, the credit agreement is to be treated as entered into under pre-existing arrangements between the lender and the supplier unless the lender can show that this is not the case.
preference share
FCAPRA
572929a share conferring preference as to income or return of capital which does not form part of the equity share capital of a company.9798979897
preliminary charge
FCAPRA
7a charge upon a sale of units by an authorised fund manager whether or not acting as principal.
premium
FCAPRA
7(1) (except in65 ICOBS65 and CASS 5) 46(in relation to a general insurance contract) the consideration payable under the contract by the policyholder to the insurer.
(2) (except in65 ICOBS65 and CASS 5) 46(in relation to a long-term insurance contract) 57the consideration payable under the contract by the policyholder to the insurer57; (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
(iii) assuming the policy evidencing the contract is not surrendered or otherwise terminated before the premiums fall due, will fall due on those dates without either party to the contract exercising any option under the contract; or
(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.
(2A) (in65 ICOBS65 and CASS 5) as in (1) and (2) except that 'insurance undertaking' is substituted for 'insurer' (except where 'insurer' is used in the heading to SUP 16.8).46
(3) (in relation to an option) the total amount which the purchaser of the option is, or may be, required to pay in consideration for the right to exercise the option.
premium listing
FCAPRA
99(a) in relation to equity shares97 (other than those of a closed-ended investment fund or of an open-ended investment company), means a listing where the issuer is required to comply with those requirements in LR 6 (Additional requirements for premium listing (commercial company))97 and the97 other requirements in the listing rules that are expressed to apply to such securities with a premium listing;
(b) in relation to equity shares 97of a closed-ended investment fund, means a listing where the issuer is required to comply with those requirements in LR 15 (Closed-Ended Investment Funds: Premium listing)97 and other requirements in the listing rules that are expressed to apply to such securities with a premium listing;
(c) in relation to equity shares97 of an open-ended investment company, means a listing where the issuer is required to comply with LR 16 (Open-ended investment companies: Premium listing)97 and other requirements in the listing rules that are expressed to apply to such securities with a premium listing.
premium listing (commercial company)
FCAPRA
premium listing (investment company)
FCAPRA
777
premiums amount
FCAPRA
57(for the purposes of 5INSPRU 1.15), an amount, as defined in 5INSPRU 1.1.45R5, used in the calculation of the general insurance capital requirement.
714
prescribed asset share methodology
FCAPRA
27the methodology described in COBS 20.2.5 R for assessing maturity payments by reference to unsmoothed asset shares.
prescribed auction platform
FCAPRA
52an auction platform which has been prescribed by the Treasury in the Prescribed Markets and Qualifying Investments Order.
prescribed market
FCAPRA
7101a market which has been prescribed by the Treasury in the Prescribed Markets and Qualifying Investments Order12
Prescribed Markets and Qualifying Investments Order
FCAPRA
7the Financial Services and Markets Act 2000 (Prescribed Markets and Qualifying Investments) Order 2001 (SI 2001/996).
prescribed pricing basis
FCAPRA
7(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 200457.
previous regulator
FCAPRA
726
(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;
(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.
(7) (in relation to an ex-section 43 firm ) the FSA.
(8) (in relation to a firm which was authorised under the Act immediately before 1 April 2013) the FSA.18
price
FCAPRA
102102102102102102
(in COLL)
89(in relation to a unit in an authorised fund) the price of the unit calculated in accordance with COLL 6.3 (Valuation and pricing).102
price information
FCAPRA
63(in MCOB ) information, in a103 financial promotion103 , 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.
price stabilising rules
FCAPRA
7the rules made under section 17137Q17 of the Act, and appearing in MAR 2.1 to 12MAR 2.412, together with any other provisions available for their interpretation.
primary information provider
FCA
106a person approved by the FCA under section 89P of the Act.
994
499
primary pooling event
FCA
74610744108108
(1) [deleted]
(2) (in CASS 5) an event that occurs in the circumstances described in CASS 5.6.5 R (Failure of the authorised firm: primary pooling event).
(3) (in CASS 7 and CASS 7A) an event that occurs in the circumstances described in CASS 7A.2.2 R (Failure of the authorised firm: primary pooling event).
61(4) (in CASS 11) an event that occurs in the circumstances described in CASS 11.13.3 R.
prime brokerage agreement
FCAPRA
109an agreement between a prime brokerage firm and a client for prime brokerage services.
prime brokerage firm
FCA
109a firm that provides prime brokerage services to a client and which may do so acting as principal.
48(1) (except in FUND) a firm that provides prime brokerage services to a client and which may do so acting as principal.
48(2) (in FUND) a credit institution, regulated investment firm or another entity subject to prudential regulation and ongoing supervision, offering services to professional clients primarily to finance or execute transactions in financial instruments as counterparty and which may also provide other services, such as clearing and settlement of trades, custodial services, stock lending, customised technology and operational support facilities.90
[Note: article 4(1)(af) of AIFMD]
prime brokerage services
FCA
109a package of services provided under a prime brokerage agreement which gives a prime brokerage firm a right to use safe custody assets for its own account and which comprises each of the following:
(b) clearing services; and
(c) financing, the provision of which includes one or more of the following:
(i) capital introduction;
(ii) margin financing;
(iv) stock borrowing;
(v) entering into repurchase or reverse repurchase transactions;
and which, in addition, may comprise consolidated reporting and other operational support.90
PRIN
FCAPRA
(A) In the PRA Handbook:21
In relation to any rules in PRIN, the equivalent provision (if any) in the Fundamental Rules Part of the PRA Rulebook.21
(B) In the FCA Handbook:
7the part of the Handbook in High Level Standards that has the title Principles for Businesses.
principal
FCAPRA
714(A) In the PRA Handbook:
(1) in relation to a person :
(a) a person acting on his own account;
(b) (if the person is an appointed representative or, where applicable, a tied agent) the authorised person who is party to a contract with the appointed representative, or who is responsible for the acts of the tied agent, resulting in him being exempt, or in him carrying on a regulated activity to which sections 20(1) and (1A) and 23(1A) of the Act do not apply,108 under section 39 of the Act (Exemption of appointed representatives).
(2) in relation to an option , future or forward contract:
(a) (except in the case of an option on a future ) the amount of property or the value of the property which must be delivered in order to satisfy settlement of the option , future or forward contract;
(b) (in relation to an option on a future ) the amount of property or the value of the property which must be delivered in order to satisfy settlement of the future .
(B) In the FCA Handbook:
(1) in relation to a person :
(a) a person acting on his own account;
(b) (if the person is an appointed representative or, where applicable, a tied agent) the authorised person who is party to a contract with the appointed representative, or who is responsible for the acts of the tied agent, resulting in him being exempt, or in him carrying on a regulated activity to which sections 20(1) and (1A) and 23(1A) of the Act do not apply,61 under section 39 of the Act (Exemption of appointed representatives).
(2) in relation to an option , future or forward contract:
(a) (except in the case of an option on a future ) the amount of property or the value of the property which must be delivered in order to satisfy settlement of the option , future or forward contract;
(b) (in relation to an option on a future ) the amount of property or the value of the property which must be delivered in order to satisfy settlement of the future .
Principle
FCAPRA

(A) In the PRA Handbook:
one of the Principles set out in PRIN 2.1.1 R (Principles for Businesses) or:21
(a) in relation to Principle 1, Fundamental Rule 1;21
(b) in relation to Principle 2, Fundamental Rule 2;21
(c) in relation to Principle 3, Fundamental Rule 5 or Fundamental Rule 6 as appropriate;21
(d) in relation to Principle 4, Fundamental Rule 4; and21
(e) in relation to Principle 11, Fundamental Rule 7.21

(B) In the FCA Handbook:
7one of the Principles set out in PRIN 2.1.1 R (Principles for Businesses).
Principles and Practices of Financial Management
FCAPRA
13the Principles and Practices of Financial Management, containing with-profits principles and with-profits practices,27 which a firm carrying on with-profits business must establish, maintain and record under 27COBS 20.3 27(Principles and Practices of Financial Management).
priority debt
FCAPRA
110(in BCOBS) an obligation on the part of a consumer to make a payment:
(a) where the remedies for a breach of that obligation potentially include seeking possession of, or seeking to exercise a power of sale in respect of:
(i) the sole or main residence of the consumer (for example, an obligation to pay secured by a mortgage or charge in respect of land, an obligation to pay rent under a tenancy, or an obligation to make payment under a licence to occupy land); or
(ii) the consumer's essential goods or services (for example, an obligation to pay under a hire purchase, conditional sale or hire agreement that relates to, or an obligation to pay secured by a charge on, the consumer's cooker, refrigerator, or the means to travel to work); or
(b) where that obligation arises out of an order of the court, an Act or secondary legislation (for example, an obligation to pay council tax, child support maintenance, income tax or court fines); or
(c) where that obligation arises under a contract for the provision of utility supplies (for example, water, gas or electricity).
private customer
FCA
(for the purposes only of COBS TP 1 (Transitional Provisions in relation to Client Categorisation)):14
(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:32
(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);
3233(e) a person to whom a firm14 gives basic advice14;33
(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 the111 statement must be sent in accordance with Regulation 10 of the CTF Regulations;32
(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 the111 statement must be sent in accordance with Regulation 10 of the CTF Regulations;32
(h) a client who would otherwise be excluded as a market counterparty or intermediate customer if the client is within (e), (f) or (g);32
but excluding a client , who would otherwise be a private customer:32
(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); or32
(ii) when the regulated activity relates to a CTF , any person other than (e), (f), (g) or (h).32
(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.32(in COB 4.2 and 6.1 to 6.5) a person in (1) and, in relation to the conclusion of a distance contract , a14 consumer14.112
(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, a14 consumer14.1121137
private person
FCA
7108108
(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);61
(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;
61(c) a relevant recipient of credit (within the meaning of article 60L of the Regulated Activities Order) who is not an individual and who has suffered the loss in question in connection with an activity of the kind specified by article 36A, 39D, 39E, 39F, 39G, 60B, 60N, 89A or 89B of that Order or article 64 of that Order, so far as relevant to any of those activities; and
61(d) a person who is, by virtue of article 36J of the Regulated Activities Order, to be regarded as a person who uses, may use, has or may have used or has or may have contemplated using, services provided by authorised persons in carrying on a regulated activity of the kind specified by article 36H of that Order or article 64 of that Order so far as relevant to that activity;
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.
probability of default
FCA
5(in accordance with Article 4(25) of the Banking Consolidation Directive (Definitions) and for the purpose of BIPRU11) the probability of default of a counterparty over a one year period; for the purposes of the IRB approach, default has the meaning in the definition of default.
probable reserves
FCAPRA
(in LR):
(a) in respect of mineral companies primarily involved in the extraction of oil and gas resources, those reserves which are not yet proven but which, on the available evidence and taking into account technical and economic factors, have a better than 50% chance of being produced; and
(b) in respect of mineral companies other than those primarily involved in the extraction of oil and gas resources, those measured and/or indicated mineral resources , which are not yet proven but of which detailed technical and economic studies have demonstrated that extraction can be justified at the time of the determination and under specified economic conditions.4
procuration fee
FCAPRA
63the total amount paid by a103 home finance provider103 to a103 home finance intermediary103 , whether directly or indirectly, in connection with providing applications from customers to enter into103 home finance transactions103 with that103 home finance provider103.
PROF
FCAPRA
7the Professional Firms sourcebook.
professional ACS investor
FCA
91in relation to an ACS, a person who falls within one of the categories (1) to (4) of Section I of Annex II (professional clients for the purpose of that directive) to MiFID.
professional client
FCAPRA
11444a client that is either a per se professional client or an elective professional client (see COBS 3.5.1 R).44
[Note: article 4(1)(12) of MiFID].44
professional customer
FCAPRA
67a customer who works or has recently worked in the home finance sector for at least one year in a professional position, which requires knowledge of the home finance transactions or home finance services envisaged, and who the firm reasonably believes to be capable of understanding the risks involved in the transaction or transactions contemplated.
professional firm
FCAPRA
726a 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 49or 49managed by one or more such individuals.
professional negligence capital requirement
FCA
10(1) (in IPRU(INV) 11) an amount of own funds that a collective portfolio management firm must hold professional liability risks as set out in article 14 of the AIFMD level 2 regulation (additional own funds) (as replicated in IPRU(INV) 11.3.14EU) (Professional negligence).
11[deleted]11
profit and loss figure
FCAPRA
16(in BIPRU 7.10 (Use of a value at risk model) and in relation to a business day) a firm's actual profit or loss for that day in respect of the trading activities within the scope of the firm's VaR model permission, adjusted by stripping out specified items, as more fully defined in BIPRU 7.10.100 R (Backtesting: Calculating the profit and loss).
profit estimate
FCAPRA
(in PR and LR) (as defined in the PD Regulation) a profit forecast for a financial period which has expired and for which results have not yet been published.4
profit forecast
FCAPRA
(in PR and LR) (as defined in the PD Regulation) a form of words which expressly states or by implication indicates a figure or a minimum or maximum figure for the likely level of profits or losses for the current financial period and/or financial periods subsequent to that period, or contains data from which a calculation of such a figure for future profits or losses may be made, even if no particular figure is mentioned and the word "profit" is not used.4
programme
FCAPRA
115(in RCB) (as defined in Regulation 1(2) of the RCB Regulations) issues, or series of issues, of covered bonds which have substantially similar terms and are subject to a framework contract or contracts.
prohibited period
FCAPRA
(in LR) as defined by paragraph 1(e) of the Model Code.4
prohibition order
FCAPRA
7an order made 17under section 56 of the Act (Prohibition orders) which prohibits an individual from performing a specified function, any function falling within a specified description or any function.
projection
FCAPRA
7a projection of the amount of any future benefit payable under a contract or policy , being a benefit the amount of which is not ascertainable under the terms of the contract or policy when the calculation is made.
projection date
FCAPRA
7116the date to which the projection is made.
projection period
FCAPRA
14(in COBS) the period covered by a standardised deterministic projection, which begins on the date the investment is reasonably expected to be made and ends on the projection date described in paragraph 2.1 of COBS 13 Annex 2.
Promotion of Collective Investment Schemes Order
FCA
28the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001.
property
FCAPRA
(in LR) freehold, heritable or leasehold property.4
property authorised investment fund
FCAPRA
an open-ended investment company to which Part 4A of the Authorised Investment Funds (Tax) Regulations 2006 (SI 2006/964) applies. 117
property collective investment undertaking
FCAPRA
(in PR) (as defined in the PD Regulation) a collective investment undertaking whose investment objective is the participation in the holding of property in the long term.
property company
FCAPRA
(in LR) a company primarily engaged in property activities including:
(a) the holding of properties (directly or indirectly) for letting and retention as investments;
(b) the development of properties for letting and retention as investments;
(c) the purchase and development of properties for subsequent sale;
(d) the purchase of land for development properties for retention as investments.4
property enterprise trust
FCAPRA
7an unregulated collective investment scheme of which the underlying assets are land and buildings.
property fund
FCAPRA
118(a) a regulated collective investment scheme dedicated to land and interests in land;
(b) a fund of funds of which one or more of the funds to which it is dedicated falls within (a);
(c) a constituent part of an umbrella fund which, if it were a separate fund, would fall within (a).
property valuation report
FCAPRA
(in LR ) a property valuation report prepared by an independent expert in accordance with37:37
(1) for an issuer incorporated in the United Kingdom, the Channel Islands or the Isle of Man, the Appraisal and Valuation Standards (5th edition) issued by the Royal Institution of Chartered Surveyors; or37
(2) for an issuer incorporated in any other place, either the standards referred to in paragraph (1) or the International Valuation Standards (7th edition) issued by the International Valuation Standards Committee.37
4
property-linked assets
FCAPRA
78in relation to an insurer, long-term insurance assets that are, for the time being, identified in the records of the insurer as being assets by reference to the value of which property-linked benefits are to be determined.
property-linked benefits
FCAPRA
57benefits other than index-linked benefits provided for under a linked long-term contract of insurance.
property-linked liabilities
FCAPRA
57insurance liabilities in respect of property-linked benefits.
proportional reinsurance treaty
FCAPRA
57a 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.
proprietary trader
FCAPRA
120(in SUP 10 (Approved Persons) and APER) a person (A) whose responsibilities include committing another person (B) as part of B's proprietary trading.
proprietary trading
FCAPRA
120(in48 SUP 10A48 (Approved Persons) and APER) dealing in investments as principal as part of a business of trading in specified investments. For these purposes dealing in investments as principal includes any activities that would be included but for the exclusion in Article 15 (Absence of holding out)48,48 Article 16 (Dealing in contractually based investments) or, for a UK AIFM or UK UCITS management company, article 72AA (Managers of UCITS and AIFs)48 of the Regulated Activities Order.
prospectus
FCAPRA
7(1) (in LR and PR48,48 FEES43 and FUND 3 (Requirements for managers of alternative investment funds)) a prospectus required under the prospectus directive.489
(2) (except in LR and PR)4(in relation to a 88collective investment scheme88) a document containing information about the 88scheme88 and complying with the requirements in COLL 4.2.5 R (Table: contents of the prospectus), COLL 8.3.4 R (Table: contents of qualified investor scheme prospectus)88 or 88 COLL 9.3.2 R (Additional information required in the prospectus for an application under section 272)88 applicable to a prospectus of a scheme of the type concerned.
Prospectus Directive
FCAPRA
29the Directive of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading (No 2003/71/EC).
Prospectus Rules
FCAPRA
(as defined in section 73A(4) of the Act) rules expressed to relate to transferable securities.4
protected claim
FCAPRA
7a claim which is covered by the compensation scheme, as defined in COMP 5.2.1 R.
protected contract of insurance
FCAPRA
7a contract of insurance which is covered by the compensation scheme, as defined in COMP 5.4.1 R.
protected deposit
FCAPRA
7a deposit which is covered by the compensation scheme, as defined in COMP 5.3.1 R.
protected dormant account
FCAPRA
121a dormant account which is covered by the compensation scheme, as defined in COMP 5.3.2R.
protected home finance mediation
FCAPRA
10363activities in relation to103 home finance transactions103 which are covered by the compensation scheme, as defined in COMP 5.6.1 R.
protected investment business
FCAPRA
7designated investment business which is covered by the compensation scheme, as defined in COMP 5.5.1 R.
protected items
FCAPRA
7(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.
10363
protected non-investment insurance mediation
FCAPRA
46insurance mediation activities which are covered by the compensation scheme, as defined in COMP 5.7.1 R.4646
protection buyer
FCA
5(in BIPRU)11 (in relation to a credit derivative and in accordance with paragraph 8 of Annex I of the Capital Adequacy Directive (Calculating capital requirements for position risk)) the person who transfers credit risk.
protection seller
FCA
(in BIPRU)11 55(in relation to a credit derivative and in accordance with paragraph 8 of Annex I of the Capital Adequacy Directive (Calculating capital requirements for position risk)) the person who assumes the credit risk.
proven reserves
FCAPRA
(in LR):
(a) in respect of mineral companies primarily involved in the extraction of oil and gas resources, those reserves which, on the available evidence and taking into account technical and economic factors, have a better than 90% chance of being produced; and
(b) in respect of mineral companies other than those primarily involved in the extraction of oil and gas resources, those measured mineral resources of which detailed technical and economic studies have demonstrated that extraction can be justified at the time of the determination, and under specified economic conditions.4
provider of credit information services
FCA
provider of credit references
FCA
3327
providing credit information services
FCA
1a regulated activity of the kind specified in article 89A of the Regulated Activities Order.
providing credit references
FCA
1the regulated activity specified in article 89B of the Regulated Activities Order.
providing information in relation to a specified benchmark
FCA
122The regulated activity, specified in article 63O(1)(a) of the Regulated Activities Order, which in summary means making benchmark submissions.
providing qualifying credit
FCAPRA
63the controlled activity, specified in paragraph 10 of Schedule 1 to the Financial Promotion Order, of providing qualifying credit.
proxy capital resources requirement
FCAPRA
57the 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.
PRR charge
FCAPRA
5one of the following:
(b) the equity PRR;
(c) the commodity PRR;
(e) the option PRR;
(g) (if the context requires) the model PRR.
PRR identical product netting rules
FCAPRA
5the following:
(a) BIPRU 7.2.37 R (Deriving the net position in each debt security: Netting positions in the same debt security);
(b) BIPRU 7.2.40 R (Deriving the net position in each debt security: Netting zero-specific-risk securities with different maturities);
(c) BIPRU 7.3.23 R (Deriving the net position in each equity);
(d) BIPRU 7.4.20 R and BIPRU 7.4.22 R (Calculating the PRR for each commodity: General);
(e) BIPRU 7.5.19 R (1) (Open currency position); and
(f) the obligation under BIPRU 7.5.20 R (Net gold position) to calculate a separate foreign exchange PRR charge for gold).
PRU
FCAPRA
22the Integrated Prudential Sourcebook
prudential context
FCAPRA
7171233
(A) In the PRA Handbook:124
(1) For the FCA, 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) the integrity of the UK financial system; or
(b) the ability of the firm to meet either:
(i) the "fit and proper" test in threshold condition 2E and 3D (Suitability); or
(ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.
(2) For the PRA, 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) the safety and soundness of PRA-authorised persons; or
(b) the ability of the firm to meet either:
(i) the "fit and proper" test in threshold condition 4E and 5E (Suitability); or
(ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.
(B) In the FCA Handbook:124
(1) For the FCA, 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) the integrity of the UK financial system; or
(b) the ability of the firm to meet either:
(i) the "fit and proper" test in threshold condition 2E and 3D (Suitability); or
(ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.
(2) For the PRA, 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) the safety and soundness of PRA-authorised persons; 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.
public announcement
FCAPRA
7any 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.
public censure
FCAPRA
125(1) a statement published under section 205 (Public censure) of the Act;
(2) a statement of misconduct published under section 66 (Disciplinary powers) of the Act;
(3) a statement published under section 123 (Power to impose penalties in cases of market abuse) of the Act;
(4) a statement published under section 87M (Public censure of issuer) of the Act, under 17section 88A (Disciplinary powers: contravention of s88(3)(c) or (e))17 of the Act or under section 91 (Penalties for breach of 17Part 617 rules) of the Act.
public international body
FCAPRA
(1) (in PR ) (as defined in the PD Regulation) a legal entity of public nature established by an international treaty between sovereign States and of which one or more Member States are members.4
29
(2) (in LR and DTR) 4the African Development Bank, the Asian Development Bank, the Caribbean Development Bank, 37the Council of Europe Development Bank37, the European Atomic Energy Community, the European Bank for Reconstruction and Development, 126the European Company for the Financing of Railroad Stock, the 126EU,126 the European Investment Bank, the Inter-American Development Bank, the International Bank for Reconstruction and Development, the International Finance Corporation, the International Monetary Fund and the Nordic Investment Bank.
public offer
FCAPRA
7an offer of securities to the public and described in the POS Regulations.
public sector entity
FCA
5(in accordance with Article 4(18) of the Banking Consolidation Directive (Definitions) and for the purposes of BIPRU11) any of the following:
(a) non-commercial administrative bodies responsible to central governments, regional governments or local authorities; or
(b) authorities that exercise the same responsibilities as regional and local authorities; or
(c) non commercial undertakings owned by central governments that have explicit guarantee arrangements; or
(d) self administered bodies governed by law that are under public supervision.
public sector issuer
FCAPRA
29states and their regional and local authorities, state monopolies, state finance organisations, public international bodies, statutory bodies and OECD state guaranteed issuers.
published recommendation
FCAPRA
7any 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.
pure protection contract
FCAPRA
127
(1) a 128long-term insurance contract 128in 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) 128[deleted]128
(c) the contract has no surrender value, or the consideration consists of a single premium and the surrender value does not exceed that premium; and
(d) the contract makes no provision for its conversion or extension in a manner which would result in it ceasing to comply with 128(a)128 or (c); or
(e) [deleted]127
(2) a reinsurance contract covering all or part of a risk to which a person is exposed under a long-term insurance contract.127
pure protection service
FCAPRA
129(a) making a personal recommendation to a consumer in relation to a pure protection contract;
(b) arranging for a consumer to enter into a pure protection contract.
pure reinsurer
FCAPRA
7an insurer whose insurance business is restricted to reinsurance.