SECN 5.1 Interpretation and application

1 In this chapter, the following definitions apply:

1. (1)

   1‘contingent form of retention’ means retention of a material net economic interest through the use of guarantees, letters of credit and other similar forms of credit support ensuring an immediate enforcement of the retention;

2. (2)

   ‘synthetic form of retention’ means retention of a material net economic interest through the use of derivative instruments; and

3. (3)

   ‘UK Solvency II Firm’ has the same definition as in Article 2.1 of Chapter 2, Solvency II Firms: Insurance General Application of the PRA Rulebook.