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early amortisation provision

34(in accordance with Article 100 of the Banking Consolidation Directive (Securitisation of revolving exposures) and in relation to a securitisation within the meaning of paragraph (2) of the definition of securitisation) a contractual clause which requires, on the occurrence of defined events, investors' positions to be redeemed prior to the originally stated maturity of the securities issued.

UCITS

43undertakings for collective investment in transferable securities that are established in accordance with the UCITS Directive.

table of controlled functions

the table of controlled functions in SUP 10.4.5 R.3

waiver

a direction waiving or modifying a rule, given by the FSA under sections 148, 250 or 294 of the Act (Waiver or modification of rules) or regulation 7 of the OEIC Regulations (Modification or waiver of FSA rules) (see SUP 8 and REC 3.3).3

1986 Act

70(in BSOCS) the Building Societies Act 1986.

habitual residence

  1. (a) if the policyholder is an individual, the address given by the policyholder as his residence if it reasonably appears to be a residential address and there is no evidence to the contrary;
  2. (b) if the policyholder is not an individual or a group of individuals, the State in which the policyholder has its place of establishment, or, if it has more than one, its relevant place of establishment;
  3. (c) in respect of the variation of a life policy, or the purchase of a pension annuity related to a life policy, unless there is evidence to the contrary, the habitual residence of the policyholder at the date on which the policyholder signed the proposal for the life policy.1

name-passing broker

a person who arranges (brings about ) deals between counterparties at mutually acceptable terms and passes their names to each of them to facilitate the conclusion of a transaction.2

zero-specific-risk security

5a notional debt security used, for the purpose of calculating PRR, to represent the interest rate general market risk arising from certain derivative and forward transactions as specified in BIPRU 7.2 (Interest rate PRR).

qualified investor

(in PR) (as defined in section 86(7) of the Act):

  1. (a) any entity within the meaning of Article 2(1)(e)(i), (ii) or (iii) of the prospectus directive; or
  2. (b) an investor registered on the register maintained by the competent authority under section 87R of the Act; or
  3. (c) an investor authorised by an EEA State other than the United Kingdom to be considered as a qualified investor for the purposes of the prospectus directive. 7

    occupational pension fund management business

    (in COMP) the business of carrying on:

    1. (1) pension fund management; or
    2. (2) (other than in connection with a personal pension scheme) pension fund management, written as linked long term business , for an occupational pension scheme or for an institution falling within article 2 of the Council Directive of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision (No 2003/41/EC) but only to the extent that:
      1. (a) there is no transfer to the participant firm of:
        1. (i) investment, market, or credit risk;
        2. (iii) mortality or expense risk prior to any annuity being effected; and
      2. (b) any annuity options provide for the participant firm to change the annuity rates without prior notice.13

    facilities

    (in relation to a recognised body) the facilities and services which it provides in the course of carrying on exempt activities2, and references to the use of the facilities of an RIE are to be construed as follows:25

    1. (1) dealings on an RIE; or25
    2. (2) transactions on an RIE are25
    3. (3) references to dealings or transactions which are effected by means of the RIE's facilities; or25
    4. (4) which are governed by the rules of the RIE; and25
    5. (5) references to the use of the facilities of an RIE include use which consists of any such dealings or entering into any such transactions.25

    half-yearly accounting period

    (in COLL) a period determined in accordance with COLL 6.8.2 R (2) (Accounting periods).16

    joint enterprise

    (as defined in article 3(1) of the Regulated Activities Order (Interpretation)) an enterprise into which two or more persons ("the participators") enter for commercial purposes related to a business or businesses (other than the business of engaging in a regulated activity) carried on by them; where a participator is a member of a group, each other member of the group is also to be regarded as a participator in the enterprise. 1

    warning notice

    a notice issued by the FSA in accordance with section 387 of the Act (Warning notices).3

    national bureau

    (in relation to an EEA State) a professional organisation which:

    1. (a) has been constituted in that State in accordance with Recommendation No 5 adopted on 25 January 1949 by the Road Transport Sub-committee of the Inland Transport Committee of the United Nations Economic Commission for Europe; and
    2. (b) groups together insurance undertakings which in that State are authorised to conduct the business of motor vehicle liability insurance.2

    backwardation

    4a situation in which futures prices are lower than cash prices.

    national guarantee fund

    (in relation to an EEA State) a body which:

    1. (a) has been set up or authorised in that State in accordance with article 1(4) of Council Directive (84/5/EEC); and
    2. (b) provides compensation for damages to property or personal injuries caused by unidentified vehicles for which the insurance obligation provided for in article 1(1) of that Directive has not been satisfied.2

    occupational pension scheme

    1. (a) (a scheme24 specified in article 3(1) of the Regulated Activities Order (Interpretation)) which is, in summary, a pension scheme established for the purpose of providing benefits to people with service in employments of a prescribed description.24

    MAD Investment Recommendations Directive

    44The Commission Directive of 22 December 2003 implementing the Market Abuse Directive as regards the fair presentation of investment recommendations and the disclosure of conflicts of interest (No. 2003/125/EC).

    CAD 1 model

    48a risk management model of the type described in BIPRU 7.9 (Use of a CAD 1 model).

    UCITS Directive

    the European Parliament and43 Council Directive of 13 July 200943 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (No 2009/65/EC),43 , as amended.15

    IBNR

    32(in relation to claims (as defined for the purposes of INSPRU52 , SUP and TC)) claims that have been incurred but not reported arising out of events that have occurred by the balance sheet date but have not been reported to the insurance undertaking at that date.

    Handbook

    the FSA's Handbook of rules and guidance (for a table of contents, see the Reader's Guide).1

    safeguarding and administering investments

    the regulated activity , specified in article 40 of the Regulated Activities Order (Safeguarding and administering investments), which is in summary: the safeguarding of assets belonging to another and the administration of those assets, or arranging for one or more other persons to carry on that activity, where:

    1. (a) the assets consist of or include any security or contractually based investment (that is, any designated investment, funeral plan contract or right to or interest in a funeral plan contract); or
    2. (b) the arrangements for their safeguarding and administration are such that the assets may consist of or include designated investments, and either the assets have at any time since 1 June 1997 done so, or the arrangements have at any time (whether before or after that date) been held out as ones under which designated investments would be safeguarded and administered. 514

    warrant

    1. (1) (except in12COLL12 ) the investment, specified in article 79 of the Regulated Activities Order (Instruments giving entitlements to investments), which is in summary: a warrant or other instrument entitling the holder to subscribe for a share, debenture, alternative debenture20 or government and public security.
    2. (2) (in12COLL12 ) an investment in (1) and any other transferable security (not being a nil paid or partly paid security) which is:
      1. (i) listed on an eligible securities market; and
      2. (ii) akin to an investment within (1) in that it involves a down payment by the then holder and a right later to surrender the instrument and to pay more money in return for a further transferable security.3

    damage to property

    (in relation to a class of contract of insurance) the class of contract of insurance, specified in paragraph 9 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance), against loss of or damage to property (other than property to which paragraphs 3 to 7 of that Schedule (L and vehicles, Rfailway rolling stock, Aircraft, Ships and Goods in transit) relate) due to hail or frost or any other event (such as theft) other than those mentioned in paragraph 8 of that Schedule (Fire and natural forces).3

    qualified valuer

    1(in relation to any particular type of land in any particular area) a fellow or professional associate of the Royal Institution of Chartered Surveyors, a fellow or associate of the Incorporated Society of Valuers and Auctioneers, or a fellow or associate of the Rating and Valuation Association, who:

    1. (a) has knowledge of and experience in the valuation of that particular type of land in that particular area; or
    2. (b) has knowledge of and experience in the valuation of land and has taken advice from a valuer who he is satisfied has knowledge of and experience in the valuation of that particular type of land in that particular area; or
    3. (c) immediately before 15 June 1981 was recognised as a qualified valuer by approval by the Secretary of State under the Insurance Companies (Valuation of Assets) Regulations 1976.4

    made to; made only to; to whom it is made

    47a financial promotion is made to a person if it is addressed, whether orally or in legible form, to a particular person or persons (for example where it is contained in a telephone call or letter).

    safeguarding and administration of assets (without arranging)

    that part of safeguarding and administering investments which consists of both:

    1. (a) the safeguarding of assets belonging to another; and
    2. (b) the administration of those assets. 5

    balance

    33(in relation to a person's account) has the meaning given in section 8 of the Dormant Bank and Building Society Accounts Act 2008, which is in summary the amount owing to the person in respect of the account at any particular time, after the appropriate adjustments have been made for such things as interest due and fees and charges payable. In relation to a time after a transfer of the balance to a dormant account fund operator, the adjustments include those that would fall to be made but for the transfer or transfers.

    early repayment charge

    14(in MCOB and BSOCS63) a charge levied by the mortgage lender on the customer in the event that the amount of the loan is repaid in full or in part before a date specified in the contract.

    UCITS eligible assets Directive

    29Commission Directive 2007/16/EC implementing Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards the clarification of certain definitions.