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UCITS

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

JGPPI

2the FSA/OFT Joint Guidance on Payment Protection Products.

C&C

185the Cheque & Credit designated by HM Treasury under section 43 of FSBRA.COLL 4.2.5R(3)(c-b)(ii)

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

land

51in accordance with section 189(1) of the CCA, includes an interest in land, and, in Scotland, includes heritable subjects of whatever description.

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).

facilities

(in relation to a recognised body) the facilities and services which it provides in the course of carrying on exempt activities2. References155 to the use of the facilities of an RIE or RAP59 are to be construed as follows:25

  1. 25 59
  2. 25 59
  3. 25 59
  4. 25 59
  5. 25
  6. (a) dealings or transactions on an RIE or RAP are references to dealings or transactions which are effected by means of the RIE's or RAP's facilities or which are governed by the rules of the RIE or RAP; 15559
  7. (b) references to the use of the facilities of an RIE or RAP include use which consists of any such dealings or entering into any such transactions.59

P2P agreement

  1. 112 117(a) (in relation to a borrower) in accordance with article 36H of the Regulated Activities Order, an agreement between one person113 ("the borrower") and another person113 ("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:
    1. (i) the lender provides credit (within that meaning) of less than or equal to £25,000; or
    2. (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.
  2. 113(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:
    1. (i) the lender provides credit (within that meaning) of less than or equal to £25,000; or113
    2. (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.113
    113

early amortisation provision

89

  1. (1) (in BIPRU) (in accordance with Article 100 of the Banking Consolidation Directive (Securitisation of revolving exposures) and in 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.

  1. (2) (except in (1)) has the meaning in article 242(14) of the EU CRR.

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

qualified investor

(in PR) (as defined in section 86(7) of the Act) in relation to an offer of transferable securities19:

  1. (a) 19a person or entity described in points (1) to (4) of Section I of Annex II to MiFID, other than a person who, before the making of the offer, has agreed in writing with the relevant firm (or each of the relevant firms) to be treated as a non-professional client in accordance with MiFID19; or
  2. (b) 19a person who has made a request to one or more relevant firms to be treated as a professional client in accordance with Section II of Annex II to MiFID and has not subsequently, but before the making of the offer, agreed in writing with that relevant firm (or each of those relevant firms) to be treated as a non-professional client in accordance with the final paragraph of Section I of Annex II to MiFID19; or
  3. (c) 19a person who is an eligible counterparty in accordance with article 24 of MiFID and has not, before the making of the offer, agreed in writing with the relevant firm (or each of the relevant firms) to be treated as a non-professional client in accordance with the final paragraph of Section I of Annex II of MiFID; or197
    1. 19(d) a person whom any relevant firm is authorised to continue to treat as a professional client in accordance with article 71(6) of MiFID.

      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

      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.

      land-related agreement

      51(in CONC App 1.1) a credit agreement which is

      1. (a) intended primarily to finance the acquisition or retention of land; or
      2. (b) intended to finance the renovation or improvement of a building,

      or any other credit agreement secured by a legal mortgage on land or, in Scotland, by a standard security within the meaning of the Conveyancing and Feudal Reform (Scotland) Act 1970.

      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.

      Bacs

      60the Bacs regulated payment system designated by HM Treasury under section 43 of FSBRA.

      safeguarding and administering investments

      127the 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 (other than a P2P agreement), 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 (other than P2P agreements), 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 (other than P2P agreements) would be safeguarded and administered.

      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