glossary - FCA Handbook

1 GlossaryDefinitionsGuidance on the Glossaryof definitionsn Release 22l Aug Guidance on the glossary of definitions1. The rules and guidance for interpreting the Handbook are to befound in n GEN 2 (Interpreting the Handbook )2. The guidance in the following paragraphs reminds the reader ofsome practical points for interpreting Handbook Each sourcebook or manual has a reference code of two or moreletters, usually a contraction or abbreviation of its title (forexample, GEN stands for the General Provisions and COBS for theConduct of Business sourcebook). The meaning of each of thesecodes is given in the Expressions used in the Handbook which are defined in theGlossary appear in the text in italic type (n GEN R (1) (Use ofdefined expressions)). An expression which is not shown in thetext in italics has its natural meaning unless the contextotherwise requires (n GEN G).

2 5. An expression which appears in the text in italics, but is not itselfdefined in the glossary , should be read in the same sense as theexpression to which it relates (for example, "advice oninvestments" and "advise on investments" are related to"advising on investments", so the reader should refer to thedefinition of "advising on investments" for their meaning).(n GEN R (2) and n GEN G).6. The words "in writing", unless the contrary intention appears,mean in legible form and capable of reproduction on paper; theyinclude electronic communication (n GEN R (References towriting)).7. The Interpretation Act 1978 applies to the Handbook , so (unlessthe contrary intention appears):(1) the singular includes the plural, and the plural the singular(n GEN G (3));(2) the masculine includes the feminine (n GEN G (3));(3) a reference to a statutory provision is a reference to it asamended from time to time (n GEN G (2)); undern GENPRU G (Cross-references in the Handbook ) the sameapplies to a provision in the Many of the defined expressions in the glossary are used ordefined in the Act or in a statutory instrument made under it.

3 Inthese cases, the glossary refers to the statutory provision which isthe source of the Handbook definition. Where there is a shortstatutory definition, the glossary sets out the definition in on the Glossaryof definitionsn Release 22l Aug the statutory definition is long, the glossary gives asummary of it, and states that it is a - ADefinitionsA1986 Act2015 InterchangeRegulationsabove-thresholdnon -UK AIFM abridgedadviceacceptingdepositsaccidenta ccountn Release 22l Aug (in BSOCS) the Building Societies Act 1986.(in FEES 9) The Payment Card Interchange Fee Regulations 2015 (SI 2015/1911).a non-UK AIFM that is not a small in relation to a pension transfer that is not full pension transfer orconversion advice (see n COBS (Special rules for giving abridged advice)).the regulated activity, specified in article 5 of the Regulated Activities Order(Accepting deposits), which is in summary: accepting deposits if:(a) money received by way of deposit is lent to others; or(b) any other activity of the person accepting the deposit is financed,wholly or to a material extent, out of the capital of or interest on moneyreceived by way of deposit.

4 (in relation to a class of contract of insurance) the class of contract ofinsurance, specified in paragraph 1 of Part I of Schedule 1 to the RegulatedActivities Order (Contracts of general insurance), providing fixed pecuniarybenefits or benefits in the nature of indemnity (or a combination of both)against risks of the person insured or, in the case of a contract made undersection 140, 140A or 140B of the Local Government Act 1972 (or, in Scotland,section 86(1) of the Local Government (Scotland) Act 1973), a person forwhose benefit the contract is made:(a) sustaining injury as the result of an accident or of an accident of aspecified class; or(b) dying as a result of an accident or an accident of a specified class; or(c) becoming incapacitated in consequence of disease or of disease of aspecified class;including contracts relating to industrial injury and occupational diseasebut excluding contracts within paragraph 2 of Part I of Schedule 1 to theRegulated Activities Order (Sickness) and contracts within paragraph IV ofPart II of that Schedule (Permanent health).

5 (1) (in relation to a dormant asset relating to a bank or building society) hasthe meaning given in section 9 of the Dormant Bank and Building SocietyAccounts Act 2008, which is in summary:(a) an account which has at all times consisted only of money and isprovided by a bank or building society as part of its activity of acceptingdeposits; and(b) in relation to a building society, it includes an account representingshares in the society, other than:(i) preferential shares; or(ii) deferred shares within the meaning given in section 119(1) of theBuilding Societies Act Release 22l Aug (2)(in relation to a dormant asset relating to a long-term insurancecontract, and an insurance institution as defined in section 2 of theDormant Assets Act 2022) has the meaning given in section 3 of theDormant Assets Act 2022 in relation to eligible insurance proceeds,which in summary is cash proceeds of a long-term insurance contract,after the appropriate adjustments have been made for such things asinterest due and fees and charges payable, but excluding a contractrelating to a with-profits policy, or an industrial assurance policy, or apolicy that is subject to a trust, or proceeds held in a lifetime ISAwhere their transfer to a dormant asset fund operator would resultin liability to pay a withdrawal charge to HMRC.

6 (3)(in relation to adormant asset relating to a personal pension scheme, and a pensionsinstitution as defined in section 5 of the Dormant Assets Act 2022)has the meaning given in section 6 of the Dormant Assets Act 2022in relation to eligible pension benefits, which in summary means anyof the following amounts (that have become payable after theappropriate adjustments have been made for such things as interestdue and fees and charges payable):(a)pension benefits in the form of income withdrawal that have becomepayable under a personal pension scheme; or(b)pension benefits that have become payable under a personal pensionscheme:(i)under which all benefits that may be provided are money-purchasebenefits; and(ii)which is not and has at no time been a qualifying scheme or anautomatic enrolment scheme in relation to the member to, or inrespect of, whom the benefits are payable; or(c)any amount available to be paid as benefits under a personal pensionscheme of a kind mentioned in (b),but excluding benefits provided from sums invested in a with-profitsfund.

7 (in accordance with regulation 2(1) of the Payment Services Regulations) anonline service to provide consolidated information on one or more paymentaccounts held by the payment service user with another payment serviceprovider or with more than one payment service provider, and includes such aservice whether information is provided:(a)in its original form or after processing;(b)only to the payment service user or to the payment service user and toanother person in accordance with the payment service user sinstructions.(in accordance with regulation 2(1) of the Payment Services Regulations) apayment service provider which provides account information services.(in accordance with regulation 2(1) of the Payment Services Regulations) apayment service provider providing and maintaining a payment account for rightschargen Release 22l Aug (in relation to an approved person) the functions described in n APER ,which are in summary:(a) FCA controlled functions in n SUP 10A (FCA Approved persons inAppointed Representatives); and(b) [deleted](c) any other functions of the approved person in relation to the carryingon of a regulated activity;in relation to that approved person s authorised approved personemployer.

8 (in APER) any accountable function that is an FCA controlled functionthat is a significant-influence 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financialstatements and related reports of certain types of undertakings, amendingDirective 2006/43/EC of the European Parliament and of the Council andrepealing Council Directive 78/660/EEC and 83/349/EEC.(1) (except in COLL):(a) (in relation to a company incorporated in the United Kingdomunder the Companies Acts) the accounting reference date of thatcompany determined in accordance with section 391 of theCompanies Act 2006;(b) (in relation to any other body) the last day of its financial year.(2) (in COLL): the date stipulated in the prospectus on which the annualaccounting period of an authorised fund of the following bodies recognised by the FCA for the purposeof providing the independent verification required under n TC R(a) CFA Society of the UK;(b) The Chartered Insurance Institute;(c)The Institute of Financial Planning (accredited body until 31 October 2015);(d) The Chartered Institute for Securities and Investment;(e) The Chartered Banker Institute;(f)The London Institute of Banking (g)The Institute of Chartered Accountants in England and Wales(accredited body until 31 December 2017);(h)The Pensions Management Institute (accredited body until 31 May 2019).

9 A charge used by an operator for a qualifying scheme which is calculatedsolely by reference to the value of a member's rights accrued under aqualifying scheme.'Rights' has the same meaning as in article 82 of theDefinitionsAaccumulatingwith-profitsp olicyaccumulationunitACDacknowledge-ment letteracknowledge-ment letterfixed textacknowledge-ment lettervariable textACSA ctacting astrustee ordepositary ofan AIFn Release 22l Aug Activities Order, that is, the specified investment of rights under apersonal pension scheme or a stakeholder pension with-profits insurance contract which has a readily identifiable currentbenefit, whether or not this benefit is currently realisable, which is adjustedby an amount explicitly related to the amount of any premium payment andto which additional benefits are added in respect of participation in profitsby additions directly related to the current benefit or a policy with unit in respect of which income is credited periodically to capital propertyunder n COLL R (Income allocation and distribution).

10 Authorised corporate director.(in n CASS 7) a client bank account acknowledgement letter ( a letter in theform of the template in n CASS 7 Annex 2 R), a client transaction accountacknowledgement letter (s a letter in the form of the template inn CASS 7 Annex 3 R) or an authorised central counterparty acknowledgmentletter (a letter in the form of the template in n CASS 7 Annex 4 R).(1) (in n CASS 7) the text in the template acknowledgement letters inn CASS 7 Annex 2 R, n CASS 7 Annex 3 R and n CASS 7 Annex 4 R that is not insquare brackets.(2) (in n CASS 11) the text in the template acknowledgement letters inn CASS 11 Annex 1R that is not in square brackets.(3)(in n CASS 13) the text in the client bank account acknowledgementletter that is not in square brackets.(1) (in n CASS 7) the text in the template acknowledgement letters inn CASS 7 Annex 2 R, n CASS 7 Annex 3 R, and n CASS 7 Annex 4 R that is insquare brackets.