Annex C – Glossary
General
Legislation-related references
Affirmative procedure: A type of Parliamentary procedure that applies to statutory instruments (SIs) and describes the form of scrutiny that the SI received from Parliament. Both Houses of Parliament must actively approve an SI laid under the affirmative procedure before it can become law.
Chapter: A grouping of Sections under a subheading within a Part of an Act.
Section: The basic unit of an Act, divided into subsections, then paragraphs, then sub-paragraphs.
Commencement: The coming into effect of legislation. In the absence of a commencement provision, the Act comes into force from the beginning of the day on which Royal Assent was given (at midnight).
Delegated legislation: Legal instruments (including regulations and orders) made under powers delegated to Ministers or other office holders in Acts of Parliament. They have the force of law but can be disapplied by a court if they do not comply with the terms of their parent Act. Also called subordinate or secondary legislation.
Negative procedure: An SI laid under the negative procedure becomes law on the day the Minister signs it (when it is made) and remains law unless a motion, or ‘prayer’, to reject it is agreed by either House within 40 sitting days.
Part: A grouping of Sections under a heading in the body of a Act. Also, a subdivision of a Schedule.
Regulations: A form of subordinate legislation made by the government under the authority of Acts of Parliament.
Retained EU law: The EUWA converts the body of directly applicable EU law that was operative immediately before the end of the implementation period into domestic law and preserves the body of laws we made in the UK to implement our EU obligations as they applied up to the end of the implementation period. "Retained EU law" refers to the overall body of laws converted or preserved by the EUWA in this way.
Retrospective effect: A provision is retrospective if either it takes effect from a date before it comes into force, or it takes effect from the date that it comes into force – i.e. it is formally prospective – but it changes the previously definite and predictable consequences of past transactions, actions or events in a way which could not have been reasonably expected by those who are affected.
Royal Assent: The Sovereign’s agreement to an Act. The final stage in the legislative process and the moment a bill becomes an Act, subject to any specified provisions in the Act for the commencement of its operation.
Schedule: Acts may have Schedules that appear after the main Sections in the text. They are often used to spell out in more detail how the provisions of the Act are to work in practice.
Statutory instrument or SI: Statutory instruments contain delegated (or secondary) legislation. They can be used to make specific changes to the law under powers from an existing Act of Parliament, without Parliament having to pass a new Act.
Transition Period: The implementation period provided for by Part 4 of the Withdrawal Agreement between the UK and the EU, beginning with the UK’s departure from the EU on 31 January 2020 and ending on 31 December 2020.
Legislation
ATCSA: Anti-terrorism, Crime and Security Act 2001
ECA: European Communities Act 1972 .
EUWA: European Union (Withdrawal) Act 2018 .
FGCA: Financial Guidance and Claims Act 2018 .
FSMA: Financial Services and Markets Act 2000 .
POCA: Proceeds of Crime Act 2002
SAMLA: Sanctions and Anti-Money Laundering Act 2018 .
TFEU: Treaty on the Functioning of the European Union, OJ C 326, 26 October 2012 , pp. 47–390.
UCITS Directive: Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (see UCITS directive ).
Bodies, offices, institutions and international
CEO: Chief Executive Officer.
EEA: European Economic Area.
EU: European Union.
FCA: Financial Conduct Authority.
FSB: Financial Stability Board.
G20: The "Group of Twenty" (G20) is a forum for international economic cooperation
HMRC: Her Majesty’s Revenue and Customs.
PRA: Prudential Regulation Authority.
General
Authorised persons: A person who is authorised for the purposes of section 31 of FSMA.
Derivative: A security which "derives" its value from the underlying asset or a reference price.
Financial Services Register: Authorised firms and individuals are recorded in the Financial Services Register, which is open to the public.
Liquidity: Liquidity refers to the amount of liquid assets, or cash, available to a market or company.
OTC: ‘Over-the-counter' is the process of trading securities outside regulated market exchanges.
Retail investors: Individuals who invest their personal savings and pensions, rather than professional investors or financial companies who invest on someone else’s behalf.
UCITS: In the UK, ‘Undertakings for Collective Investment in Transferable Securities’ (UCITS) are funds that have been authorised by the FCA as such. In the EU, UCITS are funds that are authorised by their national competent authority under the EU’s UCITS Directive.
Prudential Measures
Additional capital buffers: Mandatory capital that some systemically important banks are required to hold in addition to other minimum capital requirements. These could be macroprudential capital buffers or applied to specific institutions.
Basel III: Third Basel Accord.
BCBS: The Basel Committee on Banking Supervision which sets global prudential standards for internationally active banks (the Basel framework).
Capital ratios: The percentage of a bank’s capital to its risk weighted assets.
CCR: Counterparty credit risk is the risk to a firm that a counterparty to a transaction might not perform its contractual obligations before the transaction's cash flows are settled.
Common Equity Tier 1: The highest quality of regulatory capital as it absorbs losses immediately when they occur. It is mainly made up of common shares issued by a credit institution, the bank, retained earnings and/or other income and disclosed reserves.
Concentration risk: The actual or potential risks arising from the exposure to a single client or group of clients.
Credit institutions: A firm whose business is to take deposits or other repayable funds from the public and to grant credits for its own account. Credit institutions include banks and building societies.
Credit rating: A grade typically awarded by credit rating agency to a financial instrument or entity indicating the probability of default and creditworthiness.
Credit risk: The risk of loss that results from a borrower failing to repay a loan or meet its contractual obligations.
CRD IV: Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (see CRD IV ).
CRD V: Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019 amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures (see CRD V ).
CRR Basel Standard: A standard published by the Basel Committee on Banking Supervision (BCBS) that is relevant for the purposes of this Act. The term is defined in the Act itself at Section 4.
CRR or Capital Requirements Regulation: Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The ‘EU CRR’ refers to the EU version of the Regulation. The ‘CRR’ is the Regulation as it has effect in the UK after IP completion day (see CRR and EU CRR ).
CRR II: Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements. The ‘EU CRR II’ refers to the EU version of the Regulation. The ‘CRR’ is the Regulation as it has effect in the UK after IP completion day (see EU CRR II and CRR II ).
CVA risk: Credit valuation adjustment risk is the risk of a change in the value of a bank’s exposure to its counterparties in derivatives transactions.
EU IFD: Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms (see EU IFD ).
FCA investment firm: An investment firm that- (a) has a Part 4A permission to carry on one or more regulated activities; (b) is not designated by the PRA; and (c) has its registered office or, if it has no registered office, its head office in the UK.
Financial obligations: Any outstanding debts or regular payments that must be made.
G-SIIs: Global systemically important institutions.
High-quality liquid assets: Assets with a high potential to be converted easily and quickly into cash.
IFPR: Investment Firms Prudential Regime.
IFR: Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms. The ‘EU IFR’ refers to the EU version of the Regulation (see EU IFR .
Investment firms: An investment firm provides a range of services which give investors access to securities and derivatives markets.
LCR: Liquidity coverage ratio refers to the proportion of highly liquid assets held by financial institutions, to ensure their ongoing ability to meet short-term obligations.
Leverage: The use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing.
Leverage ratio: The leverage ratio is the proportion of debts that a bank has compared to its equity/capital (more technically, the ratio of tier 1 capital to total non-weighted assets and off-balance sheet exposures).
Liquidity requirements: Liquidity is a measure of the cash and other assets banks have available to quickly pay bills and meet short-term business and financial obligations. The BCBS has introduced two standards setting out requirements for banks in the form of Liquidity Coverage Ratio and a Net Stable Funding Ratio.
Macroprudential capital buffers: Additional capital that banks are required to hold in addition to other minimum capital requirements, which reflect vulnerabilities and risks to the financial system.
Market risk: The risk of loss resulting from factors that affect the overall performance of the financial markets in which a bank may be involved. Common sources of market risk stem from buying and selling commodities, equity (i.e. shares or common stock) or foreign exchange as well as changes in the interest rate or credit spread.
Non-performing exposures: Also referred to as "bad debt" and are generally loans where more than 90 days have passed without the borrower paying the agreed instalments and interest.
NSFR: Net stable funding ratio requires banks to hold enough stable funding to cover the duration of their long-term assets. Where stable funding is the portion of capital and liabilities expected to be reliable over a specific time horizon.
Off-balance sheet exposures: Activities that are effectively assets or liabilities of a company but do not appear on the company's balance sheet
Operational risk: The risk of loss resulting from inadequate or failed processes, people and systems or from external events.
Prudential regulation: Financial regulation that requires firms to control risks and maintain sufficient capital to operate through periods of economic stress.
Parent undertakings: A parent business entity to a group of businesses, sometimes called a holding company.
RWAs: Risk-weighted assets. A bank’s asset or off-balance sheet exposure, weighted according to risk.
SACR: Standardised Approach to Credit Risk.
"Sound Principles": Principles for Sound Liquidity Risk Management and Supervision.
Systemic risks: The possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy.
Technical standards: Regulatory technical standards (RTS) or binding technical standards (BTS), which are delegated acts, prepared by a European Supervisory Authority. These specify particular aspects of an EU legislative text with the aim of ensuring consistency and harmonisation across the EU in specific areas.
Benchmarks
Benchmark: A benchmark is an index used in a financial product to determine amounts payable under the contract, the value of a product or to measure performance.
Benchmark administrator: A person that is responsible for the provision of a benchmark. In broad terms, this involves the creation of a benchmark on the basis of underlying data, for example as provided by benchmark contributors.
BMR/EU BMR: Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds. The ‘EU BMR’ refers to the EU version of the Benchmarks Regulation. The ‘BMR’ is the Benchmarks Regulation as it has effect in the UK after IP completion day. This is the UK’s domestic regulatory framework for indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (see BMR and EU BMR ).
Critical benchmark: A benchmark that is used in a significant volume of transactions, for which appropriate substitutes are lacking, and where discontinuation of the benchmark is likely to have a severe adverse impact. The BMR includes a number of tests for establishing where a benchmark is "critical".
Derivatives markets: A general term used to describe the activities of persons involved in creating and trading complex financial products called derivatives (see the definition of derivatives above). Derivatives may refer to specific benchmarks, such as LIBOR.
EURIBOR: Euro Interbank Offered Rate.
Fixed income products: A general term for categories of financial products that pay a fixed return. Bonds are generally referred to as fixed income products, as a bondholder under a traditional bond is entitled to fixed, periodic interest payments under the bond.
IBA: ICE Benchmark Administration Limited
IBORs: Refers to LIBOR, EURIBOR and TIBOR and other Interbank Offered Rates. These are widely used in the global financial system as benchmarks for a large volume and broad range of financial products and contracts.
LIBOR: A benchmark which seeks to measure the average costs at which banks can borrow from the unsecured wholesale lending market. It is produced by IBA and is calculated based on submissions that are made to IBA each day by a number of major global banks (the "panel banks").
Money market instruments: A category of financial instrument, typically debt securities, such as treasury bills and commercial paper, which have a short-term maturity period. The maturity period ends on the maturity date, which is the date when the principal amount under the instrument is due to the investor, and when interest payments under the instrument cease to be payable.
Panel bank: A term used to characterise a group of banks that contribute, or have contributed, data used to calculate benchmarks.
Risk-free rate: Risk-free rates are rates that are generally based on overnight deposits. Global regulators have proposed that risk free rates should be used as alternative rates to LIBOR. A proposed risk-free replacement rate for LIBOR has been identified by regulators in each currency for which LIBOR is published.
Structured products: A type of investment product where the interest paid out on the instrument is dependent on the performance of something else, such as a particular share or stock market index.
Supervised entities: A particular type of entity that is required to comply with certain rules under the BMR when using a benchmark. Generally speaking, this refers to regulated entities (i.e. firms authorised to carry on financial services activities).
TIBOR: Tokyo Interbank Offered Rate.
Tough legacy contracts: Contracts, particularly in cash markets (i.e. loans, securitisations, mortgages and commercial contracts), which genuinely have either no or inappropriate alternatives and face insurmountable barriers to moving off LIBOR.
UK Benchmarks Register: A public record of benchmark administrators and third country benchmarks which are compliant with the Benchmarks Regulation and have successfully applied to the FCA.
Market access arrangements for financial services between the UK and Gibraltar
Asset requirement restrictions: The UK regulator imposes a requirement on a Gibraltar-based person prohibiting or restricting the disposal of any of the person’s assets or requirement that those assets are transferred to a trustee approved by the UK regulators.
FOS: Financial Ombudsman Service.
FSCS: Financial Services Compensation Scheme. The FSCS is also used as an abbreviation for the "scheme manager," defined in Part 15 of FSMA as the body corporate managing the Financial Services Compensation Scheme.
GAR: Gibraltar Authorisation Regime.
GFSC: Gibraltar Financial Services Commission (or "Gibraltar Regulator").
Gibraltar Order: Financial Services and Markets Act 2000 (Gibraltar) Order 2001 (S.I. 2001/3084).
Gibraltar-based person: A person listed in sub-paragraph (2) of paragraph 1 of Schedule 2A whose head office and registered office, if any, is in Gibraltar.
Part 4A permission: A domestic permission to carry on regulated activities given by the FCA or the PRA under Part 4A of FSMA.
Regulated activity: An activity specified in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544), for which a person requires a permission in order to carrying on such activity.
Schedule 2A permission: A permission for a Gibraltar-based person to carry on one or more regulated activities approved for the purposes of Schedule 2A.
Schedule 2B permission: A permission for a UK-based person to carry on restricted activities in Gibraltar, provided they have satisfied the three conditions set out in paragraph 6 of the Schedule.
UK-based persons: UK firms whose head office or registered office is in the United Kingdom.
Overseas Funds Regime
Asset management: Asset management firms manage the savings and pensions of millions of UK citizens. They raise capital from investors and allocate it across the wider economy. 75% of UK household use an asset manager’s services either directly or indirectly, for example through workplace pensions.
Collective investment schemes: A collective investment scheme, as defined in section 235 of FSMA, is in summary:
(a) any arrangements with respect to property of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income; and
(b) which are not excluded by the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (S.I. 2001/1062).
Depositary: A depositary is any person to whom the fund property is entrusted for safekeeping.
Equivalence: Equivalence is a mechanism by which one jurisdiction can recognise relevant standards in another jurisdiction as equivalent to their own and is a principle that applies in many areas of Financial Services legislation
Investment Association: The trade body for the UK asset management industry.
Investors: An investor is a person or entity who puts their money into financial schemes with the expectation of receiving financial returns. An investor may range from a retail investor, or individual looking to invest their savings or pension, to an experienced institutional investor.
MMFs: Money Market Funds. An MMF is a type of collective investment scheme often used as a cash management tool by financial institutions, corporates and governments. They typically invest in cash and government or corporate debt.
MMFR: Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds, as it forms part of retained EU law.
National competent authority: The regulator responsible for regulating and supervising an investment fund in the country or territory where it is domiciled.
NPPR: National Private Placement Regime. The NPPR allows the marketing to professional clients in the UK of non-UK funds, or UK funds managed by a non-UK fund manager, that in either case are not UK-authorised or recognised funds.
OFR: Overseas Funds Regime.
Passporting rights: Rights for a firm authorised in one EEA state to carry on in any other EEA state activities that it has permission for, by either establishing a branch or agents in that other EEA state or providing cross-border services.
Pooled funds: Pooled funds are a number of funds from many individual investors that are grouped together for the purposes of investment. Examples include pension funds, hedge funds, mutual funds and exchange traded funds.
Retail schemes: Collective investment schemes which are marketed to retail investors, individuals when they invest their personal savings and pensions. Due to the target audience of retail schemes, they are more carefully regulated and have more strict requirements for consumer protection.
TMPR: Temporary marketing permissions regime. The TMPR allows EEA UCITS that have exercised their rights to market in the UK before the end of the Transition Period to continue to market to retail investors in the UK for a limited period.
UK-domiciled schemes: A ‘domicile’ is the country where a fund is set up legally. Any scheme that is legally set up in the UK, is a UK domiciled scheme.
Markets in Financial Instruments Regulation
Eligible counterparties: Considered to be the most sophisticated investors or capital market participants. They generally consist of investment firms, credit institutions, undertakings collective investment in transferable securities (UCITS) and their management companies, other regulated financial institutions and in certain cases, other undertakings.
MiFID II: Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (see MiFID II ).
MiFIR: Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments. Encompasses the rules and guidelines on execution venues, transaction execution as well as pre- and post-trade transparency. The ‘EU MiFIR’ refers to the EU version of the Regulation. The ‘MiFIR’ is the Regulation as it has effect in the UK after IP completion day (see EU MiFIR and MiFIR ).
Reverse solicitation: Where a client initiates the provision of a service by a third country firm on their own initiative, without any promotion or advertisement of the service by the third country firm.
Third-country firms: Firms incorporated outside the EU/UK (as the context requires), whether they do, or seek to do, business by way of a branch established in the EU/UK or on a cross-border basis i.e. by providing services to persons in one jurisdiction from a place of business in another jurisdiction without any establishment in the client’s jurisdiction.
Title 8 Regime: A part of MiFIR relating to the provision of services and performance of activities by third-country firms following an equivalence decision with or without a branch.
Insider Lists and Managers’ Transactions
DAML: A Defence Against Money Laundering Suspicious Activity Report. This is an authorised disclosure which a firm can submit to the National Crime Agency under Part 7 of POCA if the firm suspects that proceeding with a transaction risks them committing a principal money laundering offence. If the reporting firm gets consent, then it does not commit a principal money laundering offence in POCA when dealing with that transaction in a way that is covered by the consent.
AFO: An Account Freezing Order. POCA contains powers to freeze accounts through the use of Account Freezing Orders. Once an AFO is in place it is possible, certain law enforcement officers can seek to have that money forfeited, either by way of a court order, or by way of an administrative forfeiture procedure. These powers are mirrored in ATCSA for use in relation to terrorist property.
Inside information: Information of a precise nature which has not been made public, relating, directly or indirectly, to financial instruments or issuers of such instruments, and which, if it were made public, would be likely to have a significant effect on the price of the financial instruments in question or their derivatives.
Insider dealing: A range of behaviours which breach the MAR and/or constitute a criminal offence, including, for example, where a person in possession of inside information uses that information for personal gain by buying or selling a share to which the information relates.
Insider lists: Lists maintained by issuers and persons acting on their behalf or on their account (such as advisers and consultants) which contain details of each individual who has access to inside information and who is working for the issuer either under a contract of employment or otherwise performing tasks through which they have access to inside information.
Issuer: A legal entity which issues or proposes to issue financial instruments.
Market manipulation: A range of behaviours which breach the MAR, and/or constitute a criminal offence, including, for example, where a person knowingly gives out false or misleading information in order to influence the price of a share.
MAR: Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation). The ‘EU MAR’ refers to the EU version of the Regulation. The ‘MAR’ is the Regulation as it has effect in the UK after IP completion day (see EU MAR and MAR ).
Debt respite scheme
Breathing Space: A period of time where enforcement action, fees and certain forms of interest are paused on the eligible debts of people in problem debt while they engage with professional debt advice (known as a moratorium).
Debt respite scheme: Consisting of two parts: ‘Breathing Space’ and the SDRP and referred to as ‘the scheme’ in these explanatory notes.
SDRP: Statutory Debt Repayment Plan. A revised agreement between the debtor and their creditors as to the amount owed on their eligible debts and the timetable over which they have to be repaid and which provides the same protections as Breathing Space for the debtor.
Help-to-Save
Director of Savings: A statutory officer who operates the business of the National Savings Bank and Help-to-Save accounts.
Help-to-Save: A saving scheme to promote and encourage saving among people on low incomes and in receipt of certain benefits.
National Savings Bank: An establishment that forms part of National Savings and Investments.
NS&I: National Savings and Investments.
Universal Credit: A benefit payment paid to individuals who are unemployed or on a low income. It replaces a number of existing benefits and tax credits.
Working Tax Credit: A benefit payment paid to those who are on a low income. It is being replaced by universal credit.
PRIIPs Regulation
KID: Key information document (in relation to a PRIIP).
PRIIPs: Packaged Retail and Insurance-based Investment Products.
PRIIPs Regulation: Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs). The ‘EU PRIIPs Regulation’ refers to the EU version of the Regulation. The ‘PRIIPs Regulation’ is the Regulation as it has effect in the UK after IP completion day (see EU PRIIPs Regulation and PRIIPs Regulation ).
Over-the-Counter Derivatives: Clearing and Procedures for Reporting
CCPs: Central Counterparties are financial market infrastructures that interpose themselves between counterparties’ trading contracts in one or more financial markets, becoming ‘the buyer to every seller and the seller to every buyer’. The role of CCPs is to provide greater certainty that the obligations of those contracts will be fulfilled if the other party defaults.
Clearing: The process of establishing positions, including the calculation of net obligations, and ensuring that financial instruments, cash, or both, are available to secure the exposures arising from those positions.
Clearing member: An undertaking which participates in a CCP and which is responsible for discharging the financial obligations arising from that participation.
Client: An undertaking with a contractual relationship with a clearing member of a CCP which enables that undertaking to clear its transactions with that CCP.
EMIR: Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories. The ‘EU EMIR’ refers to the EU version of the Regulation. ‘EMIR’ is the Regulation as it has effect in the UK after IP completion day (see EU EMIR and EMIR ).
EMIR 2.2: Regulation (EU) 2019/2099 of the European Parliament and of the Council of 23 October 2019 amending Regulation (EU) No 648/2012 as regards the procedures and authorities involved for the authorisation of CCPs and requirements for the recognition of third-country CCPs. The ‘EU EMIR 2.2’ refers to the EU version of the Regulation. ‘EMIR 2.2’ is the Regulation as it has effect in the UK after IP completion day (see EU EMIR 2.2 and EMIR 2.2 ).
EMIR REFIT: Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories. The ‘EU EMIR REFIT’ refers to the EU version of the Regulation. ‘EMIR REFIT’ is the Regulation as it has effect in the UK after IP completion day (see EU EMIR REFIT and EMIR REFIT ).
FRANDT: Fair, Reasonable, Non-Discriminatory and Transparent.
TR: Trade Repositories are financial market infrastructures operated by legal entities which centrally collect and maintain data about a variety of financial transactions, including trades in derivatives, securities lending and borrowing, repurchase agreements, and foreign exchange transactions. They ensure transaction transparency for both market participants and regulators.
Financial Collateral Arrangements
Credit claim: A claim arising out of an agreement whereby a credit institution, mortgage institution or any other entity that extends credit to consumers grants credit in the form of a loan. Credit claims are a form of financial collateral.
FCAD: Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (see FCAD ).
FCARs: The Financial Collateral Arrangement (No.2) Regulations 2003 (S.I. 2003/3226) (see FCARs ).
Financial collateral: Financial collateral is provided by a borrower to a lender to minimise the risk of financial loss to the lender if the borrower fails to meet their financial obligations.
Financial collateral arrangement: A form of security arrangement governed by FCAD. FCAD was designed to simplify the process of having recourse to financial collateral across the EU and implemented by FCARs in England and Wales.
Retention of personal data under MAR
GDPR: Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data. The ‘EU GDPR’ refers to the EU version of the Regulation. The ‘GDPR’ is the Regulation as it has effect in the UK after IP completion day (see EU GDPR and GDPR ).
DPA 2018: the Data Protection Act 2018 .
