22.There are many defined words and expressions in the Act.
23.Most of the definitions are for the purpose only of the section or Schedule in which they are used. So, for example, the three words defined in subsections (13), (14) and (15) of section 21 are defined only for the purposes of that section.
24.Where there is no indication that a definition is intended to apply to a group of provisions, a Part of the Act or the Act as a whole, it applies only for the purposes of the section or Schedule in which it appears.
25.Many of these single-provision definitions are just drafting devices to avoid clumsy repetition which would make an already long Act even longer. For example, in section 38 the word “specified” is used on its own on five occasions. The definition in subsection (4) is there to save repeating the words “in an exemption order” each time it is used.
26.Some of the words and expressions that are defined just for the purposes of the particular provision in which the definition occurs are used (and defined separately) in other provisions — where they may have a different meaning. For example “consumers” is defined separately for the purposes of sections 5(3), 10(7), 14(5) and 138(7) (the definition in section 10(7) differing from the others).
27.The Act consists of a large number of separate Parts. Where a particular Part deals with a self-contained subject there may be a separate interpretation section within the Part (for example section 193, which deals with the interpretation of Part XIII).
28.For the Act as a whole, Part XXIX contains a group of nine sections which deal with expressions used in a number of provisions and other matters which bear on the interpretation of provisions of the Act.
29.The purpose of this glossary is to provide the reader with a guide to words or expressions which are defined generally and so liable to be met in provisions which do not themselves contain the definition.
| Expression | Where defined (references are to sections, unless otherwise specified) |
|---|---|
| appointed representative | 39(2) |
| approved person | 64(13) |
| auditors and actuaries rules | 417 |
| Authority | 1(1) |
| authorised person | 31(2) |
| authorisation offence | 23(2) |
| body corporate | 417(1) |
| chief executive | 417(1) |
| collective investment scheme | 235 |
| Commission | 417(1) |
| compensation scheme | 213(2) |
| compulsory jurisdiction | 226(8) |
| control of information rules | 147(1) |
| controller | 422 |
| director | 417(1) |
| documents | 417(1) |
| EEA authorisation | 425(1) and Sch 3, para 6 |
| EEA firm | 425(1) and Sch 3, para 5 |
| EEA right | 425(1) and Sch 3, para 7 |
| EEA State | 425(1) and Sch 3, para 8 |
| exempt person | 417(1) |
| financial promotion rules | 417(1) |
| first banking co-ordination directive | 425(1) and Sch 3, para 2(1) |
| first life insurance directive | 425(1) and Sch 3, para 3(2) |
| first non-life insurance directive | 425(1) and Sch 3. Para 3(5) |
| friendly society | 417(1) |
| general guidance | 158(3) |
| general prohibition | 19(2) |
| general rules | 138(2) |
| group | 421 |
| home state authorisation | 425(2) and Sch 4, para 1 |
| home state regulator | 425(1) and Sch 3, para 9 |
| host state regulator | 425(1) and Sch 3, para 11 |
| incorporated friendly society | 417(1) |
| industrial and provident society | 417(1) |
| insurance business rules | 141(5) |
| insurance directives | 425(1) and Sch 3, para 3(1) |
| investment services directive | 425(1) and Sch 3, para 4 |
| legal assistance scheme | 134(4) |
| listed securities | 14(7) |
| manager | 423 |
| market abuse | 118(1) |
| Minister of the Crown | 417(1) |
| money laundering rules | 417(1) |
| notice of control | 178(5) |
| ombudsman scheme | 225(3) |
| open-ended investment company | 236 |
| own initiative power | 45(5) |
| parent undertaking | 420 |
| Part IV permission | 40(4) |
| partnership | 417(1) |
| policy | 424(2) |
| prescribed | 417(1) |
| price stabilising rules | 417(1) |
| private company | 417(1) |
| prohibition order | 56(2) |
| recognised clearing house | 285 |
| recognised investment exchange | 285 |
| recognised scheme | 237(3) |
| registered friendly society | 417(1) |
| regulated activity | 22 |
| regulating provisions | 159(1) |
| regulatory objectives | 2 |
| regulatory provisions | 302(1) |
| rule | 417(1) |
| rule-making instrument | 153 |
| scheme manager | 212(1) |
| scheme operator | 225(2) |
| scheme particulars rules | 248(1) |
| second banking co-ordination directive | 425(1) and Sch 3, para 2(2) |
| second life insurance directive | 425(1) and Sch 3, para 3(6) |
| second non-life insurance directive | 425(1) and Sch 3, para 3(3) |
| seventh company law directive | 417(1) |
| single market directives | 425(1) and Sch 3, para 1 |
| subsidiary undertaking | 420 |
| supervisory notice | 395(13) |
| third life insurance directive | 425(1) and Sch 3, para 3(7) |
| third non-life insurance directive | 425(1) and Sch 3, para 3(4) |
| threshold conditions | 41 |
| Treaty | 417(1) |
| Treaty firm | 425(2) and Sch 4, para 1 |
| Tribunal | 132(1) |
| trust scheme rules | 247(1) |
| UK authorised person | 178(4) |
| UK firm | 425(1) and Sch 3, para 10 |
| unit trust scheme | 237 |
| voluntary jurisdiction | 227(12) |
30.The Act frequently refers to the Authority proceeding by way of giving a “warning notice” or a “decision notice”. The requirement to proceed in this way has particular procedural consequences, both in terms of the contents of those types of notice and of how action initiated by them must be taken forward. Those consequences are governed by the provisions of Part XXVI of the Act, to which reference should be made whenever the Authority is directed to proceed in this way.
31.In addition to the defined terms above, for convenience, these explanatory notes also use certain other abbreviated terms as set out below.
| Term used in these notes | Meaning |
|---|---|
| Banking Act | Banking Act 1987 |
| CC Act 1974 | Consumer Credit Act 1974 |
| Companies Act | Companies Act 1985 |
| competent authority | the competent authority for listing |
| DGFT | Director General of Fair Trading |
| EC directives | Directives adopted by the relevant European Community institution |
| FS Act 1986 | Financial Services Act 1986 |
| ICA 1982 | Insurance Companies Act 1982 |
| oeic | open-ended investment company |
| SROs | Self-Regulating Organisations, which are responsible for the regulation of investment business under the FS Act 1986 |