The rate of exchange that determines the amount of pension that needs to be sacrificed to provide a given lump sum benefit at retirement. The commutation factor indicates how much cash is available for each £1 of pension exchanged. Scheme rules specify the commutation factor that will apply either to all members or specifically to individuals. The commutation factor is a ratio, e.g. 12:1 mean a pension of £883 per annum can be exchanged for a lump sum of £10,000.

A single market agreement used in the non-marine market. The agreement authorises the leading CCSA company to sign a collective policy on behalf of all other CCSA companies on risk. The agreement indemnifies the signatory company respect of any liability that attaches that would not have attached had the policy been individually signed by all compain nies.

Enables a court to make a disqualification order against a director convicted of an indictable offence connected with promotion, formation, management or liquidation.

Renewable engineering policy on completed civil engineering works, e.g. bridges, dams and tunnels, which constitute a low fire risk. Policy covers accidental physical loss from external perils excluding inherent defects.

1. An audit instigated by the IR to ensure that the pension scheme has complied with IR requirements. 2. An audit to ensure that an authorised party has complied with FSA requirements under powers granted under FSMA.

The approved person, having significant influence and acting in the capacity of director or senior manager, who is allocated the compliance oversight function. He or she must ensure that the firm acts in accordance with FSA rules. He or she needs unfettered access to all individuals and information in order to further the sound and prudent management of the firm.

a company authorised to carry on both long term and general insurance business.

An insurance company that transacts all or several of the major classes of insurance.