A linkage between an FSAauthorised firm and another firm or entity falling into one of a number of defined categories, viz: a parent company; a subsidiary; a subsidiary of a parent company; entities or persons owning or controlling 20 per cent of the voting rights or capital; companies in respect of which the firm owns 20 per cent or more of the voting rights or capital. The FSA is concerned to satisfy itself that, taking account of close links, it can exercise its supervisory function effectively.

A life insurance fund maintained for a particular group of policies with no new business being accepted for the fund.

the amount for which an insurer becomes liable in the event of a slip being over- subscribed (see written line).

A pension scheme that does not admit new members.

An advice sent by a broker to an insurer who has taken a line on a slip specifying the actual proportion of risk allocated to the insurer and the actual premium receivable. If a slip is oversubscribed, the broker scales down and apportions the risk pro rata. See SHORT CLOSING.