An FSA term describing one or more of the following activities: mortgage arranging or advising; the sale or administration of general insurance or pure protection contracts; retail investment activities. All firms carrying on regulated retail activities have to comply with FSA reporting requirements.

Form in which Lloyd’s publishes codes to help underwri agents meet the regulatory and other responsibilities flowing from the Core Principles for Underwriting Agents. The bulletin is then included in the Codes Handbook.

Written plan prepared by the managing agent for each Lloyd’s syndicate and submitted to the Lloyd’s franchise board. The franchisor monitors approved plans against performance. The managing agents, as franchisees, must prepare an annual business plan in accordance with the longterm profitability target and the guidelines published by the franchisor. A syndicate business forecast must be attached to the business plan. Plans are also required by the FSA for insurance intermediaries.

Takes most of the FSA’s enforcement decisions following independent investigations and recommendations from the enforcement staff whose work is separated from the decision-taking function. The RDC seeks agreement from the party affected by issuing warning notices and decision notices, but the recipient may take his case to the Financial Services and Markets Tribunal.

FSA regulation encompasses: authorisation, supervision, enforcement and decisionmaking.

The risk that a regulated entity fails to meet the requirements and expectations of its regulatory authority responsible for enforcing rules, codes and practices. The FSA has considerable authority and could vary the permission granted to authorised persons and firms leaving them unable to carry on regulated activities.

Reduced benefit payable under an income protection insurance when an insured returns to work on reduced earnings as a result of a disability. The benefit starts only after 13 weeks of total incapacity and when a full claim has been admitted.

Means that ‘spent’ convictions need not be disclosed to insurers as material facts. The rehabilitation period is five years for non-custodial sentences, seven years for custodial sentences exceeding 6 but not exceeding 30 months. Sentences over 30 months do not become ‘spent’. An agent or previous insurer who is aware of a spent conviction must not disclose it.

Means average as applied to a policy subject to the reinstatement clause. Average will not apply if the sum insured is equal to 85 cent or more of the value at risk at per the time of reinstatement. The sum insured should therefore allow for the period of insurance plus the time estimated for rebuilding. Losses settled on an indemnity basis remain subject to normal pro rata average.