Article 1 Citation, commencement and interpretation

This Order may be cited as the Bank of England Act 1998 (Macro-prudential Measures) Order 2013 and comes into force on 1st April 2013.

In this Order—

• F1...

• “commercial property exposure” means an exposure which is (to any extent) secured on land or other immoveable property being used primarily for commercial or non-residential purposes;

• “consolidated basis”, in relation to a measure, means on the basis that the undertaking to which the measure applies and one or more other undertakings are to be treated as a single undertaking;

• “credit institution” has the meaning given by F2Article 4(1)(1) of Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012;

• “excluded deposit taker” means—

  1. (a)

     a credit union within the meaning of section 31 of the Credit Unions Act 1979 M1, or

  2. (b)

     a person with permission under Part 4A of FSMA 2000 M2 to effect or carry out contracts of insurance as principal,

• “exposure” means an asset or off-balance sheet item;

• “financial sector entity” means any of the following—

  1. (c)

     a credit institution,

  2. (d)

     an investment firm,

  3. (e)

     F3a financial institution within the meaning of Article 4(1)(26) of the capital requirements regulation,

  4. (f)

     an ancillary services undertaking (meaning an undertaking the principal activity of which consists in owning or managing property, managing data-processing services or any other similar activity which is ancillary to the principal activity of one or more credit institutions, investment firms, insurance undertakings or reinsurance undertakings),

  5. (g)

     an insurance undertaking,

  6. (h)

     F4...

  7. (i)

     a reinsurance undertaking,

  8. (j)

     ...

  9. (k)

     an insurance holding company (meaning an undertaking which is not a mixed financial holding company the main business of which is to acquire and hold participating interests in subsidiary undertakings which are exclusively or mainly insurance undertakings F5or reinsurance undertakings, and which has at least one subsidiary undertaking which is an insurance undertaking or a reinsurance undertaking),

• “financial sector exposure” means—

  1. (l)

     an exposure under, or which relates to, a contract with a financial sector entity, or

  2. (m)

     an exposure to, or which relates to, the securities or other instruments issued by such an entity,

• F6...

• F7“FSMA cost benefit analysis” means—

  1. (a)

     an analysis of the costs (including the costs to business activity and the impact on economic growth) and the benefits of any change in rules made pursuant to Part 9A F8or section 192XA of the Financial Services and Markets Act 2000 M3; and

  2. (b)

     where those costs and benefits can reasonably be estimated, an estimate of those costs and benefits;

• F9“holding company” means a financial holding company or a mixed financial holding company;

• F10“insurance undertaking” has the meaning given in section 417(1) of the Financial Services and Markets Act 2000;

• “investment firm” has the meaning given by section 424A of FSMA 2000 M4;

• F11...

• F12...

• “participating interest” has the meaning given by section 421A of FSMA 2000 M5;

• “PRA-authorised person” has the meaning given by section 2B of FSMA 2000 M6;

• F13...

• F14“reinsurance undertaking” has the meaning given in section 417(1) of the Financial Services and Markets Act 2000;

• “requirement” includes a requirement to refrain from taking action;

• “residential property exposure” means an exposure which is (to any extent) secured on land or other immoveable property being used primarily for residential purposes;

• “solo basis”, in relation to a measure, means on the basis of the situation of the undertaking to which the measure applies;

• F15“solvency 2 directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II);

• “subsidiary undertaking” has the meaning given by section 420 of FSMA 2000;

• F16...

• F17...

• “UK bank” means a UK institution which has permission under Part 4A of FSMA 2000 to carry on the regulated activity of accepting deposits but which is not an excluded deposit taker;

• “UK institution” means an institution which is incorporated in, or formed under the law of, any part of the United Kingdom;

• “UK investment firm” means a UK institution which—

  1. (n)

     has permission under Part 4A of FSMA 2000,

  2. (o)

     is a PRA-authorised person by virtue of a designation under article 3 of the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 M7, and

  3. (p)

     is an investment firm.