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JULY MONTHLY STATISTICS INFORMATION NOTE
1 The money and credit statistics are provided by all of the credit institutions (except credit unions) authorised to carry on banking business in the State under Irish legislation, as well as credit institutions authorised in other Member States of the EU operating in Ireland on a branch basis. Credit institutions authorised in other EU Member States operating in Ireland on a cross-border basis, i.e., with no physical presence in the State, are not included in the statistics.
2 Adjusted rate i.e. excluding lending to non-Monetary Financial Institutions (MFI) IFSC entities, which are not associated with the domestic economy, and adjusted for valuation effects caused by exchange-rate movements.
* The underlying stock of private-sector credit (PSC), which excludes write-downs and other valuation changes, fell marginally in July compared with June. However, the headline stock of PSC fell by €3.7 billion in July, reflecting continuing write-downs of loans, increased bad debt provisions and other valuation effects; this followed a corresponding monthly fall of €1.4 billion in June.
* The annual rate of change in headline PSC declined further in July, to minus 2.2 per cent.2 The majority of this year-on-year decline is due to downward valuation effects.
* Residential mortgage lending outstanding declined by €71 million in July - the fourth consecutive month of decline. The year-on-year increase was down to 1.2 per cent in July, from 1.9 per cent in June.
The underlying stock of PSC, adjusting for write-downs and provisions was relatively unchanged in the year ending July 2009, as repayments in aggregate roughly matched new lending over the year. However the effects of increased write-downs and provisions against bad and doubtful debts, reflecting weaknesses in the broader economy, have led to the headline stock of PSC on credit institutions’ balance sheets contracting by 2.2 per cent over the year to the end of July. This continues the annual decline first recorded in June 2009 of minus 0.7 per cent. Non-mortgage credit was 0.2 per cent lower at the end of July 2009 compared with July 2008. The data show that this was as a result of an 8 per cent reduction in the outstanding amount of non-mortgage loans being largely offset by increased holdings of securities. This increased holding of securities partly arises from the acquisition of mortgage-backed securities from special purpose vehicles (SPVs), which were themselves set up to securitise bank loans.
The €3.7 billion decline in PSC outstanding during the month of July compares with monthly falls of €1.6 billion and €1.4 billion in May and June respectively. This is the fifth consecutive monthly decline in PSC. A reduction of €2.1 billion in credit outstanding to non-financial corporates (NFCs) was the main component underlying the fall in PSC in July. 2
Negative valuation effects due to write-downs of existing loans and increased provisions for bad debts contributed most to the reduction in NFC credit outstanding during the month. Adjusting for valuation effects, approximately one-fifth of this decline can be attributed to a reduction in the underlying stock of credit to NFCs. Similarly for total PSC, valuation effects accounted for approximately eighty per cent of the headline change, with the remainder being accounted for by a decline in the underlying stock of PSC.
The stock of household credit outstanding declined during the month by €404 million, mostly as a result of a reduction in consumer credit. Repayments on personal credit cards exceeded new spending during July, as it has done, in all but one month so far in 2009. Residential mortgages (including securitised mortgages) fell by €71 million in July, the fourth consecutive monthly decline. Mortgage debt outstanding has remained relatively stable since the beginning of 2009, oy increasing by €163 million in the year to date, compared with €6.5 billion for the same period in 2008. The annual rate of increase in outstanding residential mortgages declined to 1.2 per cent in July, from 1.9 per cent in June3. The increase in loans to households for house purchase has also been weak in the euro area, with an annual increase of oy 0.1 per cent in July4.
3 The weighted average growth rates of mortgage and non-mortgage credit do not equate to the PSC growth rate because securitised residential mortgages are included in calculating the adjusted growth rate for residential mortgages, but are not included in PSC.
4 Loans to households in the euro area do not include loans that are removed from credit institutions’ balance sheets through securitisation.
5 A decrease in the indicator points to an improvement in price competitiveness, while an increase points to a disimprovement. For background, see Box B in the ‘Domestic Prices, Costs and Competitiveness’ chapter of the Bank’s Quarterly Bulletin, No. 2 2007.
Both the overnight money market interest rate and unsecured inter-bank rates over longer time horizons fell in July. The largest decrease (22 basis points) was in the 1-month Euribor rate. The spread between secured and unsecured inter-bank borrowing rates also declined over the month, indicating a further easing of conditions in money markets. Funds provided by the Bank as part of the ECB’s monetary policy operations (Table C2) decreased in July by approximately €20 billion, with most of the reduction coming from short-term main refinancing operations as the shift into longer-term refinancing continued. The euro remained relatively stable against sterling, the US dollar and the Japanese yen in July. Exchange-rate movements resulted in an increase of just over 0.1 per cent in Ireland's nominal harmonised competitiveness indicator (HCI)5, from 113.8 in June to 114 in July (1999 Q1= 100). 3
Private-Sector Credit
Total PSC advanced by credit institutions in Ireland to non-Government Irish residents (unadjusted for write-downs and provisions) declined by €3.7 billion in July to €384 billion. Most of the decline was accounted for by a fall of almost €3.1 billion in euro denominated loans. Lending to non-bank IFSC companies contracted by €448 million over the month.
– Components of Private-Sector Credit
The changes in the main PSC loan categories on credit institutions’ balance sheets in July (Table C3) were as follows:
* Loans up to and including 1 year decreased by €253 million;
* Residential mortgages (unadjusted for securitised mortgages) rose by €95 million;
* Other mortgages were €329 million lower;
* Term/revolving loans declined by €2.8 billion; and
* Overdrafts decreased by €419 million.
Money Supply
Monetary financial institutions (MFIs) in Ireland accounted for €200.5 billion of the euro area’s broad money supply (M3) in July, an increase of €7.6 billion in the month, or 3.9 per cent, following revisions to the June figure. On an annual basis M3 continued to fall, albeit at a slower pace, with a rate of decline of minus 1.1 per cent in July compared to minus 8 per cent in June. In aggregate, M3 deposits increased by €913 million during the month of July, as increases in shorter-term deposits more than offset a fall in deposits with agreed maturity of up to two years. Developments in debt securities with up to two years maturity also contributed to the increase in M3 in July. Debt securities issued by Irish credit institutions in July rose by €2.8 billion, which more than offset the €1.5 billion increase in holdings of debt securities issued by euro-area MFIs, which are netted out of the money supply contribution.
- Breakdowns of Deposits
* Overnight deposits increased by €555 million;
* Deposits redeemable at notice of up to three months rose by €633 million; and
* Deposits with an agreed maturity of up to two years fell by €280 million.
Financial Services Association
ABN AMRO Bank NV www.abnamro.ie
ABN AMRO Stockbrokers Ireland Ltd
ACC Bank Plc www.accbank.ie
Accenture www.accenture.com
Aegon Scottish Equitable International www.scoteqint.ie
AIB Group www.aib.ie
AIG Global Investment Corp Ireland www.aig.com
Airbus Financial Services www.airbus.com
Allianz plc www.allianz.ie
Allianz Worldwide Care Limited www.allianzworldwidecare.com
Anglo Irish Bank Corporation plc www.angloirishbank.ie
Aon Insurances Managers Dublin Ltd www.aon.com
Arca Vita International Limited
Arvato Finance Services Limited www.arvatofinance.com
Aviva Life International Limited www.nuinternational.com
AXA MPS Financial Limited www.mplife.ie
Bank of America N A
Bank of Ireland Finance Ltd
Bank of Ireland Group www.bankofireland.ie
Bank of Scotland Ireland www.bankofscotland.ie
Bank of Scotland Ireland Ltd www.bankofscotland.ie
BearingPoint www.bearingpoint.com
Black & Decker International Holdings BV
Bloxham Stockbrokers
BNP Paribas - Dublin Branch
BNY Mellon Fund Services Ireland Ltd www.bnymellon.com
Bristol Myers Squibb International Co
Caceis Fastnet Ireland Limited www.olympiacapital.com
CACI Non-Life Limited
Canada Life Assurance Ireland Ltd www.canadalife.ie
Capmark Services Ireland Limited www.capmark.com
Citi www.citigroup.com/ireland
Cnp UniCredit Life Limited www.cnpunicreditlife.ie
Commerzbank Europe Ireland
Coyle Hamilton Willis Limited
DCC Management Services Limited www.dcc.ie
De Lage Landen Ireland Company www.delagelanden.com
DEPFA Bank plc www.depfa.com
Eagle Star Life Assurance Company of www.eaglestarlife.ie
EBS Building Society www.ebs.ie
Ernst & Young www.ey.com
EurizonLife Limited
First Active Plc www.firstactive.com
GAM Fund Management Ltd www.gam.com
GE Money www.gecapital.com
Generali PanEurope Limited www.generali-gpe.com
Hansard Europe Ltd www.hansard.com
Helaba Dublin L H T I www.helaba.ie
Hewlett Packard International Bank
Hibernian AVIVA www.hibernian.ie
Hibernian AVIVA
HSBC Securities Services Ireland Ltd www.hsbc.ie
Hypo Public Finance Bank www.hypointernational.com
IBM International Treasury Services
ICS Building Society
ING Bank NV Dublin Branch www.ing.com
Ingersoll Rand International www.irco.com
Inora Life Limited www.inoralife.com
International Fund Services Ireland www.imsi.com
Intesa Sanpaolo Bank Ireland plc www.sanpaoloimi.com
Irish League of Credit Unions www.creditunion.ie
Irish Life Assurance plc
Irish Life plc
Irish Life & Permanent plc www.irishlifepermanent.ie
Irish Pensions Trust Ltd
Irish Stock Exchange www.ise.ie
JP Morgan Bank Ireland plc www.jpmorgan.com
KBC Bank Ireland plc www.iibbank.ie
Life Strategies Ltd www.lifestrat.ie
Lombard Ireland Limited www.lombard.ie
MBNA Ireland Limited www.mbna.com
Mercer www.mercer.ie
Merrill Lynch
National Irish Bank www.nib.ie
National Treasury Management Agency www.ntma.ie
NCB Group Ltd www.ncbdirect.com
Northern Trust Investor Services www.ntrs.com
NS Financial Services Company
O'Brien Fiay Insurance Associates Ltd
Orix Aviation Systems www.orixaviation.com
Permanent TSB
Pfizer International Bank Europe
PGMS Ireland Limited www.scotprov.ie
Pioneer Global Investments Limited www.pioneerfunds.com
Porsche International Financing plc
Prospectus Strategy Consultants www.prospectus.ie
Prudential International Assurance Plc
Rabobank Ireland Plc www.rabobank.ie
RBC Dexia Investor Services Ireland Ltd
Savills Hamilton Osborne King www.hok.ie
Scotiabank Ireland Ltd
Scottish Mutual International
SEB Life Irl Assurance Company www.seb.se
Securitas Treasury Ireland Ltd
SEI Investments-Global Fund Services Ltd www.seic.com
Sella Life Ltd
Skandia Life Ireland Ltd www.skandia.ie
Smurfit Kappa Treasury
St James's Place International
Standard Life Assurance Limited www.standardlife.ie
State Street International Ireland Ltd
P19
Travelers Insurance Company Ltd www.stpaul.com/ireland
Ulster Bank Ireland Ltd www.ulsterbank.com
UniCredit Bank Ireland plc www.unicredito.ie
Volkswagen Bank GmbH
Voluntary Health Insurance Board www.vhi.ie
WhitneyMoore www.wmk.ie
Willis www.willis.com
XL Europe www.xl-capital.com
Zurich www.zurich.ie
Zurich Bank
Approved Funds
Administrator for Funds
An entity which provides administration services to collective investment schemes and which requires specific authorisation under the IIA to carry on that particular investment business service.
Authorised Advisor
A specific type of investment business firm that can provide investment advice on retail investment instruments, i.e. those investment instruments set out in Section 25 and 26 (1)(a) of the IIA, without the necessity to hold a letter of appointment and that can act as a deposit agent or deposit broker. In addition, it can receive and transmit orders to a product producer from which it holds a letter of appointment. An Authorised Advisor is obliged to recommend the most suitable investment product available in the market, regardless of whether or not it holds an appointment from the relevant product producer.
Authorised Designated Investment Company
A variable capital investment company which raises capital by providing facilities for the direct or indirect participation by the public and which is authorised under section 256(5) of the Companies Act, 1990, Part XIII.
Authorised Non Designated Investment Company
A variable capital investment company which shall raise capital by promoting the sale of its shares to the public and which is authorised under the provisions of the Companies Act, 1990, Part XIII.
Branch (General)
There is no definition of the term “branch”. It is a concept of Community law whose meaning is ultimately to be determined by the European Court of Justice. There is some European case law which would support the view that a branch is a place of business, which has the appearance of permanency, such as an extension of the parent body, has a management and is materially equipped to negotiate business with third parties, without resource to the parent body, the head office of which is abroad. However, there are certain provisions of Community law that have “branch” specifically defined for the purposes of that particular piece of legislation (see below definitions).
Branch (Insurance/Reinsurance Intermediary - IMD)
‘Branch’ means a place of business other than the head office which is a part of an insurance/reinsurance intermediary, which has no legal personality and which provides insurance/reinsurance mediation services; all the places of business set up in the same Member State by an insurance/reinsurance intermediary with headquarters in another Member State shall be regarded as a single branch.
Branch (Credit Institutions)
In relation to credit institutions, ‘branch’ means a place of business which forms a legally dependent part of a credit institution and which carries out directly all or some of the transactions inherent in the business of the credit institutions.
In relation to other financial service providers ‘branch’ usually means a place of business set up (as a branch of a company) in a jurisdiction separate from the jurisdiction in which the financial service provider is regulated, and which is permitted to offer financial services under freedom of establishment rules under EU legislation.
Branch (MIFID)
‘Branch’ means a place of business other than the head office which is a part of an investment firm, which has no legal personality and which provides investment services and/or activities and which may also perform ancillary services for which the investment firm has been authorised; all the places of business set up in the same member state by an investment firm with headquarters in another member state shall be regarded as a single branch.
Building Society
Building Society means a building society incorporated or deemed by section 124(2) to be incorporated under the Building Societies Act 1989.
Bureaux de Change and Money Transmission Business
A Bureau de Change is a business that provides members of the public with a service that involves buying or selling foreign currency. A money transmission business is a business authorised under part V of the Central bank Act 1997 where members of the public are provided with a service whereby monies are transmitted on their behalf. See also definition of Money Transmission Business and Money Transmission Service below.
CCA
Consumer Credit Act, 1995 (as amended)
Collective Investment Scheme
A legally constituted vehicle (e.g. unit trust, investment company, investment limited partnership) which pools together funds subscribed by investors and these funds are invested, through professional managers, in a range of assets in accordance with the investment objectives and policy as set out in a prospectus. There are two broad categories of Collective Investment Schemes (CIS) - UCITS and Non-UCITS.
Common Contractual Fund
A collective investment undertaking, being an unincorporated body established by a management company, under which the participants by contractual arrangement participate and share in the property of the collective investment undertaking as co-owners, provided:
a) it is expressly stated in its deed of constitution to be established pursuant to the Investment Funds, Companies & Miscellaneous Provisions Act, 2005;
b) it holds an authorisation issued in accordance with the Investment Funds, Companies & Miscellaneous Provisions Act, 2005; and
c) it is not established pursuant to Council Directive No. 85/611/EEC of 20 December 1985, as amended from time to time.
Credit Institution
Credit Institution means:
a) an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account; or
b) an electronic money institution.
Credit Union
A Credit Union is a financial co-operative formed for the promotion of thrift among its members by the accumulation of their savings; the creation of sources of credit for the mutual benefit of its members at a fair and reasonable rate of interest; and the use and control of members' savings for their mutual benefit.
Deposit Agent
Deposit Agent means any person who holds an appointment in writing from a single credit institution enabling him to receive deposits on behalf of that institution and prohibiting him from acting in a similar capacity on behalf of another credit institution. The deposit agent may accept cash in repect of the deposit agency business. Oy investment business firms authorised under the IIA (i.e. Multi-Agency Intermediaries or Authorised Advisors or Full Section 10 investment firms) may act as deposit agents.
Deposit Broker
Deposit Broker means any person who brings together with credit institutions persons seeking to make deposits in return for a fee, commission or other reward. A deposit broker may act for one or a number of credit institutions. The deposit broker may not accept cash. All cheques must be made payable to the relevant credit institution.
Designated Credit Institution
A designated credit institution means an institution designated by the Financial Regulator under the Asset Covered Securities Act 2001 to issue asset covered securities.
EEA Branch (in relation to Credit Institutions)
European Economic Area (EEA) refers to the Member States of the EU and Norway, Liechtenstein and Iceland. An EEA Branch is an entity authorised in another member state of the EEA and operating in the State on a branch basis.
EEA Branch (in relation to Insurance entities)
The covering of a risk by an insurance undertaking in a Member State through a Branch situated in that State.
EEA Branch-EEA Cross Border
An entity which provides services both on a branch basis within the State and also on a cross border basis .
EEA Cross Border (in relation to Credit Institutions)
European Economic Area (EEA) refers to the Member States of the EU and Norway, Liechtenstein and Iceland. An EEA Cross Border entity is authorised to provide services on a cross border basis (no physical presence).
EEA Cross Border (in relation to Insurance entities)
The covering of a risk by an insurance undertaking in a Member State through a head-office or branch situated in another Member State.
Electronic Money Institution
An institution which issues electronic money. Electronic money means monetary value as represented by a claim on the issuer which is:
a) stored on an electronic device;
b) issued on receipt of funds of an amount not less in value than the monetary value issued; or
c) accepted as means of payment by undertakings other than the issuer.
Futures and Options Exchange
A Futures and Options Exchange, the rules of which have been approved under Section 101 of the Central Bank Act, 1989 (as amended).
IIA
Investment Intermediaries Act, 1995 (as amended)
Insurance Intermediary
A person who, for remuneration, undertakes or purports to undertake insurance mediation.
Insurance Mediation
Means any activity involved in proposing or undertaking preparatory work for entering into insurance contracts, or of assisting in the administration and performance of insurance contracts that have been entered into (including dealing with claims under insurance contracts), but does not include such an activity that:
a) is undertaken by an insurance undertaking or an employee of such an undertaking in the employee’s capacity as such; or
b) involves the provision of information on an incidental basis in conjunction with some other professional activity, so long as the purpose of the activity is not to assist a person to enter into or perform an insurance contract; or
c) involves the management of claims of an insurance undertaking on a professional basis; or
d) involves loss adjusting or expert appraisal of claims for insurance undertakings.
Insurance Mediation Register
A Register of insurance and/or reinsurance intermediaries which have been registered with the Financial Regulator, maintained pursuant to Section 25 (1) of the European Communities (Insurance Mediation) Regulations.
Insurance Undertaking
An insurance undertaking means an undertaking which has received official authorisation in accordance with Article 6 of Directive 73/239/EEC, Article 6 of Directive 79/267/EEC or Article 3 of Directive 2005/68/EC.
Investment Firm (MiFID)
Means, subject to paragraph 2 European Communities (Markets in Financial Instruments) Regulations 2007 any person, other than a tied agent which person’s regular occupation or business is the provision of one or more investments services to third parties on a professional basis, or the activity of dealing on own account on a professional basis, but does not include a natural person uess:
a) his or her legal status ensures a level of protection for third parties’ interests equivalent to that afforded by legal persons;
b) he or she is subject to equivalent prudential supervision appropriate to his or her legal status; and
c) if paragraph 3 of the European Communities (Markets in Financial Instruments) Regulations 2007 is applicable, he or she ensures that the conditions set out in that paragraph are fulfilled.
Investment Business Firm (IIA)
Means any person, an Investment Firm (MiFID), who provides one or more investment business services or investment advice to third parties on a professional basis and for this purpose where an individual provides an investment business service and where that service is carried on solely for the account of and under the full and unconditional responsibility of an investment business firm or an insurance undertaking or a credit institution that activity shall be regarded as the activity of the investment business firm, insurance undertaking or credit institution itself.
Investment Limited Partnership
A partnership which holds a certificate of authorisation issued in accordance with the Investment Limited Partnerships Act, 1994.
Investment Product Intermediary
Means an investment business firm or a solicitor holding a practising certificate (within the meaning of the Solicitors Acts, 1954 to 1994) who does all or any of the following:
a) acts as a deposit agent or as a deposit broker;
b) provides a service for the reception and transmission of orders to a product producer in units or shares in undertakings for collective investments in transferable securities within the meaning of the Regulations of 1989:
i. units in a unit trust;
ii. other collective investment scheme instruments;
iii. shares in a company which are listed on a stock exchange;
iv. bonds listed on a stock exchange or prize bonds;
v. tracker bonds (except when offered by an insurance undertaking); and
vi. Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990, except when offered by an insurance undertaking).
Licensed Bank
A bank licensed pursuant to Section 9 of the Central Bank Act 1971.
Life Undertaking
The holder of an authorisation under SI 360/1994, EC (Life Assurance) Framework Regulations 1994, which underwrites life assurance contracts.
Money Transmission Business
A business that comprises or includes providing a money transmission service to members of the public. See also definition of Bureaux de Change above.
Money Transmission Service
A service that involves transmitting money by any means, other than such a service provided:
a) by a person or body regulated by the Bank referred to in section 32(1)(a) to (k) of the Criminal Justice Act 1994; or
b) by a person or body prescribed as a designated body under section 32(10)(a) of that Act (but oy if the person or body is regulated by the bank under a designated enactment or designated statutory instrument); or
c) by a person or body on an ancillary basis in the ordinary course of providing services to customers of the person or body.
Moneybroker
A person carrying on a moneybroking business.
Moneybroking business
Any business which consists of the business of arranging all or any of the following, that is to say:
a) loans or borrowings of money;
b) purchases or sales of foreign exchange;
c) transaction of a type which for the time being stand prescribed by order under Section 109; and
d) other transactions which are similar in effect to any of those to which paragraph (a), (b) or (c) relate, between any two or more persons being a holder of a licence under Section 9 of Act of 1971, a building society, or a financial institution, and ‘moneybroking’ shall be construed accordingly.
Moneylender
A person who carries on the business of moneylending, or who advertises or announces himself or holds himself out in any way as carrying on that business; but does not include:
a) any pawnbroker in respect of business carried on by him in accordance with the provisions of the Pawnbrokers Act, 1964 (as amended by Part XV);
b) a society which is registered as a credit union under the Industrial and Provident Societies Acts, 1893 to 1978, by virtue of the Credit Union Act, 1966;
c) a registered society within the meaning of the Friendly Societies Acts, 1896 to 1977;
d) a credit institution;
e) a person who supplies money for the purchase, sale or hire of goods at an APR which is less than 23 per cent (or such other rate as may be prescribed);
f) a mortgage lender.
Moneylending
Credit supplied by a moneylender to a consumer on foot of a moneylending agreement.
Moneylending Agreement
A credit agreement into which a moneylender enters, or offers to enter, with a consumer in which one or more of the following apply:
a) the agreement was concluded away from the business premises of the moneylender or the business premises of the supplier of goods or services under the agreement;
b) any negotiations for, or in relation to the credit were conducted at a place other than the business premises of the moneylender or the business premises of the supplier of goods or services under the agreement;
c) repayments under the agreement will, or may, be paid by the consumer to the moneylender or his representative at any place other than the business premises of the moneylender or the business premises of the supplier of goods or services under the agreement; or
d) where the total cost of credit to the consumer under the agreement is in excess of an APR of 23 per cent, or such other rate as may be prescribed.
Mortgage Intermediary
A person (other than a mortgage lender or credit institution) who, in return for commission or some other form of consideration:
a) arranges, or offers to arrange, for a mortgage lender to provide a consumer with a housing loan; or
b) introduces a consumer to an intermediary who arranges, or offers to arrange, for a mortgage lender to provide the consumer with such a loan.
Multi-Agency Intermediary
A specific type of investment business firm that may receive and transmit orders in retail investment instruments, i.e. those investment instruments set out in Section 25 and 26 (1)(a) of IIA, and provide advice on retail investment instruments oy on behalf of product producers from whom it holds an appointment in writing and that can act as a deposit agent or deposit broker.
Non-Life Undertaking
The holder of an authorisation under SI 359/1994, EC (Non-Life Insurance) Framework Regulations 1994, which underwrites non-life insurance contracts.
Non-UCITS
Collective investment schemes authorised under the Unit Trusts Act 1990, Part XIII of the Companies Act 1990, the Investment Limited Partnerships Act 1994 and the Investment Funds, Companies and Miscellaneous Provisions Act 2005.
Non-UCITS Management Company
This is a management company approved under the provisions of the Unit Trusts Act, 1990, Part XIII of the Companies Act 1990, the Investment Limited Partnerships Act 1994 and the Investment Funds, Companies and Miscellaneous Provisions Act 2005, to provide management services to Non-UCITS collective investment schemes.
Non-UCITS Manager
An entity which provides management services to collective investment schemes and requires specific approval under the relevant provisions of the Unit Trusts Act, 1990, Part XIII of the Companies Act, 1990, the Investment Limited Partnerships Act 1994 and the Investment Funds, Companies and Miscellaneous Provisions Act 2005, to carry out such services.
Payment Institution
A legal person that has been granted authorisation in accordance with Article 10 of the Payment Services Directive to provide and execute payment services throughout the European Community
Payment Services
A ‘payment service’ is defined in the Payment Services Directive as:
1. Services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account.
2. Services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account.
3. Execution of payment transactions, including transfers of funds on a payment account with the user's payment service provider or with another payment service provider:
— execution of direct debits, including one-off direct debits,
— execution of payment transactions through a payment card or a similar device,
— execution of credit transfers, including standing orders.
4. Execution of payment transactions where the funds are covered by a credit line for a payment service user:
— execution of direct debits, including one-off direct debits,
— execution of payment transactions through a payment card or a similar device,
— execution of credit transfers, including standing orders.
5. Issuing and/or acquiring of payment instruments.
6. Money remittance.
7. Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting oy as an intermediary between the payment service user and the supplier of the goods and services.
Product Producer (Investment Service)
The following entities and classes of entities are product producers:
a) authorised investment business firms (other than restricted activity investment product intermediaries or certified persons);
b) credit institutions authorised in accordance with Directives 77/780/EEC of 12 December 1977 and 89/646/EEC of 15 December 1989;
c) in relation to investment business firms and credit institutions authorised to carry on business in a state other than a Member State, such branches of those firms or institutions as the supervisory authority approves from time to time;
d) collective investment undertakings authorised under the law of a Member State of the European Communities to market units in collective investments to the public, and to the managers of such undertakings;
e) investment companies with fixed capital as defined in Article 15(4) of Council Directive 77/91/EEC of 13 December 1976 the securities of which are listed or dealt in on a regulated market in a Member State; and
f) the Prize Bond Company Limited, or any successor to it as operator of the Prize Bond scheme.
Product Producer (Mortgage Business)
A mortgage lender or other mortgage intermediary (e.g. bank, building society or retail credit firm) which has issued an appointment to a mortgage intermediary to act as an intermediary on their behalf in relation to mortgage business.
Professional Investor Fund
A professional investor scheme is a category of non-UCITS collective investment scheme authorised by the Financial Regulator. A professional investor scheme has a minimum subscription requirement of €125,000.
Qualifying Investor Fund
A qualifying investor fund is a category of non-UCITS investment fund authorised by the Financial Regulator for which investment and borrowing restrictions are disapplied in full. QIFs have a minimum subscription requirement of €250,000. Investment is restricted to qualifying investors who certify that they are aware of the risks involved and the fact that they may lose the entire sum invested. A qualifying investor is defined as an individual with a minimum net worth (excluding main residence and household goods) in excess of €1.25 million or an institution, which owns or invests on a discretionary basis at least €25 million.
Regulated Market
A multilateral system operated or managed by a market operator, which:
a) brings together, or facilitates the bringing together of, multiple third-party buying and selling interests in financial instruments, in the system and in accordance with its non-discretionary rules, in a way that results in a contract in respect of the financial instruments admitted to trading under its rules or systems; and
b) is authorised and functions regularly and in accordance with Part 6 of the European Communities (Markets in Financial Instruments) Regulations, 2007 (as amended).
Reinsurance Intermediary
A person who, for remuneration, undertakes or purports to undertake reinsurance mediation.
Reinsurance Mediation
Any activity involved in proposing or undertaking preparatory work for entering into reinsurance contracts, or of assisting in the administration and performance of reinsurance contracts that have been entered into (including dealing with claims under reinsurance contracts), but does not include such an activity that:
a) is undertaken by a reinsurance undertaking or an employee of such an undertaking in the employee’s capacity as such; or
b) involves the provision of information on an incidental basis in conjunction with some other professional activity, so long as the purpose of the activity is not to assist a person to enter into or perform a reinsurance contract; or
c) involves the management of claims of a reinsurance undertaking on a professional basis; or
d) involves loss adjusting or expert appraisal of claims for insurance undertakings.
Reinsurance Undertaking
A person who carries on a business in the course of which reinsurance is provided as per SI 380/2006, EC (Reinsurance) Regulations 2006.
Retail Investment Instruments
These are instruments that can be offered by a Multi-Agency Intermediary or Authorised Advisor and are as follows:
i. units in a unit trust;
ii. other collective investment scheme instruments;
iii. shares in a company which are listed on a stock exchange;
iv. bonds listed on a stock exchange or prize bonds;
v. tracker bonds (except when offered by an insurance undertaking); and
vi. Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990 (except when offered by an insurance undertaking).
Tracker Bonds and Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990, when offered by an insurance undertaking are insurance products/contracts. Oy insurance intermediaries can act as intermediaries for insurance contracts.
Special Purpose Reinsurance Vehicle
An undertaking (whether incorporated or not) that:
a) assumes risks from insurance undertakings or reinsurance undertakings under reinsurance contracts; and
b) fully funds its exposures to those risks through the proceeds of a debt issue or some other financing arrangement under which the repayment rights of the providers of the debt or financing arrangement are subordinated to the reinsurance obligations of the undertaking but does not include an authorised insurance undertaking or authorised reinsurance undertaking.
Tied Agent
Means a natural or legal person who, under the full and unconditional responsibility of oy one investment firm on whose behalf it acts, promotes investment and/or ancillary services to clients or prospective clients, receives and transmits instructions or orders from the client in respect of investment services or financial instruments, places financial instruments and/or provides advice to clients or prospective clients in respect of those financial instruments or services.
Tied Insurance Intermediary
Means any person who carries on the activity of insurance mediation:
a) for and on behalf of one or more insurance undertakings in the case of insurance products that are not in competition; and
b) who acts under the full responsibility of those insurance undertakings for the products which concern them respectively.
Trustee to Funds
The trustee function in respect of a unit trust scheme, an investment company, an investment limited partnership and a common contractual fund includes the custodian function. A trustee firm is an entity which has been approved to provide trustee services to authorised collective investment schemes.
UCITS
Undertakings for Collective Investment in Transferable Securities which are authorised under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2003, as amended.
UCITS Manager
An entity which provides management services to collective investment schemes and requires specific authorisation under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2003 as amended, to carry out such services.
UCITS Self-Managed Investment Company (SMIC)
A Self-Managed Investment Company (SMIC) is a collective investment scheme authorised under the EC (UCITS) Regulations 2003 (as amended) as an investment company, which has not appointed a management company.
Unit Trust Scheme
A unit trust scheme, which is authorized by the Financial Regulator under the provisions of the Unit Trusts Act, 1990.
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