QFA Regulation key terms

A contract under which an insurer pays a sum of money on the death of the insured person, or on a specified survival date, in return for premiums; many policies also contain a savings or investment element.

Central Bank of Ireland rulebook setting out how regulated firms must treat consumers, covering knowing the customer, suitability, disclosure of information and charges, complaints handling and claims handling.

Central Bank standards setting minimum qualifications, continuing professional development and competence requirements for staff of regulated firms who deal directly with consumers on retail financial products.

Central Bank standards requiring people in controlled functions and pre-approval controlled functions to be competent, honest, financially sound and of good repute, supported by the firm's due diligence and ongoing monitoring.

An EU directive transposed into Irish law that governs how insurance products are designed, marketed, advised on and sold, including demands-and-needs assessments, remuneration disclosure and professional requirements for distributors.

A short cancellation window after a policy is taken out during which the consumer may cancel and recover premiums paid; the length of the period and the conditions differ between life and non-life products.

The obligation on intermediaries and insurers to tell a consumer, in good time before a contract is concluded, the amount or the basis of any commission or other remuneration received in connection with the sale.

A trust-based retirement arrangement set up by an employer for its employees, funded by employer and usually employee contributions, with trustees responsible for running the scheme under the Pensions Act.

A personal, portable pension contract open to almost anyone, funded by the individual or an employer, with the contributor choosing from investment funds offered by a PRSA provider.

A tax-approved investment fund into which the proceeds of a maturing personal pension, PRSA or similar arrangement may be transferred at retirement, with money withdrawn being taxed as income.

A contract with a life insurer under which a lump sum is exchanged for a guaranteed regular income, for life or for a fixed term, so that investment and longevity risk pass to the insurer.

An occupational pension scheme where the retirement benefit is worked out by a formula, usually based on salary and years of service, so the employer carries the investment and longevity risk.

An occupational pension scheme where the retirement fund depends on the contributions paid and the investment returns achieved, so the member rather than the employer bears the investment risk.

The statutory body that regulates occupational pension schemes, trust RACs and PRSAs in Ireland, supervising trustees and providers and enforcing the Pensions Act.

The EU directive and regulation that set authorisation and conduct-of-business rules for investment firms, including client categorisation, best execution, conflicts of interest and product governance.

The requirement to classify each client as retail, professional or eligible counterparty, because the category determines the level of protection, disclosure and reporting the firm must provide.

The process of gathering information on a client's knowledge, experience, financial situation and objectives, and using it to recommend investment or pension products that meet that client's needs.

A check used where a firm provides a non-advised service, assessing whether the client has the knowledge and experience to understand the risks of the product or service concerned.

An Undertaking for Collective Investment in Transferable Securities: an EU-regulated retail fund subject to diversification, custody and disclosure rules that may be marketed to retail investors throughout the EU.

A short, standardised document given to retail investors before they buy a packaged investment or insurance-based investment product, summarising the product's risks, costs and expected performance.

Legal duties on financial firms to identify and verify clients, understand the source of funds, monitor transactions and report suspicious activity to the authorities under Ireland's criminal justice legislation.

EU law on handling personal data that requires a lawful basis for processing, limits use to stated purposes and gives individuals rights of access, correction, objection and erasure.

The mutual duty on an applicant and an insurer to deal honestly with each other and to disclose all material facts relevant to the risk when a contract of insurance is being formed.

A requirement that the person insuring property or a life must stand to suffer a financial or legal loss if the insured event occurs, otherwise the contract is not enforceable.

The principle that after a loss the insured should be placed, as far as money can do it, in the same financial position as before the loss, neither better off nor worse off.

A basis of settling property claims in which damaged buildings or contents are repaired or replaced with equivalent new items, normally on condition that the sum insured is adequate.

The first amount of any claim that the policyholder must bear, deducted by the insurer from the settlement; agreeing a higher excess usually reduces the premium charged.

The insurer's right, after it has paid a claim, to take over the insured's legal rights and pursue recovery of the loss from the third party who caused it.

Any information that would influence a prudent insurer's decision to accept a risk or the terms and premium it would apply; failure to disclose it can allow the insurer to reduce or refuse a claim.

Compulsory cover for an employer's legal liability to employees for injury or illness arising out of their work, meeting damages, costs and expenses up to the policy limits.

Cover for a business's legal liability for injury to third parties, or damage to their property, arising from the insured's premises or activities, including legal defence costs.

Cover for claims and legal costs arising from alleged negligence, errors or omissions in professional services or advice given, usually written on a claims-made basis.

Cover for lost gross profit and additional costs of working after an insured event such as fire or flood interrupts the business, normally for an indemnity period chosen by the insured.

Cover for a business's legal liability for injury, loss or damage caused by goods or products that it has manufactured, sold or supplied in the course of its business.

A legal pricing rule for private health insurance in Ireland under which every subscriber pays the same premium for the same level of cover, regardless of age, sex or health status.

Loadings added to health insurance premiums for people who first buy cover after age 34, charged at a set percentage for each year of age at entry and applying for ten years.

A mechanism in the Irish health insurance market that moves money from insurers with younger, lower-risk members to those with older, higher-risk members, so that community-rated pricing can be sustained.

The rule that a health insurer must accept any applicant for a health insurance contract, whatever their age or health, subject only to the waiting periods permitted by law.

The time a new member must wait after joining, or after increasing cover, before certain benefits become payable or before treatment for a pre-existing condition is covered.