Occupational Pension Plan

A scheme organised by an employer or on behalf of a group of employers to provide pensions and/or other benefits for one or more employee on leaving that employment, retirement or death.

Occupational Pension Scheme

A scheme organised by an employer or on behalf of a group of employers to provide pensions and/or other benefits for one or more employee on leaving that employment, retirement or death.

Occupational Pensions Regulatory Authority(OPRA)

OPRA regulate the running of Stakeholder Pension schemes as well as company pension schemes.

Off Balance Sheet Accounting

A method of financing a company’s activities so that some or all of the finance and corresponding assets do not appear on the company’s balance sheet. This can improve a company’s accounting ratios which are sometimes used to assess creditworthiness. All companies must abide with the accounting principle that the accounting reflects the financial reality of transactions and not just their legal form.

Offset

To use to reduce. For example certain expenses can be used to reduce (offset) company tax liability e.g. depreciation 

OIN

As part of the Direct Debit scheme in the UK, an Originator will be issued with an Originator’s Identification Number (OIN). This is unique to the company and is recognised by the scheme and participating banks and building societies. The OIN will always be printed on a Direct Debit Instruction.

Omnibus Indemnity

See General Indemnity.

On Demand Guarantee

See First Demand Guarantee.

Online

Accessing an interactive device (e.g. a website) via an electronic communications link from a remote source.

Online Terminal

EFTPOS terminal – retail till/terminal at point of sale. It collects card payment information automatically and makes automatic authorisation calls to the bank as required. This is ideal for high volume/high value transactions used by frequent users, e.g., restaurants and jewellers.

Open Ended

A Guarantee that does not contain a calendar expiry date. Expiry occurs when a future event occurs and the Guarantor is unable to determine at the time of issue of the guarantee when this event will occur.

Open Account

Where the importer has no legal commitment to the exporter and fully controls the means and timing of payment in respect of goods or services received.

Opener

The person/company, usually the importer, on whose behalf a documentary credit is issued. Also known as the Applicant.

Opening Bank

Also known as Issuing Bank. The bank that opens a documentary credit at the request of its customer, the applicant.

Operating Lease

Any lease which leaves the risk of ownership substantially with the lessor (i.e. HSBC Bank). Under current accounting rules the assets in an operating lease remain on the balance sheet of the lessor (HSBC Bank) and not the lessee (a business customer)). Contract hire is a form of operating lease. See also Leasing.

Operating System

Program which manages how your computer does its job. For example, Windows 98.

Operative Date

See Effective Date.

Option

Gives the purchaser the right but not the obligation to buy or sell a specific amount of currency at a specific rate of exchange on or before a specific future date.

Option Forward

A forward contract that has a time window incorporated into it.  Take up of the contract is permitted within this window.

Originator

A company that wants to collect regular payments electronically from its customers through the Direct Debit scheme. The company will have been sponsored into the Direct Debit scheme by its bank and enabled to initiate Direct Debit collections. Once set up, the Originator will be issued with an Originator’s Identification Number (OIN). This is unique to the company and is recognised by the scheme and participating banks and building societies. The OIN will always be printed on a Direct Debit Instruction.

Outsourcing

Where a business chooses to contract out a specific task or function from their organisation to someone else for a fee (e.g., payroll, computer operations) rather than undertaking the task themselves. This can be particularly beneficial for small businesses that do not have the capital resources or the skills/knowledge base required to achieve the task themselves.

Outward BC

A bill of exchange sent by the drawee's bank to another bank for collection.

Overdraft

1. The amount by which withdrawals exceed deposits, or 2. ('overdraft facility') The extension of credit by a lending institution to allow for such a situation.  

Overseas Bank Charges

Bank charges incurred outside of the Applicant’s country. See Correspondent Bank. 

Own Plant

This cover is common to Tradesman or Contractor type policies and relates to the insureds' own plant and equipment, such as a builders cement mixer or mini-digger.