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Carry meaning

What does Carry mean?
In legal and financial practice, carry (often, cost of carry) describes the net financing cost or benefit that accrues while an asset, liability or hedging position is held over time. It covers both explicit cash flows and opportunity costs. Carry typically includes interest paid to fund a position (or received on cash), repo or securities lending rates, margin and collateral funding, and, where relevant, storage, insurance and similar holding costs, offset by income such as deposit interest, coupons or dividends. Foregone interest on cash committed to an investment or posted as collateral is part of carry. The term is a descriptive market expression rather than a statutory definition, but it is widely used in contracts and pricing methodologies across England and Wales, Scotland, Northern Ireland and Ireland. It commonly appears in derivatives (forwards, futures, options), FX, commodities, repo and securities lending, and informs provisions on funding or negative carry, break costs and termination or close-out amounts (for example under ISDA, GMRA or loan agreements). Positive carry arises where asset income exceeds funding and holding costs; negative carry is the reverse. Understanding carry is central to valuation, risk allocation and loss-of-use interest in disputes.
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View the related Checklists about Carry

CHECKLISTS
Investigatory Powers Act 2016: offences, statutory defences and maximum sentences—practitioner checklist (UK)

The Investigatory Powers Act 2016 (IPA 2016) revamped the legal regime regulating covert surveillance by public authorities. IPA 2016 superseded large parts of the framework previously, though not solely, contained in the Regulation of Investigatory Powers Act 2000 (RIPA 2000). See Practice Note: The regulation of intelligence gathering—an introductory guide. This note outlines the offences introduced by IPA 2016. For details of general sentencing limits in a magistrates’ court, see Practice Note: Sentences imposed following conviction—General limits on magistrates’ courts powers to impose custodial sentences following conviction... Section Offence Statutory defence Maximum sentence IPA 2016, s 3 — Unlawful interception: a person, by conduct in the UK, deliberately intercepts a communication during its transmission without lawful authority. Defence: where the individual has the right to control the operation or use of the system, or had that person’s express or implied consent to carry out the interception. Maximum sentence: on summary conviction, a fine; on indictment, up to two years’ imprisonment and/or a...

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CHECKLISTS
Employer checklist for career breaks and sabbaticals: policy design, contract status, continuity of employment, pay/benefits, pensions, equality, redundancy/TUPE consultation and return-to-work arrangements

Checklist This Checklist summarises the issues an employer should evaluate when shaping a career break and/or sabbatical policy, and when setting the arrangements to support such leave. The expressions ‘career break’ and ‘sabbatical’ carry no fixed legal definition, and the title used for the break does not dictate its legal character. In practice: ‘Career break’ commonly denotes a longer spell of unpaid absence during which the employment contract may remain in place, though more frequently it does not; and ‘Sabbatical’ typically refers to a shorter period of leave, usually unpaid but potentially paid or partly paid, during which the contract does continue. For detailed information on career breaks and sabbaticals generally, see Practice Note Career breaks and sabbaticals...

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CHECKLISTS
SRA-compliant firm closure checklist for solicitors (England and Wales)

This checklist is intended to guide you if you need to close your firm. Read it alongside subtopic: Firm closure plan, particularly Practice Note: Firm closure plan-key considerations. Plan and dates ☐ Create a firm closure plan (see Precedent: Firm closure plan). Recommended to show you can carry out an orderly wind-down of your activities, as required by the SRA-SRA Code for Firms, para 2.4. (Insert any comments you may wish to make regarding your firm’s arrangements) ☐ Allocate responsibility for the plan. Recommended. (Insert any comments you may wish to make regarding your firm’s arrangements) ☐ Set a closure date. Recommended. (Insert any comments you may wish to make regarding your firm’s arrangements) Notifications ☐ Send a completed Firm Closure Notification form to the SRA. Compulsory-SRA Code for Firms, para 2.5. (Insert any comments you may wish to make regarding your firm’s arrangements) ☐ Notify staff. Recommended. (Insert any comments you may wish to make regarding...

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FLOWCHARTS
UK FSMA 2000/RAO flowchart: when mortgage arranging, advising, entering into, administering or agreeing to carry on are regulated activities requiring authorisation

Open or print the full-sized PDF version:...

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FLOWCHARTS
Section 423 Insolvency Act 1986 (England and Wales and Scotland): Flowchart of Requirements and Claim Steps for Transactions Defrauding Creditors

This flowchart sets out the process under the FIDIC Red, Yellow and Silver Books, 1999 editions, for defects under: clause 7.5, where Plant, Materials, design or workmanship are discovered to be faulty or otherwise non-compliant with the Contract, and the Employer rejects the relevant Plant, Materials, design or workmanship clause 7.6, when the Employer directs the Contractor to strip out and substitute any non-compliant Plant or Materials, to take out and reperform any other work that does not meet the Contract, or to carry out any work urgently needed to protect the safety of the Works clause 11.1, under which the Contractor must perform all tasks necessary to make good defects or damage, as notified by the Employer on or before the end of the Defects Notification Period clause 12.3, if a Test after Completion is not passed, and clause 11.1(b) concerning the rectification of defects applies (Yellow and Silver Books only) For further details, see Practice Note: FIDIC Contracts (pre–2017...

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FLOWCHARTS
Employment disputes: international jurisdiction under Brussels I (recast) for proceedings issued on or before IP completion day (31 December 2020)—flowchart [Archived]

Background to and scope of this flowchart An individual who conducts a regulated activity in the UK in the course of business, where no relevant exclusion or exemption applies, must be authorised under the Financial Services and Markets Act 2000 (FSMA 2000). For details and context on the consequences of carrying on a regulated activity without authorisation, consult Practice Note: The general prohibition and implications of its breach. For an explanation of what it means to carry on business in the UK, see Practice Notes: What does 'by way of business' mean? and Territorial scope of the general prohibition. For guidance on exemptions and exclusions that may apply in particular circumstances, refer to Practice Notes: Regulated activities—exempt persons and Exclusions and exemptions relating to the general prohibition—an introduction...

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NEWS
EU provisional AML Directive: new authority, harmonised rules, stricter CASP checks on €1,000+ transfers, enhanced monitoring of high‑net‑worth clients, with football clubs and luxury traders in scope

Incoming legislation will bring stricter rules to the crypto sector, requiring CASPs to carry out customer checks and to report suspicious activities whenever transactions total €1,000 euros or more. Controls will be even more rigorous for CASPs’ cross-border transactions. ‘We have ensured that the crypto sector will operate under the same rules and bear the same obligations as the traditional financial sector’, said Eero Heinäluoma, on this matter...

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NEWS
UK and EU competition law update: mergers, antitrust, subsidy control, CMA Annual Report, EU procedural reform, State aid GBER review, online payments study (17 July 2025)

In this issue: UK mergers UK antitrust UK subsidy control UK competition policy EU antitrust EU mergers EU State aid EU market studies New and updated content Daily and weekly news alerts Caselex UK mergers Government consults on further changes to the draft Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) (No 2) Regulations The Department for Culture, Media and Sport (DCMS) has published a consultation on proposed further amendments to the Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) Regulations 2025 (the Regulations). Through changes to the Enterprise Act 2002, the Digital Markets, Competition and Consumers Act 2024 introduced a foreign state intervention (FSI) regime for newspapers and periodic news magazines, preventing foreign state ownership, control, or influence over these publications. The Regulations carry forward the government’s decision to provide narrow exemptions to the FSI framework. Under the proposals, defined state-owned investors (SOIs) could hold up to...

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NEWS
US DOJ use of FCPA and Anti-Terrorism Act against cartels/TCOs: overlapping corporate liability, FTO designations and high-risk scenarios

The US Department of Justice (DOJ) under the Trump administration has signalled it will deploy every instrument at its disposal—including the FCPA and the Anti-Terrorism Act (ATA)—to go after such targets. What, then, should compliance professionals understand about where FCPA and ATA risks intersect? At face value, the FCPA and ATA seem to address separate exposures: the FCPA tackles bribery of overseas officials, whereas the ATA centres on, among other matters, supplying material support to, or aiding and abetting, foreign terrorist organisations (FTOs). In reality, though, these hazards can collide—especially in markets with significant FTO presence—producing concurrent exposure. Background On 20 January 2025, President Donald Trump signed Executive Order No 14157, directing, among other measures, that specified international cartels and other transnational criminal organisations (TCOs) be classified as FTOs. Since February 2025, the US State Department has designated 11 organisations—primarily in Latin America—as FTOs. These listings carry meaningful consequences: the ATA imposes broad civil and criminal liability for furnishing material support to FTOs, and permits asset forfeiture...

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View the related Practice Notes about Carry

PRACTICE NOTES
Legal due diligence reporting in UK private equity buyouts: process, scope, executive summaries, third-party reliance and drafting (including exceptions-only reports and precedent)

This Practice Note forms part of the Lexis+® UK Corporate private equity buyout transaction toolkit. The reporting process Every adviser appointed to carry out due diligence ought to flag principal findings as they emerge, particularly any significant risks or concerns, and then prepare a due diligence report to highlight material issues arising from their review work and analysis. The advisers’ engagement letters must clearly define the agreed timetable, format and scope of the due diligence report. Draft or interim reports can be produced and shared at intervals during the process, enabling material issues to be promptly addressed as they arise. Frequently, by the point the final report goes to the private equity investor, they will be aware of all material matters that could affect the transaction in question. The aim of a legal due diligence report is to: provide the investor with adequate information about the target and to summarise that material in a succinct and comprehensive ...

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PRACTICE NOTES
Contaminated land remediation notices: prosecution, penalties, defences, civil injunctions, and authority-led remediation with cost recovery for non-compliance

Consequences of non-compliance If any requirement in a remediation notice remains unmet, the enforcing authority will need to decide whether to: prosecute commence civil proceedings carry out the remediation work itself Prosecution for non-compliance Offence Failing, without reasonable excuse, to comply with any requirement in a remediation notice is an offence. A person may therefore be prosecuted even where there has only been partial compliance with the notice. Whether someone has a reasonable excuse for non-compliance is a question of fact to be determined by the specific circumstances of the case...

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PRACTICE NOTES
Health and Safety at Work etc. Act 1974: summary-only offences—obstruction, false inspector, HSE inquiries; time limits, prosecution, venue, corporate liability, penalties

The Health and Safety at Work etc Act 1974 (HSWA 1974) sets out broad duties to protect the health and safety of employees and others affected by work. Not complying with these duties is a criminal offence, prosecutable in either the magistrates’ court or the Crown Court. For details of the duties under HSWA 1974, ss 2–7, see the following Practice Notes: Failure to carry out health and safety duties under HSWA 1974—offences Safety and the risk to safety under the Health and Safety at Work Act 1974 Employees' duties to take reasonable care for health and safety at work Directors’ duties for health and safety Health and safety law and the self-employed This Practice Note highlights those HSWA 1974 offences that can only be tried in the magistrates’ courts. Summary only health and safety offences The health and safety offences that are triable only in the magistrates’ court are: Breach of provisions relating...

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PRECEDENTS
Precedent JCT Standard Building Sub-Contract 2024: Agreement, Particulars and Amendments (Procurement Act 2023, Building Safety/HRB, BIM, Bonds, Warranties) — England and Wales

Agreement concerning [ insert brief details of the works/project ] at [ insert address of works ] (incorporating, among other things, the JCT Standard Building Sub-Contract Agreement 2024 (SBCSub/A 2024) and the JCT Standard Building Sub-Contract Conditions 2024 (SBCSub/C 2024), each as amended and supplemented as set out in this Agreement and in the Schedules to it). This Agreement is dated the [ insert number ] day of [ insert month ] 20[ insert year ] Parties [ insert name of the Contractor ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Contractor ] (“the Contractor”) [ insert name of the Sub-Contractor ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Sub-Contractor ] (“the Sub-Contractor”) Now it is agreed that: 1 Interpretation In this Agreement, words and expressions carry the meanings respectively attributed to them in the JCT SBCSub/A 2024 and...

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PRECEDENTS
Manual Handling Risk Assessment Form and Checklist: Job, Load, Environment, Worker Factors; Risk Rating, Actions and Sign-off

1 General Employee’s name [ insert name ] Manual handling activities reviewed [ insert, eg collecting and delivering mail, boxing up files for storage or litigation bundles ] Roles involved [ insert details ] Location [ insert location ] Assessed by [ insert name ] Is it possible to carry out the job without any manual handling? ☐ Yes ☐ No Is a risk assessment required?...

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PRECEDENTS
Legal Managers’ Learning and Development Needs Questionnaire: Leadership, People Management, Business Development and Anticipated Change

1 Your details Your name Job role Number of direct reports How long you have been in your current position 2 Skills analysis The purpose of this Learning needs analysis (LNA) questionnaire is to pinpoint any skills gaps that we can help you address through learning and development (L&D). 2.1 Skills required for your role Please complete the table below: Skill or activity Relevance and confidence level Do you need to do this to carry out your job effectively? ...

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View the related Q&As about Carry

Q&As
Holiday carry over if leave not prevented: permitted by contract?

Under WTR 1998, workers get 5.6 weeks’ annual leave each year: a basic entitlement of four weeks’ leave (20 days for a standard full‑time worker) implementing article 7 of the Working Time Directive (WTD) an additional 1.6 weeks’ leave (eight days for a standard full‑time worker) created by domestic law only Understanding this distinction is important because: European Court of Justice case law concerns the WTD alone, so it applies only to the basic four weeks’ paid leave holiday pay is calculated differently for: the basic four weeks, and the additional 1.6 weeks The general rules as to the right to carry forward accrued holiday entitlement are that: the basic four weeks must be taken in the leave year earned and cannot be carried over (though an employer may choose to allow it) a relevant agreement may allow the additional 1.6...

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Q&As
Right to Rent duties for housing associations (PRPs): JCWI v SSHD

Right to rent scheme The duties imposed by the right to rent scheme extend to all relevant lettings described in Practice Note: Residential tenancies—a tenant’s right to rent under the Immigration Act 2014, except where a letting is an excluded tenancy set out in Schedule 3 to the Immigration Act 2014 (IA 2014), also cited in that Practice Note. Be aware that social housing—as defined in IA 2014, Sch 3—is outside scope entirely...

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Q&As
Can a personal representative recover leasehold service charges from beneficiaries in occupation?

For the purposes of this Q&A, it is assumed that: the leasehold property forms part of the unadministered Estate the Estate bears the primary responsibility to pay the service charge the beneficiaries in occupation have a right to occupy the leasehold property Whilst the Estate is being administered, legal ownership of the deceased’s unadministered assets is vested in the personal representatives (PRs) for the purposes of administration and to carry out that administration. In the meantime, no beneficiary, whether taking under the deceased’s Will or by intestacy, has any proprietary interest in any particular or identifiable asset comprised within the unadministered Estate, nor any enforceable claim to such an item. See Practice Note: Beneficiaries’ rights and remedies. The PRs hold extensive powers to administer and manage the deceased’s Estate...

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