42 Related party transactions and Directors’ remuneration

(a) Related party transactions

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operation decisions, or one other party controls both. The definition includes subsidiaries, associates, joint ventures and the Group’s pension schemes, as well as other persons.

Subsidiaries

Transactions between Barclays PLC and subsidiaries also meet the definition of related party transactions. Where these are eliminated on consolidation, they are not disclosed in the Group financial statements. Transactions between Barclays PLC and its subsidiary, Barclays Bank PLC are fully disclosed directly in its balance sheet and income statement. A list of the Group’s principal subsidiaries is shown in Note 40.

Associates, joint ventures and other entities

The Group provides banking services to its associates, joint ventures and the Group pension funds (principally the UK Retirement Fund), providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well as other services. Group companies, principally within Barclays Global Investors, also provide investment management and custodian services to the Group pension schemes. The Group also provides banking services for unit trusts and investment funds managed by Group companies and are not individually material. All of these transactions are conducted on the same terms as third-party transactions.

Amounts included in the accounts, in aggregate, by category of related party entity are as follows:

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							For the year ended and as at 31st December 2007
													Pension
											Entities		funds unit
											under		trusts and
									Joint		common		investment
							Associates		ventures		directorships		funds		Total
							£m		£m		£m		£m		£m
Income statement:
Interest received							5		75		1		–		81
Interest paid							(1)		(58)		(1)		–		(60)
Fees received for services rendered (including investment management and
custody and commissions)							1		34		–		26		61
Fees paid for services provided							(52)		(78)		–		–		(130)
Principal transactions							(24)		47		(16)		–		7
Assets:
Loans and advances to banks and customers							142		886		40		–		1,068
Derivative transactions							–		4		36		–		40
Other assets							19		18		–		14		51
Liabilities:
Deposits from banks							11		–		–		–		11
Customer accounts							–		61		33		12		106
Derivative transactions							–		10		50		–		60
Other liabilities							4		125		–		–		129