Important: this glossary is for guidance purposes only and you should not rely on it when making financial decisions. If you are not sure about any of the terms covered, please get independent professional advice. If we make any changes to this glossary in the future, we will produce a new version which will be posted on this page.
This is the return – or measure of the gain or loss – that an asset or investment portfolio achieves over a period of time. It is expressed as a percentage of the capital invested.
Accumulation unit or share
Payment for advice as defined by the FCA in COBS 6.1 which is: ‘any form of charge payable by or on behalf of a retail client to a firm in relation to the provision of a personal recommendation by the firm in respect of a retail investment product (or any related service provided by the firm) which is agreed between that firm and the retail client in line with the rules on adviser charging and paying advisers’. For more information, please see: https://www.handbook.fca.org.uk.
An exchange appearing in the list in the FCA’s Glossary: https://www.handbook.fca.org.uk/handbook/glossary/?filter-title=designated+investment+exchange
Multilateral trading facility
Perimiter Guidance Manual(‘PERG’)
This is the Perimeter Guidance Manual provided by the FCA. Please see:
Usually, these are closed-ended funds which generally take or have a controlling stake in shares in a business (or several businesses) that is either private or becomes private once the funds have been bought. Private equity funds can generate returns significantly higher than share markets but they also carry a higher risk.
An option that gives the holder (in other words, the buyer of the option) the right, but not the obligation, to sell (put) an asset at a given price on or before a given date.