Financial jargon explained

Here you’ll find a simple explanation of some of the most commonly used investment terms. If there is any other financial jargon you want translated, please call our Customer Service Team free on 0800 597 2525 or email us at enquiries@willisowen.co.uk and they will be pleased to help.

  


F

Financial Adviser

A financial adviser is an intermediary who is regulated by the FCA to provide advice on financial matters including investments.

Financial Conduct Authority (FCA)

The Financial Conduct Authority (FCA) is an independent body with statutory powers who are responsible for supervising financial firms, maintaining confidence in the financial system, providing protection for consumers and reducing financial crime.

Financial Services Compensation Scheme (FSCS)

This scheme exists for claims against an authorised financial services company when it is unable to pay claims against because it is insolvent or no longer trading. For companies still in business, claims must be referred to the Financial Ombudsman Service (FOS). You can find out how your investments and cash deposits are protected  here

Fixed Interest

A fixed rate of interest payable each year.

Forward Pricing

A system of pricing where the price at which investors buy or sell is determined at the next valuation of the fund. Investors do not know the exact price at which units/shares have been bought or sold until after the trade has completed.

FTSE 100 Index

An index that measures the Share price performance of the UK’s largest 100 companies by market cap.

FTSE All-Share Index

An index that measures the performance of around 700 UK companies.

Futures

A future involves negotiating a price today for something to be delivered in the future. Most futures are traded and no physical delivery of the underlying securities takes place. The contract is legally binding.