Child Benefit
A tax-free monthly payment from the Government to anyone bringing
up a child up to age 16. It is not affected by income or savings so
most people who are bringing up a child or young person qualify for
it.
CTF
Child Trust
Fund
Child Trust Fund
A Government scheme to support long-term savings and investment for
children. Each eligible child born on or after 1 September 2002 has
a Child
Trust Fund account. The Government provides a voucher to start
the account and then the child, parents, relatives and friends can
contribute with the aim of building up assets for the child when
they reach 18.
Child Trust Fund voucher
This is issued by HMRC to a person with parental responsibility for
a child (usually the parent who registers for Child Benefit). It is
used to open a Child Trust Fund (CTF) account on behalf of the
child, whose name is on the voucher. Once the Child Trust Fund
account is open it can receive the Government's initial
contribution to get it started.
Direct Debit
An instruction from a customer to their bank or building society
authorising the regular collection of money from their account.
Government bonds
Governments sell bonds to raise money - a bond is, in effect, a
loan from the person buying the bond to the Government. UK
Government bonds are called gilts (short for gilt-edged
securities).
FSA
Financial Services Authority
Financial Services Authority
The statutory regulator of the UK financial services industry.
Financial Services Compensation Scheme
The UK's statutory compensation scheme for the financial services
industry. It can pay out to customers of an authorised firm should
it fail.
Fixed interest securities
Securities such as bonds and gilts which pay interest at a rate
fixed in advance.
FTSE
A joint venture between the Financial Times (F-T) and London Stock
Exchange (S-E) that produces lists of UK company share prices. The
lists show performance of different companies in different industry
sectors.
FTSE 100 Index
Includes the 100 most highly capitalized/blue chip companies listed
on the London Stock Exchange
FTSE Global Islamic Index
Tracks the performance of leading publicly traded companies whose
activities are consistent with Islamic Shariah law.
Fund
An investment vehicle that pools together investors' money, so
enabling larger and more efficient investments.
HMRC
HM Revenue & Customs
Key Features
A document describing the essential features of a financial
product, designed to allow a consumer to make an informed decision
about whether or not to buy or invest.
Lifestyling
The gradual switching of investment away from more volatile assets
(such as company shares) towards more stable assets (such as
government bonds and cash). All stakeholder Child Trust Fund
accounts must be capable of lifestyling.
Non-Stakeholder Child Trust Fund account
A Child Trust Fund account that does not satisfy the Government's
specific requirements for a stakeholder account (see "Stakeholder
Child Trust Fund account"). Non-stakeholder accounts can offer access to
a wider range of investment options, including cash deposit
accounts.
Registered Contact
The person who has responsibility for the child's Child Trust Fund
account until they reach the age of 16. This person must have
parental responsibility for the child. From 16 only the child
themselves can be the Registered Contact.
Shariah
The body of Islamic law.
Shariah Child Trust Fund account
A Child Trust Fund account that invests in full compliance with
Islamic law.
Stakeholder Child Trust Fund account
A Child Trust Fund account that satisfies the Government's specific
requirements. These are that the account must have exposure to
company shares (equities), allow for "lifestyling", charge no more
than 1.5% of the account's value a year and have a minimum
contribution amount of no more than £10. Meeting these requirements
does not equate to Government approval of an account.
With-profits
A particular type of pooled investment offered by some life
insurance firms. A typical with-profits fund invests in a wide range of
assets including shares, bonds, property and cash. Investment
returns are managed by the firm in a way that aims to provide a
smooth progression from year to year.