A to D

A to D


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A credit rating given to the highest quality issuers. Also known as a ‘triple A’ rating.


The purchase of a company or the division of a company.

Agency trades

The buying or selling of securities carried out by a broker or market maker on behalf of a customer. Also see ‘principal trades’.

Alternatives / Alternative Assets

Investments in assets other than stocks and bonds are known as ‘alternatives’. Examples include real estate, commodities and infrastructure.


Anything that has an economic or financial value which an individual or business owns, and which they could reasonably expect could generate value in the future. Examples could range from cash, property and investments to possessions such as fine art, antiques and jewellery.

Asset management

The management of investments on behalf of a client, taking account of their financial goals and attitude towards risk. An asset manager might work for an investment bank or an asset management company, or as an independent adviser. Their aim is to increase the value of a client’s portfolio by maximising the returns on investments in products such as equity, real estate, commodities and mutual funds.

Assets Under Administration (AuA) / Assets Under Management (AuM)

These are ways of measuring the total assets for which a financial institution either provides administrative services for (AuA) or which they manage on behalf of clients (AuM).

Automated Teller Machine (ATM)

A self-service banking outlet that allows customers to withdraw cash, make deposits, pay bills and transfer money between accounts without going into a branch of their bank. Anyone with a debit or credit card can withdraw cash at most ATMs. In some countries an ATM is known as an automated bank machine (ABM) or cash machine.


Bank guarantee

A type of financial backstop where a lender agrees to cover the loss if a borrower fails to pay back a debt. Because the risk to the lender is greater, loans that come with a bank guarantee usually have higher interest rates or other costs.


Banking app

Software that enables a customer to conduct financial transactions using a mobile device such as a smartphone or tablet. Most banking apps can be used to check account balances, pay bills, deposit cheques (using the device’s camera), and transfer money between accounts.



Loans to a government or company. These loans are often for a set period and the bond owner usually receives regular interest payments. Bonds issued by the UK government are called Gilts and those issued by a company are corporate bonds.



A bourse is another term used to describe a stock exchange or securities exchange.


Broker or market maker

A person or firm who buys and sells goods or assets for issuers [see ‘Issuers’] via the stock exchange.


Business Banking

See ‘Commercial Bank’.



Wealth in the form of money or other assets. This wealth can either be (a) owned by a person, or (b) owned by an organisation, or (c) made available for a purpose, such as starting a company or investing.


Capital markets

A financial marketplace where companies and people raise capital by dealing in shares, bonds and other long-term investments. Capital markets bring together buyers and sellers to help businesses grow.


Cell company

In Jersey there are two types of cell company: a protected cell company (PCC) is a single legal entity made up of a core and several ‘cells’ that have separate assets and liabilities. Incorporated cell companies (ICCs) are a type of company where each cell has a separate legal identity.



An asset used to secure a loan, minimising the risk for the lender. If the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recover some or all of their losses. A common example is a mortgage where the property is used as collateral. Other assets such as a car or a savings account can be used as collateral to secure a personal loan.


Commercial bank

A bank that supports businesses by providing access to a range of banking, credit and investment products and services, such as treasury deposits, foreign exchange transactions, lending and financing, and card services for retailers. With customers ranging from small local businesses to large international corporations, commercial banking is also known as corporate banking or business banking.


Commercial property

These include office, industrial, retail (including retail warehouses, high street and shopping centres) and other types of property (care homes, student accommodation).



A commodity is a basic good which can be traded, and which is broadly the same regardless of the producer. They are typically sorted into four categories: metal, energy, livestock and meat, and agricultural. Investors often include commodities within their portfolio for better diversification.


Common Reporting Standard (CRS)

An information-gathering and reporting requirement introduced by governments around the world to help combat tax evasion and protect the integrity of tax systems.


Consumer Banking

See ‘Retail Banking’.


Contractual rights

The set of rights guaranteed whenever people enter into a legal contract with one another. Contract rights usually involve business matters such as the rights to buy or sell a particular product or service.


Corporate Banking

See ‘Commercial Bank’


Coupon [bonds]

The interest, normally fixed, received by a bond holder.


Credit limit

The maximum amount of credit a customer can get from a bank or another financial institution. This may be the maximum amount they’re able to spend using a credit card. Or it could be the limit on a line of credit such as an overdraft.



Creditors are a person or company to which an issuer (see ‘Issuer’) owes money.


Credit rating agencies

An agency that publishes credit ratings for bonds. Investors can access these for a fee. Bond credit ratings are based on in-depth analysis of all the issues that might impact the quality of an issuer.


Credit risk [bonds]

Before loaning or buying a bond, investors need to carefully consider the likelihood of getting their money back (principal) and the interest rate (coupon) agreed at the outset. Any negative change to the borrower or issuer that might reduce the likelihood of the repayment of the annual coupon or the final principal will likely have a bad impact on the value of the bond holding.


Credit risk [same as ‘default risk’]

The possibility of a loss because a borrower cannot repay a loan or meet the terms of a contract.


Credit risk appetite

The level of risk a bank is prepared to accept to achieve its objectives. It is important for banks to set risk appetite at an appropriate level to ensure credit risks are only accepted and managed within that appetite. See also ‘risk appetite’.


Current yield [bonds]

The annual coupon rate (often paid semi-annually) divided by the current bond price.


Custodian bank

A bank where the financial assets of businesses and individuals are held, either physically or electronically, to prevent them from being lost or stolen. As well as safeguarding assets such as equities and bonds, precious metals, fine art and cash, custodian banks (also known as custodians) provide a number of related services including account administration and tax support, collecting dividends and interest payments, handling foreign exchange transfers, and settling transactions. They also distribute activity reports and information about annual general meetings and shareholder voting.


Depositary bank

A specialist financial institution that facilitates investment in securities markets with the trading of items such as stocks and bonds. In the EU, investment funds are legally required to appoint a depositary bank to safeguard the assets of the fund and ensure that it complies with the laws and regulations of its jurisdiction. A depositary bank’s services include monitoring cash flow, record keeping and overseeing fund operations such as valuations, risk analysis and investor subscription and redemption activity.



In general, depreciation is the reduction in the value of an asset over time. For example, the machinery used by a manufacturing company will depreciate as a result of wear and tear. From a financial perspective, depreciation represents how much of an asset’s value has been used up. It’s an accounting method that enables a company to write off the value of an asset over a period of time.



A long-term bond issued by a company, or, an unsecured loan that a company issues without a ‘pledge of assets’ (meaning the company does not ask the borrower for any assets as a guarantee).



Money borrowed by an individual or business on the condition that it will be paid back to the lender at a later date. Interest is usually charged as a percentage of the amount borrowed. Examples of debt include mortgages and personal loans, credit card debt, and corporate debt such as bonds and commercial paper.


Debt securities

Debt securities are issued by companies in order to raise finance from a wide range of investors. They can be bonds, loan notes, debentures and other securities or financial instruments which create or evidence indebtedness (a promise to pay back the principal amount and interest when the instrument matures).


Default risk [same as ‘credit risk’]

When making any loan or buying a bond, investors need to carefully consider the likelihood of getting their money back (principal) and the interest rate (coupon) agreed at the outset. Any adverse change to the borrower might reduce the likelihood of the repayment of the annual coupon or final principal will likely have a detrimental impact on the value of the bond holding.


Defensive industries

Companies in the utilities industry, for example. They are ‘defensive’ because the demand for these goods and services does not soften along with a declining economy. Other defensive industries include telecommunications, food retailing, healthcare and companies involved in the distribution of energy.



In banking terms, a deposit is the money a customer transfers into a current or savings account where it’s held safely on their behalf. Money that has been deposited in a current account can usually be withdrawn at any time. It can also be transferred to another account or used to make purchases.


Depositors Compensation Scheme (DCS)

The Jersey Bank Depositors Compensation Scheme (DCS) was established in 2009 to protect banking customers in the unlikely event that their bank fails and is unable to repay the money held in their accounts. If this happens, the DCS will give each customer up to £50,000 in compensation.



A derivative is a financial instrument – its value is derived from the underlying value or movement in other assets, financial commodities or instruments like equities, bonds, interest rates. Depending on how it is used, a derivative can involve little financial outlay but result in large gains or losses. Funds can sometimes use derivatives to improve portfolio management and to help meet investment objectives.



In general, depreciation is the reduction in the value of an asset over time. For example, the machinery used by a manufacturing company will depreciate as a result of wear and tear. From a financial perspective, depreciation represents how much of an asset’s value has been used up. It’s an accounting method that enables a company to write off the value of an asset over a period of time.



In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A popular path towards diversification is to reduce risk by investing in a variety of assets.



When a company generates a profit, it can distribute the profits to its shareholders as a dividend. Dividends are paid based on the number of shares in the company each shareholder owns, for example, if a company declares a £1 per share dividend and you own 100 shares, you will receive £100.


Duration [bonds]

A measure of interest rate risk. The average time it takes for a bond owner to receive the cash flow payments from a bond.



E to I


Equity or equities

Part ownership of a company, also referred to as stocks and shares. The return on equities comes from growth in the value of the shares in a company, plus any income from dividends. Equities are one of the more volatile asset classes – although they can offer good growth potential.


Estate planning

The decision-making process to determine how someone’s assets will be preserved, managed and distributed after their death or if they become incapacitated. Estate planning can involve writing a will, appointing an executor, setting up trusts or foundations and making charitable donations.


Event risk [bonds]

A corporate event which makes your current bond investment higher risk.


Expat banking

A bespoke banking service designed to allow those who are moving abroad, already living or working abroad, or have international financial interests to get the most from their finances and easily manage their money.



A person living or working in a country that’s different to the country where they were born and raised or different to the country of their citizenship. Expatriate is often shortened to expat.


Face value

Value of a security stated by the issuer. For stocks, it is the original cost of the stock shown on the certificate. For bonds, it is the amount paid to the holder at maturity. It is also known as ‘par value’ or simply ‘par’.


Family office

To create a cohesive approach to professional and personal support for wealthy families, the modern version of the family office provides a coordinated package of services – from planning, which can cover tax, legal and risk management strategies, to assisting with trusteeship, closely held business management and estate planning. Family offices also manage a range of non-financial, lifestyle-related business affairs for wealthy families.


Financial instrument

These are assets that can be traded. These assets can be (a) cash (b) a contractual right to deliver or receive cash, or (c) evidence of one’s ownership of an entity.


Financial return

Money made or lost on an investment. It may be measured either in absolute terms (e.g. dollars) or as a percentage of the amount invested. Also see ‘return’.



One of the ‘big three’ credit rating agencies. See ‘credit rating agency’.


Fixed interest

Paying fixed interest on a mortgage or another type of loan means the payment remains the same, either for the full term of the loan or for a set period. Fixed interest avoids the risk that payments could increase, making it easier for borrowers to budget.


Foreign Account Tax Compliance Act (FATCA)

Legislation drawn up by the US Department of Treasury and the US Internal Revenue Service (IRS) to prevent US persons from using non-US accounts and businesses to avoid paying tax.


Foreign exchange

In its simplest form, foreign exchange involves swapping one currency for another at a bank. The value of each currency and the resulting exchange rate are determined by the global foreign exchange market – or Forex Market – where currency is also traded, with trillions of dollars changing hands every day.



A flexible vehicle that can be created for charitable or non-charitable purposes, or a mixture of both. As well as featuring certain positive attributes of a trust, foundations also have some of the benefits of a company structure, including separate legal status, which enhances their appeal to private clients and their advisors, especially in civil law jurisdictions.



A fund is a pool of money set aside for a specific purpose. Those pools can are often invested and professionally managed. Some common types of funds include pension funds, insurance funds, foundations, and endowments.


Hedge Fund

A hedge fund is a type of fund that invests its clients’ money in alternative assets. They can also use more complex and sophisticated trading techniques and are largely considered to have a high potential for growth, but are often higher risk.



The process of using different financial products to protect an investor from losing cash when dealing with multiple currencies.


High street bank

Another name for a retail bank, a high street bank provides financial products and services for individuals, but not businesses. Also known as consumer banking or personal banking, high street banking covers everything from current and savings accounts, overdrafts and personal loans to credit cards, mortgages and foreign exchange.


High-net-worth individual (HNWI)

A person whose assets exceed a certain value. The qualifying amount depends on the financial institution and region, usually ranging between a 6- and 7-figure sum, although this can be higher.


High-Yield Bonds

Also known as ‘junk bonds’, these are corporate bonds and government debt with a rating below Standard & Poor’s BBB rating.



The state of a stock, bond, or other assets that cannot easily be sold or exchanged for cash without a substantial loss in value.



A general increase in prices and fall in the purchasing value of money. For bonds, a 5% annual coupon rate might seem attractive in the current economic environment, where inflation is around 3%. But if inflation returned to the very long-term average of approaching 6%, then this will no longer be the case. If, prior to the bond maturity date, an investor wished to sell their bond to get their capital back, the next investor would look for an annual return higher than 6%. This would mean selling the bond for less than what you originally paid for it; a capital loss. Bond prices have an inverse relationship with interest rates. If expectations of inflation and interest rates rise the value of a bond will typically fall.



Information that does not significantly affect the decisions of different users, such as banks, investors and owners. For example, a price movement in a stock of a single penny one way or another is almost always immaterial to the company’s continued operations. Also see ‘material’.



A market index is a group of securities which have been selected to track the performance of a particular market by combining their prices and monitoring them over time. An example is the FTSE 100, which is composed of 100 stocks listed on the London Stock Exchange.


Initial Coin Offering or Initial Token Offering

An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. The tokens sold are promoted as future functional units of currency if or when the ICO’s funding goal is met and the project launches.


Interest rate risk [bonds]

Rising interest rates can reduce the current value of a bond.


Internet banking

Also known as online banking, internet banking enables a customer to access their account using a smartphone, tablet or PC rather than having to call their bank or visit a local branch. It’s quick, secure and usually free – and most banking services are available, such as balance updates, cheque deposits, money transfers and bill payments.


Investment time horizon

A time horizon or investment horizon is the total length of time a security is expected to be held by an investor. Normally, with a long-term horizon, investors feel more comfortable to take riskier investment decisions and make the most of market volatility.


Investment vehicles

Vehicles which raise capital from one or more investors with a view to investing it (in accordance with a defined investment policy) for the benefit of its investors.



A company which issues debt or equity securities.


J to O



A JPF or ‘Jersey Private Fund’ is a private investment fund involving the pooling of capital raised for the fund and which operates on the principle of risk spreading (JFSC).



A Jersey Property Unit Trust (JPUT) is a specific type of Jersey trust which is commonly used to acquire and hold interests in UK real estate.


Junk Bonds

Also known as high-yield bonds, these are corporate bonds and government debt with a rating below Standard & Poor’s BBB rating.


Junior debt

Debt that has a lower priority for repayment than other debt claims in the case of bankruptcy or default.


Know Your Client (KYC)

The finance industry standard that ensures investment advisors know detailed information about a client’s financial position, investment knowledge and attitude towards risk, so they’re able to identify what can and can’t be included in the client’s portfolio. KYC compliance typically involves meeting certain requirements for processes such as risk management, customer acceptance and transaction monitoring.



LIBOR is the London Interbank Offered Rate and is the rate at which banks lend to each other. LIBID is the London Interbank Bid Rate and is the rate at which banks borrow from one another. Generally, LIBOR is a little above the Bank of England base rate and will also be higher than LIBID. Both can be used as a benchmark for money market instruments, which include cash.


Limited Liability Company (LLC)

A separate and distinct legal entity. An LLC can get a tax identification number, open a bank account and do business, all under its own name.



The liquidity of an asset refers to how easily it can be converted into cash. Something which is highly liquid can be converted easily, with illiquid assets being harder to convert.


Liquidity risk

Liquidity risk is the risk that a company or bank may be unable to meet short term financial demands. This usually occurs when the company or bank are unable to convert a security or hard asset into cash without losing money in the process.



When an issuer applies and is granted admission to add their securities on the stock exchange list.


Listing sponsor or listing agent

Appointed to assist an issuer with its listing application and to guide and advise the issuer in relation to its ongoing listing obligations.



Common in the United States, a Limited Liability Company is a type of business structure. In September 2018, Jersey adopted the Limited Liability Companies (Jersey) Law 2018 (the LLC Law) which will allow, once further enabling legislation has been passed, for the establishment of limited liability companies (Jersey LLCs).



Whenever money is given from one party to another, with the intention that it will be repaid – usually with interest – it’s known as a loan. A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card.


Loan notes

An extended form of a generic I Owe You (IOU) document from one party to another. It enables a borrower to receive payments from a lender, possibly with an interest rate attached, over a set period and ending on the date at which the entire loan is to be repaid.



A limited partnership (“LP”) is a partnership vehicle registered under the Limited Partnerships (Jersey) Law 1994 (the “1994 Law”). It is a partnership made between one or more ‘general’ partners and one or more ‘limited’ partners.



Market ‘Cap’ (Capitalization)

The total value of a publicly traded company, calculated by multiplying the number of shares in issue by the current price per share. For example a company with 20 million shares at £20 per share has a market cap of £400 million.


Market maker

A company or person that quotes both a buy and a sell price in a financial instrument or commodity



Describes information that is, or may be relevant, to operations; information that can influence financial decision-makers such as company shareholders. For example, if a video tape company is losing customers because most of its potential customers are buying DVD players, this is material information that will need to be disclosed to shareholders. See also ‘immaterial’.


Maturity [bonds]

The length of the loan or the date you are expecting to receive the principal back.


Mobile banking

Enables a customer to access their account and complete transactions such as bill payments and money transfers using a banking app on their mobile device.


Money market

The financial marketplace where financial instruments with high liquidity and very short maturities [see maturity’] are traded. It is used for short-term borrowing and lending with maturities that often range from overnight to less than a year.


Money market instruments (including cash)

These include deposits with banks and building societies, as well as governments and large corporations. They also include other investments that can have more risk and return than standard bank deposits. Investments in money market instruments are riskier than standard cash deposit accounts – in some circumstances their values will fall. The returns may also be lower than inflation.



One of the ‘big three’ credit rating agencies. See ‘credit rating agency’.



A type of loan that enables an individual or business to buy a property without paying the full purchase price up front. The borrower is expected to repay the loan, plus interest, over a number of years until they own the property. With a fixed rate mortgage the interest rate remains the same for the duration of the loan. Other options include tracker and variable rate mortgages.


Net Asset Value (NAV)

A fund’s NAV can be calculated by taking its total assets minus the total liabilities and dividing by the number of shares in issue. The NAV represents a funds worth and is also used as the price at which investors can buy or sell units of the fund.



NPPR stands for National Private Placement Regime, a mechanism which allows for the marketing of Alternative Investment Funds into EU countries.



Ongoing charge

This is a measure of the total cost for investing in a fund. It’s made up of the Annual Management Charge (AMC) and other additional costs. The AMC is imposed by the manager and is used to pay the investment manager, financial advisor, fund accountant, fund administrator and distributor. Additional costs include the costs for other services paid for by the fund, such as the fees paid to the trustee (or depository), custodian, auditor and regulator.



Enables a customer to continue to withdraw money from their bank account when its balance is zero or the withdrawal is greater than the remaining balance. Like other types of loan, the customer will pay interest, and some banks also charge additional overdraft fees.


P to Z


Par Value

The value of the bond at the point of issue, which is normally the amount that you would also expect to receive at maturity. Also see ‘face value’


Personal Banking

See Retail Banking



A collection of financial investments held by an individual or company. These investments can include stocks, bonds and cash, along with other assets such as property, fine art and precious metals. An investor can choose to manage their portfolio themselves, or they may ask an asset manager to recommend investments based on their financial objectives and attitude towards risk. Generally, the aim is create a diversified portfolio that maximises the overall return on investment.


Primary market

Also known as a ‘New Issue Market’, is where new securities are issued – it is part of the capital market.



The original sum of money borrowed in a loan or put into an investment. For bonds, this is the value of the bond at the point of issue, which is normally the amount that you would also expect to receive at maturity.


Principal trades

The buying or selling of securities [see ‘securities’] carried out by a broker or market maker for their own accounts.


Private bank

A retail bank or other financial institution that offers personalised financial products and services to high-net-worth individuals (HNWI). As well as everyday tasks such as opening accounts and transferring money, private banking can extend to investing and portfolio management, tax, insurance, and trust and estate planning, all provided under one roof.


Private Equity

An alternative asset class investing in private companies, rather than those which are listed on a stock exchange, often through the use of private equity funds.


Property investing

This includes direct investment in buildings and land, as well as indirect investments such as shares in property companies. The value of direct property is generally based on a valuer’s opinion and is not fact. Like equities, property securities can have sharp changes in value at any time. The values of different types of property do not necessarily move in line with each other. For example, commercial property could be losing value even if house prices are going up.


Real estate

An area of land along with any assets that are permanently attached to it. These assets can be man-made, such as buildings, fences and bridges, or natural, such as trees, water and minerals. There are five main categories of real estate – residential, commercial, industrial, raw land and special use.



The return of an investor’s principal in a fixed-income security such as a stock or bond.


Relationship manager

In banking, a relationship manager looks after the bank’s customers. For high-net-worth individuals who take advantage of the personalised service offered by private banking, a relationship manager is assigned to help them with everyday tasks such as opening accounts and transferring money along with more complex matters such as wealth management and retirement planning.


Retail bank

A bank that provides financial products and services for individuals, but not businesses. Also known as consumer banking, personal banking or high street banking, retail banking covers everything from current and savings accounts, overdrafts and personal loans to credit cards, mortgages and foreign exchange.


Money made or lost on an investment. It may be measured either in absolute terms (e.g. dollars) or as a percentage of the amount invested. Also known as ‘financial return’.



All investments carry risk. Some are riskier than others. Higher-risk investments offer the potential for higher returns. There is no guarantee that investors will get back all the money they initially invested. Money market instruments (including cash) are generally considered to be the least risky investments.


Risk appetite

Risk appetite is the amount and type of risk that an organisation is willing to take to meet their goals, and before action needs to be taken to reduce the risk. It is a balance between potential benefits of doing something different and the unavoidable threats that change brings.



Generally, the higher the risk the more likely an investor will get a higher return (i.e. make a profit on an investment). The lower the risk, then investors are most likely to get a smaller return. An investor considers this when making decisions.


Secondary market

In the secondary market, investors trade securities among themselves. See also ‘primary market’.



Debt or equity securities issued by an issuer.


Securities exchange

Another name for a stock exchange.


Senior debt

Debt that takes priority over other unsecured or otherwise more “junior” debt owed by an issuer in the case of bankruptcy or default (see also ‘Junior Debt’).



A share is a percentage of ownership in a company or a financial asset. Investors who hold shares of any company are known as shareholders.


Sharpe ratio

The Sharpe ratio gives an idea of how well a fund has performed relative to the amount of risk it has taken. It’s calculated by dividing the excess return (in this case, the return above cash) by the standard deviation of the return. A higher Sharpe ratio suggests that a fund is taking on less risk to achieve its return.


Spending power

The ability for an investor to maintain the cash value of its investments over a long period of time and into the future.


Standard & Poor’s

One of the ‘big three’ credit rating agencies. See ‘credit rating agency’.


Standard deviation

A statistical measure of how much the return for an investment is likely to vary. The higher the number, the more variable the return. Given two investments with the same average return, but different standard deviations, we would expect the fund with the larger standard deviation to have a wider range of likely return.


Stock exchange

An organised, public marketplace which provides organisations (‘issuers’) with the visibility and connectivity to raise funding from investors through the buying and selling of their financial assets (‘securities’) as investments.


Structured products

Structured products are tailored investment strategies that mix traditional financial instruments, such as shares and bonds, with elements that utilise derivatives.  They enable sophisticated investors to invest in a customised product which provides access to a wide range of underlying assets (such as equities, interest rates, foreign exchange, indices and  commodities) and offers various redemption possibilities in order to manage risk.


Sub-custodian bank

If a custodian bank uses other local custodian banks to hold assets for their clients in multiple jurisdictions around the world, these local banks are known as sub-custodian or agent banks. Assets held in this way are usually owned by larger institutions such as banks, insurance companies, mutual funds, hedge funds and pension funds.


The International Stock Exchange (TISE)

TISE is an innovative listing and trading facility for companies to raise capital from investors around the world. With an office in Jersey, it provides a responsive venue for listing a wide range of products, including trading companies, investment vehicles and debt securities.


Tier 1 capital

The money a bank has stored to keep it functioning through all the transactions it undertakes, such as trading, investing and lending. Being a Tier 1 Capital Bank means a bank has enough money stored safely to survive major financial events and keep its customers’ deposits safe.



An arrangement where one person (known as the settlor) transfers money or other assets to one or more trustees to hold on behalf of others (known as the beneficiaries). A settlor can name anyone, including themselves, as a beneficiary and retain certain powers.


Variable interest

If you have a loan with variable interest, your payments can go up or down based on an underlying benchmark rate or index. Variable interest can be applied to products such as mortgages, credit cards, corporate bonds and derivatives.


Volatility measures the risk of loss, based on statistics. In most cases, the higher the volatility, the riskier the security.



Wealth management

Support provided by a specialist advisor who can devise a bespoke strategy that covers every aspect of their client’s financial affairs – from investing and inheritance tax to retirement planning and charitable giving.



Income received from an investment.