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Closed ended
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A type of investment with a fixed number of shares or units in issue at any one time
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Collective investment scheme
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An investment which allows clients to pool their money together to invest. Common examples are unit trusts and OEICs
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Commodities
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Raw materials such as metal and oil and foodstuffs such as coffee, meat and grain
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Connected party
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This includes amongst others, your spouse, registered civil partner, children, parents, brothers, sisters and other direct descendants and ancestors of you and your spouse or registered civil partner. A connected party is defined (as a ‘connected person’) in Section 993 of the Income Tax Act 2007
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Covered warrant
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An investment issued by an investment bank or similar institution which gives the holder the right to buy or sell other securities at a specific price at a future date. With covered warrants, a wide range of underlying investments can be bought or sold. Standard warrants can only be converted into the shares of the company that issued the warrant
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CREST depositary interest
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A UK security representing ownership of an underlying interest in an overseas security
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Depositary interest/ receipt
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A security issued by an investment bank in one country representing ownership of an underlying interest in a security from a different country
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Derivative
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An investment whose characteristics and value depend upon the characteristics and value of one or more other assets or indices, typically a commodity, bond, equity or currency. Examples of derivatives include contracts for differences, futures and options
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EEA
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European Economic Area, which comprises the current members of the European Union and Iceland, Liechtenstein and Norway
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Exchange traded commodity
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A fund that tracks a commodity which can be traded on a stock exchange. Exchange traded commodities must only invest in allowable investments as detailed in this Schedule. Investments in cryptocurrencies are not permitted directly or indirectly under any circumstances
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Exchange traded fund
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A fund that tracks an index or a collection of assets but which can be traded on a stock exchange. Exchange traded funds must only invest in allowable investments as detailed in this Schedule. Investments in cryptocurrencies or cryptocoin mining are not permitted directly or indirectly under any circumstances
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Exchange traded note
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A debt security whose value tracks an index. Exchange traded notes must only be linked to allowable investments as detailed in this Schedule. Investments in cryptocurrencies are not permitted directly or indirectly under any circumstances
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Fixed interest security
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Type of investment that pays a set rate of interest that does not change. Such securities will often have a repayment date when the issuer repays the capital. Examples include gilts (loans to the UK Government) and corporate bonds (loans to companies)
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FCA
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Financial Conduct Authority, our regulator
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HMRC
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HM Revenue & Customs
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Investment firm
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A firm you appoint to hold the investments within your SIPP on your behalf and: to carry out your investment instructions; or to make investment decisions on your behalf on a discretionary basis
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Investment trust
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A type of company quoted on the London Stock Exchange that invests its shareholders’ funds in the shares of other companies
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Liquidity
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The ability to convert an asset to cash
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Listed securities
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Securities that are listed on any stock exchange
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Loan note
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A security where the client receives repayments of a loan over a set period of time. This can include interest
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Market value
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The price an investment may reasonably be expected to fetch on the open market. Market value is defined in Section 272 of the Taxation of Chargeable Gains Act 199
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OEIC
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Open Ended Investment Company. An investment that allows clients to pool their money to invest in a single fund. It can also spread their risk across a range of investments and allow them to benefit from professional fund management and reduce their dealing costs
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Open ended
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A type of collective investment scheme that has no limit to the number of shares (or units) in issue. If demand is high, new shares are created. When selling occurs, the manager buys back shares. An OEIC is an example
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Ordinary share
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A share of a company giving the owner a right to vote at shareholder meetings and to receive a part of the company profits as a dividend
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Pooled bank account
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An account with a bank opened by the trustee that holds monies in respect of your SIPP and other members of the scheme
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Preference share
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A share in a company that generally provides a fixed dividend that is paid prior to the payment of dividends to ordinary shareholders. Owners of preference shares usually do not have the right to vote at shareholder meetings
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Property
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Land, buildings and anything fixed to the land. This includes houses, hotels, schools, hospitals, offices, shops, warehouses, factories and any other business premises
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Real estate investment trust
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A collective investment scheme that allows tax efficient investment in property
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Structured product
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A type of packaged investment linked to a particular asset, market or index
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Taxable property
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Assets that attract a tax charge if held by your SIPP. This includes residential property and physical assets such as cars, art or stamps. The full details are set out in Schedule 29A to the Finance Act 2004
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Treasury bill
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A type of government security with a term of up to one year
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Unit trust
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An investment, like an OEIC, that allows clients to pool their money to invest in a single fund. It can also spread their risk across a range of investments and allow them to get the benefit of professional fund management and reduce their dealing costs
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UCITS
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Undertakings for Collective Investments in Transferable Securities. A type of fund that can be marketed throughout the European Union
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Unregulated collective investment scheme
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A collective investment scheme that has not been authorised or recognised by the FCA
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Warrant
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A security issued by a company (often an investment trust) which give their owners the right to purchase shares in the company at a specific price at a future date
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