Glossary
A plain-English glossary explaining common pension and investment terminology used throughout the site.
Terms are explained for general understanding and do not imply suitability or recommendations.
Annual Allowance
The maximum amount that can normally be contributed to pensions each tax year with tax relief.
Annuity
A product that converts pension savings into a guaranteed income for life or a fixed term.
Anti-Money Laundering (AML)
Laws and controls designed to prevent financial crime.
Appropriateness Check
A check to see if a client understands certain higher-risk investments.
Authorised and Regulated
A firm approved and supervised by the Financial Conduct Authority (FCA).
Beneficiary
A person or organisation nominated to receive benefits on death.
Best Execution
A requirement to take reasonable steps to achieve the best possible outcome for client trades.
Bonds (Fixed Income)
Loans to governments or companies that pay interest.
Carry Forward
Using unused annual allowance from previous tax years.
Cash Holding
Uninvested money held within an account.
Cash transfer
Transferring assets after selling them and moving the proceeds as cash.
Ceding provider
The existing provider from which assets are being transferred.
Client Money
Cash held on behalf of clients, segregated from the firm's own money.
Collective Investments / Funds
Pooled investments such as OEICs, unit trusts, or ETFs.
Consolidation
Combining multiple pensions into a single arrangement.
Crystallisation
The process of designating pension funds to start providing retirement benefits.
Crystallised Funds
Pension funds that have been accessed or designated for benefits.
Custody
The safekeeping and administration of investment assets.
Dealing / Trading
Buying or selling investments.
Death After 75
Benefits are usually taxable at the recipient's marginal rate.
Death Before 75
Pension benefits may usually be paid tax-free (subject to limits).
Defined Benefit (DB) Pension
A pension that pays a guaranteed income based on salary and length of service.
Defined Contribution (DC) Pension
A pension where the value depends on contributions made and investment performance.
Double Taxation Agreement (DTA)
A treaty preventing income being taxed twice.
Drawdown (Flexi-Access Drawdown)
Keeping pension funds invested while taking income as needed.
Equities (Shares)
Ownership stakes in companies.
ETF (Exchange Traded Fund)
A fund traded on an exchange like a share.
Execution-Only Basis
No advice or suitability assessment is provided.
Expression of Wish
A non-binding instruction stating who should receive pension benefits.
Financial Services Compensation Scheme (FSCS)
A scheme that may compensate clients if a regulated firm fails.
GIA
General Investment Account - an unwrapped investment account.
Gross Contribution
The total pension contribution including tax relief.
In-specie transfer
Transferring assets directly without selling them.
ISA
Individual Savings Account - a tax-efficient investment wrapper for UK residents.
Know Your Customer (KYC)
Identity and verification checks required by regulation.
Lifetime Allowance (LTA)
A former overall cap on pension savings for tax purposes (now replaced by separate lump-sum and income limits).
Model Portfolio
A pre-constructed investment strategy made up of multiple funds.
Net Contribution
The amount paid by the individual before tax relief is added.
Nominee
A legal structure used to hold assets on behalf of clients.
Non-UK Resident
An individual who is not tax resident in the UK.
Normal Minimum Pension Age (NMPA)
The earliest age at which most pension benefits can normally be accessed.
Origo Transfer Service
An electronic transfer service used by participating UK providers and platforms to help process certain pension, ISA, and GIA transfers between organisations. Not every transfer is eligible for Origo, and some transfers still proceed manually.
Overseas Transfer
Moving a UK pension to an overseas scheme (subject to strict rules).
Pension Commencement Lump Sum (PCLS)
A tax-free lump sum that may be taken when accessing pension benefits (subject to limits).
Pension Transfer
Moving pension savings from one provider to another.
Permitted Assets
Investments allowed within a SIPP under HMRC rules.
Platform fee
An annual charge for using the investment platform, typically calculated as a percentage of assets.
QROPS
Qualifying Recognised Overseas Pension Scheme.
Re-registration
Another term for in-specie transfer.
Reconciliation
Daily checking that internal records match bank and custodian records.
Registered Pension Scheme
A pension scheme registered with HMRC that qualifies for UK tax advantages.
Relevant UK Earnings
Earnings that can be used to support pension tax-relieved contributions.
Scheme Administrator
The firm responsible for operating and administering a pension scheme in line with legislation.
Segregation
Keeping client assets separate from company assets.
Settlement
The completion of a trade, when cash and assets are exchanged.
SIPP
Self-Invested Personal Pension - a UK pension wrapper allowing individual investment choices.
Sub-Custodian
A third-party firm that holds assets on behalf of the main custodian.
Tax Relief at Source
Basic-rate tax relief added to pension contributions by the provider.
Transfer Value
The amount being moved from the existing scheme.
Uncrystallised Funds
Pension funds that have not yet been accessed.
Need more information?
Visit our Help Centre or contact our team with questions.