An annual fee paid to an agent for the work and responsibility involved in managing a loan after it has been signed.
The Association of Independent Financial Advisers (AIFA) was a prominent professional association representing the interests of independent financial advisories across the UK. Its mission was to ensure that consumers receive independent and high-quality financial advice.
APACS stands for the Association for Payment Clearing Services, which was an industry body for banks and building societies in the United Kingdom that provided a forum for the collective development of standards and resources to facilitate payment clearing.
An Automated Teller Machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller.
An Automated Teller Machine (ATM) is a computerized terminal that allows individuals to perform banking transactions, such as cash withdrawals and deposits, without the need for a bank teller. ATMs provide 24-hour electronic access to bank accounts.
Bank or brokerage house departments not directly involved in selling or trading. The back office sees to accounting records, compliance with government regulations, and communication between branches.
Bancassurance (also known as Allfinanz) refers to the combination of traditional banking products with insurance products, such as life assurance and pensions. This practice allows banks to offer a comprehensive range of financial products and services to their customers under one roof.
A bank charge refers to the amount charged to a customer by a bank for specific transactions, such as depositing a cheque or making a withdrawal from an automated teller machine (ATM). While personal account holders may frequently enjoy periods of commission-free banking, business customers usually incur various tariffs.
A bank line, also known as a line of credit, refers to a bank's moral commitment to lend to a particular borrower up to a specified maximum during a specified period, usually one year. Unlike a legal commitment, it does not involve charging a commitment fee.
Bloomberg LP is a major business and financial news broadcaster, offering various services including interactive TV, telephone news services, a personal finance magazine, books, and radio and television broadcasts.
A branch office manager is responsible for overseeing the operations of a branch of a securities brokerage firm or bank, ensuring it runs efficiently and complies with regulations.
Brokerage refers to the business or activity of a broker, which involves facilitating transactions between buyers and sellers in exchange for a commission. This term also refers to the commission earned from such transactions.
A financial institution traditionally engaged in accepting deposits and making loans for house purchases or improvements, predominantly found in the UK, Australia, South Africa, Ireland, and New Zealand.
Understanding Captive Finance Companies, their benefits, structure, and role in providing financial services aligned with the parent company's product sales efforts.
A cash card is a plastic card that enables customers of retail banks to obtain cash from automated teller machines (ATMs) using a personal identification number (PIN). Many cash cards also function as cheque cards and debit cards.
Cashback refers to the option given to customers to receive cash back while making a purchase with a debit or credit card at a point-of-sale terminal.
A central bank provides financial and banking services for the government of a country and its commercial banking system, while also implementing the government's monetary policy.
A charge card allows the holder to purchase goods or services with the condition that the full balance is paid off at regular intervals. Unlike credit cards, charge cards usually do not have a spending limit and do not incur interest charges but come with an annual fee.
A Chartered Certified Accountant (CCA) is a highly qualified financial professional, recognized by the Association of Chartered Certified Accountants (ACCA), equipped to audit company accounts, with a robust training background in various sectors.
A cheque account is a bank or building society account on which cheques can be drawn. In the United States, this type of account is known as a checking account. It is designed to provide easy access to funds for everyday transactions.
An in-depth definition and overview of Commercial Banks, their functions, examples, frequently asked questions, related terms, resources for further reading, and a fundamental quiz.
A commercial collection agency specializes in debt collection services for businesses, helping them recover past-due accounts from other businesses or clients.
A consumer finance company is a type of financial institution that specializes in offering credit products and services to individuals who require loans for personal use.
In financial contexts, a correspondent refers to a financial organization that regularly performs services on behalf of another institution within markets that the latter finds inaccessible. This commonly involves a depository relationship to cover expenses and streamline transactions.
A private organization that maintains consumer credit data files and provides credit information to authorized users for a fee.
A credit union is a not-for-profit financial institution, typically formed by employees of a company, a labor union, or a religious group, and operated as a cooperative.
An organization that specializes in collecting the outstanding debts of its clients, typically charging a commission for their recovery services.
The act by which a mutual entity, such as a building society, changes its status to that of a public limited company.
Deutsche Börse AG is an international market-place organizer for trading in securities, commodities, and derivatives, based in Frankfurt, Germany. It operates the Frankfurt Stock Exchange and the clearing and settlement facility Clearstream, and it is a joint owner of the electronic derivatives exchange Eurex.
A brokerage house that executes orders to buy and sell securities at rates lower than those charged by a full-service broker. In real estate, provides fewer services at reduced commissions.
The U.S. system whereby banks are chartered by either the state in which they operate or by the federal government. This leads to differences in banking regulations, lending limits, and services available to customers.
An Edge Act Corporation is a subsidiary of a U.S. bank that can offer international banking services across state and national borders, under the authority of the Federal Reserve.
Electronic Funds Transfer (EFT) involves the transfer of money from one bank account to another through electronic means, leveraging computers and communication links. It encompasses various seamless financial services, including home banking and point-of-sale systems.
An Electronic Funds Transfer System (EFTS) is any electronic transmission system that moves funds from one institution to another as opposed to the physical exchange of some other medium such as paper checks.
Eurobanking refers to the acceptance of deposits and the extension of loans denominated in currencies other than the currency of the country where the bank is located.
Euroclear is a pan-European provider of clearing, settlement, and related services for bond, equity, and investment-fund transactions. Based in Brussels, it was set up in 1968 by the US bank J. P. Morgan.
Exempt supplies refer to categories of goods or services that are not subject to Value Added Tax (VAT) as stipulated under the Value Added Tax Act 1994.
A finance company provides various types of loans, typically at higher interest rates compared to traditional banks, often catering to ventures and individuals considered high risk.
Any organization whose core activity is to provide financial services or advice in relation to financial products. Financial institutions include state bodies, such as central banks, and private companies, such as banks, building societies, and financial markets.
The Financial Ombudsman Service (FOS) is a UK body set up to handle complaints about financial services and products, providing a crucial mechanism for consumer protection.
A company that offers a wide range of financial services under one roof. For example, some large retail organizations offer stock, insurance, and real estate brokerage as well as banking services.
First Call is a financial service network historically used by institutional investors, financial analysts, and corporate executives for timely and accurate earnings estimates and financial data.
A full-service broker is a financial professional who offers a wide range of services to clients, including investment advice, research, and portfolio management. This contrasts with a discount broker, who typically only executes trades.
A Giro is a banking arrangement for clearing and settling small payments, commonly used in Europe. It includes systems like the National Girobank in the UK, Bank Giro, and Bancogiro, along with a colloquial use related to social security payments.
A Government-Sponsored Enterprise (GSE) is a financial services corporation created by the United States Congress. Their purpose is to enhance the flow of credit to specific sectors of the American economy and to make those segments more efficient and transparent. Two prominent GSEs are the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac.
An influential report on the protection of investors delivered to the UK government in 1984 by Professor Jim Gower, which laid the groundwork for the Financial Services Act 1986.
Gratuity, commonly referred to as a tip, is a sum of money given to certain service sector workers for the services they provide, usually in addition to the basic price.
A high-street bank refers to a major retail banking institution typically found on the main commercial streets of large towns and cities. These banks provide a wide range of financial services to individuals and small to medium-sized businesses.
An Independent Financial Adviser (IFA) is a professional who offers unbiased financial advice to clients and recommends suitable financial products from a wide range of providers.
Industrial classification segments companies that engage in the production and distribution of goods and services, excluding utilities, transportation, and financial services.
An insurance agent is a representative of an insurance company who sells the firm's policies. Independent agents sell the policies of many companies. Agents must be licensed to sell insurance in the states where they solicit customers.
A key institution of the World Bank Group, the IBRD provides loans and financial services to middle-income and creditworthy low-income countries aimed at reducing poverty and promoting economic development.
A global communications system consisting of millions of computer networks interconnected by modems, telephone cables, wireless networks, and satellite links. The Internet facilitates data transfer, remote database access, and email, with high-level services such as the World Wide Web allowing multimedia content display.
The Investment Advisers Act of 1940 requires all investment advisers to register with the Securities and Exchange Commission (SEC) and is designed to protect the public from fraud or misrepresentation by investment advisers.
The Investment Services Directive (ISD) of 1993 provided a regulatory framework for securities dealing within the European Union. It established that securities firms admitted by their domestic regulator could operate throughout Europe. From 2007, the ISD was superseded by the Markets in Financial Instruments Directive (MiFID), which further consolidated the single market for financial services.
An investment account consisting of money that one or more clients entrust to a manager, who decides when and where to invest it. Such an account may be handled by a bank trust department or by an investment advisory firm.
The Markets in Financial Instruments Directive (MiFID) is an EU directive that aims to increase competition and enhance investor protection by providing a comprehensive regulatory regime for financial services and markets throughout the European Economic Area. MiFID superseded the Investment Services Directive (ISD) in November 2007.
Moody's Investors Service is a preeminent financial services company headquartered in downtown Manhattan. It stands among the three most well-known bond-rating agencies in the United States, alongside Fitch Ratings and Standard & Poor's.
A mortgage banker is a financial individual or institution that originates, sells, and services mortgage loans. Unlike traditional banks or thrifts which fund loans from deposit accounts, mortgage bankers typically use funds from the sale of the mortgages.
NYSE Euronext was a multinational financial services corporation that operated multiple securities exchanges, including the New York Stock Exchange and Euronext. It facilitated global trading and investments, providing market data, listings, and trading services.
An Open-End Investment Company (commonly known as a mutual fund) is an investment vehicle that continually issues new shares and allows investors to redeem shares at any time.
A secure online system that enables account holders to pay for goods or services and arrange money transfers over the Internet. It operates in 203 currencies worldwide.
Pro rata cancellation refers to the revocation of an insurance policy by an insurance company, which returns to the policyholder the unearned premium without reducing for expenses already paid.
A document that provides detailed information about a new issue of shares or debentures, inviting the public to invest. The prospectus must comply with regulatory requirements and be filed with the appropriate authority.
Established in April 2013, the Prudential Regulation Authority (PRA) functions as the UK's prudential regulator for banks, building societies, credit unions, insurers, and major investment firms. It aims to promote the safety and soundness of these institutions and create a more resilient financial system.
RIEs in the UK are bodies authorized under the Financial Services and Markets Act 2000 to offer trading of financial instruments, including securities and derivatives.
A regional bank specializes in collecting deposits and making loans within a specific region of the country, differentiating it from money center banks which operate on a national and international level.
A Retail Credit Bureau is a specialized type of credit bureau that focuses on collecting and maintaining consumer credit information specifically related to retail transactions and credit accounts.
SLM Corporation, commonly known as Sallie Mae, is a publicly traded U.S. corporation that provides student loans and other education services.
A Stock Insurance Company is a type of insurance company that is owned by stockholders. These stockholders receive earnings in the form of shareholder dividends. However, under state laws, the interests of policyholders take precedence over those of stockholders.
A method of sending money to someone in urgent need of cash via telegraph offices.
Thrift institutions, also known as savings banks and savings and loan associations, are financial institutions that primarily focus on accepting deposits and originating home mortgages. They play a critical role in providing financial services to individuals and communities.
A ticker refers to the system that produces a continuous report of trading activity on stock exchanges, also known as ticker tape. This includes displaying stock symbols, the latest prices, and trading volumes on computer screens.
A transfer agent is an individual or firm responsible for maintaining records of a corporation’s shareholders, including names, addresses, and the number of shares owned. They handle the issuance and cancellation of stock certificates when shares are bought or sold.
TreasuryDirect is an electronic platform that allows individual investors to purchase U.S. Treasury securities directly from the government, thus bypassing intermediaries like banks and brokers.
In banking, truncation refers to the elimination of the service of returning canceled checks to customers. In computing, truncation involves dropping digits to the right of the decimal point of a number.
The Value Line Investment Survey is an investment advisory service that ranks hundreds of stocks for 'timeliness' and safety, helping investors make informed decisions based on projected stock performance.
Western Union is a leading company dominating telegraph and money transfer services in the United States, with a broad global presence.
