Website Glossary

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F

Fact find

A process undertaken by *independent financial advisers* (IFAs) to establish the financial position, investment goals and attitude to *risk* of their clients to ensure that suitable advice is given.

Fair value pricing

This is the manager’s best estimate of the value of one or more securities at the *valuation point* of the fund, with the intention of producing a “fairer” dealing price, where there is doubt over the validity of those prices.

Fettered funds

See "*Funds of funds*".

Financial Ombudsman Service (FOS)

Customers with a complaint against a financial services firm can make a complaint to the FOS who will investigate on their behalf. If the company no longer exists or has become insolvent complaints should be referred to the *Financial Services Compensation Scheme* (FSCS).

Financial Services Authority (FSA)

The UK regulator for the financial services industry, which includes investment management companies, banks, building societies and insurers. The FSA has four statutory objectives; to maintain confidence in the UK financial system; to promote public understanding of the financial system; to secure the right degree of protection for consumers and to help reduce financial crime.

Financial Services and Markets Act 2000

The Act of Parliament which gave the *Financial Services Authority* its regulatory powers from 2001. These powers include supervision of regulated activities, the control of financial promotion, and the authority to regulate, investigate and discipline the financial services industry.

Financial Services Compensation Scheme (FSCS)

This scheme exists for claims against an authorised financial services company when it is unable to pay claims against it as it is insolvent or no longer trading. For companies still in business claims must be referred to the *Financial Ombudsman Service*.

Fixed interest securities

*Assets* which provide regular, fixed, *interest* payments and are issued by companies and Governments. They include *gilts* and *bonds*.

Forward pricing

This is the most common method of pricing for *authorised investment funds*. Once the *manager* has received your instruction to buy or sell *units*/*shares*, the price of those units/shares will be determined at the next *valuation point* of the fund.
 
Free Standing Additional Voluntary Contribution (FSAVC) Schemes

Funds which permit people who are part of a company pension scheme to make additional contributions to a separate stand-alone scheme that can continue when you change employer.

FTSE 100 Index

British *index* on the London Stock Exchange which comprises the leading 100 UK Companies.

FTSE 250 Index

British *index* on the London Stock Exchange of the largest 250 companies by *market capitalisation* after those listed on the *FTSE 100*.

FTSE All Share Index

British *index* on the London Stock Exchange of all UK listed companies. Incorporates companies from the *FTSE 100*, *FTSE 250* and FTSE Small Cap indices. 

FTSE Small Cap Index

British *index* of the smallest companies by *market capitalisation*.

Fund manager

Manages the *unit trust* in accordance with the fund’s objectives and decides which *assets* to hold in order to meet those objectives. In an *OEIC* the manager is referred to as the *Authorised Corporate Director* (ACD).

Funds of Funds

Fund of funds are designed to increase *diversification* by investing in other funds.

Fund supermarket

Websites which enable investors to buy, manage and sell their investments with different *fund managers* through a single account. Not to be confused with supermarkets such as Tesco which sell financial products.

Futures

Agreement to buy or sell a fixed amount of a particular *asset* at a fixed future date and a fixed price.