Jargon Buster

We know we are prone to using specialist financial services terms, this should help if you are ever unsure of what we mean. The information in this page is for professional Financial Advisers. If you are a private investor, please contact your Financial Adviser for more information.

If there are any other terms that you can’t find in our jargon buster, please take a look at our terms and conditions for a more detailed list of contractual definitions.

Additional Fund Designation (AFD): Adding additional funds into an existing drawdown arrangement.

BDC: Ascentric's Business Development Centre.

BDM: Ascentric's Business Development Managers.

Consolidated Tax Voucher (CTV): The original tax credit certificate(s) and/or certificate(s) of deduction of income tax.

Exchange Traded Instrument (ETI): An ETI is any security listed and traded on a recognised investment exchange (venue) such as the London Stock Exchange. These include ordinary equity shares, Exchange Traded Funds, Investment Trusts and debt securities such as bonds, but not units in Collective Investment Schemes, Unit Trusts or OEICs.

Flexi Access Drawdown (FAD): Choosing to take up to 25% (a quarter) of a pension pot as a tax-free lump sum. This allows your client to move the rest of their pension pot into one or more funds ready to take a taxable income at a times that suits them.

Legal Entity Identifier (LEI): A LEI is required to identify a Legal Entity (for example a corporation, charity or trust) which buys or sells, or exercises discretionary authority over Exchange Traded Instruments (ETIs). LEIs take the form of a 20 character registration and can be obtained from approved providers (such as the London Stock Exchange) for a registration fee, then an ongoing annual fee. LEIs must be in place by those who require them before trading in ETIs can take place, otherwise ETI trades will be blocked. Note: human beings (individuals) do not require an LEI. Instead they must be identified with a National Identifier, such as the UK National Insurance Number.

Lifetime Allowance (LTA): This is the amount contributed in to a pension during that person’s life time. Once a certain amount has been achieved the client pays tax on anything above that amount.

Money Purchase Annual Allowance (MPAA): Since 6 April 2015 a reduced annual allowance of £10,000 in respect of money purchase pension contributions, known as the money purchase annual allowance (MPAA), applies to individuals who have flexibly accessed their pension benefits.

Open Market Option (OMO): allows someone approaching retirement to 'shop around' for a number of options to convert their pension pot into an annuity, rather than simply taking the default rate offered by their pension provider.

Platform Consulting: a service offered by the Platform Consulting team in order help ensure that your activity on the Ascentric platform happens as seamlessly as possible, in a way that suits your business. 

Tax wrapper: Tax breaks that an investor can 'wrap' around their investment, so that they can are sheltered from paying some or all tax on it. The most common tax wrappers are ISAs and pensions.

Tax Free Lump Sum (TFLS):  The allowance for your client to take up to 25% of the amount built up in any pension as a tax-free lump sum, which does not affect your client's Personal Allowance. Tax is then taken off the remaining amount before they receive it.

The Pensions Advisory Service (TPAS): They provide free and impartial guidance to clients with workplace and personal pensions. This is for clients only, Ascentric and financial advisers would not contact TPAS for guidance, they would use the Pensions Regulator for this.

The Pensions Regulator (TPR): They are a body who give guidance to employers, trustees, pension specialists and business advisers. Ascentric and financial advisers can contact them for guidance on certain matters, should it be needed.

Uncrystallised Funds Pension Lump Sum (UFPLS): is a way for your client to take pension benefits without having to go into drawdown or to buy an annuity.

Call our sales team

The Ascentric Wrap platform is available for Financial Advisers to support their business. Find out how we could help add more value for your clients

01225 787 575

We're here to help

If you're already using our platform and have a question, please visit our Contact Us page for the best ways to get in touch.