Glossary

For our customers, this glossary is intended for information purposes and in no way replaces the information provided by the firm’s professionals and documentations and contracts given to you.

 

The proposed definitions have no contractual value, it was designed primarily enlighten you on some technical terms.

 

Acceptance by the beneficiary

Written by which the recipient accepts the appointment.

Since 18 December 2007, this writing is signed by the subscriber / member and the recipient and made ​​known to the insurer.

After acceptance, the subscriber / member may not realize it, without consent of the recipient, repurchase or forward or change the beneficiary clause.

 

Underlying asset

An underlying asset is one which carries a wider option or a derivative. It can be financial (stocks, bonds, Treasury bills, futures, currencies, stock indices …) or physical (agricultural or mineral raw materials …).

The underlying assets are real assets on the contract price which bears the derivative product. It means in fact the instrument holder of a futures contract whose quality is strictly defined.

For example, for a call Accor maturing in December 2009, the underlying asset is the Accor share.

 

Action

Financial instrument that is a title to part of the capital of a joint stock company (listed or unlisted), which gives the holder, the shareholder rights. The value of a share fluctuates up or down.

 

Shareholder

The shareholder is the holder of action. He has the right to attend general meetings and to vote and the right to receive part of the profits distributed by the company (dividends).

 

Participant in life insurance

Member of the benefit which the person collective insurance contract is purchased from an insurance agency by a corporation or a business leader who is an underwriter.

 

Membership in life insurance

Formality by which a person (the participant) expresses his wish to be guaranteed by an insurance company under a group insurance contract.

 

Arbitration

Operation which involves selling a security to buy another.

 

Arbitration Life Insurance

Operation, which in a life insurance unit-or multi media contract is to transfer all or part of the savings of a support (in units of account or euros) to another (in units of account or euros).

 

Arrears in life insurance

Money paid regularly to a person, called annuitant, in respect of an annuity or pension.

 

Insured life insurance

Person on whom the risk of death or survival rests. The life of a person can be ensured by itself or by a third party with the consent of the insured.

The insured is not necessarily the subscriber / follower or beneficiary of the contract.

 

Association for the management of information risk insurance (AGIRA)

Professional body in charge of processing applications including potential beneficiaries of life insurance contracts.

Any natural or legal person who thinks the beneficiary of a life insurance policy can address AGIRA (by written request AGIRA research beneficiaries in case of death – 1 rue Jules Lefebvre – 75431 Paris Cedex 09) .

 

Advance (Life Insurance)

Transaction whereby the insurer may make available to the subscriber / member, at the request of the latter a sum of money for a fixed period. This advance, repayable with interest, is capped at a percentage of the value of savings. This does not end the contract and it is different from redemption (partial or total).

 

Beneficiary for life insurance

Person who receives a pension or capital paid by the insurer, or the death of the insured or when the contract expires.

On maturity, the beneficiary is the subscriber / follower.

The beneficiary in case of death is designated by name or not, by the subscriber (for individual contracts) or the member (for public contracts) in the part of the contract clause entitled beneficiary.

Any natural or legal person who thinks the beneficiary of a life insurance policy can address AGIRA.

 

Accepting beneficiary for life insurance

See “acceptance by the beneficiary.”

 

Cooperative investment certificates (CCI)

Title listed security, which can only be issued by mutual companies or cooperatives. This title gives no right to vote at general meetings. The holder has a right to payment of a fee instead of. The value of an ITC can go up or down.

 

Commission on market orders

Charges levied by the broker during the execution of a market order.

The amount of these fees is detailed in the price guides intermediaries.

 

Commission

See “Expenses”.

 

Redemption fee

Fees may be paid on the sale (redemption) of units or shares of UCITS. These fees are usually a percentage of the amount redeemed.

The redemption is also called exit fee.

 

Subscription fee

Fee paid by the subscriber when buying (subscription) units or shares of UCITS. These fees are usually a percentage of the amount subscribed.

The subscription fee is also called fee.

 

Blocked current (CCB) has

Account receiving only the premiums for employee participation blocked 5 years and affected by the company to finance its investment in return for payment in the form of an interest rate.

A participation agreement may propose opening an escrow account without offering employees to place their assets in the context of a company.

 

Custody Account

Account on which are inscribed the financial instruments (stocks, bonds, mutual funds …) held by the account holder. The securities account does not record cash movements; these movements (flows to buy the securities, funds from the sale of securities, dividend payments …) are recorded on the cash account holder.

 

Term Account

Deposit account to which funds are blocked for a period against the pay provided when subscribing.

Interest payments are subject to tax and social security contributions.

Also referred to as term deposit (DAT).

 

Beneficiary clause

Provision of life insurance in which the policyholder, for individual contracts, or adhering to collective agreements, said the beneficiary or beneficiaries upon death of the insured.

The designation or change of beneficiary may be made at any time by directly modifying the beneficiary clause or by other means, such as by will.

Also acceptance by the beneficiary.

 

Written advice

Life insurance: since the order of 30 January 2009 (effective July 1, 2010), written incorporating the requirements and needs of a client document, taking into account their knowledge of financial markets, issued by any company of insurance and / or insurance intermediary. This document is usually signed by the customer.

 

Variable insurance contract for life insurance

See “Unit-linked contract.”

 

Insurance life insurance group insurance contract or collective agreement

Contract purchased by a corporation, or an entrepreneur, called “subscriber” in favor of a group of members and potential recipients.

The insurance contract may be modified between the policyholder and the insurer without having to seek the consent of individual members.

 

Life insurance contract

Contract whereby the insurer undertakes, in return for the payment of contributions or

premiums, to pay to the Subscriber, the participant or beneficiary that it has designated a capital or an annuity, or in the event of death or if survival of the insured under terms defined in the contract .

The life insurance contracts are subject to a specific tax regime.

Contracts can be individual or collective.

See group insurance contract.

 

Diversified contract

Contract of life insurance with specific technical construction.

Diversified contracts can benefit or not of a capital guarantee (or annuity) at the end of the contract. In a diversified contract, the financial risk is shared between the insurer and the insured, is borne entirely by the insured (if internal funds).

 

Euro contract

Life insurance contract, the insured sums are expressed in euros (the difference with the units into account. See contract ua).

The payment of a lump sum or an annuity is guaranteed at the end of the contract under the conditions specified in the contract (the contract must specify whether the guaranteed amount is net or gross of expenses). In a contract in euros, the financial risk is borne by the insurer.

A contract in euros may, under certain conditions, be transformed into multi-support contract without this transformation involves the tax consequences of a settlement of the contract.

 

Unit-linked contract

Life insurance contract whose value is expressed by reference to one or more vehicles (stocks, bonds, shares or units of UCITS units or shares in real estate companies, etc.). Thus, the savings invested evolves according to the valuation of materials that are used as reference.

In this type of contract, the risk is assumed by the subscriber / member because the insurer agrees only on the number of units of account and not their values ​​are subject to market fluctuations and may vary on the rise or downwards.

 

Multi media contract

Life insurance contract, offering unit-linked account and a vehicle in euros which secures a portion of the savings. However contracts traded in the years ninety could contain only unit-linked accounts.

The contract can be expressed in units of account and / or euros.

The subscriber / member chooses the distribution between the different media depending on the financial risk it wishes to assume. During the life of the contract, it can adjust the allocation.

 

Annuitant

A person who receives a pension.

 

Coupon

Income received by the holder of a bond (interest) or action (dividend). By extension, it means income distributed to shareholders of a Fund or the Unitholders of the Fund.

 

Duty to advise

See “written advice”.

 

Availability of savings

An investment is said to be available when the investor can quickly recover their savings. Before choosing a savings product, before asking to recover their savings, the investor should consider the fees, penalties or loss of benefits (including tax) potential, specific to each product. Some products are not available before a deadline (eg Products pay or retirement savings) .We sometimes called (incorrectly) in the current liquid savings language. See liquidity of a savings product or a financial investment.

 

Dividend

Income from an investment in equity securities (equities in particular). The dividend is usually paid annually and varies the profits made and distributed by the company.

 

Custody

Amount of fees takes a financial intermediary holding securities accounts.

The amount of these fees is detailed in the price guides intermediaries.

 

Admission

See “subscription fee”.

 

Right of withdrawal

Ability of a subscriber / member to end quickly, without charge, to its life insurance contract after signing it. The use of this right entails the return by the insurer of the full amount paid.

The period during which the subscriber / member may exercise this right of withdrawal is 30 days from the date it is notified that the contract is

 

Exit fee

See “redemption.”

 

Preferential subscription rights (DPS)

Right granted to existing shareholders to participate in a capital increase. If the existing shareholder holding a DPS does not want to subscribe to the capital increase, he can sell it on the stock market for a limited time.

All capital increases do not lead to the award of DPS.

 

Recommended investment period / recommended

Given the characteristics of a savings product, there is a recommended holding period which should enable the investor to optimize product performance, given its expressed needs.

The recommended investment horizon is to associate with the investment horizon of the investor.

 

Ratcheting

Technique to guarantee the amount of interest accrued at year end.

 

Leverage

A technique which aims to greatly increase the profitability of the investment.

Investment products displayed with characteristics of leverage are products with high and intended for sophisticated investors financial risk.

 

employee savings

Terms savings offered to employees within their company, particularly through a series of specific collective schemes (Corporations may also offer such capital increases reserved for their employees).

Employee savings is fueled by various sources, including:

profit-sharing,
participation,
voluntary payments,
matching contributions (optional add any) offered by the company in case of payments of the employee.
Employee savings amounts can be placed in multiple formats usually within an employee savings plan.

 

Solidarity savings / Savings responsible or sustainable / ethical Savings

See “socially responsible investment”.

 

Formula funds

Mutual funds (FCP or SICAV) whose share value at maturity depends on the performance of one or more underlying and whose performance depends on the achievement of predefined formulas (more or less complex). These products are guaranteed at maturity.

 

Mutual fund (FCP)

UCITS which issues shares and does not have legal personality, unlike a corporation as a SICAV. The investor by buying shares joins a condominium financial instruments, but has no voting rights. It is not a shareholder.

FCP is represented and managed the administrative, financial and accounting by a management company plans.

 

Mutual fund investment companies (CIPF)

Mutual fund specific employee savings. There are two categories:

Called diversified mutual fund whose assets include more than one third of securities issued by the company (stocks or bonds). For securities other than those issued by the company, these CIPF the rules imposed risk diversification in mutual funds;
Said employee stock mutual fund whose assets consists more than a third in securities issued by the company that offers its employees.
A mutual fund is usually offered as part of an employee savings plan.

CIPF has a Supervisory Board whose role is to defend or assert the rights or interests of the unitholders of the Fund.

 

Index Funds

Mutual funds (FCP / SICAV) whose value and performance are partially or totally linked to the performance of an underlying asset (stock, basket of stocks, commodities, index …).

 

package

Price of a set of products and services, the amount is independent of their use.

For example: money received for a bundle of products or services, each product or service that can be purchased separately.

See “Glossary Everyday Banking and credit.”

 

costs

Collected from his client by a credit institution or sum payment for the completion of a transaction or supply of a product or the provision of a service.

Following the relevant transaction, the term of commission is also working.

See “Glossary Everyday Banking and credit.”

 

Entry fees and payment

Amount withdrawn (the amount paid) upon subscription and upon payment of premiums.

A participant in a group life insurance policy purchased by an association may have more to pay a fee to join the association.

 

Switching charges

Amount paid on the occasion of the completion of an arbitration operation on a multi-vehicle contract.

 

Management Fees

Amount paid for contract management. This amount is determined on a yearly basis.

In contracts multi media, there are specific costs for each unit of account. These costs are directly reflected in the value of the unit of account sent to the member / subscriber.

The amount of management fees of mutual funds is not specified in the insurance contract but in the UCITS simplified prospectus issued at the time of the choice of the media.

 

Exit fees

Amount paid upon settlement of the contract (eg fresh upon payment of a pension or allowance redemption).

 

Costs over the life of the contract

See “Management Fee”.

 

Guaranteed floor

For unit-linked account, a pledge by the insurer so that the total benefit, although qu’indexée the value of the units of account is not below a certain level (floor level). This warranty in the contract, usually against payment of a fee may be paid in case of death and sometimes when survival.

 

Popular retirement savings group (GERP)

Association who signs a popular retirement savings plan (PERP). The GERP is subject to specific regulations.

 

Investment horizon

Before investing, an investor should ask what time horizon, that is to say how long he thinks he will not need the money invested and thus the duration that it provides for its investment. The investment horizon of an investor depends mainly on the composition of its assets, their savings goals and consumption, income …

The investment horizon may be short-term (eg below 1 or 2 years), medium term (eg, between 2 and 5 years) or long-term.

The investment horizon of the investor is to associate with the recommended investment.

 

Allowance redemption

Charges levied by the insurer in case of surrender of a life insurance policy by the policyholder or participant. This allowance, which shall not exceed 5% of the amount paid to the subscriber / member may be required by the insurer if the redemption occurs within ten years from the effective date of the contract.

Another formulation: redemption penalties.

 

Financial Instruments

All securities including equities, debt securities (including bonds), units or shares of collective investment scheme (see UCITS) and financial contracts.

incentive

Collective complement of employee compensation, which can not be a substitute for wages, profit sharing is linked to results or performance made ​​by the company, and its implementation requires the establishment of a profit-sharing agreement between the employer and employees.

The incentive payment is available immediately. However, a favorable tax regime applies if the money is blocked for at least 5 years on employee savings plan.

 

Socially Responsible Investing

For savings products presented as the “socially responsible investment”, investment decisions are based on social, ethical or environmental criteria, in addition to traditional financial measures. These criteria can be, for example, not to invest in certain areas (eg weapons, games) or choose to invest in companies that meet standards, particularly social or environmental.

Some products are subject to specific regulations: Booklets sustainable development, solidarity funds offered including employee savings.

In all cases, it is essential that the investor learns about the investment policy which is thus proposed, the precise destination of the investment and the consequences of this investment (period of distribution, performance …).

 

Liquidity of a savings product or a financial investment

A product is said to liquid when it can be bought or sold quickly.

The concepts of liquidity and availability are not synonymous.

 

A booklet

Regulated product that can be opened by any individual and certain associations savings.

The funds are available at any time. The duration of the passbook is unlimited. It may, however, be terminated at any time by the holder. It can be only one book per person A (including minors). Interest paid on a passbook are exempt from taxation.

The maximum amount of deposits on a passbook for an individual is 15 300 euros.

 

B booklet

Bankbook which the interest rate is not regulated and not subject to a ceiling of deposits. The booklet is distributed by B Savings and La Banque Postale.

 

Bankbook

Savings product for which the interest rate is not regulated and not subject to a ceiling of deposits. Funds deposited in this account are available at any time. The count is unlimited; it can be closed at any time by the subscriber. Interest collected on this account are subject to tax and social security contributions.

 

Blue booklet

Regulated savings product in the existing network of Crédit Mutuel. Since 1 January 2009, it is no longer possible to open blue booklet. However, existing booklets on this date are maintained. The blue booklet functions as the libretto A. A person can not have the same time to a passbook and a blue booklet.

 

Sustainable development account (LDD)

Product regulated savings reserved for people who have their tax domicile in France.

The funds are available at any time.

The duration of the LDD is unlimited. It may, however, be terminated at any time by the holder.

It can be only one LDD per taxpayer and one for the spouse.

Interest paid on a LDD are exempt from taxation.

The maximum amount of deposits on LDD is € 6000.

 

Popular savings passbook (SARA)

Product regulated savings reserved for people who have their tax domicile in France and whose income tax does not exceed a limit to be reviewed annually. The funds paid into a

LEP are available at any time.

The duration of the LEP is unlimited as long as the tax cap is met. It may, however, be terminated at any time by the holder.

It can be only one LEP per taxpayer and one for the spouse.

Children attached to the taxpayer can not hold such a booklet.

Interest paid on a LEP are exempt from all taxation.

The maximum deposit is 7700 euros.

 

Young booklet 

Regulated savings product available to individuals aged 12-25 years and living in France. For people under 16, the withdrawals on a young booklet are subject to the permission of their legal guardian.

The young booklet is closed no later than December 31 following the date of the 25th anniversary of its holder and the amounts credited to the account are transferred to another account designated by him.

Interest paid on a young book are exempt from taxation. The interest rate is freely determined by credit institutions without being lower than the rate of passbook

The maximum deposit is 1600 euros.

 

Allowance (on track)

Loss resulting from the difference between the sale price or sale (less export duties) of a security and its purchase price or subscription (plus charges).

 

Information note

Pre-contractual document to be delivered to the subscriber specifying the conditions for exercising the right of cancellation and the main provisions of the contract.

This document may take the form of a proposed contract.

 

Information sheet in the group contract

For group insurance contracts, documents to be submitted by the subscriber to the participant specifying the guarantees and how they are implemented.

 

Obligation

Financial instrument issued by a corporation, by a public authority or the state. It is a debt security (that is to say, it represents a debt) payable on a date and an amount fixed in advance, and that earns interest.

During life, the value of a bond moves up or down.

Sale prior to maturity may result in gains or losses.

 

Stock market order

Order from a customer to the financial intermediary (credit institution in most cases) to buy or sell a financial instrument.

 

Collective investment in transferable securities (UCITS)

Collective term for variable capital investment companies (mutual funds) and mutual funds (FCP).

These entities manage portfolios of financial instruments and issue units or shares that may be subscribed by private individuals or companies.

UCITS receive approval by the Financial Markets Authority (AMF) (or a European regulator) and must comply with the rules of management and investment. Mutual funds offer the opportunity, particularly for individuals to access a diversified portfolio of financial instruments which are managed by a professional.

We’re talking about savings products collectives.

 

Real estate mutual fund (OPCI)

Savings product collectives specializing in real estate investment.

 

Participation

System under the law organizing participation in the company’s results. This system is mandatory for companies with 50 employees or more, optional below.

Premium participation is part of the annual profit. It is blocked and poured into a employee savings plan or a blocked current account paid by the company, unless the employee decides, in its award, the touch immediately and then integrate in its taxable income.

 

Profit sharing (profit sharing)

In life insurance, the insurer’s handling of contributions paid by the subscribers / members receives revenue referred to as technical and financial benefits. For contracts in euros, insurance companies are required to distribute a significant portion of those profits to members / subscribers. She then added to the guaranteed minimum rate fixed by the contract, and can represent a significant portion of overall return.

The contract may specify the procedures for assignment of this interest in a right to participate.

Profit sharing is included in the rate of return generated by the insurer reported annually.

 

Share of a credit institution or mutual cooperative

Title to a cooperative or mutual society, which represents a portion of the capital of the institution. This title gives its owner, called an associate, the right to vote at general meetings and to receive remuneration.

The shares are transferable according to rules specific to each issuing institution.

 

Performance

Deliverable or obtained by an investment. It is important to note that the performance of an investment is usually expressed as a percentage. It takes into account changes in capital and / or income.

The presentation of a Past performance is no guarantee of future results.

 

Of savings plan (PEA)

Regulated savings product available to persons whose tax domicile in France, which allows the holder to build a portfolio of French and / or European shares and benefit from favorable taxation on gains realized through detention shares.

The maximum payment amount is € 132,000.

When opened with a bank, the PEA results in the opening of two linked accounts: a securities account and a cash account. Amounts paid on a PEA can be invested in French shares and / or European, or units of French UCITS and / or Europeans, themselves mostly invested in stocks and shares. When opened with an insurance company, it takes the form of an endowment contract unit-invested in one or more classes of shares that may be included in a PEA.

 

Company savings plan (PEE)

Type of employee savings plan in which monies paid by employees are blocked for at least 5 years, except in cases of early release.

Capital increases reserved for employees most often occur in the context of a company.

Income and capital gains on investments are exempt from income tax but are subject to social security contributions.

 

Plan inter-company savings plan (IEP)

Employee savings plan established by agreement in several companies (including vocational branch).

 

Home Ownership Savings Plan (ELP)

Regulated product that allows loans to finance expenditure to the main house or in certain circumstances, the housing finance having another destination savings.

Unlike the housing savings account, the ELP has a minimum of 4 years and a maximum of 10 years. In addition, the plan may continue to exist but it is no longer possible to make payments.

The interest rate on savings is fixed for the duration of the plan at the existing rate at the opening of the ELP.

The remuneration of PEL consists of an interest rate and a government bonus. For beginning after December 12, 2002 plans, the payment of the bonus is tied to the achievement of the loan.

The maximum deposit amount is 61 200 euros.

 

Popular savings plan (IEP)

Regulated savings product. Since 2003, it is no longer possible to open again but existing PEP PEP were maintained and can be fed into the ceiling of deposits (92,000 euros). The output of the plan may be capital or annuity.

 

Saving for collective pension (PERCOs)

Collective savings scheme that allows employees of a company or group of companies to build, possibly with the assistance of their employer, a savings invested in securities in a favorable tax and exchange blocking these savings generally up to the age of retirement. The amounts paid are blocked until retirement except in exceptional circumstances expressly provided for in the law.

 

(PERCOI) savings plan for the multi-group retirement

Several companies can come together to set up a savings plan for collective pension

(PERCOs); this is called PERCOI.

 

Popular retirement savings plan (PERP)

Collective contract of life insurance is to building a long-term savings for the payment of an annuity at retirement.

Savings are available at the time of retirement as a lump sum only for the purchase of a principal residence (the first home ownership).

In addition to regulating the life insurance that applies to the perp, the operating mode of it is subject to specific provisions. PERP is subject, under certain conditions, a tax benefit at the entrance (net of payments).

 

Employee savings plan

Collective employee savings scheme governed by regulation, provide employees of a company or group of companies, to build up savings with the help of this and under specific conditions.

The savings are placed blocked for the duration set by the plan may not be less than five years, except in cases of early release.

There are two main types of employee savings plans: the company savings plan (PEE) and the savings plan for collective pension (PERCOs).

 

Unrealized appreciation (of title)

Gain resulting from the difference between the sale price or sale (less exit rights) in a title (an action, for example) and purchase or subscription price (plus charges).

 

Portfolio

All securities held by a person.

 

Premium / contribution

Payment by the policyholder or participant as loan guarantees granted by the insurer, that is to say, for life insurance contracts, the commitment of the insurer to pay to the Subscriber, the Clearer or (x) the recipient (s) a capital or an annuity, or in case of death or in case of survival of the insured under terms defined in the contract.

Under the terms originally specified in the contract or changed in endorsements, payment of the fee or premium may be unique (made ​​at time of purchase), periodic (amount and frequency specified in the contract) or free.

 

Product formula

Financial product whose value per unit at maturity depends on the performance of one or more underlying and whose performance depends on the achievement of predefined formulas (more or less complex). These products are guaranteed at maturity.

 

Savings product collectives

See “UCITS”.

 

Products indexed

Financial product (usually debt securities or funds – Fund / SICAV -) whose value and performance are partially or totally linked to the performance of an underlying asset (stock, basket of stocks, raw material index , …).

 

Prospectus of UCITS

Backgrounder provided to investors before any subscription of share funds. It contains detailed information on identified risks of the fund, on its functioning and its characteristics.

 

Redemption of units or shares of UCITS

Transaction in which an investor called subscriber, sells shares or units of mutual funds based on net asset value. Terminology redemption is that the subscriber requests the management company to repurchase its shares or units.

 

Redemption in life insurance

Transaction in which the policyholder or participant terminates the contract before the deadline and asked the insurer to pay the savings. In some cases, the purchase may be partial and is therefore for the subscriber / member to remove part of the savings without terminating the contract.

The right of redemption does not exist in all cases (eg PERP).

 

Guaranteed remuneration

Rate of return that the financial institution agrees to pay to the investor on terms specified in the contract or by specific regulation product.

 

Yield

It is reported that an investment. The calculation of this performance is different for different types of products.

See “yield to maturity”.

 

Waiver

See “right of withdrawal”.

 

Life annuity

Periodic income paid to a date stated in the contract and until the death of the insured or beneficiary. In life insurance, the pension is paid after a savings phase.

 

Financial risk

Risk that expected or hoped for by the investor gain is not realized or the amount invested is reduced.

Generally, the higher the potential gains are higher the greater the risk.

 

Employee share SICAV (SICAVAS)

Fund designed to manage a portfolio of securities issued by a company to its employees.

 

Civil REIT (SCPI)

Company whose sole purpose is the acquisition and management of rental properties.

 

UCITS management company

Company whose business is the management of mutual funds that is to say, it carries out the activities of portfolio management of the fund, administration and sometimes the marketing of units or shares

Management companies are subject to the approval of the AMF. The list of authorized management companies is available on the website of the AMF.

 

Investment company with variable capital (SICAV)

UCITS with legal personality (company) that issues shares. Anyone who invests in a Fund becomes a shareholder and can be expressed in general meetings.

A Fund may assure itself or its management, the general case, outsourcing this function to a management company.

 

Subscriber

Person or entity that enters into a contract with the insurer.

In an individual policy, the policyholder pays the premium and usually it is the insured. For individual life insurance contracts, it means the (s) recipient (s) has passed, (x) redemption (s), etc.

In the case of a collective or group policy, the policyholder is the counterparty to the insurer (legal entity or entrepreneur). He purchased for the members and it is the member who pays the premium. For group life insurance contracts, the participant means (s) recipient (s) has passed, (x) redemption (s), etc.

 

Underlying

See “underlying asset”.

 

Interest rate

Percentage for calculating the compensation of a sum of money for a given period. For savings and financial investments, the interest rate is usually expressed per year; it may be fixed or variable. It may be gross, or net, that is to say, to consider whether the costs and taxation.

 

Yield to maturity

The yield is often expressed as a percentage and presented as the “Yield to maturity”. Generally, the rate is expressed before fees and excluding the impact of taxation.

This rate is different from the interest rate.

 

Risk-free rate

Proposed by a borrower (bond issuer organization) very good rate of interest, that is to say its ability to repay an estimated risk-free.

In practice, in France, the rate known as “risk-free” is the interest of fungible bonds rate

Treasury (OAT), which are bonds issued by the French government through the Agence France Trésor. This interest rate is often used as the basis for the remuneration of other products. Greater than OAT pay for a product of equal duration, means that the borrower is regarded as having a higher risk that the French State.

 

Debt

Note representing a claim holder on the issuer. This title is issued to represent a debt / borrowing of the issuer.

The title holder and has a right to be refunded the amount of the security and to receive remuneration (interest). Bonds are debt securities.

 

Transfer

Act by which the holders of certain savings products can transfer their investment from one institution to another during the savings period.

 

Units of Account (UA)

Investment vehicles that make up the life insurance contracts, other than euro fund (see contract in euros).

The value of Units of Account (UA) evolves upwards or downwards. The insurer guarantees the number of CPUs but not their value during the execution of the contract.

 

NAV

Price of a share or a share of funds. This value is obtained by dividing the aggregate value of the net of the fund by the number of units or shares active.

The NAV shall be published and kept available for anyone who asks. This value can go up or down.

 

Security

Securities issued by public or private entities (eg business, mutual funds, state and local), which directly or indirectly provides access to a fraction of the capital of the issuer or a claim. Stocks, bonds, units of mutual funds are, for example, securities.

The term “security” is now replaced by financial instrument in the Monetary and Financial Code.

 

Volatility

Change (upward or downward) of the value of a security over a specified function of the expected profitability of this title theoretical value.

Speaking of high volatility means that a security or market is struggling to stabilize around these theoretical values ​​and save significant differences (succession of increases and significant decreases close together in time).

 

SOURCES:

 

– CCSF: www.ccsfin.fr or www.ccsfin.net

– ASF: www.asf-france.com

– Prudential Control Authority: www.banque- france.fr/acp/index.htm

– AMF www.amf-france.org

– Bank of France: www.banque-france.fr

– FBF: www.lesclesdelabanque.com

– FFSA and the center of documentation and information assurance (CDIA) www.ffsa.fr

– GEMA: www.gema.fr

– Institute for Financial Public Education: www.lafinancepourtous.com

– French Administration www.service-public.fr

– DGCCRF: www.dgccrf.bercy.gouv.fr