E

EMU - European Monetary Union - The process by which the national currencies of the European Union are being replaced by the Euro.

Endowment Policy - A life insurance and savings policy which pays a specified amount of money at the end of an agreed term or on the death of the life assured. Often linked to a mortgage.

Equities - The ordinary shares of a company.

ERM - Exchange Rate Mechanism - An agreement by which most EU countries maintain the exchange rates between their currencies within certain limits.

EURO - The currency adopted by some European countries in place of their national currencies, intended to replace the national currencies in 2002.

F

Final Salary Scheme - Also known as Defined Benefit Scheme. This is the traditional form of company or occupational pension where your pension at retirement is calculated as a proportion of your salary in the last few years of work, with the proportion depending upon how many years you have been in your company scheme.

Fiscal Policy - Influencing an economy through taxation.

Fixed Rate Mortgage - A mortgage product where your monthly payments do not change over a certain agreed period.

Flexible Mortgage - A mortgage product where you can vary the amount you pay each month, reduce the term by making extra or increased payments and take breaks from your monthly payments.

Flexible Pension Plan - A pension product where you can vary the amount you pay each month and take breaks from your monthly payments.

FOOTSIE (FTSE 100) - The popular name for the Financial Times Stock Exchange 100, the main UK share index which represents the prices of the top 100 shares in public limited companies.

FSA - The Financial Services Authority, the main regulatory body of the financial services industry.

FSAVCs - Free Standing Additional Voluntary Contributions - Extra payments you can make into an individual plan, which runs alongside your company pension scheme, to top up your pension fund. The plan is independent of your employer's main pension scheme.

Fund - General term for an investment vehicle which pools the money of investors and invests it according to a defined set of investment objectives.

Fund Manager - A professional who takes decisions on what to buy and sell on behalf of a fund's investors.

Fundamentals - The underlying economic factors such as industry output, wages, cost of materials and fluctuations in currency which affect a market, country or sector.

FURBS - Funded Unapproved Retirement Benefits Schemes - This is an occupational pension scheme that is not designed to be approved. This type of scheme saves up assets to pay members’ benefits, unlike an unfunded scheme. Most FURBS are top-up pension schemes.

Futures - A contract to buy or sell a fixed amount of currencies, shares or commodities at a fixed rate in the future at a fixed price.