Association of International Life Offices
Representing the cross-border life industry
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Glossary

Not sure about a name or phrase used in our documentation or website? Or perhaps you’ve come across some financial terminology elsewhere that you’re not familiar with? Find out its meaning in our glossary below and if there is a word not in there you think needs adding please do contact us.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Periodic Charge (UK-Specific)

An inheritance tax charge on a discretionary trust on the 10th anniversary of the trust, and every subsequent 10 year anniversary.

Ponzi scheme

Ponzi schemes are a type of illegal 'rob Peter to pay Paul' operation named after Charles Ponzi who took deposits from 40,000 US investors on the promise of fabulous returns.

Potentially Exempt Transfer (UK-Specific)

A transfer of value between individuals, or to a bare trust or to a trust for a disabled person, which is outside of the donor's estate if the donor survives seven years.

Pound cost averaging

Pound cost averaging is when you drip feed money into shares or units on a regular basis rather than committing a single larger lump sum.

Pre-Owned Asset Tax (UK-Specific)

Where the former owner of an asset continues to enjoy the benefits of ownership of an asset and the 'Gift with reservation' rules do not apply, the pre-owned asset tax rules impose an income tax charge on the former owner for every year in which the benefit of the assets is enjoyed.

Preference share

Preference or preferred shares are shares in a company that have a fixed rather than a variable dividend.

Product Oversight and Governance (POG)

Issued by EIOPA, the implementation of POG requirements are in preparation for formal requirements provided for in the Insurance Distribution Directive (IDD).

Publications Office

The full name of this body is the Publications Office of the European Union. It acts as the publishing house for the EU institutions, producing and distributing all official European Union publications, on paper and in digital form. This is an Interinstitutional body.