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Jargon Buster - S

S&P 500 Index

This equity index comprises 500 large cap companies in various industries of the U.S. economy and captures 75% of the US equity market. The index is maintained by the S&P Index Committee, a team of Standard & Poor’s economists and index analysts.

SCARP

A Structured Capital at Risk Product.

Securities

A term for the financial instruments that make up a Plan, selected to provide the returns as set out in the Plan brochure.

SIPP

A Self-Invested Personal Pension is a type of UK-government approved personal pension scheme, which allows individuals to make their own investment decisions from the full range of investments approved by HMRC. SIPPs can be used to invest in Structured Products.

SSAS

A Small Self Administered Scheme is a type of UK Occupational Pension Scheme. Schemes are trust based and established individually, usually by directors of limited companies for specified employees of the company. SSAS is also available for those who are not in a limited company e.g. Partnerships or Families.

Standard & Poor's

One of the main credit ratings agencies who will determine and distribute credit ratings for all major institutions. Standard & Poor's, part of the McGraw Hill Financial Group, is one of the world's leading providers of credit ratings. Operating from 26 offices across the world, they publish more than a million credit ratings on debt issued by different entities. Standard & Poor's provides both short-term and long-term credit ratings, rating institutions on a sliding scale from 'AAA' to 'D', where 'AAA' denotes the highest level of financial strength and 'D' the lowest. Click here for a more in-depth breakdown of the ratings.

Start Date

The date on which the Start Level for an Underlying is recorded (in the absence of any Averaging).

Start Level

The level of an Underlying that is used as the starting point for its performance (i.e. the performance of the Underlying is its Final Level in relation to its Start Level). Please also see ‘Initial Level’.

Stocks and Shares ISA

Stocks and Shares Individual Savings Account. An ISA is restricted to UK tax resident individuals only.

Strike

The level of an Underlying that is used as the starting point for its performance (i.e. the performance of the Underlying is its Final Level in relation to its Strike Level). Please also see ‘Initial Level’ and ‘Start Level’.

Strike Date

The date on which the Start Level for an Underlying is recorded (in the absence of any Averaging).

Structured Deposits

Structured Deposits are term deposits (similar to a fixed rate bond) with a variable return linked to the performance of an Underlying. They can be held within a variety of wrappers such as a Cash ISA.

Structured Investments

Structured Products are designed to offer investment growth or income over a fixed term with performance linked to an Underlying. They usually also offer some form of capital protection, provided they are held for their full term. They can be held within a variety of wrappers, such as a Stocks and Shares ISA.

Structured Product

Structured Products include both Structured Deposits and Structured Investments. They are designed to offer investment growth or income over a fixed term with performance linked to an Underlying.

Subscription

Is the total amount of money the investor subscribes to a Structured Product.

Subscription Period

The period during which investors can subscribe to a Structured Product.

Suitability

When advising a client to invest in a structured product, financial advisers must ensure the product is suitable for their needs and objectives. This may include assessing the product against their appetite for risk, financial knowledge and tax position amongst other considerations.

We've put together a glossary of terminology associated with structured products.

While these are standard definitions, it's important that you read the relevant product literature before investing, as providers might use a slightly different definition to those detailed here.

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Representing the collective interests of leading structured product manufacturers in the UK

The UK Structured Products Association ('UKSPA') is a membership organisation established by the leading manufacturers of structured products in the UK. UKSPA provides a unified voice for its members, working with regulators, financial advisers and other trade bodies. It serves a number of important functions, including engaging with regulators, developing best practice guidelines, educating the investment community and providing a useful source of information for manufacturers, financial advisers and retail investors within the UK.

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