earmarking

The application of a court order made when a memberof a pension scheme divorces, directing the trustees to pay some or all ofthe member's benefits to theex spouse at the time they would otherwise have become payable to the member. Civil partners are treated in the same way.

earmarked scheme

A DC scheme where all the benefits are secured by an insurance policy. Under the umbrella of the policy, each member accumulates an individual (earmarked) pension fund.

final salary underpin

The entitlement of a DC scheme member to a minimum level of salary related pension if the member's accumulated pension pot is not sufficient to fund it

financial adviser

Advises individual members about the options that are best for them and how they should organise their investments.

Financial Services Authority. (FSA)

The FSA's overall aim is to promote efficient, orderly and fair markets and to help retail consumers achieve a fair deal.
In relation to occupational pension schemes, the FSA regulates:
*. the marketing and sale of individual pension contracts
*. personal advice on investment matters
*. the training and competence of investment managers
*. the management of investment funds

front end loading

The practice of levying higher annual charges on contributions made at the beginning of a contract than are charged on contributionspaid later on in the life of the contract. These higher annual charges on early contributions are maintained throughout the life of the contract.

Financial Services & Markets Act (FSMA)

This act, passed in 2000, sets out the framework under which the Financial Services Authority (the FSA) operates.

Financial Times Stock Exchange indices. (FTSE indicies)

Various indices, published by the Financial Times, showing the movement of share prices of the companies which are included in any particular index.
The FTSE100 index shows the movement in share prices of the top one hundred companies (by capital value) listed on the London Stock Exchange.
Other FTSE indices include the FTSE all-share index (which includes all the shares listed on the London Stock Exchange). There is also a range of FTSE indices for UK Gilts.

fully insured scheme (FIS)

Where the benefits to which each member is entitled under the scheme rules are secured exclusively by an insurance company taken out by the trustees.

fund manager

An individual (or company) to whom the trustees delegate the management ofall or part of the scheme's assets.