| Participation |
The rate at which investors will receive performance in the Underlying, and usually expressed as a percentage. For example, a Participation rate of 150% means that investors will receive 150% of the Underlying’s performance. |
| Payout |
This term has a similar meaning to payoff. |
| Payoff |
This is a general term often used to describe the return that is provided by a structured product or anoption. So for example, one could say that the payoff of a product is equal to 100% plus 80% of the rise in the underlying index. |
| PEA |
Plan d'épargne d'actions |
| Pension |
Pension product |
| Pension Company |
A financial institution whose main activity is providing pension products. |
| Plan |
Most Structured Products available to UK retail investors are made available in ‘Plan’ format. This means that instead of holding the Structured Product directly, investors subscribe to a Plan, according to the Terms and Conditions of that Plan. |
| Plan Information |
The information contained within a brochure for a Plan, which does not include the Terms and Conditions. |
| Plan Manager |
The FCA-regulated company who is responsible for managing a Plan. They are responsible for a variety of duties, including the design, packaging and distribution of the Plan, as well as the fiduciary responsibility after the investment has been made. The Plan Manager may be a different company to the Issuer of the Structured Product that makes up the Plan. |
| Product Term |
The lifespan of a Product (from its Start Date to its End Date). |
| Product Type |
Products are categorized as Growth or Income. |
| Protected Products |
Protected products are those that promise to repay investors' capital in full at maturity (subject to 'counterparty risk'). |
| Protection |
Products are categorized as 'Protected' or 'Non-Protected'. |
| Protection Barrier |
The level of an Underlying which, if breached, puts an investor’s capital at risk. For example, if a Structured Product has a Protection Barrier of 60%, if the Underlying falls to below 60% of its Start Level, the Structured Product will no longer protect the investor’s capital and they risk receiving back less than their original investment at maturity. The Protection Barrier can either be measured throughout the Investment Term, or at maturity only, depending on the specific terms for a Structured Product. It is sometimes simply referred to as ‘Barrier’. |
| Put option |
The right to sell the underlying asset at a specified price on a predetermined date (or dates). |
| Put provision |
The investor has the right to sell (i.e. put) the instrument to the issuer at preset prices and on predetermined dates. In other words, the investor has a put option on the instrument. |
