CISI Platforms (IOC) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Platform administration charge

A recurring fee, usually expressed in basis points of assets under administration, charged by the platform for custody, record-keeping and reporting services.

Adviser platform

A platform used by authorised financial advisers to hold and administer client investments, where the adviser firm selects products and the platform provides custody and reporting.

Direct-to-consumer platform

A platform contracting directly with retail clients without an adviser intermediary, so the firm itself must apply appropriateness and, where applicable, suitability standards.

Clean share class

A fund share class with no commission paid to intermediaries, used on unbundled platforms where the adviser charge is billed separately and disclosed explicitly.

Nominee custody

A structure where holdings are registered in the name of a nominee company controlled by the custodian, allowing bulk settlement and efficient administration for many clients.

Straight-through processing

Automated end-to-end order handling with no manual re-keying, relying on validated reference data and reconciled positions between platform, custodian and fund manager.

In-specie re-registration

Transferring investments between providers without selling them, preserving the holding and avoiding a capital gains disposal, though exit or transfer fees may still apply.

Model portfolio rebalancing

A platform function that restores a model to target weights using tolerance bands, generating buy and sell orders and raising cash where required.

Client money

Money held for a client that is not yet invested or withdrawn, which must be segregated in a trust account and reconciled under client money rules.

Safe custody assets

Client investments and documents of title held by the firm, subject to record-keeping, reconciliation and segregation requirements distinct from client money rules.

Inducements rule

A prohibition on accepting or paying fees or non-monetary benefits that impair acting in the client's best interests, except minor benefits that improve service quality.

Regulatory capital requirement

The minimum own funds a platform must hold, calculated from fixed overheads or expenditure, to absorb losses and support an orderly wind-down.

Know-your-client data

Information gathered at onboarding covering identity, tax residency, objectives, risk tolerance, capacity for loss, time horizon and existing holdings, used to assess suitability.

Appropriateness assessment

A test of a client's knowledge and experience applied to non-advised services, allowing the firm to warn when a product may not be appropriate.

Personal recommendation

A recommendation to a person to buy, sell, hold or exercise rights over a specific investment, which constitutes regulated advice and triggers suitability obligations.

Vulnerability assessment

A structured check at onboarding and review for health, capability, life events and financial resilience, used to adapt communications and support for the client.

ISA subscription limit

The maximum amount an individual may pay into ISAs in a single tax year, which can be split across cash, stocks-and-shares and innovative finance components.

SIPP wrapper

A self-invested personal pension allowing broad investment choice within a tax-advantaged pension, with tax relief on contributions and restrictions on withdrawals.

General investment account

A taxable wrapper with no tax relief or shelter, where dividends, interest and capital gains are taxed on the client and must be tracked and reported.

Offshore bond chargeable event

A taxable gain arising on a partial or full surrender, death or assignment of an offshore bond, potentially eligible for top-slicing relief.

Settlement date

The date on which a trade's cash and securities are exchanged and the transaction becomes final, commonly two business days after the trade date for equities.

Forward pricing

A fund pricing method where orders received before a cut-off are priced at the next valuation point, so the client does not know the price when instructing.

Corporate action election

A client instruction in response to an event such as a rights issue, takeover or scrip dividend, which must be communicated with a clear deadline.

Best execution duty

The obligation to take all reasonable steps to obtain the best possible result for clients, considering price, cost, speed and likelihood of execution.

Cash sweep

An arrangement moving client cash between accounts, often to a bank deposit or money market fund, where the interest treatment and any retained margin must be disclosed.

Ad valorem fee

A charge calculated as a percentage of the value of assets or the transaction, as opposed to a flat monetary fee, and usually billed periodically in arrears.

Adviser charge facilitation

The platform's collection of adviser fees from client accounts with documented client consent, clear cash disclosure and the client's right to cancel.

Total cost of ownership

The aggregate of platform, fund, transaction and adviser charges borne by the client, disclosed before sale and illustrated against projected returns.

Bid price valuation

Valuing holdings at the price at which they could be sold, rather than mid or offer, with the pricing source and timestamp disclosed to clients.

Money-weighted return

A performance measure reflecting the effect of the timing and size of client cash flows, distinct from time-weighted returns which strip out flow effects.

Suspicious activity report

A disclosure to the financial intelligence unit when a firm knows or suspects money laundering or terrorist financing, with no tipping off of the client.

Treating customers fairly

A conduct outcome requiring fair treatment throughout the product lifecycle, including clear information, suitable outcomes, no post-sale barriers and effective complaints handling.