Learning Hub

    Glossary

    The terms you meet in the directory and across the guides, explained in plain English. Each entry links to the guide that covers it properly.

    Appointed Representative
    A firm that operates under the FCA authorisation of another company, its principal, rather than holding permissions itself. The principal is responsible for the representative's regulated activity.
    Assets under management
    The total value of investor capital a platform or manager currently oversees. On lending marketplaces the comparable figure is usually cumulative amount funded, not live balances.
    Deregistered
    The firm once held FCA authorisation but no longer does — permissions were cancelled or surrendered, often when a platform wound down. Existing investments may still be administered by a third party.
    Due diligence
    The checks carried out on an investment and the people behind it before committing capital — the legal structure, financials, track record and the fees you will actually pay.Read the guide
    EIS
    The Enterprise Investment Scheme gives UK income tax relief on qualifying investments into smaller, higher-risk companies, plus capital gains and loss reliefs if holding conditions are met.Read the guide
    Elective professional investor
    A category of investor who has opted up from retail status by meeting wealth or experience tests. Opting up removes some retail protections, including certain FCA marketing restrictions.
    ELTIF
    The European Long-Term Investment Fund is the EU equivalent of the LTAF, giving retail investors access to long-dated private assets under a defined regulatory regime.Read the guide
    FCA-Regulated
    The firm is authorised by the Financial Conduct Authority, the UK's financial regulator, so it must meet conduct, capital and disclosure rules and can be checked on the FCA Register. Authorisation is not a guarantee your money is safe or that the investment is a good one.Read the guide
    FRN
    The Firm Reference Number is the unique ID the FCA gives every authorised firm. Use it to look the firm up on the FCA Register and confirm what it is actually permitted to do.
    FSCS protection
    The Financial Services Compensation Scheme can pay compensation, up to £85,000 per person per firm, when an authorised firm fails. It does not cover investment losses — only firm failure, and only for covered activities.
    IFISA
    The Innovative Finance ISA is a tax wrapper that lets you hold peer-to-peer loans and certain debt-based securities free of UK income tax and capital gains tax, within your annual ISA allowance.Read the guide
    Illiquid
    You cannot reliably convert the holding to cash quickly at a predictable price. Most private-market investments are illiquid for years, which is the main structural risk to plan around.Read the guide
    LTAF
    The Long-Term Asset Fund is a UK fund structure built for illiquid assets such as private equity, infrastructure and property. Dealing is periodic — typically monthly or quarterly — with a notice period rather than daily access.Read the guide
    Minimum investment
    The smallest amount a platform accepts for a single investment. On private-market platforms this ranges from about £10 on debt marketplaces to £100,000 or more on institutional fund feeders.
    Secondary market
    A facility to sell your holding to another investor before the underlying investment matures. Availability, pricing and matching times vary widely, and a secondary market is never a guarantee of an exit.
    SEIS
    The Seed Enterprise Investment Scheme is the earlier-stage sibling of EIS, with more generous income tax relief on smaller amounts invested into very young companies, in exchange for higher risk.Read the guide
    Unregulated
    The firm is not authorised by the FCA for the activity it offers. You usually have no access to the Financial Ombudsman Service or FSCS protection if things go wrong.Read the guide
    VCT
    A Venture Capital Trust is a listed fund that invests in small UK companies. It offers income tax relief on new shares held for the minimum period, and tax-free dividends.Read the guide
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