Pensions Glossary - U

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Uberimae Fidei. The principle of utmost good faith, or disclosure, in completing a life insurance proposal form.

Ultra Vires. Action outside the agreed powers of a particular body. Such an action would be void.

Umbrella Fund. An offshore fund offering a variety of sub-funds allowing an investor to switch between them, e.g. different currencies, different stockmarkets. This formerly offered capital gains tax benefits, but these were removed by the 1989 Budget.

Unapproved Schemes. See 'FURBS'.

Underfunded. Generally refers to the valuation of an occupational pension fund where the actuary perceives that there are insufficient funds to support liabilities within the investment review period. Undertaking for Collective Investment in Transferable Securities. Essentially, unit trust-type investments which may be marketed in any of the European Union member countries.

Underwriting. Taking up shares not purchased by the public, for commission. Review and analysis of relevant factors affecting an insurance proposal.

Unfunded Unapproved Retirement Benefit Scheme. (UURBS) A form of unapproved pension scheme. Benefits are promised by an employer to an employee but are not pre-funded. The employer established a "book reserve" to cover the potential liability.

Uniform Accrual. Where benefits are treated as being earned equally (uniformly) throughout the period of pensionable service.

Uniform Business Rate. Tax charged on business property.

Unit Linked. A life assurance, investment or savings policy, under which the policyholder invests premiums into units in a unit trust-type investment. Performance, therefore, is dependent directly on current investment market conditions.

Unit Trust. A collective investment which invests in a range of assets e.g. equities, fixed interest and cash. Can either be general fund or more specialist investing particular type of asset e.g. property or geographical area e.g. Far East.

Unitised. See 'Unit Linked'. Units. When investing in a unit linked contract, the individual's contribution is used to buy units of equal value. These units will fall or rise in line with the underlying investments.

Unlisted Securities. Securities/shares not listed on an official stock exchange list.

Unlisted Securities Market. A market established in 1980 by the Stock Exchange for those companies for whom a full listing is not suitable. Joining and listing requirements much cheaper than the main market. Market closed June 1995.

Unsocial Hours. A financial services legislation concept, concerning times not to contact clients and prospective clients without prior approval. Generally taken to be between the hours of 9pm to 9am, Monday to Saturday, but will depend on the client and individual circumstances.

Unsolicited Calls Regulations. Financial services rules governing 'cold calling'. Uplifted Scale (Accelerated Accrual). The Revenue permits pension and cash benefits to accrue/grow at a rate in excess of the basic one sixtieth formula, provided the scale from the Practice Notes is followed.

Upper Band Earnings. Total earnings between the Lower Earnings Limit and the Upper Earnings Limit Upper Earnings Limit. See 'Lower Earnings Limit'.

Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house (Mortgages.co.uk), insuring your car (Carinsurances.co.uk), your life (Lifeinsurance.co.uk) and your home (Homeinsurance.co.uk). Remember that your ISA allowance allows you to save upto £7000 each year tax free. Try 0800 ISAs portal to find some of the best options.

1998 - 2007 UK Pensions - Planning before, at the onset and during retirement - Pensions.co.uk