International Banking Guide

Overseas territories
The term overseas territories is an acknowledgment of the political correctness lobby.
Formerly called dependencies, overseas territories are Bermuda, the British Virgin Islands, Gibraltar, and the Turks & Caicos islands.

OEICS
Open-ended investment companies, an OEIC is the same as unit trusts except that it is legally constituted as a limited company.
Most OEICS operate as umbrella funds, meaning the OEIC can set up sub-funds without gaining individual authorisation.
Most OEICS only have one unit price, and the initial charge is added as an extra. Unit trusts always have two prices, the lower or bid price is what you get when you sell back to the managers; the higher or offer price is what you have to pay when you buy.

International Banking Guide & Pension

Pension
A retirement fund that every expatriate should seek to build up to avoid a sudden drop in wealth upon retirement. Offshore pension plans are life insurance-linked and offer tax-free growth on a portfolio as long as it remains offshore.
Private banking
Private banking essentially means you are allocated your own personal banker who will look after your entire portfolio of assets - from stocks, shares, funds and deposit account.
Once you would have needed a minimum £500,000 to access private banking facilities, but these days private banking is available from several retail banks.

International Banking Guide & A Regular Savings Scheme

Resident
See ‘Non-resident’

Roll-up fund
See ‘Accumulation fund’

International Banking Guide & School Fees

Second, because as long as you cash them in while overseas, they will not be subject to capital gains tax, and if you do cash them in as a UK resident, TEPs are only subject to capital gains tax on the proportion of the time you have spent in
the UK.

Shares
When you invest in a company and certain funds, you buy a ‘share’. Your share’s value can rise or fall depending on supply and demand.

Sicav
Stands for Societe d’investissement a Capital Variable. This is the name the French (and many French-speaking countries) give to funds.
Most of the funds sold of Luxembourg to expats from Luxembourg are Sicavs. You buy shares in Sicavs rather than units.

International Banking Guide - Single Premium

Stock exchange
Place where shares are traded. A country may have scores of exchanges - America has the Nasdaq and the Dow (among many others), Britain has the FTSE and AIM (among many others).