What is 'Know Your Customer (KYC)'?

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

More terms

After-hours trading

Trading outside of a stock exchange's opening hours.

Total Return

This is the measurement of a fund’s performance in a specific period.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Bed & ISA

Understand what Bed and ISA is and how it works

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Collective investment scheme

Learn what's a collective investment scheme

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Know Your Customer (KYC)