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

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

Ponzi Scheme

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

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

Accounting standards

The rules a company follows when preparing financial statements.

Know Your Customer (KYC)