RL360's International Investment jargon buster

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Bank Automated Clearing Services (BACS) is a United Kingdom scheme for the electronic processing of financial transactions in GBP only. It is currently a method of making payments which does not incur a charge and takes approximately 3 - 5 working days to complete.

Bankers draft
A cheque that is made out to a person by the bank rather than the person writing a cheque themselves. The person's bank account is then usually debited by the bank or the person has paid the bank cash for the cheque. These are only accepted by RL360° for regular premium policies with a semi-annual or annual premium frequency or single premium policies. They must be accompanied with appropriate original or certified true evidence that the draft has been paid for by the policyholder and not a third party or by cash.

Bare Trust
A trust created for beneficiaries where the beneficiaries cannot be changed once named and have a right to the income and capital of the trust once they reach the age of 18 years. The benefit of a Bare trust is that it is a Potentially Exempt Transfer (PET) for the purposes of UK tax obligations rather than a Chargeable Lifetime Transfer - CLT). Dependant upon an individual's circumstances this can have taxation benefits. You can refer to our "Guide to Trusts" booklet (TRU001) for further information.

Bear Market
A bear market refers to a market that is in decline; share prices drop continuously, resulting in a downward trend.

Bearer Bond
A bearer bond is a fixed-income security that is owned by the holder (bearer), rather than a registered owner. Ownership is determined by possession.

The beneficiary of a policy, will or trust is the person named to benefit from the property or assets held for or gifted to them. You can refer to our "Guide to Trusts" booklet (TRU001) for further information.

Bid price
The price paid to calculate the value of the fund units when the policyholder surrenders their bond.

Bid/offer spread
The difference between the bid price and offer price of units.

A type of policy where a policyholder pays a single premium and we will pay the sum assured (or death benefit) after the death of the life assured. Bonds may have a fixed term, an option to cash in on specific dates, or be able to be cashed in at any time. Details are given in the policy terms and conditions. Bonds may also be referred to as "policy", "life assurance" or "contract".