Life cover is essential if there are dependents. Life cover is designed to protect those left behind in the event of premature death. A young family is particularly vulnerable as they are very often reliant on one income or may have very expensive child care costs if the primary carer were to die.

Fiscal policy involves the actions taken by the government to either stimulate or calm the economy using a combination of taxation, spending and borrowing. When the government implements an inflationary budget they are trying to expand (inflate) the economy with lower taxes, borrowing and spending.

The FOS will deal with complaints in respect to regulated products and advice. The complaint must have been made within 6 years of the event occurring or within 3 years of becoming aware of the reason to complain and not be subject to a court case. If the provider and the FOS has not dealt with the complaint made by the complainant to their satisfaction, they can take their complaint to the courts.

The FCA has four objectives; to remove all risk from financial markets is not one of them. The FCA cannot remove all risks, but they can protect consumers so that they can make informed decisions.

Capacity for loss can be defined as the amount a client can afford to lose without it affecting their standard of living. Whereas their attitude to risk can be defined as how much risk the client is willing to take.

Within FCA minimum record keeping requirements for money laundering purposes ID must be kept for 5 years after the relationship with the client ended.

The FCA "Fit and Proper" test is designed to set minimum standards in relation to those working in a controlled function. It covers honesty and integrity, competence and capability and financial soundness. Adverse credit will be detrimental in respect to meeting these standards.

The FCA defines a ‘personal recommendation’ as advice on investments, conversion or transfer of pension benefits or on a home finance transaction that is presented as suitable for the client. Advice involves a recommendation to take a course of action based on an analysis of the clients circumstances, needs and goals. The advice has been influenced by the adviser. Generic advice provides generic information only and/or options to narrow down the consumers’ choices, without making an explicit recommendation, so is treated as unregulated.

A Fixed rate deposit gives a fixed rate of return for the duration of the deposit. As rates are fixed, the customer is at risk of general interest rates rising on other accounts which will mean they will not benefit. Fixed rate accounts will have a penalty that will mean loss of interest if the account is closed during the term.

As a building society is a mutual organisation it is legally constrained from raising any more that 50% of it's liabilities from the wholesale money markets.