Jargon Buster

Trail Commission

Ongoing commission that is payable to a financial adviser for advice provided before an investment was entered into, and which normally continues to be payable while the client holds the investment concerned.

Trading at a discount / at par / at a premium

Expressions used with investment trusts meaning that the value of all the investment trust's shares combined is either: below (at a discount); equal to (at par); or higher (at a premium) than the value of the underlying investments.

Tied agents

These are advisers who work for financial services firms e.g. banks and insurance companies, who advise on and sell products from their own institution only. They are still required to provide you with a product that is suitable for your needs, but cannot shop around on your behalf.