Investing in the UK
Products, strategies, and industry insights for U.K. and foreign investors
Investing Fundamentals
Global Product Options
Key Terms
- Public Limited Company
A public limited company (PLC) is a public company in the United Kingdom. PLC is the equivalent of a U.S. publicly traded company that carries the Inc. or corporation designation. All of the companies listed on the London Stock Exchange are PLCs, and any retail investor may buy stock in a PLC.
- Libor
The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. LIBOR serves as a globally accepted key benchmark interest rate that indicates borrowing costs between banks. The rate is calculated and published each day by the Intercontinental Exchange (ICE).
- Financial Conduct Authority
The Financial Conduct Authority (FCA) is the independent financial regulator responsible for the functioning of the U.K.'s financial markets. The goal of the organization is to ensure honest and fair markets for individuals, businesses, and the economy as a whole. The Authority does this by protecting consumers, protecting the financial markets, and promoting competition. The FCA falls under the purview of the Treasury, which is responsible for the UK's financial system, and the Parliament.
- Financial Services Authority
The Financial Services Authority (FSA) regulated financial services in the United Kingdom between 2001 and 2013. Following the financial crisis of 2008, government officials decided to revise the regulatory structure of the financial markets in the U.K, and the regulatory authority was divided into the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) of the Bank of England in 2013.
- High Street Bank
A large retail bank that has many branch locations, such as those found in the main commercial sector of a town or city and offer everyday banking services such as deposit accounts and credit facilities to consumers and businesses. People generally refer to high street banks as such to differentiate them from other institutions such as investment banks.
- U.K. Premium Bonds
A type of lottery-based savings account that offer a chance to win tax-free prizes every month, instead of paying interest. You can buy them from the government’s National Savings and Investments (NS&I) agency, which is backed by H.M. Treasury and secures 100% of your savings.
- The City of London Corporation
The City of London Corporation, also known as the Corporation of London, is the governing body for the Square Mile, known as the City of London (or just "City"), the historic and financial district of London. It spans 1.1 square miles at the heart of Greater London, and is considered the world's oldest continuous municipal government.
- Fast Market Rule
A rule in the U.K. that permits market makers to trade outside quoted ranges when an exchange determines that market movements are so sharp that quotes cannot be kept current. It's intended to maintain an orderly market during a time of chaos. Under the rule, market makers must turn off their computerized trading systems (called black boxes). They do not have to quote share prices based on the London Stock Exchange's screen prices while the fast market is in effect, but they are still required to make firm quotes.
- GBP
GBP is the abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories of South Georgia, the South Sandwich Islands, and British Antarctic Territory and the U.K. crown dependencies the Isle of Man and the Channel Islands. The most common trading pairs involving the British pound are the euro (EUR/GBP) and the U.S. dollar (GBP/USD).
- Collective Defined Contribution (CDC) Plan
A CDC)Plan, also known as a target benefit or defined ambition plan, is a retirement savings plan available in the U.K. where contributions are pooled together and invested to provide members with an income during retirement. Unlike a traditional defined contribution (DC) plan, a CDC plan spreads investment risk among all plan members.
The Financial System & Economy
![Pension retirement plan](https://www.investopedia.com/thmb/P9Gk3-QOLV_ys27I2EFYha0SXFU=/724x483/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-636335244-5a0a2b7c4e4f7d0036924289.jpg)
![The London Eye and Big Ben at dusk in Westminster, London, England](https://www.investopedia.com/thmb/ye6bLBXJ763GkVdUQ3mPSUM1Sx0=/3911x2546/filters:no_upscale():max_bytes(150000):strip_icc()/london-eye-and-big-ben-at-dusk--westminster--london--england-sb10069867f-001-594131225f9b58d58a5d0030.jpg)
![London Financial District](https://www.investopedia.com/thmb/h0AqJ1TbTrtundF65vz-63tSnos=/5250x3504/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-10535138361-0fb67d6164144c0783d240a4ecd86515.jpg)
![U.K. Palace of Westminster](https://www.investopedia.com/thmb/OdrZgaoTE-X9uLBgzWdKxPRN3Rk=/3924x2616/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-580699803-1deaa77412e0432bb0580f71f5f62bb9.jpg)
![Shopper in a supermarket](https://www.investopedia.com/thmb/hs_ubj2EQ1M3HeEyh5to_1QHjc4=/6000x4002/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1485785466-e79e24323f4744a89b892088e32ff127.jpg)
![Fans wave Great Britain flags during the Men's 10m Platform Diving Preliminary](https://www.investopedia.com/thmb/LzDs1SuYBTw72hrkhgA3WXRtwJg=/5184x3456/filters:no_upscale():max_bytes(150000):strip_icc()/150128587_UnionJack-56a25d8c5f9b58b7d0c95ef0.jpg)
![Government Broker](https://www.investopedia.com/thmb/_9oMmweHMNQmk6V1wv7jegq3haI=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/government-broker.asp-final-0450750f17e54ccda2b60fa59b34e217.png)
![Commodities](https://www.investopedia.com/thmb/0HTiEBeO0phIOolR1G7YdhAt340=/4680x3120/filters:no_upscale():max_bytes(150000):strip_icc()/commodities1-56a31b953df78cf7727bcfc3.jpg)
![People doing taxes](https://www.investopedia.com/thmb/WTBBqbRby4nj_iTAh2BBu45KlfY=/2120x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-494146669-57c4fff73df78cc16e194099.jpg)
![](https://www.investopedia.com/thmb/f6is0XwMQwdQpN-liQdMNZultuM=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/investing9-5bfc2b8d46e0fb0051bddfee.jpg)
![Endowment Loan: A mortgage that permits borrowers to pay the principal at the end of the loan term.](https://www.investopedia.com/thmb/-yV3yKuR6cDC9jAn_t2McXhuGtw=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/endowment_loan.asp-final-2fac3f4b39284f58beedff2c056576ff.jpg)
![Person doing tax paperwork on a laptop at the kitchen counter](https://www.investopedia.com/thmb/zCaiQcm1tYYycsDVbR18RmjwtfY=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1282179800-4ee651006c784c79b646a555c6f9ae1d.jpg)
![Couple holding their lottery winnings](https://www.investopedia.com/thmb/LSVD2d09aRcKF6HvAYqazwY3x5Q=/4256x2832/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-155438914-a38bb6b7938a4e0daf1962328c0c4155.jpg)
![Jobseeker's Allowance (JSA)](https://www.investopedia.com/thmb/LSQ6H0QiCulQFz7tos7HpPcMZcg=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/job-seekers-allowance-jsa.asp-FINAL-9b3a2ce4aae841e8bffd0750d862471a.png)
![Rishi Sunak speaks during final Tory leadership campaigning](https://www.investopedia.com/thmb/cDRcXECOnQs3zUFzeM-SkhGS3es=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Rishi-Sunak-speaks-during-the-final-Tory-leadership-hustings-24-31082022-93183a33bbd9413ea7ab1403f780f0bc.jpg)
![Lakshmi Mittal](https://www.investopedia.com/thmb/8X3qTKoiP8VeUefoIXA1saAW1JI=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/lakshmi-mittal_final-869f0e4795784b5e866c45bfc14c0f9b.png)
![](https://www.investopedia.com/thmb/YceCR2-F8LVNToBL0yorud2MXxE=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/147688989-5bfc2b9646e0fb005119b3a5.jpg)
![A business owner receiving small business advice](https://www.investopedia.com/thmb/E_cOLYOboYA6toJUg2FXCph596A=/8256x5504/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1404347167-99c5e8ec7eb645cdbaafbe3dd69c4bbe.jpg)
![Elderly couple looking at laptop](https://www.investopedia.com/thmb/Gg7gk0ogObOoxUpDl93-q6_MOiA=/7158x4777/filters:no_upscale():max_bytes(150000):strip_icc()/13Elderlycouplelookingatlaptop-JohnnyGreig-7d530e61c40a44a3b91052071c6e00e0.jpeg)
![Medical Professionals talking](https://www.investopedia.com/thmb/SBvSgcU9qmKXyWrzWKqQfArAy44=/7922x5284/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1362936837-b6461e3be07b4b028d61120d639f4fc5.jpg)
![](https://www.investopedia.com/thmb/o21WS-AOhRcR_zsoY5CcWjNQzq0=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/shutterstock_221245621-5bfc2b32c9e77c0026b4e96b.jpg)
![Woman looking at her phone on the street](https://www.investopedia.com/thmb/KM9xQHdN6daP5QOnErsku8h7rrI=/8256x5504/filters:no_upscale():max_bytes(150000):strip_icc()/bestmma-7fcfdc24388a44779e298ad0530be921.jpg)
![Pay As You Earn (PAYE)](https://www.investopedia.com/thmb/1n36Qo6H8EOXKutNBYh6npLBGkY=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/PAYE-4191518-final-1-dd5d1c31e57448ec9f12724edebebee3.png)
![Tesco](https://www.investopedia.com/thmb/Urj1013ni0YtcHOYhFRo-9ChXCg=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/shutterstock_275210870-5bfc35d9c9e77c0026324e85.jpg)
![](https://www.investopedia.com/thmb/BZOF4Y6Vmu8S_zzsaEnmLuYWEBM=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/shutterstock_144055459-5bfc2b8546e0fb00260b22c2.jpg)
![Individuals looking at their finances](https://www.investopedia.com/thmb/g8qQpxBLB07a_lO99XaG2sbjXS0=/8192x5464/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1410779936-396bc5ca13ed4cc6ac49c729c18f2529.jpg)
![The Bank of England in London.](https://www.investopedia.com/thmb/YlvjAtLPwYgQFd4ukIuIlOTQC6A=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-173224046-2c3cb6ee62eb4a31a0f76edfbe23afc9.jpg)
![](https://www.investopedia.com/thmb/LhnsGBFR6E4BTaS7IZmt-CS7fg8=/205x136/filters:no_upscale():max_bytes(150000):strip_icc()/investing19-5bfc2b8f4cedfd0026c1194c.jpg)
![Making a sale at cafe](https://www.investopedia.com/thmb/T-poou-3aIYa7ZbMrfv9uGvTPIg=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/making-a-sale-at-cafe-524400106-3bd9cd71475a4d17a27ac1a773ad2e4c.jpg)
![JP Morgan](https://www.investopedia.com/thmb/J1paXyNqcl5Uf8WTt001iYmZJ7c=/3000x2000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-jpmorgan-5fce7167a5564f3a9b9adc5f2242b91f.jpg)
![Retail Price Index (RPI): One of two measures of consumer inflation produced by the United Kingdom's Office for National Statistics.](https://www.investopedia.com/thmb/yi5OqA8IwHC19uWBL72kyiYwn9g=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/rpi.asp-final-098e58fa7a2849deb43d48393873bc24.png)
![Lancaster University Management School (LUMS)](https://www.investopedia.com/thmb/6LjoWmzgEuYC1caRpalm-2rXUGU=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/lancaster-university-management-school.asp-V1-2aae461a645f40b18c4073dacc3e249e.jpg)
![Durham University Business School](https://www.investopedia.com/thmb/11V6dd4ioCX3UGC3I0nKdfz5ONw=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Durham-University-Business-School-Final-017e4e04b758474c80b506cdd9d83a10.jpg)
![couple managing finance and investment online, analyzing stock market trades with mobile app on smartphone](https://www.investopedia.com/thmb/ntOcESJseyr_UT43YDLq6trO7bw=/4000x2667/filters:no_upscale():max_bytes(150000):strip_icc()/Primary-Image-how-to-trade-forex-7499569-44467e75edf24375a03f63fe6f791310.jpg)
![Saïd Business School (SBS)](https://www.investopedia.com/thmb/R3sOkomW7nNrbq-FVzSVaSHyfHg=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/oxford-universitys-said-business-school.asp-Final-a71a6759a29f4c029062bbf1aefbc46a.png)
![Manchester Business School (MBS)](https://www.investopedia.com/thmb/Z3bRY24vxjEc4ucTwldytHTyGhs=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/manchester-business-school-asp-Final-6b26c77f066d4a249efc85014649558b.jpg)
![Brexodus](https://www.investopedia.com/thmb/ep_nl8Al_vMrIr-wW6oN0V9H4dQ=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/brexodus.asp-FINAL-002c612cd899457097920e9495a04b18.png)
![Cambridge Judge Business School](https://www.investopedia.com/thmb/BhjOa1FgENwQTo0tXQu44aIQzTA=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Cambridge-Judge-Business-School-Final-fd81ced14a8a4afe827542d0c865d3b1.jpg)
![Child loading up dishwasher](https://www.investopedia.com/thmb/DBHVLWNXVSElHIWeruQZu76WC5Q=/4943x3295/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-12109459301-d09480a47eb740dd8345216fa0d86e1f.jpg)
![Association of British Insurers (ABI)](https://www.investopedia.com/thmb/VrjngCpJVHqH2gMIV0r7opZhEaE=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/association-of-british-insurers.asp_final-4c2fe6c9754a46d09d1e041cb95a8605.png)
![Gazunder](https://www.investopedia.com/thmb/dQDPvgTtJH8jxrJX9qPYkGsM02o=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/gazunder.asp-final-f66a8bb118ea4f84be332b4297e0e909.png)
![Institute of Chartered Accountants in England and Wales (ICAEW)](https://www.investopedia.com/thmb/t7fI-p4Xt60c3-GnigqcgbiBwP4=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/institute-chartered-accountants-england-wales-icaew.asp-final-d6bc7d6a0c5f4fe9b8369829873f1b86.png)
![Looking up at futuristic city skyscrapers in London](https://www.investopedia.com/thmb/Ujj2X46yGbkQKixnZ6we01cawtg=/2121x1414/filters:no_upscale():max_bytes(150000):strip_icc()/looking-up-at-futuristic-city-skyscrapers-in-london-1049248288-1bb3236325854b549744d2de1c9f68fe.jpg)
![Street in City of London With Royal Exchange, Bank of England and New Modern Skyscrapers](https://www.investopedia.com/thmb/gyfuEJTEDXOf3TqwjVXlU_tC8r8=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-923317900-237a2fce767947ceac7aae7811c48798.jpg)
![The British Royal Family wave at a crowd from the balcony of Buckingham Palace](https://www.investopedia.com/thmb/EySeRuQ69BCtPgElNJxtonsMYhw=/4185x2671/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-476957156-8ce86f66bb3e40059b8bfef92272ec0d.jpg)
![](https://www.investopedia.com/thmb/mebR0w7ARo08CptMg8tU7vxSr-c=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/investing7-5bfc2b8d46e0fb0051bddff8.jpg)
![](https://www.investopedia.com/thmb/3eLjBFYPWP-RC2og2EyabEEGNVs=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/forex5-5bfc2b9146e0fb0026016fa6.jpg)
![A man uses a Santander cashpoint](https://www.investopedia.com/thmb/ffHsO3ZJhRkXpRy9OqZpboTPxcg=/3296x2197/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1060860700-fa8093a4088341248a5ba2c9fb48cb5f.jpg)
![two female college graduates](https://www.investopedia.com/thmb/iuTSymsE6PUqVXWta16iCjlXUnY=/2121x1416/filters:no_upscale():max_bytes(150000):strip_icc()/two-female-college-graduates-56a437ca3df78cf77281532b.jpg)
![Westminster Palace](https://www.investopedia.com/thmb/QsI8S75LpGgRoE9MYq8TN-cSBFk=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1024123218-ff0b024dbfc540829002222c2b1d7f17.jpg)
![London Stock Exchange Paternoster Square](https://www.investopedia.com/thmb/rtvKbptY6aqnB0AkB-gTc9jB8SY=/2168x1382/filters:no_upscale():max_bytes(150000):strip_icc()/london_stock_exchange-113017429-d2af52b2c72b427e8043a62cb5e01778.jpg)
![A trader's computer screen is displayed as financial professional work on the floor of the New York Stock Exchange (NYSE) ahead of the closing bell, May 15, 2017 in New York City. The Dow Jones industrial average was up 85 points at close on Monday, in addition to record setting days by the Nasdaq and S&P 500.](https://www.investopedia.com/thmb/6omYGtxx3UlIdZTNyfj76QSIZmA=/4613x3075/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-683440018-98739d0eea11429faee8c92a17047ebc.jpg)
![Various currencies on a table](https://www.investopedia.com/thmb/osd0hnqJCUMsLJ6fYo1a1-ZxorY=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/shutterstock_67023106-5bfc2b9846e0fb005144dd87.jpg)
![Students stand at graduation ceremony in caps and gowns](https://www.investopedia.com/thmb/F7pVnGxgi5g0MshjG82J6iyjR3I=/2120x1415/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-657500214-5a1bff6a13f1290038028db2.jpg)
![Traders discussing stock prices](https://www.investopedia.com/thmb/YGlPoJ-ICU6vBoFQtj7u9yLSrao=/2122x1412/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1483335029-21331ce4bf3646ce96eee9168bfd6d24.jpg)
![United Kingdom and European Union Jigsaw Puzzle, Illustration](https://www.investopedia.com/thmb/Hb3_jO0s6wfaUajC_30oO7sewTY=/1500x1127/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1128676901-4e85a8615e614390b2b4cfcf9983c4e2.jpg)
![Pound coins and bank notes](https://www.investopedia.com/thmb/X7HDxkZxqCYVBs-3LXWmo-j0mhY=/5500x4123/filters:no_upscale():max_bytes(150000):strip_icc()/pound-coins-and-bank-notes-909209038-12157191afee4e0e9042092e075a3123.jpg)
![Close up of the Back of a New British Twenty Pound Note showing Adam Smith's head.](https://www.investopedia.com/thmb/gOoYbSgBfpy_sYSpC3zIKR2o3Uo=/3872x2592/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-140448309-7e3224ea9e0940d7bf91f4a84a1193e4.jpg)
![](https://www.investopedia.com/thmb/fDpWuxOAMRsVXJGF6ENzO7AQ0y0=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/business_building_153697270-5bfc2b9846e0fb0083c07d69.jpg)
![Street in City of London in the Evening, London, UK](https://www.investopedia.com/thmb/nvWtU5gBwqfyQ8CSFVR276H2jMw=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/street-in-city-of-london-in-the-evening--london--uk-904166384-4b0b1918ea9748419dd44417ebdc3c64-f2b80b2beddd47448ab2d9e6f34c061d.jpg)
![British pound banknotes](https://www.investopedia.com/thmb/27W9AfHt7XrdMVEj4Sr6-ENNrpE=/2119x1415/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-696622564-674ca3ef12af48cf85d27874dc7cc263.jpg)
![](https://www.investopedia.com/thmb/tIpmpPOmIjqGhGywKjx2tPSxHYA=/1000x642/filters:no_upscale():max_bytes(150000):strip_icc()/AdobeStock_90972520-5c9361dbc9e77c00015f6975.jpeg)
![BP logo near the top of the BP Exploration Alaska headquarters.](https://www.investopedia.com/thmb/8DarFNl0WUfzH2BBihlGKs0Si6Y=/1024x683/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1170591182-fca45066c2bc4d80a6175c6fdbd1cb3e.jpg)
![](https://www.investopedia.com/thmb/MDR4IO9PU4OClXzwCQ27NqSYx4w=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/shutterstock_154521719.shere_.village.surrey.uk_.england.cropped-5bfc3bb446e0fb00260f52ac.jpg)
![](https://www.investopedia.com/thmb/BFuuaAYOUgxGrrnMRbMHJM9-qw4=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/london-5bfc316d46e0fb005145eac4.jpg)