Compensation1. The GATT principle that members who violate GATT rules must compensate other countries by lowering tariffs or making other concessions, or be subject to retaliation. 2. The actual or potential payment by the winners from a change in trade or other policy to the losers, intended to undo the harm to the latter. Actual compensation is rare, but the potential for compensation is used as the basis for most evaluations of the gains from trade.
CompensationArrangement under which the delivery of goods to a party is paid for by buying back a certain amount of the product from the recipient of the goods.
Pensions Compensation BoardPensions Compensation Board
An independent body set up on 6th April 1997 which pays compensation to individuals where money has been taken dishonestly from occupational pension scheme funds and the employer had become insolvent.
Fee based compensationFee based compensation
Payment to a financial adviser of a set hourly rate, or an agreed-upon percentage of assets under management, for a financial plan. When the plan is implemented, the adviser may also receive commission on some or all of the investment products purchased, which would be fee-and-commission compensation.
Full compensationFull compensation
Payment for delivery of goods to one party by buying back more than 100 % of the value that was originally sold.
Deferred compensationDeferred compensation
An amount that has been earned but is not actually paid until a later date, typically through a payment plan, pension, or stock option plan.
Investors Compensation SchemeInvestors Compensation Scheme
A compensation scheme for investors with operating rules set by the Financial Services Authority (FSA). This scheme was replaced by the Financial Services Compensation Scheme (FSCS) in December 2001.The FSCS may be able to assist private investors if the firm with whom an investment was made is fully authorised and has gone into default and cannot pay out claims. No compensation can be sought when investment values decrease as a result of market trends or inflation. The maximum amount claimable under the FSCS is £48,000 which comprises the first £30,000 in full and 90% of the next £20,000. Note: An authorised firm must have satisfied the FSA that it is 'fit and proper' to conduct investment business. A list of authorised firms, known as the Central Register is maintained by the FSA. However members of Recognised Professional Bodies (RPBs) such as solicitors are not included in the ICS and operate their own compensation arrangements.
Further SuggestionsFinancial Services Compensation Scheme
Fee only compensation
Fee and commission compensation