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Glossary


C

Capital

The money you initially put into an investment. (E.g. when you invest $100 in a bank term deposit this is your capital amount on which you get paid interest.)

Category 1 Products

Products with more of an investment focus including shares, managed funds and KiwiSaver.

Category 2 Products

Simpler products such as insurance, mortgages, and bank term deposits.

Class Service

A service targeted toward a wide class of people rather than an individual. (E.g.brochures, seminars and internet material).

Code Committee

The Code Committee developed the Code of Professional Conduct for Authorised Financial Advisers.

Conflict of Interest

A conflict of interest can occur when an adviser's interests are different from yours. (E.g. if an adviser is paid to sell an investment to people they could be tempted to sell you that product even if it is not suitable for you.)

Conflicts of Interest

Conflicts of interest can occur when an adviser's interests are different from yours. (E.g. if an adviser is paid to sell an investment to people they could be tempted to sell you that product even if it is not suitable for you.)

Continuous Disclosure

Companies listed on a registered exchange have to disclose important information that could affect the price of their securities as soon as it is known. This keeps the whole market informed of materially price-sensitive information, and ensures all investors have equal access to it.

Continuous Issue Prospectus

A prospectus for securities that the issuer, in the ordinary course of its business, continuously offers to the public and that is not the first prospectus registered for that class of securities.

Contributory Mortgage

Investors' money is pooled and lent to someone, and this loan is secured against a piece of land. Generally investors' funds are lent to a property developer, and the value of the security on the land depends on the developer successfully completing and selling the development.