What Is the Federal Insurance Contributions Act (FICA)? The Federal Insurance Contributions Act (FICA) is a U.S. law enacted in 1935 that mandates a payroll tax on the paychecks of employees, with matching contributions from employers. The money collected is used to fund the Social Security and Medicare programs. From the beginning, the idea behind
What Is the Fixed Income Clearing Corporation (FICC)? The term Fixed Income Clearing Corporation (FICC) refers to a regulatory clearing agency that deals with the confirmation, settlement, and delivery of fixed-income assets in the U.S. The agency was established in 2003 as a subsidiary of the Depository Trust & Clearing Corporation (DTCC). It ensures the
What Is FICO 8? FICO 8 is the most widely used version of the standard model used to score consumers on their use of credit. The FICO score gets its name from the Fair Isaac Corporation (now called FICO), the California-based data analytics firm that in 1989 created the system for rating the use of
What Is FICO? FICO is a major data analytics software company that provides products and services to both businesses and consumers. Previously known as the Fair Isaac Corporation, the company changed its brand name to FICO in 2009 and is best known for producing the most widely used consumer credit scores that financial institutions rely
What Is a FICO Score? A FICO score is a credit score created by the Fair Isaac Corporation (FICO). Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit. FICO scores take into account data in five areas to determine credit worthiness:
What Is a Fidelity Bond? A fidelity bond is a form of business insurance that offers an employer protection against losses that are caused by its employees’ fraudulent or dishonest actions. Also known as an “honesty bond,” this form of insurance can protect against monetary or physical losses. In Australia, a fidelity bond is called
What Is a Fiduciary? A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ interests ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other’s best interests.
What Is a Foreign Invested Enterprise (FIE)? A foreign-invested enterprise (FIE) is any one of several legal structures under which a company can participate in a foreign economy. FIEs tend to have tight government regulation at several important junctures, which can limit how much a company can profit from foreign ventures, as well as the
What Is Field of Use? Field of use is a restriction (the opposite of an endorsement) placed on a license granted for the use of an existing patent, invention, or other intellectual property. It limits the scope of the licensee’s right to use it for a particular purpose (or field of use). This stops the
What Is the Federal Reserve Bank of Philadelphia? The Federal Reserve Bank of Philadelphia is part of the broader Federal Reserve System (FRS) that is charged with creating and executing U.S. monetary policy. It also supervises banks and related financial institutions in its region and provides financial services to area depository institutions and the federal
