Background to the Firm
The Firm is incorporated in the UK
and is authorised and regulated by the FCA as a MiFID Investment Management
Firm. The Firm’s activities give it the BIPRU categorisation of a ‘BIPRU
Investment & Portfolio
Consultants Limited is not a member of a UK Consolidation Group and does not
have an Investment Firm Consolidation Waiver deducting Material Holdings
under (GENPRU 2 Annex 4).
The Pillar 3 disclosure of
Investment & Portfolio Consultants Limited (“the Firm”) is set out below
as required by the FCA’s “Prudential Sourcebook for Banks, Building Societies
and Investment Firms” (BIPRU) specifically BIPRU 11.3.3 R. This is a
requirement which stems from the UK’s CRDIII implementing Regulations which
represented the European Union’s application of the Basel Capital Accord. The
Firm is no longer formally subject to CRD but remain subject to the UK’s
implementation Regulations of CRD prior to CRDIV. The regulatory aim of the
disclosures is to improve market discipline.
The Firm will be making Pillar 3
disclosures at least annually. The disclosures will be as at the Accounting
Reference Date (“ARD”), 30th June.
Media and Location
A summary disclosure will be
published on IPC’s website and the full disclosure will be available on
request from IPC’s Compliance Officer.
The information contained in this
document has not been audited by the Firm’s external auditors, as this is not
a requirement, and does not constitute any form of financial statement and
must not be relied upon in making any judgement on the Firm.
The Firm regards information as
material in disclosures if its omission or misstatement could change or
influence the assessment or decision of a user relying on that information for
the purpose of making economic decisions. If the Firm deems a certain
disclosure to be immaterial, it may be omitted from this Statement.
The Firm regards information as
proprietary if sharing that information with the public would undermine its
competitive position. Proprietary information may include information on
products or systems which, if shared with competitors, would render the Firm’s
investments therein less valuable. Further, the Firm must regard information
as confidential if there are obligations to customers or other counterparty
relationships binding the Firm to confidentiality. In the event that any such
information is omitted, we shall disclose such and explain the grounds why it
has not been disclosed.
The CRD, to which the Firm remains
subject as a consequence of the UK CRDIII
implementing Regulations, have
Pillar 1 deals with minimum capital
Pillar 2 deals with Internal
Capital and Risk Assessment (ICARA) undertaken by a firm and the Supervisory
Review and Evaluation Process through which the Firm and Regulator satisfy
themselves on the adequacy of capital held by the Firm in relation to the
risks it faces and;
Pillar 3 which deals with public
disclosure of risk management policies, capital resources and capital
requirements. The regulatory aim of the disclosure is to improve market discipline.
The Firm is a MiFID Investment
Management Firm. It provides a number of investment services including
management, advice and brokerage. The Firm does not hold client money or
assets. The Firm’s greatest risks have been identified as business and operational
The Firm is required to disclose
its risk management objectives and policies for each
separate category of risk which
include the strategies and processes to manage those risks; the structure and
organisation of the relevant risk management function or other appropriate
arrangement; the scope and nature of risk reporting and measurement systems; and
the policies for hedging and mitigating risk, and the strategies and
processes for monitoring the continuing effectiveness of hedges and mitigants.
The Firm has assessed business and
operational risks in its ICARAP and set out appropriate actions to manage
The Firm has an operational risk
framework (described below) in place to mitigate
The Firm’s main exposure to credit
risk is the risk that fees cannot be collected and as some fees are paid in
advance or linked to transactions the risk of non-collection
is low. Therefore, the overall
credit risk is considered low. The Firm holds all
cash and performance fee balances
with banks assigned high credit ratings.
Market Risk exposure has been
assessed by the Firm and is limited to the Firm’s exposure to foreign
currency exchange rate risk and hence to any assets held on the Firm’s
Balance Sheet denominated in a foreign currency. The Firms Reporting Currency
is GBP and all foreign currency assets are converted into GBP where possible
on a regular basis.