Registered number |
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Kinnerton Credit Management Limited | |
Report and financial statements | |
Contents | |
Page | |
Company information | 1 |
Directors' report | 2 |
Strategic report | 3 |
Independent auditor's report | 4 |
Income statement | 5 |
Statement of comprehensive income | 6 |
Statement of financial position | 7 |
Statement of changes in equity | 8 |
Notes to the financial statements | 9-14 |
Capital and Risk Management Pillar 3 Disclosure | 15-18 |
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Company Information |
Directors |
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Auditors |
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15 Canada Square |
London |
E14 5GL |
Registered office |
1st Floor Regency House |
Kings Place |
Buckhurst Hill |
Essex |
IG9 5EB |
Registered number |
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Registered number: |
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Directors' Report | |||||||
The directors present their report and financial statements for the year ended |
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Principal activity | |||||||
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Results and dividends | |||||||
The result for the period is shown in the Statement of Comprehensive Income on page |
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Directors | |||||||
The following persons served as directors during the year: | |||||||
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C Broberg | |||||||
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Directors' responsibilities |
The directors are responsible for preparing the directors' report, strategic report and financial statements in accordance with applicable law and regulations. | |||||||
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: | |||||||
● | select suitable accounting policies and then apply them consistently; | ||||||
● | make judgements and estimates that are reasonable and prudent; | ||||||
● | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
● | assess the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and |
● | prepare the financial statements on the going concern basis unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities. | |||||||
Disclosure of information to auditors |
Each person who was a director at the time this report was approved confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
Auditor | |||||||
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This report was approved by the board on |
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M Roberts | |||||||
Director | |||||||
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Strategic Report | ||
Principal activity The company's principal activity during the period was that of an authorised Alternative Investment Fund Manager (AIFM). Future developments The company has performed broadly in line with its budget and expects to continue to perform profitably in line with its forecasts. The company is monitoring Brexit developments to ascertain the effect on the company's activities. Principle risks and uncertainties The risks outlined below are those risks and uncertainties that the directors consider material to the Company. They are not presented in any order of priority. There may be other risks that are either currently unknown, or considered by the directors to be immaterial, which could adversely affect the Company's business, results of operation or financial condition. The directors routinely monitor risks that could materially and adversely affect the Company's ability to achieve strategic goals, financial condition and results of operations. Regulatory risk Given the nature of the Company's business streams, there is always a possibility that regulations could change, the Company could provide wrong or mis-leading advice. The compliance officer regularly reviews upcoming legislation and ensures the required changes are put in place on a timely basis. Reputational risk There is a risk that clients could complain and/or claim for compensation if they have cause to believe they have been provided with negligent advice or have experienced poor or suboptimal client administration. The Company has adequate control processes and systems in place, and staff are also suitably qualified and trained such that the risk of complaints and/or claims is minimised. The board continually reviews the existing processes and controls employed by the business to ensure that improvements when identified can be implemented as soon as possible. |
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Reliance on key employees The Company's future success depends on the continued service of senior management and key technical personnel, the retention of which cannot be guaranteed. Dependence on technology The Company may be adversely affected by activities such as system intrusions, service attacks, virus spreading and phishing. Due diligence procedures have been carried out to ensure service providers cyber crime defence systems are adequate. However it is important to note that the most critical service providers are financial institutions which have to comply with relevant cyber security regulations. The Company has in place data recovery and systems recovery procedures, security measures and business continuity plans in the event of failure or disruption, or damage to, the Company's technology or systems. The Company's operations are highly dependent on technology and advanced information systems and there is a risk that such technology or systems could fail. |
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The Company's operations are highly dependent on technology and advanced information systems and there is a risk that such technology or systems could fail. | ||
M Roberts | ||
Director | ||
Kinnerton Credit Management Limited | ||
Independent auditor's report | ||
to the members of Kinnerton Credit Management Limited | ||
Opinion |
We have audited the financial statements of Kinnerton Credit Management Limited ("the company") for the year ended 31 December 2017 which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity and related notes, including the accounting policies in note 1. |
In our opinion the financial statements: |
● | give a true and fair view of the state of the company's affairs as at 31 December 2017 and of its profit for the year then ended; |
● | have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and |
● | have been prepared in accordance with the requirements of the Companies Act 2006. | |
Basis for opinion | ||
We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. |
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Going concern | ||
We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least twelve months from the date of approval of the financial statements. We have nothing to report in these respects. | ||
Strategic report and directors' report | ||
The directors are responsible for the strategic report and the directors' report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon. Our responsibility is to read the strategic report and the directors' report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work: - we have not identified material misstatements in the strategic report and the directors' report; - in our opinion the information given in those reports for the financial year is consistent with the financial statements; and - in our opinion those reports have been prepared in accordance with the Companies Act 2006. |
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Matters on which we are required to report by exception | ||
Under the Companies Act 2006 we are required to report to you if, in our opinion: | ||
● | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or | |
● | the financial statements are not in agreement with the accounting records and returns; or | |
● | certain disclosures of directors' remuneration specified by law are not made; or | |
● | we have not received all the information and explanations we require for our audit. | |
We have nothing to report in these respects. | ||
Directors’ responsibilities | ||
As explained more fully in their statement set out on page 2, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. | ||
Auditor’s responsibilities | ||
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. | ||
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. | ||
The purpose of our audit work and to whom we owe our responsibilities | ||
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed. | ||
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(Senior Statutory Auditor) | 15 Canada Square | |
for and on behalf of | London | |
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E14 5GL | |
Chartered Accountants | ||
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Income Statement | ||||||||
for the year ended |
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Notes | 2017 | 2016 | ||||||
£ | £ | |||||||
Turnover | 2 |
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Administrative expenses | ( |
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Other operating income |
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Operating profit | 4 |
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Interest receivable | 3 |
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Interest payable | 6 | ( |
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Profit on ordinary activities before taxation |
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Tax on profit on ordinary activities | 7 | ( |
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Profit for the financial year |
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Notes 1 to 18 are integral to these financial statements. All items dealt with in arriving at the company's results for the financial year and prior year relate to continuing operations. | ||||||||
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Statement of comprehensive income | |||||||
for the year ended |
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Notes | 2017 | 2016 | |||||
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Profit for the financial year |
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Other comprehensive income | |||||||
Total comprehensive income for the year |
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Notes 1 to 18 are integral to these financial statements. All items dealt with in arriving at the company's results for the financial year and prior year relate to continuing operations. | |||||||
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Registered number | 09497113 | |||||
Statement of Financial Position | |||||||
as at |
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Notes | 2017 | 2016 | |||||
£ | £ | ||||||
Current assets | |||||||
Debtors | 8 |
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Cash at bank and in hand | 9 |
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Creditors: amounts falling due within one year | 10 | ( |
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Net current assets |
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Net assets |
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Capital and reserves | |||||||
Called up share capital | 11 |
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Profit and loss account | 12 |
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Total equity |
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Notes 1 to 18 are integral to these financial statements. All items dealt with in arriving at the company's results for the financial year and prior year relate to continuing operations. | |||||||
M Roberts | |||||||
Director | |||||||
Approved by the board on |
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Statement of Changes in Equity | ||||||||
for the year ended |
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Share | Profit | Total | ||||||
capital | and loss | |||||||
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£ | £ | £ | ||||||
At 1 April 2016 |
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Profit for the period | - | 208,773 | 208,773 | |||||
At 31 December 2016 | 620,000 | 157,783 | 777,783 | |||||
At 1 January 2017 |
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Profit for the financial year | - |
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Dividends | - | ( |
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At 31 December 2017 |
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Notes 1 to 18 are integral to these financial statements. All items dealt with in arriving at the company's results for the financial year and prior year relate to continuing operations. | ||||||||
Kinnerton Credit Management Limited | ||||||||
Notes to the Financial Statements | ||||||||
for the year ended 31 December 2017 | ||||||||
1 | Summary of significant accounting policies | |||||||
Basis of preparation | ||||||||
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Turnover | ||||||||
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Cash and cash equivalents | ||||||||
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1 | Summary of significant accounting policies (continued) | |||||||
Taxation | ||||||||
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Presentation currency | ||||||||
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Foreign currency translation | ||||||||
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Interest receivable and interest payable | ||||||||
Interest income and interest payable is recognised in the statement of profit and loss and other comprehensive income as it accrues, using the effective interest method. |
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Going concern assessment | ||||||||
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2 | Analysis of turnover | 2017 | 2016 | |||||
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Services rendered |
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By geographical market: | ||||||||
Europe |
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3 | Interest receivable | |||||||
Interest receivable originates from the UK. | ||||||||
4 | Operating profit | 2017 | 2016 | |||||
£ | £ | |||||||
This is stated after charging: | ||||||||
Other operating income, exchange rate gains | ( |
( |
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Auditors' remuneration for audit services |
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Auditors' remuneration for other services |
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Employee costs including travel | 74,942 | 31,376 | ||||||
Premises costs | 936 | 7,361 | ||||||
General administrative expenses | 38,243 | 23,939 | ||||||
Legal and professional costs | 1,846,107 | 1,453,155 | ||||||
Key management personnel compensation (including directors' emoluments) |
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5 | Staff costs | 2017 | 2016 | |||||
£ | £ | |||||||
Directors Remuneration |
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Social security costs |
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6 | Interest payable | 2017 | 2016 | |||||
£ | £ | |||||||
Bank loans and overdrafts |
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Other loans | - |
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7 | Taxation | 2017 | 2016 | |||||
£ | £ | |||||||
Analysis of charge in period | ||||||||
Current tax: | ||||||||
UK corporation tax on profits of the period |
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Tax on profit on ordinary activities |
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Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2017 | 2016 | |||||||
£ | £ | |||||||
Profit on ordinary activities before tax |
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£ | £ | |||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax |
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Effects of: | ||||||||
Expenses not deductible for tax purposes |
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Current tax charge for period |
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Factors that may affect future tax charges | ||||||||
Further reductions to the main rate of UK corporation tax to 19% from 1 April 2017 and 18% from 1 April 2020 were enacted in 2015. An additional reduction to 17%, effective 1 April 2020 was substantively enacted on 8 September 2016. This will reduce the company's future current tax charge accordingly. |
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8 | Debtors | 2017 | 2016 | |||||
£ | £ | |||||||
Other debtors |
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9 | Cash at bank and in hand | |||||||
The cash at bank comprises four bank accounts. Three accounts are sterling accounts, one for everday transactions, one for capital requirements and one as a collateral account for the company's credit card. There is also an account designated in Danish Krone for local Danish everyday transactions. | ||||||||
10 | Creditors: amounts falling due within one year | 2017 | 2016 | |||||
£ | £ | |||||||
Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest | - |
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Corporation tax |
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Other taxes and social security costs | - |
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Accruals and deferred income |
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11 | Share capital | Nominal | 2017 | 2017 | 2016 | |||
value | Number | £ | £ | |||||
Allotted, called up and fully paid: | ||||||||
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12 | Profit and loss account | 2017 | 2016 | |||||
£ | £ | |||||||
At 1 January |
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Profit for the financial year |
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Dividends | ( |
- | ||||||
At 31 December |
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13 | Dividends | 2017 | 2016 | |||||
£ | £ | |||||||
Dividends on ordinary shares (note 12) |
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14 | Events after the reporting date | |||||||
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15 | Contingent liabilities | |||||||
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16 | Related party transactions | |||||||
During the accounting period Kinnerton Group A/S, the parent company of Kinnerton Credit Management Ltd and a company in which J Bisgaard-Frantzen has a significant interest, provided consultancy services to the company amounting to £127,706 (9 months to 31 December 2016: £143,522). At the statement of financial position date there was no amount due to Kinnerton Group A/S. During the accounting period Kinnerton Ireland Ltd, a company incorporated in the Republic of Ireland and a fellow subsidiary of Kinnerton Group A/S, provided consultancy services to the company amounting to £202,424 (9 months to 31 December 2016: £nil). At the statement of financial position date there was no amount due to Kinnerton Ireland Ltd. During the accounting period M J Roberts Associates Limited, a company controlled by M Roberts, provided services to the company totalling £48,220 (9 months to 31 December 2016: £35,009). At the statement of financial position date there was no amount due to KM J Roberts Associates Ltd. The largest and smallest group of undertakings that the company is a subsidiary of and is included in the group accounts is Kinnerton Group A/S. |
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17 | Controlling party | |||||||
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18 | Legal form of entity and country of incorporation | |||||||
Kinnerton Credit Management Limited is a private company limited by shares and incorporated in England. | ||||||||
19 | Principal place of business | |||||||
The address of the company's principal place of business and registered office is: | ||||||||
1st Floor Regency House | ||||||||
Kings Place | ||||||||
Buckhurst Hill | ||||||||
Essex | ||||||||
IG9 5EB | ||||||||
The Capital and Risk Management Pillar 3 Disclosure is not part of the audited financial statements | ||||||||
Capital and Risk Management Pillar 3 Disclosure | ||||||||
1 Introduction | ||||||||
Kinnerton Credit Management Limited (“Kinnerton” or the “firm”) was authorised on 1 March 2016 and is regulated by the Financial Conduct Authority (“FCA”) with reference number 688914. The Firm is currently approved as an Alternative Investment Fund Manager (“AIFM”) under the Alternative Investment Fund Managers Directive (“AIFMD”) and as a BIPRU firm under Markets in Financial Instruments Directive (“MiFID”). Kinnerton is not part of a group for FCA reporting purposes. | ||||||||
As an AIFM that undertakes certain MiFID activities, Kinnerton is classified as a Collective Portfolio Management Investment (“CPMI”) firm and, as such, is subject to both the BIPRU prudential rules and the prudential rules for Alternative Investment Fund Managers per IPRU (INV) Chapter 11. | ||||||||
The disclosure has been prepared by the firm in accordance with BIPRU 11 and summarises the material disclosures the firm is required to make under Pillar 3 of the Capital Requirements Directive. The information in these disclosures has not been audited by Kinnerton’s external auditors, and accordingly is included as an appendix to the firm’s financial statements. | ||||||||
2 Regulatory background | ||||||||
The Basel II Accord, implemented through the Capital Requirements Directive, details the standard regulatory capital framework for the financial services industry within the European Union and consists of three pillars: | ||||||||
· Pillar 1 specifies the minimum capital requirements of firms to cover credit, market and operational risk; | ||||||||
· Pillar 2 requires firms to assess the need to hold additional capital to cover risks not covered under Pillar 1; and | ||||||||
· Pillar 3 requires a set of disclosures to be made which enable market participants to assess information on firms’ capital, risk exposures and risk assessment procedures. | ||||||||
3 Frequency | ||||||||
Unless stated otherwise, all figures are as at 31 December 2016. Future disclosures will be on an annual basis or more frequently if required. | ||||||||
4 Risk Management objectives and policies | ||||||||
4.1 Risk management objective | ||||||||
Generally, the firm has a low risk tolerance and seeks to manage its operations and development prudently. | ||||||||
4.2 Risk and Governance Framework | ||||||||
The Chief Risk Officer (“CRO”) is responsible for establishing and maintaining its governance arrangements and implementation of a risk management framework that recognises and mitigates the risks that the business faces. Risk is managed through the firm’s risk register which is maintained by the CRO and reviewed by the Board quarterly. The Board of Directors (the “Board”) review further risks identified and monitor ongoing risks for changes. | ||||||||
The Board considers a “low” to “low-medium” risk appetite appropriate for the company due to two main factors – firstly, that the firm believes that it operates in a medium risk environment. It only provides services to professional clients. It does not deal in investments as principal and does not deal with complex products or hold client money. | ||||||||
Secondly as the directors are so close to the business, they are able to actively manage risk on a day to day basis. While all firms face inherent risk and it is not possible to eliminate risk, the Board can mitigate all risks where possible and ensure that sufficient capital is held where these inherent/ residual risks exist. | ||||||||
5 Capital Resources | ||||||||
During the period 1 January 2017 to 31 December 2017, the company complied with all the FCA capital requirements. | ||||||||
The table below shows the breakdown of the Firm’s total available capital as at 31 December 2017 . |
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As at 31 December 2017 (bar FOR, est. end 2018) | Pillar 1 capital (£000) | Pillar 2 capital (£000) | ||||||
Credit Risk | 18 | |||||||
Market Risk | 10 (accounts for expected dividend, see below) | |||||||
Fixed Overhead Requirement | 545 | |||||||
Funds under Management Requirement | 104 | |||||||
Professional Negligence Requirement | 17 | |||||||
Pillar 1 total | 562 | |||||||
Results of stress testing | 0 | |||||||
Pillar 2 total | 0 | |||||||
ICAAP Capital | 562 | |||||||
Current total capital | 620 (with exp. dividend of 325, hence not stated as 949 per accounts) | |||||||
Surplus | 58 | |||||||
5.1 BIPRU 3 - Credit risk | ||||||||
For the Pillar 1 Regulatory Capital calculation of Credit Risk, Kinnerton has adopted the Standardised approach (BIPRU 3.4) to credit risk and the Simplified method of calculating risk weights (BIPRU 3.5). | ||||||||
The main credit risk is that investment management fees are not paid to the firm by its investors and exposure to banks where cash is deposited. Given the nature of the underlying investors categorised as mainly professional / institutional in nature, the risk is deemed to be very remote. | ||||||||
5.2 BIPRU 6 - Operational risk | ||||||||
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external causes. These failures can be deliberate, accidental or natural. | ||||||||
The Operational Risk Capital Requirement is not applicable to the firm under Pillar 1 as it is a Limited Licence firm. However, the firm does have operational risks which have been considered as part of its Pillar 2 assessment. | ||||||||
The key operational risks can be summarised below: | ||||||||
· Risk of Fraud and financial crime | ||||||||
This risk may result from the firm’s investor base or personnel among others - the firm seeks to minimize the opportunity for fraud and financial crime by having relevant FCA policies in place which are continually monitored. The firm’s staff undergo annual AML training and a financial crime risk assessment is undertaken on an annual basis to ensure any risks are monitored and mitigated properly. | ||||||||
· System Failure | ||||||||
This risk may result from a failure of IT systems or breach of cybersecurity - the firm manages this risk by having a business continuity plan in place which is updated and tested on an annual basis. The firm also has an IT service provider which maintains a complete back up of all stored data. The firm’s IT systems have firewalls and other protective measures in place to guard against cybercrime and the firm also ensures that its service providers have similar cyber security measures in place. | ||||||||
· Key person risk | ||||||||
This risk may result from a key person leaving – out of the firm’s three funds only one has a “live” key man clause. Notwithstanding the clauses, the firm deem it to be a risk in the event of a key man leaving. The firm sees this risk as minimal as the main key man is the founder, one of the main owners and director of the firm. Also, due to the maturity of the funds, the worst case, would only be likely to lead to a very gradual wind down. | ||||||||
· Outsourcing risks | ||||||||
This is risk may result from a service providers defaulting - the firm seeks to minimize this risk by carrying out annual due diligence on the main service providers as part of its policies and procedures regarding delegation, including on-site due diligence. | ||||||||
In conclusion, after consideration of these risks, and due to mitigating controls, no Pillar 2 capital was set aside for operational risk. | ||||||||
5.3 BIPRU 7- Market risk | ||||||||
Market risk arises from fluctuations in values of or income from assets in foreign currencies. There is some risk in the event that the GBP depreciates against the Danish Krone, where the firm has material fees and expenses to pay to the Danish Investment Adviser, Kinnerton Capital A/S, for provision of advisory services. However, we do not deem the risk material to the extent that the underlying liabilities could not be met. At present, the firm’s remaining liabilities are in GBP. | ||||||||
We have applied the simplest methods available to us. Foreign exchange risk has been calculated as 8% of the overall net FX exposure. GBP is our base currency. | ||||||||
6 Overall Pillar 2 Rule | ||||||||
Kinnerton has in place the systems it needs to assess and maintain the capital that it considers adequate to cover the risks it faces or potentially faces. | ||||||||
The firm reviews its ICAAP at least annually, or more frequently if required, and uses the ICAAP to assess the amount of regulatory capital it needs both now and in the future. | ||||||||
7 Other risks | ||||||||
Under BIPRU 11 disclosure rules, certain other risks need to be assessed: | ||||||||
· Non trading book exposures in equities | ||||||||
As Kinnerton does not invest in equities this is not a risk that needs to be disclosed | ||||||||
· Exposures to interest rate risk in the non-trading book | ||||||||
As the firm does not hold loans and its cash balance are not material, Kinnerton do not consider this to be a key risk | ||||||||
· Securitisation | ||||||||
Kinnerton does not undertake securitisation. | ||||||||
8 Remuneration | ||||||||
The aim of the Remuneration Code (the “Code”) is to ensure that firms have risk- focused remuneration policies, which are consistent with and promote effective risk management and do not expose them to excessive risk. Under the Code, Kinnerton is classified as a level three firm, which allows Kinnerton to disapply many of the technical requirements of the Code and proportionately apply its rules and principles in establishing our policy. | ||||||||
Kinnerton does not have a separate remuneration committee. The Board of Kinnerton has overall responsibilities for Compliance with the Code. No external consultants have been used for the determination of the remuneration policy | ||||||||
Kinnerton’s Board has considered the Code and adopted a Remuneration Policy which is designed to ensure that Kinnerton complies with the Code and that its compensation arrangements: | ||||||||
· are consistent with sound and effective risk management; | ||||||||
· do not encourage excessive risk taking; | ||||||||
· include measures to ensure conflicts of interest; | ||||||||
· are in line with the Company’s business strategy, objectives, values and long term interest; and | ||||||||
· take into account the company’s financial projections and capital requirement. | ||||||||
Under the Kinnerton’s remuneration practices, salaries are structured with reference to internal and external remuneration benchmarks, taking account of local market conditions. Base salary levels are normally reviewed on an annual basis by the board to ensure an accurate representation of the immediate market. Variable remuneration is a function of individual performance as well as Kinnerton results. | ||||||||
The below tables disclose a breakdown of remuneration for remuneration code staff as defined in SYSC 19A.3.4R of the FCA handbook. | ||||||||
Aggregate quantitative information on remuneration, broken down by senior management and members of staff whose actions have a material impact on the risk profile of the firm | ||||||||
Senior Management | Other members of staff | Totals | ||||||
£ | £ | £ | ||||||
Fixed Remuneration | 96,220 | 96,220 | ||||||
Variable Remuneration | 0 | 0 | ||||||
Number of Staff | 2 | 2 | ||||||
Remuneration comprises base salary, pension contributions and benefits in kind plus variable bonus payments. |