Asset Intelligence Portfolio Management Limited (the “Company”) was incorporated in England and Wales on 20 April 2019 and is authorised and regulated by the Financial Conduct Authority (the “FCA”). The Company acts as an investment manager to collective investment schemes (“the Funds”).
The Company is categorised as a limited licence firm by the FCA for capital purposes.
Pillar 3 disclosure fulfils the Company’s obligation to disclose to market participants key pieces of information on a company’s capital, risk exposures and risk assessment processes.
The Directors of the Company determine its business strategy and the risk appetite. The Directors (including the Compliance Director) have designed and implemented a risk management framework that recognises the risks that the business faces. The framework considers how those risks may be mitigated and assesses the controls and procedures in place to manage those risks. The Directors meet on a regular basis and discuss projections for profitability, liquidity, regulatory capital, business planning and risk management.
As an investment manager, the Company considers the following as key risks to its business:
The above risks are assessed and mitigated as part of the Internal Capital Adequacy Assessment Process (“ICAAP”).
The capital resources of the business comprise Tier 1 capital with no deductions.
As a limited licence firm the capital resources requirement is calculated by reference to assessment of the Financial Conduct Authority (FCA) Pillar 1 and Pillar 2 requirements.
Pillar 1 capital is the greatest of:
Pillar 2 capital is calculated by the Company as representing any additional capital to be maintained against any risks not adequately covered under the requirement in Pillar 1 as part of its ICAAP.
As at the 30th September 2020 the Company’s regulatory capital position was:
|Tier 1 Capital||£77|
|Total Capital Resources Requirement||£45|
The approach of the Company to assessing the adequacy of its internal capital to support current and future activities is contained in the ICAAP. This process includes an assessment of the specific risks to the Company and the internal controls in place to mitigate those risks. Finally, an assessment is made of the probability of occurrence and the potential impact, in order to arrive at a level of required capital, as relevant. The Company stress tests its forecasts by considering the impact of losing assets under management, its breakeven point, and in order to address the worst case scenario, the costs to close.
The Company’s ICAAP is formally reviewed by the Directors approximately every 6 months, but will be revised should there be any material changes to the Company’s business or risk profile.