Remuneration Disclosures

The FCA has amended the Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU), and specifically BIPRU 11, to now include a requirement for disclosure of the firm's approach to linking remuneration to risk.

The firm feels that its Remuneration Policy appropriately addresses potential conflicts of interest and that the firm's authorised persons are not rewarded for taking inappropriate levels of risk. Under the Remuneration Code, the firm is classified as a Tier Four firm, which allows the firm to disapply many of the technical requirements of the Code and proportionately apply the Code's rules and principles in establishing the firm's policy.

The Decision Making Process

On grounds of proportionality the firm's board of directors also serve as the remuneration committee.

The link between pay and performance

The firm is a broker and does not take proprietary risk. Individual brokers are usually paid a percentage of the revenues that they generate. All brokers operate under the supervision of the management team and all clients have to be approved prior to trading and post trade checks are undertaken by the compliance department. The firm has determined that the management team and Directors are the only code staff members. The remuneration of the management team is determined after assessing the capital and cash flow needs of the business. When compensation is paid to the management team and directors it may be comprised of two elements, a base remuneration amount and discretionary bonus to be approved by the Board.

Incentive Compensation

The award of incentive compensation is a qualitative decision where employee and supervisory input are significant components.

Code Staff

There are three members of code staff comprised of the three executive directors of the firm.

Quantitative Remuneration Data

We are required to disclose the following quantitative data:
  • BIPRU 11.5.18R(6) (aggregate quantitative information on remuneration, broken down by business area)
  • BIPRU 11.5.18R(7) (aggregate quantitative information, broken down by senior management and members of staff whose actions have material impact on the risk of the firm).
All code staff are members of senior management and / or directors of the firm. For the period ending 31 December 2018 the total compensation paid to code staff was £401,417. There were no dividends paid in the period ending 31 December 2018.

RTS 28 Disclosure

For a pdf of our RTS 28 Disclosure click here

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