Section 172

Statement in compliance with section 172(1) of Companies Act 2006

The directors are acutely aware of the requirement for them to act in the way they consider, in good faith, would be most likely to promote the success of the business for the benefit of its members as a whole. In considering this duty the directors consist of the following stakeholders:

Shareholders

The business is ultimately 100% owned by Patrick McKenna. The directors consists of individuals that are specialists in the industries that align with the principal activities of the business. This enhances the decision-making process and the quality of decisions made at board level to ensure the interests of the shareholder is put first and maintained.

Employees

The business employs around 80 people. Employees are a key stakeholder in the business as they are the principal asset which generates revenue and growth. Employees are involved in the operational management of the business, with direct access to senior management including the CEO. The business provides regulatory training as required for a financial services firm and promotes further learning by subsidising study fees. There is also a formal annual goal setting and assessment process, ensuring that staff members remain competent and continue to develop.

Customers

Customers of the business mainly consist of investors into the funds that the business manages, being private individuals, their financial advisers, and other intermediaries. The business also has a small number of corporate customers. The business is focussed on providing quality discretionary management services to its entire customer base. Treating customers fairly is ingrained in the organisation. Engagement with customers is through regular face to face contact as well as the investment portal and the client services team.

Suppliers

Relationships with suppliers is maintained though regular contact and interaction. The business does not follow any specific code or standard on payment of creditors. The business agrees the payment terms as part of the commercial arrangement negotiated with counterparties. Payments are made on these terms provided the counterparty meets its obligations.

Community and the environment

By virtue of the business’s principal activities, it has a minimal direct impact on the environment and is committed to having a positive impact on the sectors and communities it operates in.

The board has spent considerable time and effort on identifying its Environmental, Social and Governance strategy.

Other stakeholders

The directors also consider the FCA a stakeholder as the regulator of the business.

Key decisions made in the year

The outbreak and unprecedented spread of the COVID19 pandemic across the globe has had a profound impact on local and global markets in a matter of months, and is expected to continue to shape the economic landscape for the immediate future. At the time of approval of the 30 June 2020 financial statements, the full impact of the pandemic is unknown, but the directors acknowledge that there is a general slowdown across all economic sectors in the UK and that as a result it may take longer for the business to recoup its trade debtors. Due to these factors, the wider business went through a restructuring process in June 2020. Prior to and during the restructure, all affected stakeholders have been consulted via regular updates from and meetings with senior management. The main aim of restructuring was to maximise profitability of the business, and the preservation of regulatory capital as required by the FCA.