NEWSCAPE PILLAR 3 DISCLOSURE
Background The Basel II Accord has been implemented by the European Union through the Capital Requirements Directive (“CRD”). The CRD details the standard regulatory capital framework for the financial Conduct industry within the EU 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.
- Pillar 3 requires a set of disclosures to be made which enable market participants to assess information on a firm’s capital, risk exposures and risk management procedures.
The firm is required by the Financial Conduct Authority (“FCA”) to disclose information relating to the capital it holds and each material category of risk it faces in order to assist users of its accounts and to encourage market discipline. These disclosures aim to provide information on the risk exposures faced by the firm and the risk assessment process it has in place in order to monitor these.
The Pillar 3 disclosures are required to be made under Chapter 11 of the FCA’s Prudential Sourcebook for Banks, Building Societies and Investment Firms (“BIPRU”). The Pillar 3 disclosures will be made on an annual basis. The disclosure will be published here on our website. It should be noted that the information within this document has not been audited by the firm’s external auditors.
The Rules provide that we may omit one or more of the required disclosures if we believe that the information is immaterial. Materiality is based on the criteria that the omission or misstatement of material information would be likely to change or influence the assessment or decision of a user relying on that information for the purposes of making economic decisions. We are also permitted to omit one or more of the required disclosures where we believe that the information is regarded as proprietary or confidential. Proprietary information is that which, if it were shared, would undermine our competitive position. Information is considered to be confidential where there are obligations binding us to confidentiality with our customers and counterparties.
Newscape Capital Group Ltd is authorised and regulated in the UK by the FCA as an Investment Management firm. The firm’s activities give it the BIPRU categorisation of a “Limited License Firm” and a “BIPRU €125K” firm with UCITS capabilities.
The firm has adopted a risk management process in order to ensure that it has effective systems and controls in place to identify, monitor and manage risks arising from the business. A high level risk management matrix has been produced to identify and quantify risks within the business.
This is the current or prospective risk to earnings or value arising from adverse movements in investment instrument prices, including equities, commodities, foreign exchange and interest. This risk can arise from open positions in bonds, securities, currencies, commodities, or derivatives. The firm does not hold positions in its own name.
This is the risk, direct or indirect, of loss resulting from inadequate or failed internal processes, people and systems or from external events. The Firm has identified a number of key operational risks to manage. These relate to loss of key members of staff, systems failure and failure to follow investment guidelines or restrictions, mispricing of a fund net asset value, failure in the IT infrastructure, inadequate business continuity planning and likelihood of failure or weakness in the systems and controls procedures for the prevention of market abuse. This also includes legal, compliance / regulatory risk and reputational risk.
Interest Rate Risk
- This is the risk of potential adverse movements in interest rates and the impact these have on planned future cash flows.
- The firm has no outstanding loans or debt. Interest income does not form a significant part of revenue.
This is the current or prospective risk to earnings identified and capital arising from an obligor’s failure to meet the terms of any contract. The firm has limited exposure to risk in this category. The credit risk exposure mainly relates to deposits held with banks. However this risk is mitigated through the use of highly rated banks.
This is the risk arising from a lack of diversity in business activities i.e. the risks associated with large exposures from individual commercial relationships, reliance upon a single transaction / income type and exposure to a substantial client.
- This is the risk from changes to a firm’s internal and external environment and includes the risk that the firm may not be able to carry out its business plan and desired strategy.
- The firm has assessed that the key business risks relate to the failure to adopt an appropriate business strategy or failure to deliver it.
- Our Pillar 2 business risk assessment principally takes the form of a fall in assets under management following a market downturn that leads to lower management fees.
Capital Resources: As at 31st December 2014 the firm held regulatory capital resources of £772k. This comprised solely of core Tier 1 capital.
The Pillar 1 Capital requirement for the coming year is £289k. This has been determined by reference to the firm’s fixed overhead requirement and calculated in accordance with the FCA’s General Prudential Sourcebook (“GENPRU”). The fixed overhead capital requirement exceeded both the base requirement and the sum of the market risk and credit risk capital requirement.
Compliance with the rules in BIPRU and Pillar 2 Rule Requirements
The firm’s overall approach to assessing the adequacy of our internal capital is set out in our Internal Capital Adequacy Assessment Process (“ICAAP”).
The ICAAP process involves separate consideration of risks to our capital combined with stress testing analysis to determine whether any additional capital is required for Pillar 2.
The firm is a limited license €125K firm and as such its capital requirements are the greater of:
- Its base capital requirement of €125K; or
- The sum of the market risk and credit risk capital requirements; or
- Its Fixed Overhead Requirement.
The firm has calculated its capital requirement in accordance with the relevant FCA rules and the final level of capital is calculated as the Base Capital Requirement. On completion of the ICAAP process it was concluded that no additional Pillar 2 capital is required.
UK STEWARDSHIP CODE – POLICY STATEMENT
Policy statement currently under review, an updated version will be placed on site shortly, if you have any questions please contact the firm.
By accessing the Newscape (www.newscapegroup.com) Website you accept this Privacy Statement (“Statement”).
This Statement applies to any information obtained by Newscape through your use of the Website. It is not applicable to any Internet websites controlled by third parties not affiliated with Newscape that the Newscape Website may link to (“Third Party Sites”).
How we may collect and store information from you?
- Manage our Web site by using Cookies to identify individual users when they log in to the Web site and enable us to personalise the Web site.
- Track information on our systems and identify categories of users by items such as address, browser type and pages visited.
- Analyse the number of visitors to different areas of the Web site and to make sure that our Web site is serving as a useful, effective information source.
What is to be considered when data is transferred over the Internet?
The internet is not typically considered as a secure environment, and therefore information sent can be accessed by unauthorised entities, potentially affecting the integrity of the communication itself.
Please note that Newscape accepts no responsibility or liability for the security of your information whilst in transit over the Internet. In order to protect your privacy we would like to remind you that you may choose another means of communication if you deem it appropriate.
Links to Other Web sites
Any links contained to third party sites (non Newscape sites) are not under the control of Newscape and Newscape is not responsible for the contents of any linked site or any link contained in a linked site. Such links have been provided to you only as a convenience, and the inclusion of a link does not imply endorsement by Newscape of the site, such sites are accessed at your own risk.
ANTI-BRIBERY POLICY STATEMENT
Newscape (the “Firm”) is committed to ensuring that it, its partners, employees, agents and anyone contracted to it comply with the requirements of the UK Bribery Act 2010.
The Firm is committed to conducting its business fairly, honestly and openly, and has a zero- tolerance approach towards bribery and corruption.
The Firm has implemented a risk-based approach to identify areas where it may be at risk to bribery and has put in place systems and procedures to reduce and manage this risk. It reserves the right not to deal with other entities that do not make the same commitment.
The Firm has adopted and implemented a number of policies and procedures which are intended to prevent the Firm, its partners, staff or agents being involved in bribery. These are reviewed regularly to ensure they remain effective.
For further information on the Firm’s bribery risk policies and procedures please contact the Compliance Officer, to whom the partners have given day-to-day responsibility for ensuring that the Firm’s anti-bribery policies and procedures are adhered to.
Newscape Capital Group Ltd registration number: 03944811
The firm’s ICO registration number is: A8051497
2. The personal Data we may collect about you:
Where we collect data that identifies an individual this is classed as “personal data”. Personal data may include (but is not limited to) a name, date of birth, contact address and telephone number.
The types of personal data we may request are:
• Full name and Title including any previous names
• Photographic proof of Identity (typically passports or photo driving licences)
• Proof of address (utility bill)
• Marital status
• Contact information such as postal address, residential address, email address and telephone numbers
• Tax information (Unique tax reference number and national insurance number)
• Information regarding your investment experience, wealth, source of funds and bank details
• Information regarding your knowledge of investment and types of transactions undertaken
• Employment history and salary details
• Marketing preferences which include the type of information you wish to receive and how.
• Information we learn from you such as requests, transactions, services provided or offered, any advice or recommendations made, a log of meetings, telephone recordings (where permitted and required for regulatory purposes) complaints and dissatisfaction notes, as well as email exchanges.
The above list is not exhaustive and we may from time to time require additional information in order to satisfy our legal and regulatory obligations. Where additional information is required we will provide you with a reasonable explanation of why it is required unless we are prevented from doing so by law.
The firm may use methods such as pseudonymisation which is a process whereby the firm can replace identifying fields of data with other non-identifying data fields in order to anonymise the data from the individual therefore meaning the data is no longer personal. The firm may use this method where we are required to retain certain types of information for clients, such as number of females and males employed, jobs created and average salaries paid. This type of statistical data is often required for ESG (Environmental, social and governance) investment purposes by clients to show value added investments made by the firm on behalf of its clients.
Use of this website
• The type of data we collect when you visit our site may include your login data, internet protocol addresses, browser type and version, browser plug-in types and versions, time zone setting and location, operating system and platform and other technology on the devices you use to access this site as well as the types of products and services and searches you conduct on our site.
Special Category Data
Special Category data refers to any data which is sensitive and is subject to additional rules and requirements under the General Data Protection Regulations. Special category data may include information regarding: Criminal convictions and offences, race, ethnicity, religious or philosophical beliefs, political opinions, sexual orientation, trade union membership and information about your health, genetic and biometric data.
As a general rule we do not collect any Special Category Data about you. However, we are required to request information relating to criminal convictions as part of our recruitment process for staff and contractors undertaking regulated activities and as such we require consent from the individual for this. If we are required by law to request any special category data from you, aside from the reasons mentioned above we will provide you with a reasonable explanation as to the nature and purpose for this request and obtain your consent. We would not be able to proceed without your consent unless there was a lawful reason for doing so.
How do we collect your personal data?
Typically, where we are required to obtain your personal data we will request it from you. However, we may also from time to time receive your personal data through intermediaries where you have authorised the sharing of your personal data with us. Intermediaries may include Accountants, Solicitors, Independent financial advisors, Tax advisors and wealth managers who may be working on your behalf. Personal data may be provided to us via post, in person, email or via a specially created secure data room / platform. The data collection may be facilitated by way of completing an application form or questionnaire or by responding to information requests from us. We may also receive information from publicly available resources.
Why do we collect your personal data?
We only collect your personal data where we believe we have a legitimate business interest with you or we have a lawful purpose to do so. These reasons may include but may not be limited to circumstances where you:
• Are a shareholder in one of the companies to whom we have an administration and / or management agreement with;
• Are a Limited Partner or an investor in one of the funds to which we are appointed manager / operator, or any other such investment schemes under our management?
• Are actively receiving investment services or products from us under a contractual arrangement or engagement.
• Consent to receiving communications from us
• Have a contractual agreement with us
• request resources or marketing be sent to you;
• give us feedback or some other form or legitimate business interest with you.
How and why do we use your personal data:
Typically, we only use your data to be able to perform our duties under contracts we may have with you or where it is necessary for our legitimate interests (or those of a third party) and your interests and fundamental rights do not override those interests.
Generally, we do not rely on consent as a legal ground for processing your personal data, other than in relation to sending marketing communications to you via email or text message. You have the right to withdraw consent to marketing at any time by emailing us at firstname.lastname@example.org .
We may process your personal data for more than one lawful ground, depending on the specific purpose for which we are using your data. Please email us at email@example.com if you need details about the specific legal ground we are relying on to process your personal data.
You will receive marketing communications from us if you have:
(i) requested information from us or have a contractual agreement with us; or
(ii) if you provided us with your details and have positively consented to us sending you marketing communications; and
(iii) in each case, you have not opted out of receiving that marketing.
We will get your express opt-in consent before we share your personal data with any third party for marketing purpose, you should be advised that consent is not infinitive and you can opt-out from receiving marketing communication from us at any time by emailing: firstname.lastname@example.org.
Where you opt out of receiving our marketing communications, this will not apply to communication we make with you in relation to a legitimate business interest or lawful purposes, such as the performance of a contract we may have with you.
Change of purpose
We will only use your personal data for the purposes for which we collected it, unless we reasonably consider that we need to use it for another reason and that reason is compatible with the original purpose.
If we need to use your personal data for a purpose unrelated to the purpose for which we collected the data, we will notify you and we will explain the legal grounds for this.
We may process your personal data without your knowledge or consent only where this is required and permitted by law.
Sharing and Disclosure of your personal data:
We may share your personal data with the parties set out below for legitimate business interests and lawful purposes, these may include but are not limited to:
• Other companies in our group who provide IT and system administration services and undertake leadership reporting. Service providers who provide IT and system administration services.
• Professional advisers including lawyers, bankers, auditors, tax advisors and insurers who provide consultancy, banking, legal, insurance, tax and accounting services.
• HM Revenue & Customs, regulators and other authorities based in the United Kingdom and other relevant jurisdictions who require reporting of processing activities in certain circumstances which may include but is not limited to The Financial Conduct Authority.
• Fraud prevention agencies,
• Third parties to whom we sell, transfer, or merge parts of our business or our assets.
We require all third parties to whom we transfer your data to respect the security of your personal data and to treat it in accordance with the law. We only allow such third parties to process your personal data for specified purposes and in accordance with our instructions.
We do not share or transfer your data outside of the European Economic Area (EEA).
Countries outside of the European Economic Area (EEA) do not always offer the same levels of protection to your personal data, so European law has prohibited transfers of personal data outside of the EEA unless the transfer meets certain criteria.
Please email email@example.com if you like further information regarding international transfers or the ICO (information commissioner’s office) https://ico.org.uk/for-organisations/guide-to-data-protection/principle-8-international/
The Security of your Data
We have put in place adequate, proportionate and appropriate security measures as is required of an authorised firm to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know such data. They will only process your personal data on our instructions and they are subject to a duty of confidentiality.
We have put in place procedures to deal with data breaches in accordance with the GDPR (General Data protection regulation) and we will notify you and any applicable regulator of a breach where we are legally required to do so.
Data Retention periods:
We will only retain your personal data for as long as necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal, regulatory. accounting, or reporting requirements.
To determine the appropriate retention period for personal data, we consider the amount, nature, and sensitivity of the personal data, the potential risk of harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether we can achieve those purposes through other means, and the applicable legal requirements.
By law we must keep basic information about our customers (including Contact, Identity, Financial and Transaction Data) for six years for tax purposes and for at least five years after a client ceases to be a client under the UK money laundering regulations 2017.
In some circumstances we may pseudonymise your personal data for statistical purposes in which case we may use this information indefinitely without further notice to you.
GDPR personal rights:
Under certain circumstances, you have rights under data protection laws in relation to your personal data. These include the right to:
• Request access to your personal data (Subject access request).
• Request correction of your personal data.
• Request erasure of your personal data.
• Object to processing of your personal data.
• Request restriction of processing your personal data.
• Request transfer of your personal data.
• Right to withdraw consent.
If you wish to exercise any of the rights set out above, please email us at firstname.lastname@example.org.
You will not have to pay a fee to access your personal data (or to exercise any of your rights). However, we may charge a reasonable fee if your request is clearly unfounded, repetitive or excessive. Alternatively, we may refuse to comply with your request in these circumstances. In order to respond to a subject access request, we will need to confirm your identity as a security measure to safeguard you from your personal data from being disclosed to non-authorised third parties. Please provide us with as much information as possible to enable us to comply with your request within an acceptable time-frame. We are required to respond to subject access requests where practically possible within 30 days and if this is not possible we will provide you with a reasonable explanation as to why this cannot be achieved.
Complaints and queries:
If you are not happy with any aspect of how we collect and use your data, please contact email@example.com and we will do our best to resolve your issue. You also have the right to complain to the Information Commissioner’s Office (ICO), the UK supervisory authority for data protection issues (www.ico.org.uk).
We will make all reasonable efforts to ensure the data we hold on you is accurate and up to date and to correct any inaccuracies that we become aware of. Please help us to comply with our obligations by letting us know of any changes in relation to the data we hold about you as It is very important that the information we hold about you is accurate and up to date. Please email Compliancecontact@thefirm.co.uk with any required updates or amendments.