TIDMTCAP
RNS Number : 0628K
TP ICAP PLC
17 April 2020
17 April 2020
TP ICAP plc 2019 Annual Report and Notice of 2020 Annual General
Meeting
TP ICAP plc (the 'Company') today publishes its 2019 Annual
Report and circular to shareholders incorporating the Notice of the
2020 Annual General Meeting. Both documents can be viewed at or
downloaded from our website at www.tpicap.com/investors .
Copies of both of these documents, together with the Form of
Proxy, will be available as soon as practicable for inspection via
the National Storage Mechanism at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
The Board has been closely monitoring the developing situation
regarding the COVID-19 pandemic. In normal circumstances the
Directors greatly value the opportunity to meet shareholders in
person at the Annual General Meeting ('AGM'), which is scheduled to
be held on 13(th) May 2020. However, in light of the UK
Government's compulsory measures prohibiting public gatherings of
more than two people and non-essential travel, shareholders will
not be able to attend this year's AGM in person and any shareholder
attempting to gain access to the meeting will be refused entrance.
In order to facilitate participation by shareholders, the Company
has put in place arrangements for shareholders to attend the AGM
electronically, ask questions and vote in real time using their
computer, tablet, or smartphone. Further information on how to
participate in the AGM electronically can be found in the Notice of
the 2020 AGM.
If shareholders are either unable or disinclined to attend the
AGM electronically, shareholders should vote by appointing the
chairman of the meeting as their proxy by submitting the Form of
Proxy in hard-copy or online. Details of how to do this are
included in the Notice of the 2020 AGM and on the Company's
website.
This situation is constantly evolving and the UK Government may
change current restrictions or implement further measures relating
to the holding of AGMs during the affected period. Any changes to
the AGM, including any change to the location of the AGM, will be
communicated to shareholders before the meeting through our website
at www.tpicap.com/investors , which shareholders are advised to
check for updates, and, where appropriate, by RNS announcement.
The following disclosures comply with Disclosure and
Transparency Rule 6.3.5. The Company's full year results
announcement on 10 March 2020 contained a management report and
condensed financial information derived from the TP ICAP Group's
audited statutory accounts. A description of risks and
uncertainties, details of related party transactions and the
Directors' Responsibility Statement, extracted in full unedited
text from the Company's 2019 Annual Report, are set out below. This
information should be read in conjunction with, and not as a
substitute for, reading the Company's 2019 Annual Report. Page
numbers and notes in the following appendices refer to page numbers
and notes in the Company's 2019 Annual Report.
Appendix A: Principal Risks
The Board Risk Committee, on behalf of the Board, has conducted
a robust assessment of the principal risks facing the Group,
including those that would threaten its business model, future
performance, solvency or liquidity.
In undertaking this assessment, the Board Risk Committee has
considered a wide range of information, including reports provided
by the Group Risk function and senior management, as well as key
findings from the Group's various risk assessment processes.
Risk
Adverse change to regulatory framework
Description
The Group is exposed to the risk of a fundamental change to the
regulatory framework which has a material adverse impact on its
business and economic model.
Potential impact
> Reduction in broking activity
> Reduced earnings and profitability
> Material change in applicable regulatory rules and
their interpretation including loss of consolidation
waiver
Change in risk exposure since 2018
No change
Mitigation
> Monitoring of regulatory developments
> Involvement in consultation and rule setting processes
Key risk indicator
> Key regulatory changes
> Status of regulatory change initiatives
Related principal strategic objectives
> Electronification and technology
> Liquidity aggregation
> Diversification
> People, conduct and compliance
Risk
Deterioration in the commercial environment
Description
The risk that due to adverse macro-economic conditions or
geopolitical developments, market activity is suppressed leading to
reduced trading volumes.
The impact of Brexit is addressed separately below.
Potential impact
> Reduction in broking activity
> Pressure on brokerage
> Reduced earnings and profitability
Change in risk exposure since 2018
No change
Mitigation
> Defined business development strategy that seeks to
maintain geographical and product diversification
Key risk indicator
> Operating profit
> Revenues by region
> Trade volumes
> Revenue forecast
> Stress testing scenario outcomes
Related principal strategic objectives
> Electronification and technology
> Liquidity aggregation
> Diversification
Risk
The impact of Brexit
Description
The risk that Brexit leads to a macro-economic downturn and a
consequential reduction in trading
volumes and revenue.
The risk that the legal entity structure implemented to comply
with the loss of EU passporting rights results in a fragmentation
of liquidity between UK and EU liquidity pools.
Potential impact
> Reduction in broking activity
> Loss of market share
> Reduced earnings and profitability
Change in risk exposure since 2018
No change
Mitigation
> Adoption of a Brexit plan which would accommodate a range
of potential scenarios (including the failure to secure a
UK-EU deal which maintains access between UK and EU markets)
> Incorporation of a new EU subsidiary to hold EU-based business
> Proactive engagement with European regulators and clients
Key risk indicator
> Brexit revenue-at-risk
> Brexit plan tracking
Related principal strategic objectives
> Liquidity aggregation
> People, conduct and compliance
Risk
Failure to respond to client requirements
Description
The risk that the Group fails to respond to rapidly changing
customer requirements, including the demand for enhanced electronic
broking solutions for certain asset classes.
Potential impact
> Loss of market share
> Reduced earnings and profitability
Change in risk exposure since 2018
No change
Mitigation
> Proactive engagement with clients through customer
relationship management process
> Clearly defined business development strategy which
continues to enhance the Group's service offering
Key risk indicator
> Operating profit
> Trade volumes
> Revenues by region
> New business initiatives
> Client satisfaction surveys
Related principal strategic objectives
> Electronification and technology
> Liquidity aggregation
> Diversification
Risk
Cyber-security and data protection
Description
The risk that the Group fails to adequately protect itself
against cyber-attack and/or to adequately secure the data it holds,
resulting in loss of operability as well as potential loss of
critical business or client data.
Potential impact
> Loss of revenue
> Remediation costs
> Damage to reputation
> Regulatory sanctions
> Payment of damages/compensation
Change in risk exposure since 2018
No change
Mitigation
> Ongoing monitoring and assessment of the cyberthreat
landscape
> Appropriate framework of systems and controls to prevent,
identify and contain cyber threats
Key risk indicator
> System outages
> Data loss events
> Cyber-security events/losses
> Vulnerability monitoring
Related principal strategic objectives
> Electronification and technology
Risk
Operational failure
Description
The Group is exposed to operational risk in nearly every facet
of its role as an interdealer broker,
including from its dependence on:
> the accurate execution of a large number of processes,
including those required to execute, clear and settle trades;
and
>a complex IT infrastructure.
Potential impact
> Financial loss which could, in extreme cases, impact
the Group's solvency and liquidity
> Damage to the Group's reputation as a reliable market
intermediary
Change in risk exposure since 2018
No change
Mitigation
> Appropriate framework of systems and controls to minimise
the risk of operational failure
> Incident and crisis management process
> Business continuity plans and capability
> Reverse stress test process to identify key risks that
could undermine the Group's viability
Key risk indicator
> Risk events
> Execution failure
> Settlement fails
> Margin calls
Related principal strategic objectives
> Electronification and technology
> People, conduct and compliance
Risk
Failure to protect proprietary data
Description
The risk that the Group fails to protect unauthorised
dissemination of Group's proprietary data leading to loss of
potential revenue streams.
Potential impact
> Failure to achieve future revenue growth targets due
to non-contractual use of our market information
> Damage to reputation
Change in risk exposure since 2018
No change
Mitigation
> Ongoing audit of licenses
> Appropriate legal remedies incorporated within licence
agreements
Key risk indicator
> Completion of data
> Audit plan
> Data audit findings
Related principal strategic objectives
> Diversification
Risk
Breach of legal and regulatory requirements
Description
The Group operates in a highly regulated environment and is
subject to the laws and regulatory frameworks of numerous
jurisdictions.
Failure to comply with applicable legal and regulatory
requirements could result in enforcement action being taken.
Potential impact
> Regulatory and legal enforcement action including censure,
fines or loss of operating licence
> Severe damage to reputation
Change in risk exposure since 2018
No change
Mitigation
> Compliance function to oversee compliance with regulatory
obligations
> Compliance monitoring and surveillance activity
> Comprehensive compliance training programme to ensure
that staff are aware of regulatory requirements
> Conduct and Cultural framework to foster high standards
of employee conduct
Key risk indicator
> Internal Compliance policy breaches
> Regulatory breaches
> Employee conduct metrics
Related principal strategic objectives
> People, conduct and compliance
Risk
Counterparty credit risk
Description
The Group is exposed to counterparty credit risk arising from
outstanding brokerage receivables, unsettled Matched Principal
trades and cash deposits.
Potential impact
> Financial loss which could, in extreme cases, impact
the Group's solvency and liquidity
Change in risk exposure since 2018
No change
Mitigation
> Counterparty exposures managed against thresholds calibrated
to reflect counterparty creditworthiness
> Exposure monitoring and reporting by independent credit
> risk function
Exposure concentration limits to prevent excessive
exposure to one institution
Key risk indicator
> Portfolio exposure
> Exposure concentration
> Aged debt
Related principal strategic objectives
> Diversification
Risk
FX exposure
Description
There is a risk that the Group suffers loss as a result of a
movement in FX rates whether through transaction risk or
translation risk.
Potential impact
> Financial loss which could, in extreme cases, impact
the Group's solvency and liquidity
Change in risk exposure since 2018
No change
Mitigation
> Ongoing monitoring of Group's FX positions
Key risk indicator
> FX translation exposure
> FX transaction exposure
Related principal strategic objectives
> Diversification
Risk
Liquidity risk
Description
The Group is exposed to potential margin calls from clearing
houses and correspondent clearers. The Group also faces liquidity
risk through being required to fund Matched Principal trades which
fail to settle on settlement date.
Potential impact
> Reduction in the Group's liquidity resources which
could, in extreme cases, impact the Group's liquidity
Change in risk exposure since 2018
No change
Mitigation
> Broking limits that restrict potential margin exposure
> Monitoring of liquidity risk drivers
> Group maintains liquidity resources in each operating
centre to provide immediate access to funds
> Committed GBP270m revolving credit facility ('RCF')
Key risk indicator
> Margin call profile
> Settlement fail - funding requirements
> Unplanned intra-Group funding calls
> RCF draw-down
> Managing bond maturity profile
Related principal strategic objectives
> Diversification
Appendix B: Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this Note.
The total amounts owed to and from associates and joint ventures
at 31 December 2019, which also represent the value of transactions
during the year, are set out below:
Amounts owed by related Amounts owed to related
parties parties
2019 2018 2019 2018
GBPm GBPm GBPm GBPm
------------ ------------ ------------ ------------
Associates 3 3 - -
Joint Ventures - 1 (3) (2)
------------ ------------ ------------ ------------
The amounts outstanding are unsecured and will be settled in
cash. No guarantees have been given or received. No provisions have
been made for doubtful debts in respect of the amounts owed by
related parties.
During the year, less than GBP1m of interest was paid on loans
from related parties.
Directors
Costs in respect of the Directors who were the key management
personnel of the Group during the year are set out below in
aggregate for each of the categories specified in IAS 24 'Related
Party Disclosures'. Further information about the individual
Directors is provided in the audited part of the Report on
Directors' Remuneration on pages 87 to 93.
2019 2018
GBPm GBPm
Short term benefits 6 3
------ ------
Social security costs 1 -
------ ------
7 3
------ ------
Appendix C: Directors' Responsibility Statement
The Directors confirm that to the best of their knowledge
that:
> the Financial Statements, prepared in accordance with
the relevant financial reporting framework, give a
true and fair view of the assets, liabilities, financial
position and profit or loss of the Company and the
undertakings included in the consolidation taken as
a whole;
> the Strategic report includes a fair review of the
development and performance of the business and the
position of the Company and the undertakings included
in the consolidation taken as a whole, together with
a description of the principal risks and uncertainties
that they face; and
> the Annual Report and Financial Statements, taken as
a whole, are fair, balanced and understandable and
provide the information necessary for shareholders
to assess the Company's position, performance, business
model and strategy.
ENDS
Enquiries:
Richard Cordeschi
Group Company Secretary
Richard.Cordeschi@tpicap.com
+44 (0) 7580 851104
For media enquiries please contact:
William Baldwin-Charles
Group Media Relations Director
William.Baldwin-Charles@tpicap.com
+44 (0) 7834 524 833
For investor enquiries please contact:
Al Alevizakos
Head of Investor Relations and FP&A
Alevizos.Alevizakos@tpicap.com
+44 (0) 7999 912 672
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACSFLFILSEIDLII
(END) Dow Jones Newswires
April 17, 2020 07:10 ET (11:10 GMT)
Grafico Azioni Tp Icap (LSE:TCAP)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Tp Icap (LSE:TCAP)
Storico
Da Apr 2023 a Apr 2024