All e-mail communication from Hoare Capital Markets LLP is subject to the terms and conditions below:
Hoare Capital Markets LLP is authorised and regulated by the Financial Services Authority. All e-mails are neither an offer to sell nor a solicitation to invest. Past performance is not indicative of future results. The value of investments and any income generated may go down as well as up and is not guaranteed. Opinions, conclusions and other information in any e-mail and any attachments which do not relate to the official business of the firm are neither given nor endorsed by it.
All e-mail is for the exclusive use of the intended recipient(s). When addressed to our clients, any opinions or advice contained in an e-mail and any attachments are subject to the terms of business in force between Hoare Capital Markets LLP and the client. If you are not the intended recipient(s) please note that any form of disclosure, distribution, copying or use of all communication or the information in it or in any attachments is strictly prohibited and may be unlawful. If you have received a communication in error, we would be grateful if you would return it with the title "Received in Error" to compliance@hoare-capital.markets.com then delete the communication and destroy any copies of it.
E-mail communications cannot be guaranteed to be secure or error free. E-mails may not have been scanned by our anti-virus software before transmission. We cannot warrant that this e-mail is free from viruses. We do not accept liability for the consequences of any viruses that may be inadvertently be attached to all e-mail. Anyone who communicates with us by e-mail is taken to accept the risks in doing so.
WEBSITE TERMS & CONDITIONS
Before accessing and using the Hoare Capital Markets LLP's website and its contents please read these terms and conditions as they constitute a Legal Notice and contain important legal information.
This Legal Notice is governed by English Law and the English courts shall have exclusive jurisdiction over any matter arising out of this Legal Notice or from your accessing of the website. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction.
By accessing and using the Hoare Capital Markets LLP’s website you acknowledge that you have reviewed this Legal Notice and understand and agree to the terms and conditions contained herein. If you do not agree to the terms and conditions below, do not access or use this website in any way.
Hoare Capital Markets LLP’s website contains certain information about its approach to providing brokerage sservices and investment advice and is presented for informational purposes only. The information contained in this document is strictly confidential and intended for distribution to persons who are either institutions or other investors who meet either the “Professional” or “Eligible Counter Party” classifications as defined by the FSA.
It does not represent that the services described on the site are suitable for any specific investor. You are advised not to rely on any information contained in this site in the process of making a fully informed investment decision. Instead, you are urged to base investment decisions upon a thorough investigation and to obtain all necessary professional advice.
The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution, publication or use would be contrary to local law or regulation or in which Hoare Capital Markets LLP does not hold any necessary registration or license. Individuals or legal entities in respect of whom such prohibitions apply, whether on grounds of their nationality, their place of residence or on other grounds, must not access or use this website. In particular Hoare Capital Markets LLP is not registered as an investment advisor with the Securities and Exchange Commission (SEC) and therefore this website is neither directed at nor intended for investors in the United States of America.
To the extent that material on this Site is issued in the United Kingdom (“UK”), it is issued for the purposes of the UK Financial Services and Markets Act 2000 by Hoare Capital Markets LLP which is authorised and regulated in the UK by the Financial Services Authority.
Past performance data contained on this website is no indication of future performance and nothing on this website should be interpreted to state or imply otherwise. The value of investments may fall as well as rise and investors may not get back the full amount invested. In addition, the information and materials herein shall not constitute an offer or solicitation, or an offer to sell, shares of any of the funds or any advisory or management service in any jurisdiction.
Additionally, the information on this website is provided "AS IS" and "AS AVAILABLE". Hoare Capital Markets LLP is under no obligation to update the information to reflect changes after the publication date. It is presented without warranty of any kind, either express or implied, including without limitation of any warranties concerning the availability, reliability, accuracy, completeness, timeliness or sequencing of the site or the content, products or services available on or via the website. Also, the information offered does not carry a guarantee of accuracy, completeness or timeliness for any particular purpose and neither expressly or impliedly carries warranties or implied warranties regarding its merchantability and fitness for a particular purpose.
Hoare Capital Markets LLP reserves the right to change the information displayed on the website or these terms and conditions at any time. They will not be responsible for any loss or damage that could result from interception by third parties of any information available on this website. In no event shall Hoare Capital Markets LLP be liable for any indirect, incidental, special, punitive or consequential damages (including, without limitation, damages for loss of data, business or profits) arising out of or in connection with this legal notice, the website, the inability to use the site or any products, services or content purchased, obtained or stored in or from the site, whether based on contract, tort, strict liability or otherwise, even if Hoare Capital Markets LLP has been advised of the possibility of such damages, and notwithstanding the failure of the essential purpose of any remedy. without limiting the foregoing provisions of this paragraph, these limitations also apply to any third party claims against you.
Hoare Capital Markets LLP is authorised and regulated by the Financial Services Authority
Basel II Pillar 3 Disclosure
Introduction
Hoare Capital Markets LLP (“Hoare Capital”)Pillar 3 disclosure is set out below as required by the FSA’s Prudential Sourcebook for Banks, Building Societies and Investment Firms‟(BIPRU) specifically BIPRU 11.3.3 R. This follows the introduction of the Capital Requirements Directive (Basel II) which came into force on 1st January 2007 and these rules require the Firm to assess the adequacy of their capital resources given the risks they face in order to ensure the continued protection of investors.
Frequency
Hoare Capital will be making Pillar 3 disclosures annually on the firm’s Accounting Reference Date.
Media and Location
The disclosure will be published on the firm’s website.
Materiality
Hoare Capital regards information as material in disclosures if its omission or misstatement could change or influence the assessment or decision of a user relying on that information for the purpose of making economic decisions. If the Firm deems a certain disclosure to be immaterial, it may be omitted from this statement.
Confidentiality
Hoare Capital regards information as proprietary if sharing that information with the public would undermine its competitive position. Proprietary information may include information on products or systems which, if shared with competitors, would render the Firm’s investments therein less valuable. Further, the Firm must regard information as confidential if there are obligations to customers or other counterparty relationships binding the Firm to confidentiality. In the event that any such information is omitted, we shall disclose such and explain the grounds why it has not been disclosed.
Summary
The CRD requirements have three pillars. Pillar 1 deals with minimum capital requirements; Pillar 2 deals with Internal Capital Adequacy Assessment Process (“ICAAP”) undertaken by a firm and the Supervisory Review and Evaluation Process through which the firm and regulator satisfy themselves on the adequacy of capital held by the Firm in relation to the risks it faces and; Pillar 3 which deals with public disclosure of risk management policies, capital resources and capital requirements. The regulatory aim of the disclosure is to improve market discipline.
Hoare Capital primarily carries out interbank broking of bond transactions for clients and in particular it facilitates the trading of government and corporate bonds on a riskless principal basis by matching equal and opposite orders in bonds and take a spread on the price of the trade. It carries out these transactions under the standard form Model B clearing agreement with Fortis a leading outsource provider. The Firm also provides Eligible Counterparties with an agency broking service in credit products and derivatives.
Hoare Capital has identified its business and operational risks. The firm is required to disclose its risk management objectives and policies for each separate category of risk which include the strategies and processes to manage those risks; the structure and organisation of the relevant risk management function or other appropriate arrangement; the scope and nature of risk reporting and measurement systems; and the policies for mitigating risk, and the strategies and processes for monitoring the continuing effectiveness of mitigants. The Firm has assessed business and operational risks in its ICAAP and set out appropriate actions to manage them.
The Firm has an operational risk framework (described below) in place to mitigate operational risk. The Firm’s main exposure to credit risk is low. The Firm holds all cash balances with banks assigned high credit ratings. Hoare Capital does not take any risk on its own books and acts purely as an intermediary between counterparties. Thus, as the firm takes no proprietary positions its risks come solely from normal business and market risks.
Background to the Firm
Background
Hoare Capital was incorporated on the 28th January 2008 (incorporation number OC334387) and became authorised and regulated by the Financial Services Authority on the 23rd September 2008.
The firm’s activities give it the BIPRU “€50K firm Limited Licence” categorisation.
BIPRU 11.5.1: Risk Management Objectives and Policies
Our general risk management objective is to develop systems and controls to mitigate risk to a level that does not require the allocation of Pillar 2 capital.
Governance Framework
Hoare Capital ensures that there is an appropriate and effective risk management framework and ensures that senior management take the necessary steps to manage the identification, monitoring, control and reporting of risks.
The Governing Body is responsible for the entire process of risk management, as well as forming its own opinion on the effectiveness of the process. In addition, the Governing Body decides the Firm‟s risk appetite or tolerance for risk and ensures that the Firm has implemented an effective, ongoing process to identify risks, to measure its potential impact and then to ensure that such risks are actively managed. Senior Management is accountable to the Governing Body for designing, implementing and monitoring the process of risk management and implementing it into the day-to-day business activities of the Firm.
Risk Framework
Risk information is available upon request.
BIPRU 11.5.4: Compliance with BIPRU 3
For its Pillar 1 regulatory capital calculation of Credit Risk, under the credit risk capital component the Firm has adopted the Standardized approach to Credit Risk (BIPRU 3.4) and
Simplified Method of calculating risk weights (BIPRU 3.5).
BIPRU 4:
The Firm does not adopt the IRB Approach and hence this is not applicable.
BIPRU 6:
The Firm, being a Limited Licence Firm is not subject to the Operational Risk Requirement and, therefore, this is not applicable.
BIPRU 7:
The Firm has only non-trading book potential exposure (BIPRU 7.4, 7.5).
BIPRU 10:
The Firm monitors its non-trading book limits in line with BIPRU 10.5.2R to BIPRU 10.5.10R. The situation is monitored and assessed on a live basis. When the Firm has a single exposure exceeding 25 per cent of its capital resources, it is recorded internally and monitored until such time as is rectified upon receipt of fees.
Overall Pillar 2 Rule:
The Firm has adopted the “Pillar 1 plus” approach to the calculation of its ICAAP Capital Resources Requirement.
BIPRU 11.5.8: Credit Risk and Dilution Risk:
The firm takes no proprietary positions and holds all cash balances with Banks assigned high credit ratings. Consequently risk of past due or impaired exposures is minimal.
BIPRU 11.5.12: Market Risk:
This disclosure is not required as the Firm has no market risk capital requirement.
BIPRU 11.5.2: Scope of application of directive requirements:
This disclosure is not required as the Firm is not within scope of the Banking Consolidation Directive and is not a member of a UK Consolidation Group.
BIPRU 11.5.3: Capital Resources:
The Firm is a BIPRU Investment Firm without an Investment Firm Consolidation Waiver deducting Material Holdings under GENPRU 2 Annex 4.
Capital Resources at 31/03/2010
|
|
2010
£ 000
|
|
Tier 1 Capital
|
751
|
|
Tier 2 Capital
|
0
|
|
Tier 3 Capital
|
0
|
|
Total capital before deductions
|
751
|
|
Less variable capital
|
430
|
|
Surplus
|
321
|
BIPRU 11.5.5 and 11.5.6:
This disclosure is not required as the Firm has no retail or equity exposures.
BIPRU 11.5.7
This disclosure is not required as the Firm does not have a trading book.
