The companies within the HFMC Wealth Group are:
HFMC Wealth LLP – Authorised and Regulated by the Financial Conduct Authority with entry number 427640 on the FCA register – Incorporated in England & Wales as a Limited Liability Partnership, Registered Number OC309139
HFMC Wealth Management Limited – Authorised and Regulated by the Financial Conduct Authority with entry number 146717 on the FCA register – Incorporated in England & Wales as a Limited Company, Registered Number 02355062
HFMC Asset Management Limited – Authorised and Regulated by the Financial Conduct Authority with entry number 194722 on the FCA register – Incorporated in England & Wales as a Limited Company, Registered Number 03891979
HFMC Group Services LLP – Incorporated in England & Wales as a Limited Liability Partnership, Registered Number OC373151
HFMC Group Holdings Limited – Incorporated in England & Wales as a Limited Company, Registered Number 05484681
HFMC Private Client Services Limited – Incorporated in England & Wales as a Limited Company, Registered Number 05993367
HFM Trust Company Limited – Incorporated in England & Wales as a Limited Company, Registered Number 03003517
Registered Address for all the HFMC Wealth Group of companies is: Russell House, 140 High Street, Edgware, Middlesex, HA8 7LW
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Please note that the FCA does not regulate tax, trusts, National Savings, estate planning or cashflow modelling.
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HFMC Asset Management Ltd
Pillar 3 and Remuneration Disclosure
Scope and application of Directive requirements
The disclosures in this document are made in respect of HFMC Asset Management Ltd which provides discretionary investment management services.
The firm is a limited licenced firm as defined by the FCA.
Risk management objectives and policies
Our risk management policy reflects the FCA requirement that we must manage a number of different categories of risk. These include: liquidity, credit, market, interest rate, business and operational risks.
i. Liquidity risk
The firm manages all cash and borrowing requirements to maximise potential interest income whilst ensuring the firm has sufficient liquid resources to meet the continued operating needs of the business. This is supported by a robust budgeting and forecasting process which has the full involvement of the senior management team.
ii. Credit risk
The main credit risk for the firm relates to fees due for discretionary management services, being the risk that a client does not pay amounts due for services provided. This risk is mitigated by the high number of clients in respect of which amounts are due at any one time. The risk of non payment is also reduced due to the nature of the clients as they i.e. they are typically wealthy individuals.
The firm’s revenues also include annual management charges received from clients based on a percentage of client assets under management. These charges are made directly to the clients’ portfolios and therefore the credit risk relating to this income is minimal.
iii. Market Risk
The firm is indirectly subject to market risk as a significant element of income is dependent upon the value of client funds under management. This risk is mitigated by the asset allocation strategy adopted, which ensures that clients have highly diversified portfolios with limited exposure to any one asset class. Accordingly exposure to market risk is considered minimal.
iv. Interest rate risk
The firm has no borrowings and no exposure to interest rate risk.
v. Business Risk
The firm’s 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, although other risks such as loss of investment managers and systems failures are also considered. To mitigate our business risk, we regularly analyse various different economic scenarios to model the impact of economic downturns on our financial position.
vi. Operational Risk
Operational risk is defined as the potential risk of financial loss or impairment to reputation resulting from inadequate or failed internal processes and systems, from the actions of people or from external events.
Major sources of operation risk include: outsourcing of operations, IT security, internal and external fraud, implementation of strategic change and regulatory non-compliance.
The firm operates a robust risk management process which is regularly reviewed and updated with details being provided to all staff. The firm’s Compliance Oversight is responsible for the periodic reviews and recommending any changes to the Board
All senior management will bear responsibility for internal controls and the management of business risk as part of their accountability to the board.
Individuals are responsible for identifying the risks surrounding their work, implementing controls over those risks and reporting areas of concern to their line manager.
The Compliance Oversight will provide the board with a half yearly summary report on all significant risk issues using a traffic light system – red (unacceptable), amber (watch list) and green (acceptable).
vii. Capital resources
Pillar 1 requirement
In accordance with GENPRU 2.1.45R (calculation of variable capital requirement for a BIPRU firm), our capital requirement has been determined as being €50,000 and not the sum of our credit risk capital requirement and our market risk capital requirement.
Our 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 using scenario analysis. The level of capital required to cover risks is a function of impact and probability. We assess impact by modelling the changes in our income and expenses caused by various potential risks over a 1-year time horizon. Probability is assessed subjectively.
In addition, we have reviewed the outputs of our risk reviews to quantify any risks identified. This has identified a number of key business risks which we have classified against the risk categories contained in GENPRU 1.2.30R and reviewed the guidance in BIPRU 2.2.61-65.
Our Pillar 2 capital requirement, which is our own assessment of the minimum amount of capital that we believe is adequate against the risks identified, has been assessed as no greater than our Pillar 1 requirement.
The firm operates a very simple business model. Accordingly, many of the specific risks identified by the FSA do not apply.
The main features of HFM Columbus Asset Managements capital resources for regulatory purposes, as at 31/3/12 are as follows:
Capital item: £000s
Tier 1 capital (called up share capital, share premium account, profit and loss account, externally verified interim net profits) 88.843
Total of tier 2 and tier 3 capital (broadly long and short term subordinated loans) 0
Deductions from tier 1 and tier 2 capital 0
Total capital resources, net of deductions 88.843
The firm holds regulatory capital in accordance with the Capital Requirements Directive. All such capital is classified as Tier 1 capital and is therefore of the highest quality.
All staff receive a fixed salary, which is reviewed each year.
Staff are not entitled to an annual bonus, but may receive discretionary bonuses. Any such bonuses are determined by reference to quantitative and qualitative assessment of performance.
Total remuneration paid to Investment Managers was £180,000.
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You should not rely solely on the information on our website
We are committed to dealing with complaints effectively and fairly in accordance with the Financial Conduct Authority’s complaint handling rules and guidance. If our clients have cause to complain, it will be dealt with by a dedicated team focused on ensuring that clients are treated fairly during the process. You may complain to us by writing or telephoning at the address and telephone numbers detailed in this website.
If our clients are not satisfied with the outcome of their complaint, they will have the right to refer it to the Financial Ombudsman Service, free of charge, at The Financial Ombudsman Service Exchange Tower, London E14 9SR, or by going to their website www.financial-ombudsman.org.uk.
Accuracy of information
Whilst all reasonable steps have been taken to ensure that the information contained on our website is accurate and complete at the date of publication, no warranty or guarantee is given and no liability is accepted for any loss incurred. Errors or omissions in the information may occur because of a number of factors which are inherent in any Internet access system and are not within our control. The information contained in this website is subject to change without notice.
HFMC, and any of our affiliates, subsidiaries, officers, directors, employees or agents provide the website and the information on an “as is” basis. We (and they) do not make any express or implied warranties, representations, endorsements or conditions with respect to the website or the information. This includes, without limitation, warranties as to operation, non-infringement, usefulness, completeness, accuracy, currency, reliability and fitness for a particular purpose.
Any links on this website that lead to sites maintained by third parties, over which we have no control, are provided solely as a convenience to users and use of those sites will be at your own risk.