Important information

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This site is not suitable for private investors. By entering this site you are confirming that you are a financial services professional and accept our terms and conditions, which can be found in full here. The funds and information on this site are not directed at, and are not available to, US Persons, or to any person in a jurisdiction where their distribution or use would be contrary to local law or regulation.

Further disclaimer if accessing this website from Switzerland: We are authorized to market our funds in Switzerland only to “qualified investors”, as defined in article 10 of the CISA and articles 6 and 6a of the Ordinance on Collective Investment Schemes and any circular issued by FINMA. By clicking on the above buttons, you confirm that you are a qualified investor in accordance with the Swiss regulations.

Alquity Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN 463991). For professional investors and financial intermediaries only.

Legal

Legal & regulatory

Alquity’s regulatory status, capital and risk-management disclosures.

Regulatory status

Alquity Investment Management Limited is registered in England and Wales (company number 07992381), registered office Audrey House, 16-20 Ely Place, London EC1N 6SN, and is authorised and regulated by the Financial Conduct Authority (FRN 463991).

Regulation

Alquity Investment Management Ltd (AIML) is the Investment Manager for the Alquity SICAV, a Luxembourg domiciled UCITS fund. AIML is regulated by the Financial Conduct Authority (FCA).

AIML is classified as a “BIPRU €50k limited licence firm” and its Pillar 1 capital resources are set at the higher of €50k.

AIML has carried out its own assessment of the amount of capital required to cover its business needs and risks, as required to determine its Pillar 2 capital resources requirement. Based on this assessment AIML has sufficient capital to meet its Pillar 1 and 2 capital resources requirements.

Risk management

AIML has established a risk management framework predicated on the need to manage the full range of risks facing the Firm including market, credit, liquidity, operational, third party and regulatory risk. This assesses each risk for the likelihood of its occurrence and its impact, after allowing for the controls in place. AIML continually monitors its current and future capital requirements through this risk management framework.

Operational risk

Operational risk continues to represent the greatest potential risk of loss for AIML. AIML has a risk register which is kept up to date and is an effective self assessment of operational risk considering the likelihood and impact of operational risks materialising. It is recognised that operational risk is inherent in any business process and we seek to manage this by maintaining a robust control environment which includes documented policies and procedures which incorporate appropriate checks and balances. Assurance is provided by the Compliance Officer and Senior staff at AIML and Saffery Champness which performs the financial audits.

Market risk

AIML does not have the regulatory permissions to deal on its own account and the main market risk for Investment Managers is in relation to foreign exchange exposure. AIML is not materially affected by risks arising from foreign exposures but risk weights all long and short foreign exchange positions at 8% in order to calculate the CRR.

Credit risk

The main credit risks for AIML are from (i) the counterparties with which surplus cash has been deposited and (ii) the risk of clients not paying invoices raised by AIML as fees for the funds under management. Given that AIML banks with Barclays Bank and the nature of the main client base being Luxembourg SICAVs and the processes we have for collecting and managing receivables, we would consider this to be a low risk.

Significant redemptions

The business is at risk from unfavourable cyclical movements that would lower the value of the underlying assets of the funds or increase the volatility of the markets making fund management more difficult, thereby reducing performance that may lead to redemptions and ultimately lower management fees.

Loss of key personnel

Staff members may leave the firm for a variety of reasons, taking with them crucial information and skills required for the operation of the business. The firm ensures that there are documented procedures to maintain work flows in the short-term. This supports the ongoing approach by all staff members to cross-review and learn each other's roles to the extent practicable.

Reputational damage from operational errors

The reputation of the firm is at risk of being damaged at all times by way of poor controls around investor communication and payments. This could have a lasting negative impact and is therefore closely monitored by the operations team. The firm uses the services of an independent reputable Administrator and this relationship is managed by the operations team as well. Combined with an ongoing re-assessment of systems and procedures, the risk of operational errors is mitigated.

Group risk aggregation

AIML is owned by Alquity UK Limited and ultimately the shareholders of Alquity UK Limited. It is not part of a group in that all the entities within the structure have the same common goal of investment management.