TIDMIGG
RNS Number : 9084H
IG Group Holdings plc
09 August 2021
IG Group Holdings plc
LEI No: 2 1 3 8 0 0 3A5Q1 M7 A NOUD 76
9 August 2021
Publication of Annual Report and Notice of Annual General
Meeting
IG Group Holdings plc ('the Company'), a global leader in online
trading, has today distributed to shareholders the following
documents:
-- Annual Report and Accounts for the year ended 31 May 2021 ('Annual Report');
-- Notice of the 2021 Annual General Meeting ('AGM'); and
-- Form of Proxy for the AGM
In accordance with Listing Rule 9.6.1, copies of the documents
listed above have been submitted to the Financial Conduct Authority
via the National Storage Mechanism and will shortly be available
for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The Annual Report and Notice of the AGM are available to view on
the Company's website at www.iggroup.com
The Company announces that its 2021 AGM Annual General Meeting
(the 'AGM') will be held at 14:00 on Wednesday 22 September 2021 at
the Company's offices located at Cannon Bridge House, 25 Dowgate
Hill, London, EC4R 2YA.
In accordance with the UK Government's roadmap to ease COVID-19
restrictions across England at the time of writing it has been
possible for the Company to offer an in-person meeting. The
Company's priority is to safeguard the health and safety of its
shareholders and employees and accordingly shareholders will need
to register their intention to attend the AGM in advance of the
meeting at www.investorcentre.co.uk/eproxy (this link can also be
used to vote their shares). Given the health and safety
restrictions for a COVID-19 secure meeting, shareholders are
advised to consider if they are able to safely attend the meeting
in person and are strongly urged to appoint the Chair of the AGM as
their proxy and give voting instructions. This will ensure that
votes will be counted even if attendance at the meeting in person
is restricted for shareholders (or any other proxy otherwise
appointed).
There is also the possibility that the AGM arrangements may need
to be adapted to respond to the UK Government guidelines on short
notice. The Company will keep under review the AGM format and any
changes to the AGM will be communicated to shareholders before the
meeting on the Company's website at www.iggroup.com and, where
appropriate, by an announcement via the Regulatory Information
Service.
Additional information
The Appendix to this announcement contains information extracted
from the Annual Report for the year ended 31 May 2021 for the
purposes of compliance with the FCA's Disclosure Guidance and
Transparency Rules and should be read in conjunction with the
Company's Full Year 2021 results announcement issued on 22 July
2021 which can be found at www.iggroup.com . Together these
constitute the information required by DTR 6.3.5 to be communicated
to the media in unedited full text through a Regulatory Information
Service. This information is not a substitute for reading the
Company's Annual Report in full. Page numbers and cross references
in the extracted information refer to page numbers and cross
references in the 2021 Annual Report.
APPIX
The principal risks set out below are extracted from pages 47 to
53 of the Annual Report and are repeated here solely for the
purpose of complying with DTR 6.3.5.
Risk Taxonomy and Management
We have developed a Risk Taxonomy to ensure that we consider the
full range of risks faced by the business, and to create a
consensus for classifying all risk management activities. The
taxonomy categorises the principal risks faced by IG into five
areas:
1. Regulatory environment risk
2. Commercial risk
3. Business model risk
4. Operational risk
5. Conduct risk
Principal risks/Taxonomy Taxonomy level 2 Overview
level 1
------------------------------- ---------------------------------------- ------------------------------------
Regulatory environment We actively monitor and
risk * Regulatory risk manage the outlook for
regulatory environment
The risk we face enhanced risk across all countries
regulatory scrutiny, * Regulatory change and territories where
or the risk that the we operate. The regulatory
regulatory environment landscape has remained
in any of the jurisdictions * Tax stable in the UK and Europe.
in which we currently In Australia, the Australian
operate, or may wish Securities and Investments
to operate, changes Commission (ASIC) published
in a way that has an final product intervention
adverse effect on our measures in FY21 that
business or operations, were in line with expectation.
through reduction in Changes were easily embedded,
revenue, increases in given the similarity with
costs, or increases the rules in force in
in capital and liquidity the UK and EU since 2019.
requirements.
As regulation of all forms
continues to evolve, further
changes are anticipated
in the normal course of
business. When changes
occur, we will have plans
in place to ensure a smooth
transition to meet new
requirements.
------------------------------- ---------------------------------------- ------------------------------------
Commercial risk Sustained levels of increased
The risk that our performance * Strategic delivery risk market volatility, with
is affected by client occasional spikes, led
sensitivity to adverse to a strong business performance
market conditions, failure * Market conditions risk in FY21. We continue to
to adopt or implement make significant progress
an effective business on our strategic initiatives,
strategy, failure to * Competitor risk despite the ongoing circumstances
provide the expected related to the Covid-19
levels of client service, pandemic. The Group continues
new or existing competitors * Client service risk to monitor and assess
offering more attractive market volatility, client
products or services service level and the
or client dissatisfaction. competitor environment,
and to respond to changes.
------------------------------- ---------------------------------------- ------------------------------------
Business model risk News surrounding the global
The risk we face arising * Market risk Covid-19 pandemic and
from the nature of our events such as the US
business and our business election and positive
model, including market * Credit risk vaccine news drove market
risk, credit risk, liquidity volatility throughout
risk, and capital adequacy the year, resulting in
risk. * Liquidity risk increased trading volumes
Concentration risk exists as clients looked to benefit
and is managed within from all-time index highs
credit, market, liquidity * Capital adequacy risk and other opportunities.
and capital adequacy The Group's mature and
risk. embedded systems and controls
enabled us to manage the
increased business model
risk we faced during this
extraordinary year.
------------------------------- ---------------------------------------- ------------------------------------
Operational risk Sustained client demand
The risk of loss resulting * Technology risk continues to place additional
from inadequate or failed stress on systems, people
internal processes, and processes through
people, systems or external * People risk unprecedented levels of
events. trading volumes. Strengthening
our control environment
* Process risk and ensuring the scalability
of our processes continue
to be key focus areas,
* External risk with operational and technological
resilience programmes
in flight.
------------------------------- ---------------------------------------- ------------------------------------
Conduct risk We continue to invest
The risk that our conduct * Our clients in systems, people and
poses to the achievement training to ensure our
of fair outcomes for management of conduct
consumers, or to the * The markets and financial crime risk meets the very highest
sound, stable, resilient standards. This includes
and transparent operation ensuring we further embed
of the financial markets. * Culture our client-first culture,
The risk arising from while continuing to work
the Group's failure closely with all our regulators
to adequately assess to protect the integrity
and manage obligations of the financial markets.
and wider stakeholder We manage our ESG profile
expectations regarding by assessing and managing
environmental, social our obligations and wider
and governance (ESG)-related stakeholder expectations
matters. regarding the Group's
approach to being a responsible
and sustainable business
Regulatory environment risk
Regulatory risk
The risk that IG is subject to enhanced regulatory scrutiny, and
that we therefore face a higher chance of investigation,
enforcement or sanction by financial services regulators, through
non-compliance. This may be driven by internal factors, such as the
strength of our control framework or its interpretation, awareness,
understanding, or the implementation of relevant regulatory
requirements. This risk can also arise from external factors, such
as the current and changing priorities of both policy and
supervision departments within the Group's regulators
Regulatory change
IG operates in a highly regulated environment that is
continually evolving.
Governments or regulators may introduce legislation or new
regulations and requirements in any of the jurisdictions in which
we currently operate. We face the risk that this could result in an
adverse effect on our business or operations, reducing our revenue,
raising costs or increasing our capital and liquidity requirements.
We operate to the highest regulatory standards and believe that we
lead the industry in the way in which we deal with our clients. We
maintain constructive relationships with our key regulators and
actively seek to converse with them in an effort to keep abreast of
emerging regulatory trends or developments
Tax
Within regulatory environment risk, we also include the risk of
significant adverse changes in the way that the Group as a whole,
or our individual businesses, are taxed. Examples of the tax risk
we face include the risk that a financial transactions tax is
imposed, which could severely impact the economics of trading, and
the risk that the basis under which we're taxed, in any of the
jurisdictions in which we operate, is adversely affected.
Commercial risk
We define commercial risk as the risk that our performance is
affected by:
-- Client sensitivity to adverse market conditions
-- Failure to adopt or implement an effective business strategy
-- Failure to provide the expected levels of client service
-- New or existing competitors offering more attractive products or services
-- Risk to third-party supply of services
-- Client dissatisfaction
Strategic delivery risk
We work to mitigate our strategic delivery risk through the
Board's regular and thorough review and challenge of our strategy,
and the performance of current strategic initiatives. The Board
holds a number of strategy sessions during the year to consider and
agree the strategic priorities for the business. Planning processes
are extensive, with stakeholders across our business being
involved, and may include external assistance. We undertake
external consultation and extensive market research before
committing to any strategy, in order to test and validate a
concept. Projects are managed via a phased investment process, with
regular review periods, in order to assess performance and
determine if further investment is justified. The Board also
considers specific strategic actions and initiatives during its
normal schedule of Board meetings.
Market conditions risk
IG's trading revenue reflects the transaction fees paid by
clients, less the transaction costs incurred in hedging market
exposures. The extent of client trading activity and the number of
active clients in any period are the key determinants of revenue in
that period. The ability to attract new clients, and the
willingness of clients to trade, depends on the level of
opportunity that clients perceive to be available in the markets.
Our revenue is therefore partly dependent on market conditions.
We seek to mitigate the impact of adverse market conditions and
client sensitivity towards those conditions through detailed review
of daily revenue analysis, monthly financial information, Key
Performance Indicators (KPIs) and regular reforecasts of our
expected financial performance, reflecting the latest and expected
market conditions. We use these forecasts to determine actions
necessary to manage performance, with consideration given to
changes in market conditions.
We regularly update our investors and market analysts on our
revenue performance, including quarterly updates and pre-close
statements, and engage with investors and market analysts to
mitigate the risk that the impact of market conditions is not
reflected in performance expectations
Competitor risk
IG operates in a highly competitive environment, which includes
some unregulated and unethical operators. We work to mitigate
competitor risk by maintaining a clear distinction in the market in
terms of product, service and ethics, and by closely monitoring the
activity and performance of our competitors, including detailed
comparison of the terms of product offers.
We consider ourselves the leader in our market and, given our
strong ethical values, we never deploy questionable practices,
regardless of whether they would prove to be commercially
attractive to clients. We do, however, aim to ensure that our
product offering remains attractive, taking into account the other
benefits that we offer our clients. These include brand, strength
of technology and client service quality. This allows our business
to provide a competitive offering overall and manage competitor
risk without compromising our values.
Client service risk
The risk of client dissatisfaction arising from the expected
service level not being met, resulting in reduced trading and
account closures. This risk may stem from business stretch in times
of high financial market volatility and increased client
contact.
The service IG provides clients is supported by client-facing
teams that interact with clients directly, and specific operational
teams that support client account activity.
Business model risk
We define business model risk as the risks we face arising from
the nature of our business and our business model. These include
market risk, credit risk, liquidity risk and capital adequacy
risk.
Market risk
We do not seek to generate returns from actively taking market
risk. We don't take proprietary trading positions, and our revenue
isn't dependent on the direction of market movements.
We accept some market risk to facilitate instant execution of
client trades. We manage this market risk by internalising client
flow - netting the exposure created through clients' trades so as
to offset it - and external hedging when the residual exposures
reach defined limits. Our real-time market position-monitoring
system allows us to constantly manage our market exposures against
our market risk limits. If exposures exceed predetermined limits,
we execute hedges to bring the exposure back within the limits.
We have a Market Risk Policy which sets out how our business
manages its market risk exposures. The market risk policy
incorporates a methodology for setting market risk limits,
consistent with our risk appetite, for each financial market in
which our clients can trade, as well as for certain groups of
markets or assets which we consider to be correlated. We determine
these limits with reference to the expected liquidity and
volatility of the underlying financial product or asset class, and
represent the maximum (long or short) net exposure IG will hold
without hedging.
We set our market risk limits with the objective of achieving
the optimal efficiency between allowing client trades to be
internalised, the cost of external hedging, and the variability of
daily revenue. We work to manage market risk so that our trading
revenue predominantly reflects client transaction fees net of
hedging costs and is not driven by market risk gains or losses.
Residual market risk can crystallise if a market 'gaps' or
fluctuates sharply, which occurs when a price changes suddenly in a
single large movement - sometimes at the opening of a trading day,
rather than in small incremental steps. This can mean we're unable
to execute or adjust our hedging in a timely manner, resulting in
potential market risk exposure. This may create a gain or a
loss.
We monitor our market risk exposures through regular
scenario-based stress tests which analyse the impact of potential
stress and market gap events. We use the results to take
appropriate action to reduce our risk exposures and those of our
clients.
Credit risk
IG faces the risk that either a client or a financial
counterparty fails to meet their obligations to us, resulting in a
financial loss.
As a result of offering leveraged trading products, we accept
that client credit losses can arise as a cost of our business
model. Client credit risk principally arises when a client's total
funds deposited with IG are insufficient to cover any trading
losses incurred. In addition, a small number of clients are granted
credit limits to cover running losses on open trades and margin
requirements.
We manage client credit risk through the application of our
Client Credit Risk Policy.
We set client margin requirements that reflect the market price
risk for each instrument and use tiered margining so that larger
positions are subject to proportionately higher margin
requirements. We offer training and education to clients covering
all aspects of trading and risk management, which encourages them
to collateralise their accounts at an appropriate level in excess
of the minimum requirement. In addition to cash funding by clients,
we may also accept collateral in the form of shares from
professional clients held in their IG stock trading account.
We further mitigate client credit risk by monitoring client
positions in real time via the close-out monitor (COM), and by
giving clients the ability to set a level at which an individual
deal will be closed (the 'stop' level or 'guaranteed stop'
level).
The COM automatically identifies accounts that have insufficient
margin and triggers an automated process to close positions on
those accounts. Where client losses are such that their total
equity falls below the specified liquidation level, positions will
be liquidated to bring the account back to within margin
requirements, resulting in reduced credit risk exposure for IG.
In some jurisdictions, IG provides negative balance protection
for retail clients, which is a guarantee that clients can't lose
more than the total amount of equity held on their account. This,
together with COM and client-initiated 'stops', results in the
transfer of an element of the market risk from the client to IG.
This market risk arises following the closure of a client position,
as IG may hold a corresponding hedging position that will, assuming
sufficient market liquidity, be unwound.
We have significant financial exposure to a number of financial
institutions, owing to our placement of financial assets at banks
and our hedging of market risk in the wholesale markets, which
requires us to place margin with our hedging brokers.
We manage financial institution credit risk by applying our
Financial Institution Counterparty Credit Risk Policy.
Financial institutional counterparties are subject to a credit
review when we enter into a new relationship, and this is updated
semi-annually (or more frequently as required, for example on
changes to the financial institution's corporate structure).
Proposed maximum exposure limits for these financial institutions,
reflecting their credit rating and systemic position, are reviewed
and approved by the Executive Risk Committee.
We actively manage our credit exposure to each of our broking
counterparties, settling or recalling balances at each broker on a
daily basis in line with the collateral requirements. As part of
our management of concentration risk, we're also committed to
maintaining multiple brokers for each asset class.
We're responsible, under various regulatory regimes, for the
stewardship of client money and assets. These responsibilities
include the appointment and periodic review of institutions where
client money is deposited. Our general policy is that all financial
institution counterparties holding client money accounts must have
a minimum long-term credit rating of BBB-, with limits set
depending on strength of credit rating. In a small number of
operating jurisdictions where we maintain accounts to provide local
banking facilities for clients, it can be problematic to find a
banking counterparty satisfying these minimum rating requirements.
In such cases, we may use a locally systemically important
institution. These criteria also apply to IG's own bank accounts
held with financial institutions.
In addition, the majority of our deposits are made on an
overnight or breakable-term basis, which enables us to react
immediately to any deterioration in credit quality. We only hold
deposits of an unbreakable nature, or requiring notice, with a
subset of counterparties that have been approved by the Executive
Risk Committee.
Liquidity risk
Liquidity risk is the risk that we are unable to meet our
financial obligations as they fall due. We manage this by applying
our Liquidity Risk Management Policy.
Our approach to managing liquidity is to ensure that we have
sufficient liquidity to meet our broker margin requirements and
other financial liabilities when due, under both normal
circumstances and stressed conditions. These liquidity requirements
must be met from our own liquidity resources, as we do not use
client money to fund our operations.
We hold liquid assets to:
1. Enable the funding of broker margin requirements
2. Ensure sufficient funds are held in non-UK entities
3. lace appropriate prudent margins and buffers in segregated client money accounts
4. Maintain a liquid assets buffer
5. Make dividend payments to shareholders
6. over profits and losses on client trading and hedging positions
7. Make tax and other payments
We manage liquidity within the UK Defined Liquidity Group (UK
DLG) comprising IGM and IGI. The UK DLG includes IGM, IG's primary
market risk management vehicle, which internalises and hedges
market risk on behalf of the other entities in the Group. Key
liquidity decisions are discussed at the Executive Risk Committee
and then the Executive Committee, as necessary.
The UK DLG carries out an Individual Liquidity Adequacy
Assessment (ILAA) each year. This assesses the key drivers of
liquidity for the UK DLG and whether it has sufficient liquidity to
continue in operation, including under liquidity stress. The
Contingency Funding Plan (CFP), contained within the ILAA,
identifies mitigation options and steps to improve the liquidity
position in a stress scenario, through the implementation of
management actions.
We use a number of KRIs for managing liquidity risk, including
G3 cash (GBP, EURand USD) held in UK DLG bank accounts, forecasted
UK DLG available liquidity and UK DLG stressed liquidity after
management actions.
We're required to fund initial margin payments to brokers on
demand. Broker initial margin requirements are dependent on client
trading positions, the level of internalisation IG can achieve from
client trading, the product mix in our hedging positions and any
natural offset in correlated products within our hedging
positions.
In addition to our liquid assets, we mitigate liquidity risk
through access to committed, unsecured bank facilities. We reassess
annually the appropriate level of committed facilities we have
available and draw down on the facility at least once during each
year to test the process for accessing that liquidity.
The Group successfully managed its liquidity needs during the
2021 financial year, throughout the increased levels of client
trading activity driven by the heightened and sustained levels of
market volatility triggered by the Covid-19 pandemic. Liquidity is
anticipated to remain strong.
We produce short-term liquidity forecasts and stress tests so
that appropriate management actions, including facility draw-down,
can be taken ahead of a period of expected liquidity demands.
IG is exposed to interest rate risk through our debt and our
holdings of cash and investments. The interest costs incurred on
debt, and interest income received through cash and investments,
are not material in respect of our overall costs and income. We
consider the liquidity risk related to these instruments in the
Group Liquidity Risk Management Policy.
Capital adequacy risk
IG operates authorised and regulated businesses worldwide,
supervised by the FCA in the UK and by various regulators across
other jurisdictions. As a result of this supervision, we are
required to hold sufficient regulatory capital at both Group and
individual entity levels to cover our risk exposures, valued
according to applicable rules, and any additional regulatory
financial obligations imposed.
We're supervised on a consolidated basis by the FCA. In addition
to our two UK FCA-regulated entities, our operations in Australia,
Japan, Singapore, South Africa, Bermuda, the United States of
America, Cyprus, Germany, Switzerland and United Arab Emirates
(Dubai International Financial Centre) are directly authorised by
the respective local regulators. Individual capital requirements in
each regulated entity are taken into account, among other factors,
when managing the global distribution and level of our capital
resources, as part of the Group Capital Management Framework.
IG manages capital adequacy risk through our Regulatory Capital
Policy, and we work to ensure that at all times we hold sufficient
capital to operate our business successfully and to satisfy all
regulatory requirements. We manage our capital resources with the
objectives of facilitating business growth, maintaining our
dividend policy, and complying with the regulatory capital
resources requirements set by our regulators around the world.
We undertake an annual Internal Capital Adequacy Assessment
Process (ICAAP) through which we assess our capital requirements,
by applying a series of stress-testing scenarios to our baseline
financial projections. This assessment is reviewed and challenged
by the ICAAPand ILAA Committee as well as the Board Risk Committee,
which recommends the result to the Board for review and
approval.
We operate a monitoring framework over our capital resources and
minimum capital requirements daily, calculating the credit and
market risk requirements arising on the exposures at the end of
each business day. We also monitor internal warning indicators as a
component of our Board Risk Dashboard. Any breaches are escalated
to the Board as they occur, with a recommendation for appropriate
remedial action.
Entity-level capital requirements monitoring and management is
carried out locally according to each jurisdiction's
requirements.
Operational risk
Operational risk is defined as the risk of loss resulting from
inadequate or failed internal processes, people activities,
technology or other operations, or external events.
Operational risk is managed by applying our Operational Risk
Management Framework. We continuously develop this framework to
ensure visibility of risks and controls. We focus on clear
accountability for controls, escalation and reporting mechanisms -
through which risk events are identified and managed, and
appropriate action is taken to improve controls.
We recognise that operational risk arises in the execution of
all activities we undertake. We identify and manage operational
risk in four categories: technology, people, process and external
events. We recognise the growing risks associated with climate
change and a warming planet. These include physical risks from
changing weather patterns, and the transition risks arising from
movement towards a less polluting, greener economy.
Our Risk and Control Self-Assessment (RCSA) methodology focuses
on areas of the business identified as a priority. We use an
operational risk event self-reporting process which provides
increased visibility over events and control actions to be taken.
These are monitored through a consolidated Control Action List.
Technology risk
Technology risk is the risk of loss caused by breakdown or other
disruption to technology performance and service availability, or
by information security incidents. It also includes new technology
and technology that fails to meet business requirements.
We manage our technology risk through our Technology Risk
Framework, which is overseen by the Technology Risk Committee.
KPIs, incidents and outages are raised to this forum, comprising
technology, information security, operations and risk experts. To
manage cyber risk and external threats to our systems and data, we
have the Information Security Forum, through which senior
management is made aware of ongoing and potential threats, with
policies and processes continuously being refreshed to ensure their
validity within the evolving landscape. We have a 24/7 Security
Operations Centre to review and triage information security
incidents and employ mitigation services for threats such as
denial-of-service (DOS) attacks.
We undertake regular performance and stress-testing to ensure
our platforms have sufficient headroom and resilience to perform in
times of heightened financial market volatility and increased
demand. We also test our disaster recovery capability regularly to
ensure that standby services are effective and minimise the impact
to our services.
People risk
People risk is considered as the risk of a loss intentionally or
unintentionally caused by an employee, such as employee error or
misdeeds, or involving employees, such as in the area of employment
disputes. It includes risks relating to employment law, health and
safety, and HR practices. People risk includes the risk that IG is
unable to attract and retain the staff it requires to operate its
business successfully. In addition, we monitor for any strain on
resources, ensuring sufficient staffing levels are in place for key
business teams, so that processes are run effectively with controls
maintained.
Process risk
Process risk relates to the design, execution and maintenance of
key processes - such as client onboarding, trade execution or
financial reporting - including process governance, clarity of
roles, process design and execution. It also covers record-keeping,
regulatory compliance failures and reporting failures.
External risk
External risk is the risk of loss due to third-party
relationships and outsourcing, damage to physical and non-physical
property or assets from natural or non-natural external causes, and
external fraud.
The Group Business Continuity Policy, and the framework to that
document, provide a clear statement of our commitment to ensure
that critical IG business activities can be maintained during a
disruption.
Conduct risk
IG recognises and manages the risk that our conduct may pose to
the achievement of fair outcomes for clients, and to the sound,
stable, resilient, and transparent operation of the financial
markets. We have a Conduct Risk Framework and have implemented a
Conduct Risk Strategy that aims to analyse the conduct risks that
may arise and sets out how those risks are managed and mitigated.
It also sets out specific controls used to manage conduct risk. We
work to promote a positive, company-wide culture of good conduct as
a competitive advantage and a means to differentiate our business
clearly from companies conducting themselves poorly or unethically.
We also aim to ensure, through training and awareness, that all
employees are aware of the importance of managing conduct risk.
Our clients
We manage and monitor the risk of clients failing to understand
the functionality of our products and suffering poor outcomes. We
recognise that some of our products are not appropriate for certain
clients and operate a process to identify potential new clients for
whom the product may not be suitable. We support clients with
education and training and offer account types that limit clients'
risk. Client outcomes are monitored and reported to the Board.
Across the Group, IG employs a Vulnerable Client Policy. The
policy places responsibility on first-line client-facing staff to
monitor for signs of vulnerability in clients (eg the type of
language used by clients in their communications to us). If a
client is deemed vulnerable their account will be closed. The
number of clients who have closed accounts due to deemed
vulnerability is tracked and monitored by the compliance team as
part of a product governance management information suite.
Compliance monitoring helps to identify lack of policy adherence,
as well as any sudden increases in closures which may point to an
issue with the way our products are being designed, marketed and
sold.
In addition, the compliance team monitors the funding of client
accounts in tandem with information held on clients regarding their
financial position. This is done with the intention of identifying
scenarios where affordability of losses may be called into
question.
Markets and financial crime
We recognise the risk of causing poor market outcomes if proper
controls are not in place to, for example, detect instances of
market abuse which must then be reported on. Clients may also
attempt to use IG to commit fraud or launder money, and we've
designed our systems, controls and monitoring programmes with the
aim of preventing and detecting such issues.
Culture
We recognise the risk that the actions of our staff or IG's
culture can result in poor outcomes for clients, or for the
financial markets. We work to ensure that our staff are
appropriately trained, managed and incentivised to ensure that
their behaviour and activities don't inadvertently result in poor
outcomes for clients or the markets. We also review remuneration
policies and incentive schemes to ensure that they are appropriate
and conducive to good conduct by staff. We recognise the risks
arising from a failure to adequately assess and manage obligations
and wider stakeholder expectations regarding the Group's approach
to being a responsible and sustainable business. An environmental,
social and governance strategy is in place to manage these
risks.
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE
FINANCIAL STATEMENTS
The following statement is extracted from The Statement of
Directors' Responsibilities on page 117 of the Annual Report and is
repeated here solely for the purpose of complying with DTR 6.3.5.
The Statement relates to the full Annual Report and not the
extracted information presented in this announcement of Full Year
Results announcement.
The Directors are responsible for preparing the Annual Report
and the Financial Statements in accordance with applicable law and
regulation.
Company law requires the Directors to prepare Financial
Statements for each financial year. Under that law the Directors
have prepared the Group and the Company Financial Statements in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006. Additionally, the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules require the Directors to prepare the Group Financial
Statements in accordance with International Financial Reporting
Standards adopted pursuant to Regulation (EC) No 1606/2002 as it
applies in the European Union.
Under company law, Directors must not approve the Financial
Statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Group and Company and of the
profit or loss of the Group for that period. In preparing the
Financial Statements, the Directors are required to:
-- Select suitable accounting policies and then apply them consistently
-- State whether, for the Group and Company, international
accounting standards in conformity with the requirements of the
Companies Act 2006 and, for the Group, International Financial
Reporting Standards adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union have been followed,
subject to any material departures disclosed and explained in the
Financial Statements
-- Make judgements and accounting estimates that are reasonable and prudent
-- Prepare the Financial Statements on the going concern basis
unless it is inappropriate to presume that the Group and Company
will continue in business
The Directors are also responsible for safeguarding the assets
of the Group and Company and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Group's and
Company's transactions and disclose with reasonable accuracy at any
time the financial position of the Group and Company and enable
them to ensure that the Financial Statements and the Directors'
Remuneration Report comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity
of the Company's website. Legislation in the United Kingdom
governing the preparation and dissemination of Financial Statements
may differ from legislation in other jurisdictions.
Directors' confirmations
The Directors consider that the Annual Report and Financial
Statements, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to assess
the Group's and Company's position and performance, business model
and strategy.
Each of the Directors, whose names and functions are listed in
the Corporate Governance section confirm that, to the best of their
knowledge:
-- The Group and Company Financial Statements, which have been
prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 and, for
the Group, International Financial Reporting Standards adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union give a true and fair view of the assets,
liabilities, financial position and profit of the Group and profit
of the Company
-- The Strategic Report includes a fair review of the
development and performance of the business and the position of the
Group and Company, together with a description of the principal
risks and uncertainties that it faces
In the case of each Director in office at the date the
Directors' Report is approved:
-- So far as the Director is aware, there is no relevant audit
information of which the Group's and Company's Auditors are
unaware
-- They have taken all the steps that they ought to have taken
as a Director in order to make themselves aware of any relevant
audit information and to establish that the Group's and Company's
Auditors are aware of that information
On behalf of the Board
JUNE FELIX
CHIEF EXECUTIVE OFFICER
9 AUGUST 2021
IG Group:
Business Company Secretary
Aurelia Gibbs +44 20 7896 0011
Investors contact
Liz Scorer, Head of Investor Relations +44 20 7573 0727
investors@ig.com
Press contact
Ramon Kaur, Head of Communications +44 20 7573 0060
press@ig.com
FTI Consulting:
Ed Berry +44 20 3727 1141 / 1046
About IG
IG Group has been at the forefront of trading innovation since
1974. Since then, we've evolved into a global fintech company
incorporating the IG, tastytrade, IG Prime, Spectrum, Nadex and
DailyFX brands, with a presence in Europe, North America, Africa,
Asia-Pacific and the Middle East.
Our award-winning products and platforms empower ambitious
people the world over to unlock opportunities around the clock,
giving them access to over 19,000 financial markets. Today, more
than 400,000 clients call IG Group home.
IG Group Holdings plc is an established member of the FTSE 250
and holds a long-term investment grade credit rating of BBB- with a
stable outlook from Fitch Ratings.
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END
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August 09, 2021 13:15 ET (17:15 GMT)
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