Pillar 3 Disclosures
The Capital Requirements Directive (CRD) establishes a regulatory capital framework across Europe governing the amount and nature of capital investment firms must maintain. In the United Kingdom, the CRD has been implemented by the Financial Conduct Authority (FCA) in its regulations through the General Prudential Sourcebook (GENPRU), Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU) and the Prudential Sourcebook for Investment Firms (IFPRU).
The FCA framework consists of three Pillars:
- Pillar 1 sets out the minimum capital amount that meets the Firm’s credit, market and operational risk;
- Pillar 2 requires the Firm to assess whether its Pillar 1 capital is adequate to meet its risks and is subject to annual review by the FCA; and
- Pillar 3 requires disclosure of specified information about the underlying risk management controls, capital position and remuneration.
In January 2016 Parmenion Capital Partners LLP (“Parmenion”) was acquired by Aberdeen Asset Management PLC, which in turn merged with Standard Life in 2017 to create Standard Life Aberdeen (“SLA”). Parmenion remained part of SLA until 30th June 2021, during which time Parmenion’s financial reporting and regulatory disclosures were consolidated into the SLA Group disclosures. These can be found here.
Parmenion is incorporated in the UK and is authorised and regulated by the FCA as a Significant IFPRU firm. Parmenion is currently restructuring its governance arrangements following its sale from SLA and once this is complete this page will be updated to reflect the appropriate disclosures as required by the UK Capital Requirements Regulation.