Disclaimer
Legal Information – Including Disclaimer & Pillar 3 disclosure document
Disclaimer
Acceptance of Terms
Charteris Treasury Portfolio Managers Limited ('Charteris') maintains this website as a service. By accessing, browsing and/or using this website, you acknowledge that you have read, understood, and agree to be bound by the following terms of use and to comply with all applicable laws and
regulations.
Terms of Use
The contents of this website are for general information and illustrative purposes only and are not
intended to serve as financial, investment or any other type of advice. Charteris makes no
representation as to the accuracy of the information on this website. Any reliance on any
information on this website shall be at the user's own risk.
The information contained in this website is believed to be accurate at the time of posting, however Charteris does not warrant the completeness nor accuracy of the information at all times. In addition, Charteris is neither responsible nor liable for any errors or omissions in the information contained in this website.
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Forward-looking statements
This website may from time to time contain forward-looking statements relating to Charteris
management's expectations, estimates and projections. Words such as 'expects,' 'intends,' 'plans,'
'projects,' 'believes,' 'estimates' and similar expressions are used to identify such forward-looking
statements. Any such statements are not guarantees of future performance and can involve certain
risks, uncertainties and assumptions that are difficult to predict. Further, certain forward-looking
statements are based upon assumptions as to future events that may not prove to be accurate.
Therefore, actual outcomes and results may differ materially from what is expressed or forecast in
such forward-looking statements.
Pillar 3 Disclosures Document
Introduction:
CTPM is a Discretionary and Advisory Portfolio Management Company (with a small
Number, of legacy Execution-Only clients). It is also the adviser, to a number of funds. CTPM is a
BIPRU Limited Licence £125k company.
The following relates to CTPM but not to its client nominee Company, Charteris Treasury Nominees Ltd, nor to its parent Company, Charteris Holdings Ltd.
Risk Management:
The Firm’s risk management strategic approach is set by the Board – with day to day management
being the responsibility of the Compliance Officer. Objectives and policies are dealt with, collectively,
as below.
CTPM is audited annually and this is supplemented by our internal systems and checks. This conforms to the requirements of the Authoriser and Regulator of the Firm (the Financial Services Authority – the "FSA").
Annual Reports are prepared for the Board and updates are issued throughout the year where necessary. The Firm has prepared an ICAAP (Internal Capital Adequacy Assessment Process) for the FSA.
Credit Risk:
CTPM mainly deals with the following counterparties: Clients, Market Counterparties
& Banks/Custodians.
The assets of our Private clients (Discretionary, Advisory and legacy Execution-Only) are held in specially segregated accounts by our custodians AJ Bell. No credit is permitted. As a result, Private Client accounts are not allowed to borrow. No leverage is permitted by the funds of which we are the adviser.
CTPM use the DVP (Delivery Versus Payment) system within the AJ Bell investment IMAS system, when dealing with Market Counterparties for Private Clients. Transactions in the funds, of which we are the adviser, occur between third parties.
When dealing with our Bank and Custodian, we do not allow credit against our Holdings. Both daily, and monthly, reconciliations of Assets are made by AJ Bell as required by the FSA.
For BIPRU 3 reporting purposes, the standardised approach is adopted, but using the simplified option where applicable.
Market Risk:
Apart from standard risks in the market, applicable to private clients and the funds (of
which CTPM is the adviser). CTPM as an entity is not exposed, directly to market risk. (This is
because it does not hold principal positions). Please see Business Risk below for impacts, on the
Firm, of changes in the market conditions.
Liquidity Risk:
CTPM currently has an agreed overdraft in place with our bank. The Firm currently
has cash above its Capital Resources Requirement.
Operational Risk:
The Firm has standard risks, as applicable to most operational contexts. It operates segregation of
duties with dealing and settlement handled by the back office and our external custodians whereas
Investment Management and Marketing are handled by the front office. Dealing is generally
actioned by the back office on authorised instruction from the front office on a sole instruction basis.
Insurance Risk:
The Firm maintains PII (Professional Indemnity Insurance) – as required by the FSA
– as well as Office Insurance. This is complimented by cash reserves, to cover
applicable short term contingency issues.
Concentration Risk:
The Firm has diversified to act as the Adviser on a number of Funds (which are themselves
diversified across a number of Asset classes and
sectors), to compliment the Private Client element of the business.
Residual Risk:
The Firm does not lend money. Most debtors, as applicable, are trade debtors
Securitisation Risk:
This is not applicable to the Firm.
Business Risk and Stress Testing:
Risks to the Firm, from its business activities, relate to the impact of: significant falls
in the equity and/or gilt and/or gold markets, lack of appropriate conditions for trading
activity, change of adviser to fund investment managers, changes to the wealth
management sector and the UK/global economy in general & issues relating to
damage to the Firm’s reputation, etc. The firm has prepared an ICAAP, as required by the FSA.
Interest Rate Risk:
As the Firm holds some client assets in cash, these assets (and the resultant Annual
Management Charge to the firm) should benefit/ decrease with rises/ falls in the base
rate, as they are impacted. Naturally, stock & securities would also be directly or
indirectly affected by changes to the interest rate. As no credit is provided to clients
(see above), this element would not be impacted by interest rate risks. Any
borrowings/ overdraft held by the Firm would be impacted by changes to the interest
rate.
Pension Obligation Risk:
This risk is not directly relevant to the Firm (barring that share holdings and/ or the
Firm itself may be seen as elements of a Pension – as well as salary being used by the recipient for
pension contributions and/or a pension itself, where the recipient is
retired/ semi-retired). In addition, the Firm manages SIPPs for clients. The
Firm does not, however, run, per se, a Pension scheme for the benefit of its employees.
Equity/ collective investment schemes (CIS) Risk:
Equities and CIS are used within Funds (of which we are the adviser to the investment managers) &
portfolios that CTPM advises on/manages. These are standard risks in the market.
Option Risk:
Options (Covered Calls) are used within the Funds (of which we are the adviser). There are standard
risks in the market.
Commodity and foreign currency Risk:
Investments in Commodity based investments & via foreign currencies are made within Funds (of
which we are the adviser) & portfolios that CTPM advises and/or manages. There are standard risks
in the market.
Trading Book Risk:
This is not applicable to the Firm. CTPM does not run its own trading book.
People Risk:
As identified in the ICAAP, People Risk (Key Person Risk) is particularly weighted in a relatively
smaller size firm such as CTPM. Cross training and cross cover are ways to address this issue. Such
risks have also been identified in the annual reports.
Processes & Systems Risks:
These risks have also been identified in the annual reports.
External events Risks:
The risks here have been identified in the annual reports. Exogenous (i.e. external) events –
including theft, fire, flooding, terrorist attacks, etc – can be, at least partially, mitigated with a BCP
[Business Continuity Plan]