GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Company limited by guarantee

Company Registration Number:
12936602 (England and Wales)

Unaudited statutory accounts for the year ended 31 October 2023

Period of accounts

Start date: 1 November 2022

End date: 31 October 2023

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Contents of the Financial Statements

for the Period Ended 31 October 2023

Directors report
Balance sheet
Additional notes
Balance sheet notes
Community Interest Report

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Directors' report period ended 31 October 2023

The directors present their report with the financial statements of the company for the period ended 31 October 2023

Principal activities of the company

The principal activity of the company is to carry on activities which benefit the community and in particular without limitation: to develop, improve, maintain, provide consultancy and otherwise deal in and maintain Global Principles for Sustainable Securities Lending and provide a platform for all relevant stakeholders to engage and co-lead the Global PSSL initiative through ongoing workstreams.

Additional information

Small companies provision statement This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.



Directors

The director shown below has held office during the whole of the period from
1 November 2022 to 31 October 2023

Radoslaw Stech


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
31 October 2024

And signed on behalf of the board by:
Name: Radoslaw Stech
Status: Director

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Balance sheet

As at 31 October 2023

Notes 2023 2022


£

£
Fixed assets
Tangible assets: 3 1,325 0
Total fixed assets: 1,325 0
Current assets
Debtors: 4 927 654
Cash at bank and in hand: 3,838 3,761
Total current assets: 4,765 4,415
Creditors: amounts falling due within one year: 5 ( 2,553 ) ( 2,622 )
Net current assets (liabilities): 2,212 1,793
Total assets less current liabilities: 3,537 1,793
Provision for liabilities: ( 252 ) 0
Total net assets (liabilities): 3,285 1,793
Members' funds
Profit and loss account: 3,285 1,793
Total members' funds: 3,285 1,793

The notes form part of these financial statements

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Balance sheet statements

For the year ending 31 October 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen not to file a copy of the company's profit and loss account.

This report was approved by the board of directors on 31 October 2024
and signed on behalf of the board by:

Name: Radoslaw Stech
Status: Director

The notes form part of these financial statements

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Notes to the Financial Statements

for the Period Ended 31 October 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the companys activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

    Tangible fixed assets depreciation policy

    Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis: Computer Equipment 25% Straight Line

    Other accounting policies

    Provisions Provisions are recognised when the company has a present obligation as a result of a past event which it is more probable than not will result in an outflow of economic benefits that can be reasonably estimated. Taxation Taxation represents the sum of tax currently payable and deferred tax. Tax is recognised in the statement of income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. The company’s liability for current tax is calculated using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Current and deferred tax assets and liabilities are not discounted

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Notes to the Financial Statements

for the Period Ended 31 October 2023

  • 2. Employees

    2023 2022
    Average number of employees during the period 2 2

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Notes to the Financial Statements

for the Period Ended 31 October 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 November 2022 0 0
Additions 1,602 1,602
Disposals
Revaluations
Transfers
At 31 October 2023 1,602 1,602
Depreciation
At 1 November 2022 0 0
Charge for year 277 277
On disposals
Other adjustments
At 31 October 2023 277 277
Net book value
At 31 October 2023 1,325 1,325
At 31 October 2022 0 0

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Notes to the Financial Statements

for the Period Ended 31 October 2023

4. Debtors

2023 2022
£ £
Other debtors 927 654
Total 927 654

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Notes to the Financial Statements

for the Period Ended 31 October 2023

5. Creditors: amounts falling due within one year note

2023 2022
£ £
Trade creditors 756 377
Taxation and social security 0 300
Accruals and deferred income 834 756
Other creditors 963 1,189
Total 2,553 2,622

COMMUNITY INTEREST ANNUAL REPORT

GLOBAL PRINCIPLES FOR SUSTAINABLE SECURITIES LENDING (GLOBAL PSSL) CIC

Company Number: 12936602 (England and Wales)

Year Ending: 31 October 2023

Company activities and impact

This report was created in consultation with the Global PSSL Secretariat. Global Principles for Sustainable Securities Lending (Global PSSL) is the fundamental global mechanism for aligning securities lending with sustainable finance. This initiative has been run by Dr Radek Stech, asset owners, asset managers, banks, hedge funds and other stakeholders since the original proposal in 2018. In order to preserve its impartiality and safeguard public interest, especially important in the securities lending field, the Global PSSL framework was based within its own independent community interest company in 2020. During the financial year 2022-2023, Global PSSL’s activities benefited the community in the following ways: Stakeholders benefited from the publication of a Global PSSL paper, with inputs from internal reviewers, and titled: “Towards enhanced governance for transparent and sustainable global securities lending” on the US Securities and Exchange Commission’s (SEC) website as part of the SEC’s consultation on a proposed rule relating to transparency of securities lending. The paper provides solutions to improving the governance of the securities lending market and follows a few other papers available on the SEC website, of which one was referred to by the Financial Times. - Stakeholders benefited from a Global PSSL pilot review of a bond instrument (‘notes’) in respect of the Global Principles for Sustainable Securities Lending (2021), as well as the constituent elements of the Global PSSL draft forward-looking standard on interconnected collateral for securities lending. - Stakeholders benefited from an extensive and rigorous pilot 3P Transparency exercise as part of the review of the above-mentioned notes. The 3P Transparency declaration of interests was shared with a regulatory observer and a UN reviewer early in the review process. - Stakeholders benefited from a publication titled “Transparency as a solution to prevent (systemic) greenwashing” as part of Global PSSL’s engagement with the European Union Supervisory Authorities in relation to the problem of greenwashing. - Stakeholders benefited from an expanded Secretariat that now includes an Independent Counsel and a Programme Advisor. The Independent Counsel and Programme Advisor provide ongoing support for Global PSSL publications and activities. - Stakeholders benefited from the CEO’s decision to introduce, maintain and observe (at all times) a new internal rule on the diversity of funding for Global PSSL. That rule enables us to meet our public interest obligations as part of our accountability to the CIC Regulator. The rule has also enabled Global PSSL to resist capture. - Stakeholders benefited from Global PSSL encouragement to implement and contribute towards the principles and practices that are at the core of our initiative. We have observed that many asset owners, globally, implement these Principles.

Consultation with stakeholders

Global PSSL has taken the whole value chain perspective on securities lending and our stakeholders were identified in our draft “Recommendations for a stronger, more engaging and more transparent value chain”. These include asset owners, asset managers, custodian banks, agent lenders, prime brokers, hedge funds, policy makers, central banks, NGOs and regulators. During the financial year 2022-2023, Global PSSL continued consulting these stakeholders through: - The College of Advisors that enables several stakeholders, acting in a personal capacity representing the broader community, to provide advice to The Global PSSL Secretariat. - Our expanded observer scheme that enables regulators, international organisations and the media to observe key developments. - Relevant meetings with asset owners, regulators, central banks, stock exchanges and other stakeholders. In particular, Global PSSL has reached out to several stakeholders in order to encourage a greater participation in the 3P Transparency process and broader Global PSSL impartial activities. The Global PSSL CEO, for example, reached out to a US-based not-for-profit organization (focussing on long-termism) associated with one of the three biggest global asset management firms to discuss securities lending activities. The not-for-profit approached Stech back in 2020 when he worked with the said asset management firm as part of a semi-autonomous organization discussed in the submission to the SEC (see above). Global PSSL has also had discussions with one of the biggest principles-based organizations in the field of responsible finance (with strong links with the United Nations), as well as some of the largest trade associations, one focussed on money markets/bonds in Europe and the second one focussed on stock exchanges in Africa. The Global PSSL CEO was also approached by a representative of one of the top three central banks in the European Union to discuss Global PSSL and the way it is fostering mature practices throughout the market. Global PSSL has also laid out the grounds for further consultation in the subsequent reporting period (November 2023 to October 2024) that has resulted in some meaningful successes. The above consultations further reaffirmed the need for Global PSSL to continue developing its standard independently and impartially. In particular, many of these consultations highlighted (either explicitly or implicitly) that governance and transparency are key factors that need to be improved to align securities lending with the broader sustainable finance agenda (yet, we are also concerned as to how some key global players drive the sustainability agenda now). The challenges posed by governance and transparency in the securities lending market include a risk of collusion and anti-competitive behaviour. In particular, we repeat the key message from last year’s annual report that such a risk might materialise in a cartel, i.e. where certain market participants’ coordinated conduct diverts away from the community efforts to increase transparency in the securities lending field. Indeed, there are stakeholders whose profit margins will surely be threatened by greater transparency. Our concern is how such parties might act as a cartel and work to decrease information in relation to the connections between securities lending and sustainable finance. Such conduct will result in diminishing returns for some asset owners and pension savers.

Directors' remuneration

No remuneration was received

Transfer of assets

No transfer of assets other than for full consideration

This report was approved by the board of directors on
31 October 2024

And signed on behalf of the board by:
Name: Radoslaw Stech
Status: Director