for the Period Ended 31 October 2023
Directors report | |
Balance sheet | |
Additional notes | |
Balance sheet notes | |
Community Interest Report |
Directors' report period ended
The directors present their report with the financial statements of the company for the period ended 31 October 2023
Principal activities of the company
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
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
And signed on behalf of the board by:
Name:
Status: Director
As at
Notes | 2023 | 2022 | |
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Fixed assets | |||
Tangible assets: | 3 |
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Total fixed assets: |
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Current assets | |||
Debtors: | 4 |
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Cash at bank and in hand: |
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Total current assets: |
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Creditors: amounts falling due within one year: | 5 |
(
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(
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Net current assets (liabilities): |
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Total assets less current liabilities: |
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Provision for liabilities: |
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Total net assets (liabilities): |
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Members' funds | |||
Profit and loss account: |
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Total members' funds: |
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The notes form part of these financial statements
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
and signed on behalf of the board by:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 31 October 2023
Basis of measurement and preparation
Turnover policy
Tangible fixed assets depreciation policy
Other accounting policies
for the Period Ended 31 October 2023
2023 | 2022 | |
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Average number of employees during the period |
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for the Period Ended 31 October 2023
Land & buildings | Plant & machinery | Fixtures & fittings | Office equipment | Motor vehicles | Total | |
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Cost | £ | £ | £ | £ | £ | £ |
At 1 November 2022 |
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At 31 October 2023 |
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At 1 November 2022 |
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At 31 October 2023 |
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At 31 October 2023 |
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At 31 October 2022 |
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for the Period Ended 31 October 2023
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£ | £ | |
Other debtors |
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Total |
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for the Period Ended 31 October 2023
2023 | 2022 | |
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£ | £ | |
Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Total |
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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.
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.
No remuneration was received
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