Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 33
• Monitors Credit Risk. The Group monitors the credit risk within the
overall market as well as the risk faced by our key counterparties.
This aims to alert the business to any potential instability and
proactively mitigate any significant risks, such as primary bank
failure.
• Controls direct market exposure. The Group has limited foreign
exchange and interest rate exposure due to the fact that the
business has no debt and largely deals within the UK.
• Assesses and is putting plans in place for managing its
emissions. Liontrust joined NZAMi in 2022 and will submit its
first full report to NZAMi in 1H 23. The Group will also report
through the PRI assessment on any net zero progress in its funds
(contributed to the Group’s commitment) in the summer of 2023.
Liontrust also takes account of its own operational emissions and
offsets these. (More information is on pages 106–108.)
• Works to minimise systemic risks through industry participation.
Liontrust does this, in part, by:
– Being members of industry associations to promote good market
regulation and behaviour
– Participating in specialist committees addressing market issues
– Responding to market consultations on new regulations
Liontrust’s spheres of influence
Liontrust also works with other Groups and associations in the financial sector to keep up to date with regulatory changes; contribute
experience and thought leadership; service clients more effectively; promote best practice in markets; and ultimately help ensure global
markets run efficiently and effectively. Groups and associatios that Liontrust actively worked with in 2022 include:
Association
What the associated Group
does (and date joined by
which Group entity)
Specific action / component
Liontrust’s involvement
in 2022
Outcome /Evaluation
IA (Investment Association)
Association for investment
businesses in the UK
IA’s SFDR Implementation
Forum
Participated in these
regular meetings on how to
implement SFDR rule.s
Liontrust found value in this
as it increased the Group’s
internal information on the
regulation. Liontrust also
shared its understanding of
the rules with other groups.
BEiS consultation on Restoring
Trust in Audit and Corporate
Governance (carried over
from 2021)
In 2021, Liontrust raised
concerns regarding a
blanket approach to audit
and governance for all
companies, regardless of
market cap.
Successful – there were no
issues in 2022.
IA’s Fixed Income Committee
(Liontrust represented by
Head of Global Fixed
Income)
Participated in these
meetings regarding
legislative and policy
updates for fixed income.
Helped to expand market
knowledge in this area.
IA’s Fund Investment Risk
Group
Participated in these
meetings regarding
legislative and policy
updates for investment risk
including managing ESGrelated investment risk.
Understanding investment risk
related rules and inputing into
the IA collective response to
improve and understand new
regulation and best market
practices.
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