Park Square Capital, LLP (the Firm, Park Square ) Remuneration Policy Statement

Transcription

1 Park Square Capital, LLP (the Firm, Park Square ) Remuneratin Plicy Statement Overview The Remuneratin Plicy is designed t supprt Park Square s business bjectives, strategy and align risk appetite with that f ur clients, by attracting and retaining high calibre staff. This plicy takes int accunt Park Square s interests as well as thse f its clients being the general partners f the funds and separately managed accunts it advises r manages. Scpe Park Square is authrised by the Financial Cnduct Authrity ( FCA ) as a MiFID Investment Firm and is categrized as a IFPRU 125k limited license firm. Park Square is subject t FCA, SYSC 19a rules n remuneratin as well as the Eurpean Securities and Markets Authrity ( ESMA ) remuneratin plicies and practices guidelines. Prprtinality Fr prudential supervisin purpses, the FCA has categrised Park Square as a P3 Firm. Therefre, in accrdance with FCA rules, the disclsures belw have been made in accrdance with size, internal rganisatin, and the nature, the scpe and the cmplexity f its activities. Scpe f Plicy The Remuneratin Plicy applies t all staff members f Park Square, with additinal cntrls fr thse that identified as Remuneratin Cde Staff ( Cde Staff ). In the year 2017, the Firm identified 11 individuals are Cde Staff. This number is made up f all the members f the Firm which hld a significant influence functin. Purpse and Objectives f the Plicy The Remuneratin Plicy is designed t ensure that we: 1. Are cnsistent with and prmte sund and effective risk management; 2. D nt encurage risk-taking which is incnsistent with the risk prfiles f the Funds advised r the accunts fr which it acts as Investment Manager r Investment Advisr; 3. ensure that sales staff and advisers are nt remunerated in a way that creates incentives fr staff t sell prducts inapprpriately; 4. Include measures t avid cnflicts f interest in accrdance with the requirements f MiFID II and, in particular, ensure that sales staff d nt favur their wn r the firms interests and fcus n clients best interests; 5. Include measures t ensure that the Firm des nt remunerate r assess the perfrmance f their wn staff in a way that cnflicts with their duty t act in the best interests f their client, r prvides an incentive fr recmmending r selling a particular financial instrument when anther prduct may better meet the client s needs; 6. Supprt the Firms/Funds business strategy, bjectives, values and lng-term interests;

2 7. Set ut the principles gverning the Firms remuneratin system; and 8. Infrm management f the applicable rules as well as n the remuneratin systems Effective Date The Plicy will becme effective upn apprval by the Executive Cmmittee Bard f Park Square capital, LLP n 30 July Annual Review The plicy, the remuneratin system and the practical peratin shall be reviewed by the Remuneratin Cmmittee n a regular basis and at least nce a year. Risk management and risk tlerance The Firm has a single Remuneratin Plicy that applies t all staff with specific reference t Cde Staff where apprpriate. Staff remuneratin is agreed fllwing an assessment f market cnditins fr each rle, individual perfrmance against bjectives, and n the financial perfrmance f the Firm verall. Fr all staff this is by way f an annual salary and a discretinary bnus part f which may be deferred. A smaller grup wh receive carried interest and cmmit in Park Square funds t further align the team with clients. The Firm cmpletes an Internal Capital Adequacy Assessment (ICAAP) annually where the key peratinal risks are identified and mdelled t identify the ptential financial lss that culd arise. This is then reviewed alngside the Fixed Overhead Requirement and in the cntext f the available Capital f the firm. The ICAAP is discussed by the Executive Cmmittee and apprved by the Managing Partner. The Pillar 3 infrmatin is prvided t Park Square s internal Remuneratin Cmmittee t assess the remuneratin levels in light f available capital available t supprt its nging business peratins. Supprting business strategy, bjectives, values and interests When remuneratin levels are assessed, PSC s internal Remuneratin Cmmittee reviews perfrmance indicatrs relating t key aspects f the firm in rder t ensure that Remuneratin Plicy is in line with Firm s business strategy, bjectives, values and the lng-term interests f the firm. Aviding cnflicts f interest The Firms Cnflicts f Interests Plicy applies t all staff, fr further details kindly refer t the Staff Handbk. It is designed t avid cnflicts arising between custmers interests and thse f the Firm s staff r the Firm as a whle. The Carried Interest Incentive scheme is designed t mitigate cnflicts f interest by aligning the investment risks with the perfrmance f staff.

3 Decisin-making prcess fr Remuneratin Plicy The Firm s internal Remuneratin Cmmittee, chaired by the Managing Partner, Rbert G. Dumar, Jr. ( Rbin ), meet peridically t cnsider issues relating t the remuneratin plicy and rganisatinal structure f the Firm. The Remuneratin Cmmittee is respnsible fr the remuneratin f all emplyees and apprving the recmmendatins made by each emplyee s respective line manager(s). Due t the size and nature f the Firm, it is nt required t appint an independent, nn-executive bard member t the Remuneratin Cmmittee. The remuneratin f Cde Staff is decided by a subset grup f the Remuneratin Cmmittee which includes the Managing Partner, the Chief Financial Officer and HR Manager. Additinally, the Firm recgnise that this Remuneratin Cmmittee cmprises f individuals that are classified as Cde Staff and n this nte, n individual is included in decisins regarding his r her wn remuneratin. T summarise, The Firm s plicy has been agreed by the Remuneratin Cmmittee in line with the Remuneratin principles laid dwn by the FCA; As mentined previusly, due t the size and nature f the Firm, it is nt required t appint an independent, nn-executive bard member t the Remuneratin Cmmittee; The Firm s plicy is reviewed annually r fllwing a significant change t the business requiring an update t its internal capital adequacy assessment; and The Firm s ability t pay bnus is discretinary and is based n the net prfit fr the year. If the Firm s perfrmance is weak the bnus pl will be reduced accrdingly. Link between pay and perfrmance Remuneratin fr Cde Staff is made up f fixed pay (salary in the frm f fixed mnthly drawings fr members f the Firm and benefits) and perfrmance related pay. The Firm s apprach t the remuneratin f emplyees is t attract and retain individuals f the highest calibre and reward them s that they are mtivated t grw with the value f the Firm. The perfrmance-related pay is made up f: 1. Annual Bnus 1 : is a discretinary amunt payable which is linked t the perfrmance f the individual; and 2. Carried Interest Incentive: this is a lng-term incentive mechanism, in the frm f a participatin in the Firm s prfit sharing vehicle f the Fund s it advises. The Carried Interest Incentive ensures the alignment f the investment risks with the perfrmance f cde staff. Emplyees are remunerated with a fixed salary and a discretinary Annual Bnus which is based n their individual perfrmance; Discretinary cmpensatin seeks t reward gd perfrmance and t align the interests f emplyees and sharehlders by linking the bnus calculatin t the prfitability f the Firm; 1 Annual Bnus includes prfit allcatin fr members f Park Square Capital, LLP

4 The Carried Interest Incentive schedule ensures the alignment f investment risks with the perfrmance f the investment staff; Individuals are rewarded based n their cntributin t the verall strategy f the business: Investment generatin Investr Relatins Operatins; and Other factrs such as perfrmance, reliability, effectiveness f cntrls, business develpment and cntributin t the business are taken int accunt when assessing the perfrmance f the senir staff respnsible fr the infrastructure f the Firm. Cde Staff Remuneratin During the financial year 2017, the fllwing amunts were paid in fixed and variable remuneratin t Cde Staff. Fixed Remuneratin includes base salary and benefits and Variable Remuneratin includes the perfrmance related pay Number f Cde Staff 11 Fixed Remuneratin ( ) Variable ( ) 3.5m 4.9m The aggregate remuneratin paid 2 during the year ended 31 December 2017 in respect f Cde Staff was, 8.4 millin. The peratins f the Firm shuld be cnsidered as ne business unit. Cde Staff Aggregate cmpensatin expense in during YE 31 Dec 2017 Senir Management: 8.4 millin Others/ (If applicable) N/A Remuneratin and capital Levels f variable remuneratin are assessed by the Executive Cmmittee in the light f the prfitability f the firm and the adequacy f its regulatry capital as set ut in the ICAAP. Exceptinal gvernment interventin This des nt apply t the Firm. 2 Aggregate remuneratin cnsists f fixed partner drawings, salaries and discretinary bnuses (r prfit share) paid during the year.

5 Prfit-based measurement and risk adjustment All variable remuneratin paid by the Firm is n a purely discretinary basis. It is based n the perfrmance f the firm, and n wrk already perfrmed, rather than n anticipated results. Levels f variable remuneratin are assessed by the Executive Cmmittee in the light f the prfitability f the firm and the adequacy f its regulatry capital as set ut in the ICAAP. Pensin plicy Pensin arrangements have been reviewed and changed in rder t ensure that they are in line with the Firm s business strategy, bjectives, values and lng-term interests and that f the funds it manages. Avidance f the Remuneratin Cde The Firm des nt reward any staff thrugh any alternative vehicles r methds that culd cause nncmpliance with the cde. Remuneratin Structures Staff perfrmance appraisals are held bi-annually. The appraisal framewrk invlves an infrmal interim review during the summer perid, fllwed by a full 360-degree review at the end f the financial year, 31 December. The perfrmance appraisal prcess is crdinated by the HR department and, staff members are assessed n numerus criteria and bnuses are based n their perfrmance reviews. Applicatin f the requirements We may mit required disclsures where we believe that the infrmatin culd be regarded as prejudicial t the UK r ther natinal transpsitin f Directive 95/46/EC f the Eurpean Parliament and f the Cuncil f 24 Octber 1995 n the prtectin f individuals with regard t the prcessing f persnal data and n the free mvement f such data. We have made n missins n the grunds f data prtectin.