MIFIDPRU 8 Disclosure

For the Year Ended 31 December 2023

Introduction

Attestor Limited (“Attestor”) is incorporated in the United Kingdom and is authorised and regulated by the United Kingdom's Financial Conduct Authority (the “FCA”) as an investment management firm under registration number 911816. It provides investment management services to a range of alternative funds but is expressly limited by its FCA permissions to controlling, but not holding, client money and assets, and has no trading book exposure.  

The information contained in these disclosures is required per the Financial Conduct Authority (“FCA”) Handbook under MIFIDPRU Chapter 8 and is disclosed publicly on Attestor’s website. Additionally, as a MIFIDPRU investment firm, Attestor is required to conduct an Internal Capital Adequacy and Risk Assessment (“ICARA”) as per MIFIDPRU 7.7-7.9 in the FCA Handbook. Attestor is a subsidiary of Attestor Services Limited (“ASL”), a UK Private Limited Company, however has been approved by the FCA to prepare its ICARA on a non-consolidated basis. It is categorised as a Non-Small and Non-Interconnected Investment Firm (“Non-SNI”).

Per MIFIDPRU 8.1.8. Attestor must provide a level of detail in its qualitative disclosures that is appropriate to its size and internal organization, and to the nature, scope, and complexities of its activities.

Per MIFIDPRU TP 12.6 Attestor is not required to publish information regarding its Risk Management Objectives and Policies this year.

The disclosure in this statement relates to the year ended 31st December 2023 and has been updated from the previous disclosure made as an unaudited appendix to Attestor’s audited 31st December 2023 financial statements published on Companies House¹. These disclosures do not constitute any form of financial statement and must not be relied upon in making any judgement in relation to Attestor.
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MIFIDPRU 8.3 – Governance Arrangements

The Firm’s Chief Executive Officer (“CEO”) has overall responsibility for the Firm’s risk strategies and policies and is supported by the Executive Directors and Chief Operating Officer (“COO”) who oversee responsibilities appropriately delegated to the Legal, Finance, Compliance & Trading functions. 

The CEO and Executive Directors form the Board of Directors (the “Board”) and do not hold any other directorships in organisations that pursue predominantly commercial objectives which conflict with the interests of Attestor.

The Board is ultimately responsible for Attestor’s governance arrangements, ensuring effective and prudent management of Attestor and the management of conflicts of interest. The Board meets regularly and can address ad-hoc items in the interim period as required. It reviews and signs-off on key policy documents (such as the Remuneration Policy), financial statements, and risk assessments (including those relating to capital adequacy as detailed under the “Own Funds Requirement” section below). The COO will update the Board on matters of note and provide them information needed to oversee the business, as well as to discuss decisions that may need to be taken.

Attestor’s risk management processes are identified and documented within its ICARA to ensure that it has effective systems and controls in place to identify, monitor and manage risks arising in the business. The Board is responsible for the management of risk within Attestor and their individual responsibilities held under Senior Manager Functions (SMF) are clearly defined in their Statements of Responsibility. The COO and Head of Compliance advise and assist with the implementation and enforcement of Attestor’s risk principles.

Attestor has clearly documented policies and procedures, which are designed to minimise risks to Attestor and all employees are required to confirm that they have read and understood them on an annual basis. Attestor maintains a Risk and Conflicts Matrix that further details potential risks Attestor is subject to and the processes in place to mitigate these.

The CEO with the support of Head of Compliance is responsible for the annual certification of the Senior Managers and Certified Persons under the Senior Managers and Certification Regime as being fit and proper to perform their certified activities.

Attestor does not have an explicit policy or targets to promote diversity on the Board. Attestor has adopted an Equal Employment Opportunity Policy, detailed further in Attestor’s Remuneration Policy, which is intended to provide equal employment and advancement opportunities to all individuals, and prevent any discrimination based on personal characteristics.

MIFIDPRU 8.4 – Own Funds

Composition of regulatory own funds

MIFIDPRU 8.5 – Own Funds Requirement

Attestor assesses the adequacy of its own funds in accordance with the overall financial adequacy rule in MIFIDPRU 7.4.7R on an ongoing basis. Attestor confirms that sufficient own funds and liquid assets are held to ensure Attestor is financially viable throughout the economic cycle and meets its relevant regulatory minimums. Attestor holds sufficient liquid assets to address material potential harm that may result from its ongoing activities, and to conduct an orderly wind-down should such a scenario should arise. 

In the event that emergency capital or liquidity is required and Attestor is expected to continue as a going concern, additional capital will be provided by Attestor’s parent company as soon as reasonably practicable to cover the requirement.

The Internal Capital Adequacy and Risk Assessment (“ICARA”) is the primary mechanism by which Attestor assesses its business and operating models, the environment in which it operates, and its internal systems and controls to ensure that Attestor complies with the financial adequacy rule. Attestor undertakes this process, at least annually, and the process is forward looking and an integral part of the management of Attestor.

The ICARA identifies the major sources of risk to Attestor, how Attestor deals with those risks, and details of the stress tests and scenario analyses carried out and the resulting financial resources estimated to be required. Attestor also carries out regular assessments of the types and distribution of financial resources, capital resources, and internal capital, which are documented in the ICARA. If necessary, Attestor would allocate extra capital to the relevant risk, but this has not been deemed necessary to date.
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Remuneration

Attestor is subject to the FCA’s AIFM Remuneration Code and MIFIDPRU Remuneration Code (together the “Code"). The purpose of the Code is to ensure that firms have remuneration policies that are consistent with, and promote, effective risk management and do not expose themselves to excessive risk.

Attestor has a Remuneration Policy in place but deems that it is not proportionate for it to have a separate Remuneration Committee.

The Code allows firms to apply the Principle of Proportionality to disapply certain rules. As such, Attestor has disapplied the following rules:

Under AIFM Code:

• SYSC 19B.1.17R Pay-Out Process Rules

Under MIFID Code:

• SYSC 19G.6.19R to 19G.6.21G Shares, instruments and alternative arrangements
• SYSC 19G.6.22R and SYSC 19G.6.23G Retention policy
• SYSC19G.6.24R to SYSC 19G.6.29R Deferral
• SYSC 19G.6.35R(2) Discretionary pension benefits

Remuneration is not solely based upon an employee’s individual investments but on the investment decision making process and contribution to the overall long term profitability and culture of Attestor – including a demonstrated commitment to teamwork, ethical behaviour, and compliance with Attestor’s policies and procedures. The performance of the individual is assessed over the entire year.

Quantitative information

Disclosures required under MIFIDPRU 8.6.8R (4) and (5)(a) and (b) for financial year ended 31 December 2023:

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¹ Up to and including the year ended 31^st December 2023, Attestor’s MIFIDPRU 8 Disclosures have been included as an unaudited appendix in Attestor’s audited financial statements published on Companies House.