Privacy Notice

Above Wealth Management LLP is registered in England and Wales with company number OC400854 (“Above Wealth” or “Firm”). Above Wealth is authorised and regulated by the Financial Conduct Authority (“FCA”) with Firm Reference Number 714242.

For the purposes of the General Data Protection Regulation (“GDPR“), Above Wealth will be the ‘controller’ of the personal data you provide. Please read the following information carefully in order to understand the Firm’s practices in relation to the treatment of your personal data.

What data privacy principles does the Firm adhere to?

  • The Firm will process all personal data in a lawfully, fair and transparent manner;
  • The Firm will only collect personal data where it is necessary;
    • For the Firm to provide a service to you;
    • For you to provide a service to the Firm;
    • For the Firm to keep you informed of its products and services; or
    • For the Firm to comply with its legal and regulatory obligations.
  • The personal data collected by the Firm will be adequate, relevant and limited to what is necessary in relation to the specific purpose for which your data will be processed;
  • The Firm will take all reasonable steps to ensure that personal data is accurate and, were necessary, kept up-to-date;
  • The Firm will maintain personal data in a form that permits identification no longer than is necessary for the purposes for which the personal data has been collected for processing, in accordance with the Firm’s record retention requirements as mandated by the Financial Conduct Authority;
  • The Firm will hold and process personal data in a manner that ensures appropriate security;
  • The Firm will only share personal data where it is necessary to provide the agreed service or where it is necessary for the Firm to comply with its legal and regulatory requirements; and
  • The Firm will only utilise a service provider based outside of the EEA for the processing of personal data where this is strictly necessary to facilitate our services to you. In all cases, we will ensure service providers are fully compliant with GDPR ahead of transferring any personal data.

What personal data does the Firm collect and why?

In the course of providing products/services to you, the Firm may collect information that is considered personal information (e.g. name, contact details, address, passport number, driving licence).

As a client, contact or employee of Above Wealth, we will require some personal information in order to verify your identity and have the applicable relationship with you. Some of this information may be required to satisfy legal obligations (e.g. to comply with obligations arising under the money laundering regulations whereas other information may be required in connection with the provision of services to you). The information collected will vary depending on the service the Firm provides to you or you provide to the Firm, but typically includes:

  • Personal information: Such as your name, date of birth, passport number or national insurance number;
  • Contact information: Including your address, telephone number and email address.

Where does the Firm store my personal data?

The Firm has comprehensive policies and procedures in place to ensure your personal data is kept safe and secure, with these including:

  • Data encryption;
  • Firewalls;
  • 24/7 physical protection of the facilities where your data is stored (i.e. Microsoft’s UK data centres); and
  • Security procedures across all service operations.

How long does the Firm retain personal data?

As a regulated entity, the Firm is required to maintain its books and records for a prescribed period (five years from either the ceasing of a business relationship, or, in the case of non-clients, from the making of a record – or alternatively, for seven years, where specifically requested to do so by the Financial Conduct Authority). As such, information that falls in scope of either of these requirements is retained in line with the mandated timeframe.

Any information that is outside the scope of this requirement will be retained whilst relevant and useful, and destroyed where this ceases to be the case or where the data subject specifically requests this.

How have I been categorised in accordance with GDPR?

The GDPR requires the Firm to inform you of the legal basis on which we maintain your personal data. Typically, the Firm will reach out to you personally to confirm this; however, as a general rule the following is applicable:

  • Clients – Information is maintained on the basis of contractual obligation and/or legitimate interests (where relevant);
  • Service providers – Information is maintained on the basis of contractual obligation; and
  • Database/marketing contacts – Information is maintained on the basis of legitimate interest.

What are my rights?

Once you have provided your details to the Firm, you have certain rights which apply, depending on your relationship with the Firm, the information you have shared with us and the Firm’s legal and regulatory obligations.

  • You have the right to request a copy of the information that we hold about you. If you would like a copy of some, or all, of your personal information, please email the Firm at contact@abovewealth.com. The Firm will provide this information to you within one month (with the ability to extend this by an additional two months where necessary), free of charge.
  • You have the right to request that the information the Firm holds about you is erased under certain circumstances including where there is no additional legal and/or regulatory requirement for the Firm to retain this information.
  • As a client, you have the right to request that any information the Firm holds about you be provided to another company in a commonly used and machine-readable format, otherwise known as ‘data portability’.
  • You have the right to ensure that your personal information is accurate and up to date, or where necessary rectified. Where you feel that your personal data is incorrect or inaccurate and should therefore be updated, please contact anthony@abovewealth.com.
  • You have the right to object to your information being processed, for example for direct marketing purposes.
  • You have the right to restrict the processing of your information, for example limiting the material that you receive or where your information is transferred.
  • You have the right to object to any decisions based on the automated processing of your personal data, including profiling.
  • You have the right to lodge a complaint with the Information Commissioner’s Office (https://ico.org.uk/concerns/) if you are not happy with the way that we manage or process personal data.

Will I be notified of changes to this policy?

The Firm may, from time to time, review and update this policy. The Firm will maintain the latest version of this policy on its website, and where the changes are deemed material, it will make you are aware of these.

Who should I direct questions to?

If you have any questions, concerns or complaints about the practices contained within this document or how the Firm has handled your data, please email Anthony Rowland: anthony@abovewealth.com.  Alternatively, you may write to: Above Wealth Management LLP, 12 Hay Hill, London W1J 8NR.

Stewardship Code

Under the Financial Conduct Authority’s (“FCA”) Conduct of Business Rules 2.2A.5, Above Wealth is required to make a public disclosure on its website in relation to the nature of its commitment to the Financial Reporting Council’s (“FRC”) Stewardship Code.

The Code was first published by the FRC in July 2010 and it was updated in September 2012. Subsequently, the FRC published the new UK Stewardship Code 2020 (“2020 Code”), which took effect from 1 January 2020, and consists of 12 Principles for asset managers and asset owners, and six Principles for service providers.

The Code applies on a ‘comply or explain’ basis and is voluntary, aiming at enhancing the quality of engagement between institutional investors and companies, to help improve long-term returns to shareholders and provide for the efficient exercise of governance responsibilities by setting out good practice on engagement with investee companies that institutional investors should aspire to.

The FRC defines ‘stewardship’ as ‘the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.’

The 2020 Code Principles are:

  1. Signatories’ purpose, investment beliefs, strategy, and culture enable stewardship that creates long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.
  2. Signatories’ governance, resources and incentives support stewardship.
  3. Signatories manage conflicts of interest to put the best interests of clients and beneficiaries first.
  4. Signatories identify and respond to market-wide and systemic risks to promote a well-functioning financial system.
  5. Signatories review their policies, assure their processes and assess the effectiveness of their activities.
  6. Signatories take account of client and beneficiary needs and communicate the activities and outcomes of their stewardship and investment to them.
  7. Signatories systematically integrate stewardship and investment, including material environmental, social and governance issues, and climate change, to fulfil their responsibilities.
  8. Signatories monitor and hold to account managers and/or service providers.
  9. Signatories engage with issuers to maintain or enhance the value of assets.
  10. Signatories, where necessary, participate in collaborative engagement to influence issuers.
  11. Signatories, where necessary, escalate stewardship activities to influence issuers.
  12. Signatories actively exercise their rights and responsibilities.

Whilst supporting the objectives underlying the Code and adhering to the highest standards of corporate governance and due diligence in respect of advice to clients on investments, Above Wealth, having considered the 2020 Code, believes that the Principles are not applicable to its investment activities at this time. Should that change in the future, Above Wealth will review its commitment to the Code and update this disclosure accordingly. This disclosure will be reviewed at least annually. For any questions regarding this disclosure email anthony@abovewealth.com

Disclosure last updated: 1st March 2022.

SRD II Disclosure

SRD II aims to improve stewardship and corporate governance by firms, including UK MiFID investment firms that invest in shares traded on a regulated market in the EEA, as well as ‘comparable’ markets situated outside of the EEA. Under FCA COBS 2.2.B.5R, we are required to:

  1. develop and publicly disclose an engagement policy that meets the requirements of COBS 2.2B.6R; and
  2. publicly disclose on an annual basis how our engagement policy has been implemented in a way that meets the requirements of COBS 2.2B.7R; or
  3. publicly disclose why we have chosen not to comply.

The engagement policy must describe how we:

  1. integrate shareholder engagement in our investment strategy:
  2. monitor investee companies on relevant matters, including:
    • strategy;
    • financial and non-financial performance and risk;
    • Capital structure; and
    • social and environmental impact and corporate governance;
  3. conduct dialogues with investee companies;
  4. exercise voting rights and other rights attached to shares;
  5. cooperate with other shareholders;
  6. communicate with relevant stakeholders of the investee companies; and
  7. manage actual and potential conflicts of interests in relation to our engagement.

On an annual basis, we must disclose a general description of voting behaviour, an explanation of the most significant votes and reporting on the use of the services of proxy advisors. The disclosure must include details of how votes have been cast, unless they are insignificant due to the subject matter of the vote or to the size of the holding in the company.

Above Wealth Management LLP has decided that, whilst it supports the aims of SRD II, it has chosen not to comply with the Directive at the present time because it is not at the present time offering portfolio management services to investors and so the requirements are not presently applicable to the Firm.

Disclosure last updated: 1st March 2022.

Pillar 3 Disclosure

Year Ended 31 December 2020

Introduction

Above Wealth Management LLP (“Above Wealth” or the Firm) is required by the FCA to disclose information relating to the capital it holds and each material category of risk it faces in order to assist users of its accounts and to encourage market discipline.

The Capital Requirements Directive (CRD) created a revised regulatory capital framework across Europe covering how much capital financial services firms must retain. In the United Kingdom, rules and guidance are provided in the General Prudential Sourcebook (GENPRU) for Banks, Building Societies and Investments Firms (BIPRU).

The FCA framework consists of three “Pillars”:

  • Pillar 1 sets out the minimum capital requirements that companies need to retain to meet their credit, market and operational risk;
  • Pillar 2 requires companies to assess whether their Pillar 1 capital is adequate to meet their risks and is subject to annual review by the FCA; and
  • Pillar 3 requires companies to develop a set of disclosures which will allow market participants to assess key information about its underlying risks, risk management controls and capital position. These disclosures are seen as complimentary to Pillar 1 and Pillar 2.

Rule 11 of BIPRU sets out the provisions for Pillar 3 disclosure. The rules provide that companies may omit one or more of the required disclosures if such omission is regarded as immaterial. Information is considered material if its omission or misstatement could change or influence the decision of a user relying on the information. In addition, companies may also omit one or more of the required disclosures where such information is regarded as proprietary or confidential. The Firm believes that the disclosure of this document meets its obligation with respect to Pillar 3.

Firm Overview

Above Wealth is incorporated in the UK and is authorised and regulated by the FCA as an Investment Management Firm.  Above Wealth’s activities give it the BIPRU categorisation of a “Limited License” and a “BIPRU” firm.

Above Wealth is not part of a UK Consolidation Group thus this Pillar 3 Disclosure has been produced on a solo basis.

The Governing Body of Above Wealth has the daily management and oversight responsibility.  It generally meets quarterly and is composed of:

  • Hossam Alsaady
  • Anthony Rowland
  • Ben Giles
  • Andrew Fountain

The Governing Body is responsible for the entire process of risk management, as well as forming its own opinion on the effectiveness of the process. In addition, the Governing Body decides Above Wealth’s risk appetite or tolerance for risk and ensures that Above Wealth has implemented an effective, ongoing process to identify risks, to measure its potential impact and then to ensure that such risks are actively managed. Senior Management is accountable to the Governing Body for designing, implementing and monitoring the process of risk management and implementing it into the day-to-day business activities of Above Wealth.

Capital Resources and Requirements

Capital Resources

Pillar 1

As at 31 December 2020, the Firm on a solo basis held regulatory capital resources of £100,000 comprised solely of core Tier 1 capital of members’ original capital contributions.

The Firm’s capital requirements are the greater of:

  • Its base capital requirement of €50,000;
  • The sum of its market and credit risk requirements; or
  • Its fixed overhead requirement (FOR).

As at 31 December 2020, the Firm’s Pillar 1 capital requirement was £44,721

Satisfaction of Capital Requirements

Pillar 2

The Firm has adopted the “Structured” approach to the calculation of its Pillar 2 Minimum Capital Requirement as outlined in the Committee of European Banking Supervisors Paper, 27 March 2006 which takes the higher of Pillar 1 and 2 as the ICAAP capital requirement.  The Firm has assessed Business Risks by modelling the effect on its capital planning forecasts and assessed Operational Risk by considering if Pillar 2 capital is required, taking into account the adequacy of its mitigation.

Since the Firm’s Internal Capital Adequacy Assessment Process (ICAAP or Pillar 2) process has not identified capital to be held over and above the Pillar 1 requirement, the capital resources detailed above are considered adequate to continue to finance the Firm over the next year. No additional capital injections are considered necessary and the Firm expects to continue to be profitable.

Risk Management

The Firm has established a risk management process in order to ensure that it has effective systems and controls in place to identify, monitor and manage risks arising in the business. The risk management process is overseen by the Firm’s members.

As risks are identified within the business, appropriate controls are put in place to mitigate these and compliance with them is monitored on a regular basis. The frequency of monitoring in respect of each risk area is determined by the significance of the risk. The Firm does not intend to take any risks with its own capital and ensures that risk taken within the portfolios that it provides advice to is closely monitored. The results of the compliance monitoring performed is reported to the partners by the Compliance Officer.

Operational Risk

The Firm places strong reliance on the operational procedures and controls that it has in place in order to mitigate risk and seeks to ensure that all personnel are aware of their responsibilities in this respect.

The Firm has identified a number of key operational risks. These relate to disruption of the office facilities, system failures, trade failures and failure of third-party service providers. Appropriate policies are in place to mitigate against risks, including appropriate insurance policies and business continuity plans.

Credit Risk

The main credit risk to which the Firm is exposed is in respect to the failure of its debtors to meet their contractual obligations. The majority of the Firm’s receivable is related to investment management activities. The Firm believes its credit risk exposure is limited since the Firm’s revenue is ultimately related to management fees received from client funds held with third party custodians under External Asset Manager mandates. These management fees are drawn throughout the year from the funds advised. Other credit exposures include bank deposits and office rental deposits.

The Firm undertakes periodic reviews of its receivables.  Most of the amounts due to the Firm are current and only one has been overdue during the year.  The amount that is overdue has been fully provided against in the accounts.  In respect of all other amounts, there is a very low risk of non-payment from counterparties and management is of the opinion that no provision is necessary. A financial asset is overdue when the counterparty has failed to make a payment when contractually due.

The Firm has adopted the standardised approach to credit risk, and therefore follows the provision within BIPRU 3 standardised credit risk of the FCA handbook. The Firm applies a credit risk capital component of 8% to its non-trading book risk weighted exposure. As the Firm does not make use of an external credit rating agency, it is obligated to use a risk weight of 100% to all non-trading book credit exposures, except cash and cash equivalents which are held by investment grade firms and currently attract a risk weighting of 20%.

The table below sets forth the Firm’s credit exposures and corresponding capital resource requirements as at 31 December 2020:

Solo Basis Credit Exposure Risk Weighted Exposure
Prepayments £11,757 £11,757
Accrued Income £157,392 £157,392
Rent Deposits £2,800 £2,800
Other Deposits £7,160 £7,160
Bank and Cash Balances £42,302 £8,460
VAT £997 £0
Total £220,414 £187,569
Credit Risk Capital Component (8% of risk weighted exposure) £15,005

Market Risk

Since the Firm holds no trading book positions on its own account, and all bank accounts are in GBP and all advisory fee income is in GBP, the Firm’s exposure to foreign currency risk is not significant. Since the settlement of debtor balances take place without undue delay, the timing of the amount becoming payable and subsequently being paid is such that it is not considered to present a material risk to the Firm. The Firm has excluded Market risk on the basis that it is not a material risk to the Firm.

Remuneration Code

The Firm has adopted a remuneration policy and procedures that comply with the requirements of chapter C of the FCA’s Senior Management Arrangements, Systems and Controls Sourcebook (SYSC), as interpreted in accordance with the FCA’s guidance publication entitled “General Guidance on Proportionality: The Remuneration Code (SYSC 19C) & Pillar 3 Disclosures on Remuneration (BIPRU 11)” and subsequent items of guidance issued by the FCA, including its document entitled “Frequently Asked Questions on the Remuneration Code”.

As a BIPRU limited license firm, the Firm falls within proportionality level 3. The Firm has concluded, on the basis of its size and the nature, scale and complexity of its legal structure and business that it does not need to appoint a remuneration committee. Instead, the Governing Body sets, and oversees compliance with, the Firm’s remuneration policy including reviewing the terms of the policy at least annually.

As at 31 December 2020, the Firm currently sets the variable remuneration of its partners and staff in a manner which takes into account partner and Firm performance, by reference to individual performance and performance of the Firm.  As permitted for firms falling within proportionality level 3, the Firm takes into account the specific nature of its own activities (including the fee based nature of its revenues) in conducting any ex-ante risk adjustments to awards of variable remuneration and, given the nature of its business, has disapplied the requirement under the Remuneration Code to make ex-post risk adjustments.

In accordance with SYSC 19C, the Firm makes the following disclosures:

Code Staff Remuneration

Senior management and members of staff whose actions have a material impact on the risk profile of the Firm are classified as Code Staff. The below table shows the number of Code Staff in each business area.

Business Area Number of Code Staff
Senior Management (Members) 3
Other Code Staff 1
Total 4

 

Total Fixed Remuneration of Code Staff £12,000
Total Variable Remuneration of Code Staff £445,203

The Members take a small drawing on a monthly basis, but this is not fixed and was varied during the year.  Profits are allocated and paid on a quarterly basis after assessing the working capital requirements of the Firm.  During the year, a long-standing corporate finance consultant to the Firm stood down from being Code Staff in order to concentrate his efforts on an unrelated project.  The Compliance Officer is paid a fixed monthly retainer of £1,000.

Tax Evasion Statement

Above Wealth has a zero tolerance policy to tax evasion and the facilitation of tax evasion and this policy is fully endorsed by our senior management. We are fully committed to complying with all legislation and applicable guidelines designed to prevent tax evasion and the facilitation of tax evasion in the jurisdictions in which we, our clients and our suppliers operate.

Disclosure last updated: 1st March 2022.