Claymore Capital Management Limited (“the firm”) is authorised and regulated by the Financial Conduct Authority (“FCA”) as a MIFIDPRU investment firm. The firm is required to make an annual public “MIFIDPRU Disclosure” based on its audited financial statements for each financial year ending 31st December. This MIFIDPRU Disclosure is for the period 1st January 2022 to 31st December 2022. In terms of the FCA’s prudential rules, the firm’s relatively non-complex business model and limited scope of permissions means it is treated as a Small Non-Interconnected Firm (“SNI”). Therefore, the FCA rules allow the firm to apply proportionality in terms of the information provided in its disclosure and is only required to make a disclosure on its remuneration policies and practices. These FCA rules are contained in the FCA’s MIFIDPRU Remuneration Code located in SYSC19G of the FCA’s Handbook.
APPROACH TO REMUNERATION FOR ALL STAFF
Employees have the opportunity to share in the success of the firm in years of good performance and also accept reduced levels of variable (bonus) pay in times of poor performance or losses.
The firm does not remunerate or assess the performance of its staff in a way that conflicts with its duty to act in the best interests of its clients.
The firm does not make any arrangement by way of remuneration, sales targets or otherwise that could provide an incentive to its staff to recommend a particular financial instrument to a client when the firm could offer an alternative financial instrument which would better suit the client’s needs.
The firm is mindful of ensuring that its remuneration policy and practices do not lead to a conflict of interest or incentivise its staff to act in a manner that favours their own interests or the firm’s interests to the potential detriment of any client or potential client.
OBJECTIVES OF FINANCIAL INCENTIVES
The firm’s Remuneration Policy provides a framework to ensure all staff are fairly and competitively rewarded in return for a high level of service to the firm and is clients. In setting remuneration levels, the firm recognises the importance of attracting and retaining experienced staff. The amount of fixed remuneration paid to an employee will be based on market rates relevant to the employee’s role and their knowledge, experience, and competencies. Discretionary bonuses are made to employees to reward them for good performance with a view to increasing and maintaining their productivity.
Senior management is responsible for the implementation of this policy as well as the monitoring of compliance risks associated with it. This policy is reviewed and approved by the board of directors at least annually to ensure it continues to remain fit for purpose with the input from the firm’s Compliance Officer.
CHARACTERISTICS OF REMUNERATION POLICY AND PRACTICES
Remuneration typically comprises of fixed and variable elements. Fixed remuneration consists of base salary, pension contribution and other benefits such as defined contribution pension, private medical insurance and life assurance.
The firm has defined variable pay as annual discretionary bonus, which is awarded based on firm performance and individual performance. The firm’s policy on variable remuneration is to set aside a proportion of the firm’s profits to form a bonus pool out of which awards are made. The total bonus pool amount is determined by reference to the firm’s risk-adjusted criteria, which include both quantitative and qualitative measures.
The firm ensures that remuneration and similar incentives are not solely or primarily based on quantitative commercial criteria. Consequently, the firm takes into account appropriate qualitative criteria (i.e. behavioural measures such as customer feedback) which include adherence with relevant regulations, fair treatment of clients, and the quality of services provided to clients.
The firm ensures it always maintains a balance between fixed and variable components of remuneration, so as to mitigate any conflicts of interest between the firm, its staff and its clients.
The total amount of remuneration awarded to all staff split into fixed remuneration and variable remuneration for the year ending 31 December 2022 is reported in the firm`s Audited Financial Statements and published on the Companies House website.