IIFM Section 172 statement
Under section 414 of the UK 2006 Companies Act (the “Act”), the Company is required to include a section 172 statement, describing how the directors have had due regard to those matters set out in section 172 of the Act. In addressing these matters, section 172 requires that the directors are required to have regard (amongst other things) to:
a) the likely consequences of any decision in the long term;
b) the interests of the company's employees;
c) the need to foster the company's business relationships with suppliers, customers and others;
d) the impact of the company's operations on the community and the environment;
e) the desirability of the company maintaining a reputation for high standards of business conduct; and
f) the need to act fairly between members of the company.
The Company’s principal activity during the period was to act as the Authorised Corporate Director of UK domiciled open ended investment companies. The Company was also the delegated investment manager for Insight’s Irish fund range. With this in mind, the directors of the Company are conscious of the potential impact that their actions could have on the long-term success of its parent company and the Insight group as a whole. The directors of the Company are also members of the board of Insight Investment Management Limited (which is the parent entity) and therefore appreciate the integral role of the Company as part of the larger Insight group.
The Company has no direct employees but has due regard to its prominent role in promoting the interests of Insight’s employees. Operations of the Company have a material impact on the reputation of the Insight brand which, in turn, impacts the group’s ability to attract and retain suitable staff.
Having due regard to the long-term interests of its sole member, together with the requirement to maintain the appropriate levels of regulatory capital, the directors considered and approved an interim dividend payment during the period. This decision was in line with the expectations from the existing parent entity.
During the period, the directors also had due regard to the regulatory requirements of the Company and have overseen activities to ensure that key regulatory requirements were observed and integrated into the Company’s operations. The composition of the board was amended during the period to reduce the ratio between executive and non-executive directors in pursuit of an enhanced governance framework.
Due to the purpose of the Company and its structural position within the larger Insight group, the Company had undertaken limited stakeholder engagements during the period. For a more detailed assessment of how Insight as a group has engaged with a range of stakeholders please see the Strategic Report for Insight Investment Management Limited for the period ending 31 December 2021.