- UK Stewardship Code Disclosure Capital Dynamics Limited
- Remuneration Disclosure – MIFIDPRU 8.6
- Information Disclosure regarding Special Business Activities for Qualified Institutional Investors, etc.
Capital Dynamics is committed to the principles contained in the Financial Reporting Council’s Stewardship Code and submitted an application to become a signatory to the Code in 2022. The FRC responded with proposed enhancements to Capital Dynamic’s application, which we are considering in anticipation of filing a new application at some point in the future.
Capital Dynamics Limited (“Capital Dynamics) is subject to the FCA Rules on remuneration as they apply to a small and non-interconnected (SNI) MIFIDPRU investment firm. These 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 Company in years of good performance and also accept reduced levels of variable (bonus) pay in times of poor performance or losses.
Capital Dynamics 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.
Capital Dynamics 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.
Capital Dynamics 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
Capital Dynamics’ 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 Capital Dynamics 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 shall be responsible for the implementation of this policy as well as the monitoring of compliance risks associated with it. This policy will be reviewed and approved by the management body 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, life assurance which constitutes the fixed payment made to an employee for their services.
Capital Dynamics has defined variable pay as annual discretionary bonus, which is awarded based on company performance, departmental performance and individual performance. Capital Dynamics’ policy on variable remuneration is to set aside a proportion of the firm’s profits to form a bonus pool out of which awards will be made. The total bonus pool amount is determined by reference to the Company’s risk-adjusted criteria, which include both quantitative and qualitative measures. Certain key employees are also remunerated by way of carried interest.
The firm will ensure that remuneration and similar incentives will not be solely or primarily based on quantitative commercial criteria. Consequently, the firm will take into account appropriate qualitative criteria (i.e. behavioural measures such as customer feedback) which shall encompass adherence with relevant regulations, fair treatment of clients, and the quality of services provided to clients.
Capital Dynamics 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.
Remuneration for year ending 31 December 2022
Staff remuneration (GBP)
Information Disclosure regarding Special Business Activities for Qualified Institutional Investors, etc.
Pursuant to the Financial Instruments and Exchange Act of Japan ("FIEA"), effective as of March 1, 2016, a person who has submitted a notification regarding Specially Permitted Businesses for Qualified Institutional Investors, etc. is required to make available to the public the following information:
(i) Form 20-2 (Article 63, Paragraph 6 of the FIEA); and
(ii) Form 21-3 (Article 63-4, Paragraph 3 of FIEA)
Information on the following entities can be obtained upon request:
1. Capital Dynamics General Partners Limited
2. Capital Dynamics General Partner Sarl
3. Capital Dynamics CEI GP S.a.r.l
4. Capital Dynamics GP I S.a.r.l
5. CD GP (Secondaries) S.a.r.l
6. Capital Dynamics CEI GP (Cayman Islands) Ltd
7. CD Clean Energy GP S.à r.l.
8. CD Clean Energy Umbrella GP S.à r.l.
9. Capital Dynamics Mid-Market Direct VI (Cayman) GP Limited
10. Capital Dynamics Mid-Market Direct VI GP S.à r.l.
11. Capital Dynamics (MMD) GP S.à r.l.
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