futureMoney actively manages four funds which are designed to meet the needs of a wide range of investors.

We work with financial advisers to explain our investment approach so that our funds can be recommended where they are appropriate.

Pillar III Disclosure


The 2006 Capital Requirements Directive (‘the Directive’) of the European Union establishes a revised regulatory capital framework across Europe based on the provisions of the Basel 2 Capital Accord governing the amount and nature of capital credit institutions and investment firms must maintain.

In the United Kingdom, the Directive has been implemented by the Financial Conduct Authority (‘FCA’) in its regulations through the General Prudential Sourcebook (‘GENPRU’) and the Prudential Sourcebook for Banks, Building Societies and Investment Firms (‘BIPRU’).  Future Money is authorised and regulated by the Financial Conduct Authority, register number 600460 and is subject to these regulations.

The new framework consists of three ‘Pillars’:

Pillar 1 sets out the minimum capital amount that meets the firm’s credit, market and operational risk;

Pillar 2 requires the firm to assess whether its Pillar 1 capital is adequate to meet its risks and is subject to annual review by the FSA; and

Pillar 3 requires disclosure of specified information about the underlying risk management controls and capital position.

The rules in BIPRU 11 set out the provision for Pillar 3 disclosure. This document is designed to meet our Pillar 3 obligations.

We are permitted to omit required disclosures if we believe that the information is immaterial such that omission would be unlikely to change or influence the decision of a reader relying on that information.

In addition, we may omit required disclosures where we believe that the information is regarded as proprietary or confidential. In our view, proprietary information is that which, if it were shared, would undermine our competitive position. Information is considered to be confidential where there are obligations binding us to confidentiality with our customers, suppliers and counterparties.

We have made no omissions on the grounds that it is immaterial, proprietary or confidential.

Scope and application of the requirements

Future Money Ltd is controlled by a number of individuals who own more than 10%.

Future Money Ltd provides investment management services to a range of OEICs.

Risk management objectives and policies

Future Money Ltd is governed by a board of directors who determine the business strategy and associated risks.  They are responsible for designing and implementing risk controls that recognise the risks being taken so that they can be effectively managed and mitigated where possible.

The board meets quarterly to consider market conditions, profitability, cash flow, level of reserves and business planning.  Risks are managed through policies and procedures, principles and rules (including FCA principles and rules) which are updated as required.

The board have identified that business, reputational, operational, market and credit risks are the main areas to risk which the company is exposed.  The board formally review risks and controls annually and this includes the level of capital deemed adequate to cover the risks identified.

Credit Risk
The extent to which we are exposed to credit risk is a loan made to Armstrong Watson Financial Planning and fees from Margetts Fund Management Ltd.

We retain significant capital and are not reliant on the repayment of the loan.  The fees received by Margetts are governed by our contractual relationship.

Our bank deposits are with UK regulated banks.

Operational Risk
The majority of our risk management efforts are focused in this area.  This considers the entire operation of the business including administrative errors, procedures, functionality of our premises, reliance on third party providers such as IT systems and competency of our employees.

All operational risks which can be identified are logged and categorised on an annual basis.  The strategy for dealing with these risks is reviewed and approved by the board.

We continuously evaluate our internal controls to ensure they are operating as designed and are effective in preventing losses or errors.  We do this both through our own checking and monitoring and by using third parties to undertake independent reviews.

Position Risk
Future Money Ltd is not exposed to any significant risk as our assets are held in cash with UK regulated banks.

Capital resources

The internal capital to be held against Capital Resource Requirements (CRR) pillar 1 calculation is £77,000 which represents the fixed overhead requirement (FOR).  This is the figure that the board have decided should be held as a capital resource and is believed to be sufficient to cover all risks identified. The figure of £30,000 has been calculated as risk based capital (Pillar II) and therefore a total of £107,000 has been deducted from the available reserves.

Capital and reserves 722,000
Deductions for Interim Dividend (240,000)
Available Capital 482,000
Capital resource requirements (107,000)
Surplus 375,000

There is a considerable surplus of reserves above the capital resource requirement deemed necessary to cover the risks identified.