BACKED LLP: FCA regulations

Regulatory Context
In accordance with MIFIDPRU 8 the regulatory aim of the disclosure is to enable stakeholders and market participants to have an insight into how Backed LLP (“Backed” or the “Firm”) is run.  They should also aim to help stakeholders make more informed decisions about their relationship with the Firm.  

Frequency
This Disclosure covers the period for the year ended 31st March 2024, and subsequent updates will be made on at least an annual basis as of the Accounting Reference Date (“ARD”), which is 31st Marcheach year, and will be publicly disclosed when the Firm files its financial statements with CompaniesHouse.  

The Firm may choose, at its own discretion, to make more frequent public disclosures where a particular circumstance requires this in the opinion of the Firm’s management.

Proportionality
The level of detail provided in the qualitative disclosures is proportionate to the size and internal organisation of the Firm and also proportionate to the nature, scope, and complexity of the Firm’s business activities.

This disclosure has been made in line with the requirements which apply to Backed as a MIFIDPRU Investment Firm, which is classed as Small and Non-Interconnected (“SNI”).

Changes to Information disclosed
This is the Firm’s first Disclosure under MIFIDPRU 8.

Therefore, there are no significant changes or amendments for Backed to disclose.

Verification
The information contained in this document has not been audited by the Firm’s external auditors, as this is not a requirement, and does not constitute any form of financial statement and must not be relied upon in making any judgement on the Firm.

Background
Backed LLP is incorporated in England and Wales and is authorised and regulated by the FCA.  The Firm is a MIFIDPRU Advisor, previously “exempt-CAD”. As a SNI MIFIDPRU investment firm, that has no additional tier 1 instruments in issue, the Firm is only required to disclose its remuneration policies and practices, as per MIFIPRU 8.1.

These disclosures are made by the Firm on a solo basis as required by MIFIDPRU 8.1.7R.

MIFIDPRU 8.6 – Remuneration
As a MIFIDPRU Advisor, Backed is subject to the ‘MIFIDPRU Remuneration Code’ (SYSC 19.G)only.

Distributions to Senior Management and Owners
In accordance with the guidance in SYSC 19G.4.4, at the end of each year, the residual profits of theFirm, which is a limited liability partnership, are distributed among the members.

All distributions received by members are classed as fixed or variable, depending on whether they are discretionary and based on performance of the individual or the business.

Qualitative Disclosures
The Firm has in place a Remuneration Policy which is approved by the Governing Body at least annually. The Remuneration Policy’s overarching aim is the promotion of sound and effective risk management, whilst reducing conflicts of interests and encouraging good conduct amongst employees.

The purpose of the Remuneration Policy is to set out how the Firm will provide remuneration in a manner that is consistent with the relevant remuneration codes as outlined above, with the main objective of the financial incentives being to attract, motivate and maintain high-calibre employees.

The remuneration strategy has been designed to ensure consistency with the risk profiles and rules of the firm, its activities and to ensure no conflict of interest arises between Staff and its one client.

As noted above, the Firm is not required to identify Material Risk Takers as an SNI MIFIDPRU investment firm.

The Firm’s approach to remuneration for all staff includes:

In line with the Equality Act 2010, the Firm has developed the following remuneration policies and practices to promote gender neutrality and eliminate any form of discrimination based on protected characteristics, including gender.

Backed is dedicated to upholding the principles of equality and non-discrimination in our remuneration policies and practices.

Quantitative Disclosures

The Firm considers that it has a single business area (investment advisory), and the total remuneration paid to Staff as required under MIFIDPRU 8.6.8R (4) can be found below. The variable remuneration reflects such remuneration paid with respect to performance over the fiscal year (even if paid following the end of the year).