SCHOOL FEES INVESTMENT ADVISERS LIMITED
SCHOOL FEES INVESTMENT ADVISERS LIMITED
Registered number: 09280804
Unaudited Financial Statements
For the Period 1 January 2023 to 29 February 2024
SCHOOL FEES INVESTMENT ADVISERS LIMITED
Contents
Contents
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| Balance Sheet | 1—2 |
| Notes to the Financial Statements | 3—10 |
SCHOOL FEES INVESTMENT ADVISERS LIMITED
Balance Sheet
As At
29 February 2024
Balance Sheet
Registered number:
09280804
For the period ending 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
| 29 February 2024 | 31 December 2022 | ||||
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| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible Assets | 5 |
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| CURRENT ASSETS | |||||
| Debtors | 7 |
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| Cash at bank and in hand |
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| Creditors: Amounts Falling Due Within One Year | 8 |
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| NET CURRENT ASSETS (LIABILITIES) |
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| TOTAL ASSETS LESS CURRENT LIABILITIES |
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| PROVISIONS FOR LIABILITIES | |||||
| Deferred Taxation | 9 | - |
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| NET ASSETS |
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| CAPITAL AND RESERVES | |||||
| Called up share capital | 10 |
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| Share premium account |
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| Profit and Loss Account |
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| SHAREHOLDERS' FUNDS | 23,995 | 406,198 | |||
SCHOOL FEES INVESTMENT ADVISERS LIMITED
Balance Sheet (continued)
As At
29 February 2024
On behalf of the board
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Director
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The notes on pages 3 to 6 form part of these financial statements.
SCHOOL FEES INVESTMENT ADVISERS LIMITED
Notes to the Financial Statements
For the Period 1 January 2023 to 29 February 2024
Notes to the Financial Statements
1.
General Information
SCHOOL FEES INVESTMENT ADVISERS LIMITED
is a private company, limited by shares, incorporated in England & Wales, registered number
09280804
. The registered office is 27 Moorbridge Road, Maidenhead, Berkshire, SL6 8LT. The company ceased trading on 31st December 2023.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
2.3.
Intangible Fixed Assets and Amortisation - Goodwill
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 5 years on a straight line basis.
2.4.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
| Leasehold |
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| Plant & Machinery |
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| Motor Vehicles |
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| Fixtures & Fittings |
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| Computer Equipment |
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2.5.
Financial Instruments
The company only has financial assets of a kind that qualify as basic financial instruments, which are initially recognised at transaction value and subsequentally measured at their settlement value.
Debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequentally less any impairment lossed for bad and doubtful debts.
Creditors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequentally less any impairment lossed for bad and doubtful debts.
SCHOOL FEES INVESTMENT ADVISERS LIMITED
Notes to the Financial Statements (continued)
For the Period 1 January 2023 to 29 February 2024
2.6.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
3.
Average Number of Employees
Average number of employees, including directors, during the period was: NIL (2022: 2)
4.
Intangible Assets
Restatement of comparatives:
The balances brought forward at 1 January 2022 have been reinstated for both cost and amortisation; the asset having been recorded as a disposal in 2021 in error. The economic benefits of those client portfolios still resided with the company at 1 January 2022. There is no impact on either the balance sheet or profit and loss as a result of this adjustment.
Disposal of Goodwill
In July 2022 the economic benefit of the goodwill acquisitions in the company were transferred to SFIA Wealth Management Ltd, a company with common ownership. The asset has therefore been transferred at full cost and amortisation and recorded as a disposal in the company and an addition in the acquiring company. A corresponding entry has been recorded in the intercompany accounts of both companies. The intention is to close the company in the future and the rest of the business will merge into SFIA Wealth Management Ltd.
SCHOOL FEES INVESTMENT ADVISERS LIMITED
Notes to the Financial Statements (continued)
For the Period 1 January 2023 to 29 February 2024
5.
Tangible Assets
| Plant & Machinery | Fixtures & Fittings | Computer Equipment | Total | |
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| Cost | ||||
| As at 1 January 2023 |
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| Disposals |
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| Depreciation | ||||
| As at 1 January 2023 |
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| Disposals |
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| As at 29 February 2024 |
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| Net Book Value | ||||
| As at 29 February 2024 |
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| As at 1 January 2023 |
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6.
Investments
| Other | |
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| Cost | |
| As at 1 January 2023 |
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| As at 29 February 2024 |
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| Provision | |
| As at 1 January 2023 |
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| As at 29 February 2024 |
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| Net Book Value | |
| As at 29 February 2024 |
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| As at 1 January 2023 |
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7.
Debtors
| 29 February 2024 | 31 December 2022 | ||
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| Due within one year | |||
| Prepayments and accrued income | - |
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| Other debtors | - |
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SCHOOL FEES INVESTMENT ADVISERS LIMITED
Notes to the Financial Statements (continued)
For the Period 1 January 2023 to 29 February 2024
Included in other debtors is an amount of £243,690, which shows as due from SFIA Wealth Management Ltd.
This represents the transfer of goodwill acquisitions less amortisation, as the economic benefits of the clients was transferred to SFIA Wealth Management Ltd in July 2022. When the merger of the company into SFIA Wealth Management Ltd is complete, the final merger accounting entries will result in the consolidation of the two companies and this debtor will contra the liability shown in the SFIA Wealth Management Ltd.
8.
Creditors: Amounts Falling Due Within One Year
| 29 February 2024 | 31 December 2022 | ||
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| £ | £ | ||
| Corporation tax | - |
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| Accruals and deferred income | - |
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9.
Deferred Taxation
The provision for deferred tax is made up as follows:
| 29 February 2024 | 31 December 2022 | ||
|---|---|---|---|
| £ | £ | ||
| Other timing differences | - | 19,061 | |
11.
Pension Commitments
The company operates a defined contribution pension scheme.. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date unpaid contributions of £Nil (PY £Nil) were due to the fund. They are included in Other Creditors.
Pension Contributions for the year were £Nil (2021: £10,068)
12.
Controlling Party
The company's controlling party is
Chris Procter
by virtue of his ownership of 90.9% of the issued share capital in the company.
13.
PILLAR 3 Disclosure
SCHOOL FEES INVESTMENT ADVISERS LIMITED
Notes to the Financial Statements (continued)
For the Period 1 January 2023 to 29 February 2024
Background
This is the Pillar 3 disclosure made in accordance with the UK Financial Conduct Authority (FCA) Prudential Sourcebook for Banks, Building Societies and Investment Firms ('BIPRU').
The European Capital Requirements Directive (CRD) created a regulatory capital framework consisting of three 'pillars' namely:
- Pillar 1 - which sets out the minimum capital requirements that firms are required to meet for
- Pillar 2 - which requires firms to take a view on whether additional capital should be held against capital risks not covered by Pillar 1, and
- Pillar 3 - which requires firms to publish certain details of its risks, capital and risk management process
Disclosure policy
The rules in BIPRU 11 provide that the firm may omit one or more of the required disclosures if it believes that the information is immaterial. Materiality is based on the criteria that the omission or misstatement of material information would be likely to change or influence the assessment or decision of a user relying on that information for the purposes of making economic decisions. Where the firm considers a disclosure immaterial, this will be stated in the relevant section.
The firm is also permitted to omit one or more of the required disclosures where it believes that the information is regarded as proprietary or confidential. Proprietary information is that which, if it were shared, would undermine the firm's competitive position. Information is considered confidential where there are obligations binding the firm to confidentiality with its clients and counterparties.
Where the firm has omitted information for any of the above reasons, a statement explaining this will be provided in the relevant section.
Unless stated as otherwise, all figures contained in this disclosure are based on the firm's audited annual reports for the year ending 31st December 2022.
Frequency
These Pillar 3 Disclosures will be reviewed on an annual basis as a minimum. The disclosures will be published as soon as is practical following the finalisation of the firm's Internal Capital Adequacy Assessment Process (ICAAP) and the publication of its annual reports.
Verification
The information contained in this disclosure has not been audited by our firm's external auditors and does not constitute any form of financial statement.
Scope and application of directive requirements
The disclosures in this document are made in respect of discretionary investment management services, a BIPRU firm.
Risk management objectives and policies
Our risk management policy reflects the FCA requirement that we must manage a number of different categories of risk. These include: liquidity, credit, market, interest rate, business and operational risks.
1.Liquidity risk
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SCHOOL FEES INVESTMENT ADVISERS LIMITED
Notes to the Financial Statements (continued)
For the Period 1 January 2023 to 29 February 2024
Liquidity risk is the risk that SFIA will not be able to meet its financial obligations as they fall due. We are equity funded with no debt and due to the strength of our balance sheet which holds significant net cash reserves there is no liquidity risk. We have sufficient liquid resources to meet continued business operating needs supported by a robust budgeting and forecasting process which involves the senior management team.
2.Credit risk
SFIA regularly monitor amounts due from its clients and has appropriate credit control procedures in place. The firm's revenues include annual management charges received from clients based on a percentage of client assets under management. These charges are made directly to the clients' portfolios, and therefore the credit risk relating to this income is minimal.
3.Interest rate risk
The firm has no borrowings and no exposure to interest rate risk.
4.Business risk
The firm's Pillar 2 business risk assessment principally takes the form of a fall in assets under management following a market downturn that leads to lower management fees. To mitigate our business risk, we regularly analyse various different economic scenarios to model the impact of economic downturns on our financial position.
Whilst we monitor business risk, given our size and nature, no separate risk management function is considered necessary in respect of SFIA's own balance sheet. Matters arising from the review are considered and remedial action is taken where appropriate.
SFIA's revenue is dependent on the size and performance of its portfolios/funds under management. As such, risks posed relate to underperformance the consequence of which could be a decline in revenue and potentially a risk of loss of clients from the funds managed. This risk is mitigated by our conservative investment approach, its diversified and well-established client base and is further mitigated by capital maintained within the business which is kept at a sufficient level to cover expenses for at least twelve months.
5.Operational risk
Operational risk is the potential risk of financial loss or impairment to reputation resulting from inadequate or failed internal processes and systems, from the actions of people or from external events.
Major sources of operation risk include: Outsourcing of operations, IT security, internal and external fraud, implementation of strategic change and regulatory non-compliance.
The firms risk management process is regularly reviewed and updated with details provided to all staff.
All senior management will bear responsibility for internal controls and the management of business risk as part of their accountability to the board.
Individuals are responsible for identifying the risks surrounding their work, implementing controls over those risks and reporting areas of concern to their line manager.
The Compliance Oversight will provide the board with a quarterly / half-yearly summary report on all significant risk issues.
6.Other risks
The firm operates a simple business model. Accordingly, many of the specific risks identified by the FCA do not apply.
Capital resources
Pillar 1 requirement
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SCHOOL FEES INVESTMENT ADVISERS LIMITED
Notes to the Financial Statements (continued)
For the Period 1 January 2023 to 29 February 2024
In accordance with GENPRU 2.1.45R (calculation of variable capital requirement for a BIPRU firm), our capital requirement has been determined as being our fixed overhead requirement and not the sum of our credit risk capital requirement and our market risk capital requirement.
The Pillar 1 capital requirement was £50,000 as at 31st December 2022.
Pillar 2
Our overall approach to assessing the adequacy of our internal capital is set out in our ICAAP. The ICAAP process involves separate consideration of risks to our capital combined with stress testing using scenario analysis. The level of capital required to cover risks is a function of impact and probability. We assess impact by modelling the changes in our income and expenses caused by various potential risks over a 1-year time horizon. Probability is assessed subjectively.
In addition, we have reviewed the outputs of our risk reviews to quantify any risks identified. This has identified a number of key business risks which we have classified against the risk categories contained in GENPRU 1.2.30R and reviewed the guidance in BIPRU 2.2.61-65.
Our Pillar 2 capital requirement, which is our own assessment of the minimum amount of capital that we believe is adequate against the risks identified, has been assessed as no greater than our Pillar 1 requirement. There is a considerable surplus of reserves above the capital resource requirement deemed necessary to cover the risks identified.
Regulatory capital
The main features of capital resources for regulatory purposes, as at 31st December 2022 are as follows:
Capital item: £
Tier 1 capital (called up share capital, share premium account, profit and loss account, externally verified interim net profits) £406,198
Total of tier 2 and tier 3 capital (broadly long- and short-term subordinated loans) £
Deductions from tier 1 and tier 2 capital £
Total capital resources, net of deductions £406,198
The firm holds regulatory capital in accordance with the Capital Requirements Directive. All such capital is classified as Tier 1 capital and is therefore of the highest quality.
Remuneration code disclosure
We are subject to the BIPRU Remuneration Code. This section provides further information on our remuneration policy.
BIPRU Remuneration Code Staff
We have identified, and maintain a record of, 'BIPRU Remuneration Code Staff' - i.e. staff to whom the BIPRU Remuneration Code applies. This includes senior management and members of staff whose actions may have a material impact on a firm's risk profile. All of our Code Staff fall into the 'senior management' category of Code Staff (rather than the 'risk taker' category) for the purposes of the BIPRU Remuneration Code.
Decision making / remuneration committee
We do not have a Remuneration Committee. The Directors are responsible for our remuneration policy including:
- Determining the framework and policy for remuneration and ensuring it does not encourage undue risk taking
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SCHOOL FEES INVESTMENT ADVISERS LIMITED
Notes to the Financial Statements (continued)
For the Period 1 January 2023 to 29 February 2024
- Agreeing any major changes in remuneration structures
- Reviewing the terms and conditions of any new incentive schemes and in particular, considering the appropriate targets for any performance related remuneration schemes
- Considering and recommending the remuneration policy for the senior employees taking into account the appropriate mix of salary, discretionary bonus and share based remuneration
- In determining remuneration arrangements, the Directors / Partners will give due regard to best practice and any relevant legal or regulatory requirements including the BIPRU Remuneration Code
Quantitative information on remuneration
The FCA rules require certain firms to disclose aggregate information on remuneration in respect of its BIPRU Remuneration Code Staff broken down by business area, senior management, and other Code Staff, including 'risk takers'.
The firm only has one business area - investment management.
The firm has 2 Directors but no risk takers.
Director remuneration is agreed formally at board meetings. The link between performance and pay is inevitable in a small firm, but the firm's risk adverse strategy and robust risk management systems mitigate any risks.
We have calculated our firm's aggregate quantitative information on remuneration inclusive of all elements of remuneration.
The aggregate quantitative remuneration for our firm's BIPRU
SFIA identified Code Staff, as defined by the FCA Remuneration Code, are the Directors, who exercise significant control functions. Due to the size and scale of the business no separate remuneration committee exists; this function is instead undertaken by the Directors. The overall policy is that the remuneration of Code Staff complies with the FCA's Remuneration Code, with an appropriate balance being struck between financial performance and risk management. The remuneration policy is agreed and approved by the Directors due regard to risk management.