The Directors of the Company, both individually and collectively, consider that they have acted in the way that would most likely promote the success of the Company for the benefit of its member (having regard to relevant stakeholders and matters set out in Section 172 (1) (a-f) of the Companies Act 2006) in the decisions taken during the year ended 31 December 2019.
In coming to this conclusion, the Directors have considered who the stakeholders of the business are and issues they need to take into consideration and concluded that the following stakeholders are material to the Company:
- Shareholder: the Company is a wholly-owned subsidiary of Edge Group Holding AS. As such, it must ensure that its strategic decisions consider the interests of its shareholder and are aligned with the wider Edge Group strategy. The shareholder expects a financial return on its investment and this is delivered through the payment of dividends by the Company.
- Employees: employee culture, values, behaviours and overall performance are central factors for the Company in ensuring good customer experience and elimination of conduct risk.
- Clients: the Company works in the best interests of its clients and therefore client considerations are a key component of the Directors’ and Company’s decision making.
- Suppliers and third parties: The Company seeks to maintain strong relationships with its suppliers (internal and external to Edge Group) to ensure quality of service, cost effectiveness, economies of scale and effective collaboration.
- Regulators: the Company is authorised and regulated by the FCA. Ensuring there is a strong, open and cooperative relationship with the Company’s regulator is a key objective for the Company and its Directors. The Company is a Lloyd’s broker and therefore also maintains a strong, open and cooperative relationship with Lloyd’s. These relationships underpin the Company’s permissions to operate, its ability to carry out business and its reputation with customers and other stakeholders.
For each of these groups of stakeholders the Company and its Directors seek to ensure they understand and take account of their concerns through a process of engagement, namely:
- Shareholder: the Chairman of the Company’s Board is a Director of its sole shareholder, Edge Group Holding AS. Regular communications and reporting between the Company’s Directors and their Group counterparts ensure appropriate information flows.
- Employees: the Company seeks and listens to employee feedback, implementing suggestions where they are compatible with the Company’s goals.
- Clients: the company ensures that each client relationship is the responsibility of a single senior member of staff. The Company logs any client complaints and negative feedback. All feedback is analysed to ensure the business responds in the correct manner and in line with the Company’s objectives. This and other processes are managed in accordance with the Company’s Quality Management System, which is certified to ISO 9001:2015.
- Suppliers and third parties: the Company actively manages and promotes strong relationships with its suppliers and outsourced-service providers to ensure good service, cost effectiveness, use of economies of scale and effective collaboration.
- Regulators: The Company aims to maintain strong and effective relationships with the FCA and other regulators, working in a collaborative and transparent manner to enable good customer outcomes while treating customers fairly. The importance of having an open and collaborative relationship with the regulators is embedded as a conduct requirement for all regulated staff.