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Capital Adequacy Disclosures

SSGAL is regulated by the FCA that enforces the capital adequacy framework consisting of three pillars in the United Kingdom.

  • Pillar 1: defines the rules and regulations for calculating risk-weighted assets and regulatory minimum capital requirements. SSGAL is a €50k BIPRU firm and its Pillar 1 capital requirement is the higher of sum of credit and market risk or fixed overhead requirement (“FOR”);
  • Pillar 2: addresses a firm’s internal process for assessing overall capital adequacy in relation to its risks. This is also referred to as the Internal Capital Adequacy Assessment Process (“ICAAP”). Pillar 2 further entails the Supervisory Review and Evaluation Process by the FCA; and
  • Pillar 3: complements Pillars 1 and 2 and is designed to promote market discipline by providing market participants with key information on a firm’s risk exposure and risk management processes through a set of minimum disclosure requirements.