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Basel II - Pillar 3, UK Disclosures

Introduction

This document contains the Pillar 3 disclosures required under Basel II in relation to the following UK entity New College Capital Ltd

This document should be read in conjunction with the annual financial statements of the entity.


Basel II – Pillar 3

New College Capital Ltd

The capital adequacy and capital resources of New College Capital Ltd (NCC) is managed and monitored based on practices developed by the Basel Committee on Banking Supervision (the ‘Basel Committee’) and governed by European Union directives. These directives are implemented in the UK by the FCA and incorporated within its prudential sourcebooks for banks and investment firms

Capital Resources

Regulatory capital resources comprise a number of ‘tiers’. Tier 1 capital principally comprises shareholders’ equity. This is supplemented by Tier 2 and Tier 3 capital, which consist mainly of subordinated debt instruments. Total capital equals the sum of these, less deductions for such items as investments in non-consolidated subsidiaries.

New College Capital’s overall capital needs are continually reviewed to ensure that its capital base can appropriately support the anticipated needs of its businesses. The capital management framework at the New College Capital is designed to monitor the sufficiency of capital resource to support underlying risks of the business and to support the underlying risks of the business activity, to meet the objectives of management and to meet the requirements of regulators, rating agencies and market participants.

New College Capital must at all times monitor and demonstrate the compliance with the relevant regulatory capital requirements of the FCA. New College Capital has put in place processes and controls to monitor and manage its capital adequacy and no breaches were reported to the FCA during the year.