In order to consolidate its business and to streamline organisational and governance arrangements post-Brexit, a number of key structural and regulatory changes were made within the Platina group during 1H21 which are relevant to this disclosure:
– Platina Partners LLP applied to the FCA to change its regulatory status from a small UK AIFM to a Full-Scope UK Alternative Investment Fund Manager with additional MiFID permissions. This Variation of Permission application was given FCA approval on 17 June 2021.
– Platina Energy Partners LLP simultaneously applied for cancellation of its FCA licence, with all remaining activities being transferred to Platina Partners LLP. This cancellation took effect on 18 June 2021.
– As a Full-Scope UK AIFM, Pillar 3 disclosure obligations will apply to Platina Partners LLP, effective from the 2022 reporting period.
– The current published Pillar 3 disclosures were prepared to reflect these changes.


The Capital Requirements Directive (‘CRD’) establishes the regulatory capital framework governing the amount and nature of capital credit institutions and investment firms must maintain.
In the United Kingdom, the CRD has been implemented by the Financial Conduct Authority (‘FCA’) in its regulations through the General Prudential Sourcebook (‘GENPRU’), the Prudential Sourcebook for Banks, Building Societies and Investment Firms (‘BIPRU’) and the Interim Prudential Sourcebook for Investment Business (“IPRU (INV)”).

The CRD consists of three ‘Pillars’:

  • Pillar 1 sets out the minimum capital amount that meets the firm’s credit, market and operational risk capital requirement.
  • Pillar 2 requires the firm to assess whether its capital reserves, processes, strategies and systems are adequate to meet the requirements under Pillar 1 and further determine whether it should apply additional capital, processes, strategies or systems to cover any other risks that it may be exposed to.
  • Pillar 3 requires disclosure of specified information regarding the underlying risk management controls and capital position to encourage market discipline and to allow market participants to assess key information about our underlying risks, risk management controls and capital position.

The regulatory aim of the disclosures is to improve market discipline.

The rules in BIPRU 11 set out the provision for Pillar 3 disclosure. This document is designed to meet Platina Energy Partners’ Pillar 3 obligations to disclose certain key pieces of information regarding a firm’s capital, risk exposures and risk assessment processes.

The Pillar 3 disclosure document has been prepared by Platina Energy Partners LLP (“Platina” or the “Firm”) in accordance with the requirements of BIPRU 11 and is verified by the Firm’s Executive Committee. Unless otherwise stated, all figures are as at the 31 March 2021 financial year-end. It must be emphasised that Platina Energy Partners LLP has prepared this disclosure document, as well as the Firm’s final ICAAP report, with its deregulation and cancellation of its FCA licence and FSMA Part 4A Permissions as the primary consideration and driving factor when determining risk exposure and reporting on the Firm’s capital reserves.

Pillar 3 disclosures are normally issued on an annual basis after the year end and published as soon as practical.

We are permitted to omit required disclosures if we believe that the information is immaterial such that omission would be unlikely to change or influence the decision of a reader relying on that information for the purpose of making economic decisions about the Firm.

In addition, we may omit required disclosures where we believe that the information is regarded as proprietary or confidential. In our view, proprietary information is that which, if it were shared, would undermine our competitive position. Information is considered to be confidential where there are obligations binding us to confidentiality with our customers, suppliers and counterparties.

We have made no omissions on the grounds that the information is immaterial, proprietary or confidential.


For the purposes of this disclosure document and during the reporting period under consideration, Platina Energy Partners LLP is authorised and regulated by the FCA and as such, is subject to minimum regulatory capital requirements. The Firm is a Full-scope UK Alternative Investment Fund Manager (‘AIFM’) and is categorised by the FCA for Prudential Regulatory purposes both as a Collective Portfolio Management Investment firm (‘CPMI’ firm) and a BIPRU firm.

The Firm is not a member of a group and so is not required to prepare consolidated reporting for prudential purposes.


Platina’s approach to risk management is predicated on the need to manage the full range of risks facing Platina including operational, business, liquidity, credit and market risks. Platina’s overriding aim in this area is to minimise the risks to its clients, its counterparties and other stakeholders and to ensure it remains in full compliance with regulatory and legal requirements.

The Firm has established a risk management process in order to ensure that it has effective systems and controls in place to identify, monitor and manage risks arising in the business. The risk management process is overseen by the Chief Risk Officer (‘CRO’), with the Senior Management team taking overall responsibility for this process and the fundamental risk appetite of the firm. The Compliance Officer has responsibility for the implementation and enforcement of the Firm’s risk principles.

Senior Management meets on a regular basis and discusses current projections for profitability, cash flow, regulatory capital management, business-planning and risk management. Senior Management engage in the Firm’s risks through a framework of policy and procedures having regard to the relevant laws, standards, principles and rules (including FCA principles and rules) with the aim to operate a defined and transparent risk management framework. These policies and procedures are updated as required.

The Senior Management team has identified that business, operational, market and credit are the main areas of risk to which the Firm is exposed. Annually the Senior Management team formally review their risks, controls and other risk mitigation arrangements and assess their effectiveness.

A formal update on operational matters is provided to the Executive Committee on a regular basis. Management accounts, which demonstrate continued adequacy of the firm’s regulatory capital, are reviewed on a regular basis.

Appropriate action is taken where risks are identified which fall outside of the Firm’s tolerance levels or where the need for remedial action is required in respect of identified weaknesses in the Firm’s mitigating controls.

3.1 Business Risk

Business risk is the risk of loss inherent in Platina’s operating, business and industry environment. Changes in Platina’s business could include the acute risk to income posed by falling or volatile income; the broader risk of Platina’s business model or strategy proving inappropriate due to macro-economic, geopolitical, industry, regulatory or other factors and the risk that the Firm may not be able to carry out its business plan and desired strategy.

Consideration given to this category of risk in the Firm’s 2020-2021 ICAAP report has taken into account the Firm’s impending deregulation and subsequent dissolution, with the transfer of any remaining business to Platina Partners LLP.

3.2 Operational Risk

Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external causes (deliberate, accidental or natural). Events may be manifested as direct financial losses or indirectly in the form of revenue forgone as a result of business suspension. They may also result in damage to reputation causing longer term financial consequences. The operating environment includes cash controls, technology and systems, legal and compliance, accounting, administration, valuation and reporting.
The Firm considered operational risks relating to Covid-19, focussing particularly on operational resilience, and found that there was little or no residual risk for Platina Energy Partners in view of the impending changes to its regulatory status.

The Firm has Professional Indemnity Insurance cover of £2.5million though this does not form part of the regulatory capital requirements of the Firm. In addition, the Firm has Office Insurance including Employer Liability and Public Liability to cover any additional operational losses. This level of insurance cover will continue until the Firm has completed its wind-down and liquidation.

3.3 Credit Risk

Credit risk is the risk of financial loss if a client, fund or counterparty fails to meet its contractual obligations. As Platina does not provide credit to clients, its exposure to credit risk has always been limited to accrued fees and management fees are drawn quarterly from the funds managed, mitigating credit risk.

Given the massively reduced exposure to credit risk for the Firm associated with its cessation of business, the risk rating in this category is low-nil.

3.4 Market Risk

Market risk is defined as the risk of loss resulting from fluctuations in market variables, such as interest rates, foreign exchange rates, inflation rates, equity and commodity prices or an issuer’s credit worthiness.

The Firm takes no market risks other than foreign exchange risk in respect of cash balances held in currencies other than GBP. The exposure to this type of risk is further reduced as the Firm has no remaining funds under management and therefore receives no income.

3.5 Liquidity Risk

The Firm is required to maintain sufficient liquidity to ensure that there is no significant risk that its liabilities cannot be met as they fall due or to ensure that it can secure additional financial resources in the event of a stress scenario.

The Firm retains an amount it considers suitable for providing sufficient liquidity to meet the working capital requirements under normal business conditions. The change in these conditions associated with the Firm’s impending deregulation and dissolution has dictated liquidity requirements.


The Firm is a limited liability partnership, whose capital arrangements are established in its partnership deed.

Under the FCA rules, Platina’s prudential categorisation is:
Collective Portfolio Management Investment (CPMI) Firm; and
Prudential sourcebook for Banks, Building Societies and Investment Firms (BIPRU) Firm.

As a CPMI firm, Platina is required to hold own funds and liquid assets in excess of the higher of the following:
a. €125,000 + 0.02% of AIF AUM > £250m; and
b. The sum of credit risk and market risk requirements; or
c. The Fixed Overheads Requirement (‘FOR’) which is essentially 25% of the Firm’s operating expenses less certain variable costs.

Platina has undertaken an ICAAP covering the period under review to determine whether it needs any further regulatory capital due to the operational, business, credit, market and other risks it faces, this is Platina’s Pillar 2 requirement. As part of the ICAAP, Platina considered risks to capital combined with stress testing and scenario analysis of operational and business risks as well as an assessment of costs to wind down the business.

The Firm’s approach to this exercise reflects the fact that, during the final quarter of 2020 and 1Q21, the necessary and appropriate steps were taken to prepare for its impending orderly wind-down and cancellation of its FCA regulated status.


As a Full-scope UK AIFM, the Firm is subject to the AIFM Remuneration Code (the “Code”), as transcribed in SYSC 19B of the FCA Handbook, and has applied proportionality in its approach to the Code. As a result, certain provisions of the Code have been disapplied.

In view of the size of Platina’s business, remuneration for all employees is set by the Firm’s Executive Committee. Platina operates an annual performance review system for all employees and bases its decisions regarding overall levels of remuneration and bonus payments on the results of these reviews and in accordance with the FCA and AIFMD Rules on remuneration.

Platina has identified its “Code Staff” to be the Partners of the Firm and any other senior staff members as outlined in the Firm’s Remuneration Policy and is satisfied that their remuneration complies with the FCA and AIFMD Rules on remuneration.

Platina’s Remuneration Policy formalises this process and will continue to be applied under Platina Partners LLP.


Under the Financial Conduct Authority Rule COBS 2.2.3R, Platina is required to make a public disclosure in relation to the nature of its commitment to the UK Financial Reporting Council’s Stewardship Code (the “Code”).

The Code aims to enhance the quality of engagement between institutional investors and companies to assist in improving long-term returns to investors and the efficient exercise of governance responsibilities. It provides a set of principles and guidance for how institutional investors should perform their duties. It is to be applied by firms on a “comply or explain” basis.

The Code is directed in the first instance to institutional investors by which is meant asset owners and asset managers with equity holdings in UK listed companies.

The Financial Reporting Council (FRC) recognises that not all parts of the Code will be relevant to all institutional investors and that smaller institutions may judge some of the principles and guidance to be disproportionate. It is of course legitimate for some asset managers not to engage with companies, depending on their investment strategy, and in such cases, firms are required to explain why it is not appropriate to comply with a particular principle.

Although Platina seeks to align its approach with the broad aims of the Code, the provisions of the Code are primarily not relevant to the type of investment activity currently undertaken by Platina. Should any of these factors change, we will review our commitment to the Code at that time and make appropriate disclosure.