Companies Act 172 statement

This section of the Strategic Report provides an overview of how the directors have fulfilled their duties to promote the success of the company and had regard to the matters set out in section 172(1) (a) to (f)  Companies Act 2006 as detailed below. This also forms the directors’ statement required under section 414CZA of the Companies Act 2006.

Our Approach to the Long Term Success of the company

We recognise that the long-term success of the company is dependent upon having regard to the interests of our stakeholders. Being part of the Benefact Group, with its ambition to be the most trusted and ethical specialist financial services group, we understand how important it is to listen and respond to the needs of stakeholders.

Stakeholder Engagement in Decision Making

The Board adopts a range of approaches to engage with stakeholders and recognises that the importance of a stakeholder group may differ depending on the matter to be considered. Being part of the Benefact Group, we also consult with our parent owner on matters which are of Group-wide significance or have the potential to affect the reputation of the Group and its charitable owner, Benefact Trust Limited.

The Board considers a variety of information to understand the impact of the company’s operations and the interests and views of our key stakeholders. Updates on the views of our parent owner are provided at each board meeting. Directors also discuss strategic and business matters, financial, operational and governance issues, and other relevant issues that arise.

Below are examples of the Board’s decision-making during the year in respect of strategic and company performance and how it has had regard to the interests of a selection of our stakeholders.

Acquisition of GD Anderson & Co Limited

During the first quarter of the year, we acquired GD Anderson & Co Limited (GDA), an independent insurance broker concentrating on medium to high net worth individuals. The Board discussed the potential benefits, value and risks of the acquisition and received reports on progress from senior management at each meeting leading up to completion. Management proposals for plans to integrate GDA into the business were also considered.

We recognised that the business, with its long standing clients and approach to client contact, would complement the company’s own client service standards.

Reflecting on our directors’ duties under s172 the Board approved the acquisition of GDA in April 2022. Throughout the rest of the year, the Board continued to be provided with progress updates from management on the integration of GDA into the business and noted its positive performance.

New Head Office Premises

During thesecond quarter of the year, the Board approved the relocation of the Head Office to new premises at Bank House on Dean Street, Newcastle. Our decision followed extensive consideration of our staff and office working environment, particularly following changes driven by the Covid-19 pandemic and the company’s new Working Differently policy. We considered various options, explored by management team, for our office arrangements based on flexible working, reflecting on differing business models in the market and in light of our business, staff and client needs. The Board approved plans for the move to the new property in May 2022, on the basis that Bank House would provide an improved working environment, bringing productivity gains for the business as well as supporting employees’ enhanced wellbeing. The Board continued to be provided with updates on the relocation process at its meetings, with the business due to move into the property in June 2023.

Consumer Duty

Following the publication of the Financial Conduct Authority’s (FCA) PS22/9 ‘A new Consumer Duty’ in July 2022, the Board discussed with management the implementation of the Duty and its requirements at its meeting on 20 October 2022. Directors provided feedback and steer to management to ensure the company’s compliance with the regulation. Consideration also focused on ways in which the business could gain greater insight and understanding of our clients so that we can deliver for clients. After robust discussion regarding the role requirements of the Consumer Duty Champion, the Board approved Mr William Nicholl as its Consumer Duty Champion. The implementation plan was also agreed, which is subject to progress updates being provided to the Board at each meeting.

Our Strategy in action:

Our clients are the lifeblood of the company and we believe that clients should be at the heart of everything we do.

During the year, the Board received updates on client matters via the CEO’s report at each meeting. This included consideration of strategy plans, opportunities for improving client proposition and service, ways to enhance client communications and develop greater insight and understanding of our clients.

Management carry out regular meetings and communication with clients through the year, and client surveys assist the company to understand client needs and perspectives.

We recognise that employees are a significant asset for the company, given their specialist skills, knowledge and propensity to go above and beyond.

The Board receives regular updates from key management personnel on a range of  Company matters at each board meeting. This includes the  CEO’s report providing insight and updates on staff engagement surveys and resulting key initiatives; support for staff  training and development, and well-being support.

The Company’s immediate parent is Lycetts Holdings Limited. The parent company was a wholly owned subsidiary of Benefact Group plc during the year, and ultimately Benefact Trust Limited. Lycetts Holdings Limited is now wholly owned by Benefact Broking & Advisory Holdings Limited, following the sale of the entire issued share capital from Benefact Group plc on 3 January 2023.

Being part of the Benefact Group, the directors are aware of the importance of engaging with its parent owner and working to support the group as a whole.

There are ‘common directors’ who sit on the boards of both the immediate parent company and Benefact Broking & Advisory Holdings Limited. This provides for the sharing of insights and perspectives from the shareholder at each board meeting. Mr Francois Boisseau (independent non-executive director of the board of Benefact Group plc) was also welcomed during the year to attend a board meeting as a way to support the two-way channel of communication between the board and the ultimate parent owner.

The Benefact Group’s expectations of its subsidaries is set out in its ‘Expectations of SBUs’, which the Board regularly considers to ensure adherence.

As part of the Benefact Group, the company contributes to UK charities through the annual Movement for Good Awards. Our purpose is to better lives through better business. We are focused on long‐term and strategic charitable giving.  Employees are supported to give to causes they care about. The Board, via its Lycetts Management Board, considers updates on the company’s charitable giving and volunteering activities.

The Company is regulated by the Financial Conduct Authority (the FCA).

The Board recognises the importance of open and honest dialogue with the Regulator and is committed to complying with applicable legislation and regulation. The Board receives regular reports from management detailing the company’s regulatory interactions. The Board understands the need to keep up to date with and respond to any communications received from regulators. Consequently, the directors receive regular and timely targeted communications from the company’s Head of Compliance, and Group Compliance on any pertinent regulatory matters.

The Board also receives regular reports on the evolving legal and regulatory landscape.