IG Group’s lead regulator is the UK’s Financial Conduct Authority (FCA), which also regulates our UK subsidiaries (IG Markets Limited and IG Index Limited) as well as IG Group on a consolidated basis. The FCA imposes a minimum level of regulatory capital adequacy for individual regulated UK entities and IG Group. We also take into account local capital requirements in the overseas jurisdictions where we operate when managing our capital adequacy.
We believe there are significant benefits to being well capitalised at a time of continuing global economic uncertainty, and we have historically maintained liquidity requirements significantly in excess of regulatory capital requirements.
IG Group has maintained a Total Capital Ratio well in excess of the regulatory minimum of 8% throughout the year. For the year ended 31 May 2018, the capital resources were £558.5m (2017: £485.6m) and this represented a Total Capital Ratio of 27.4% (2017: 25.7%).
In addition to satisfying the FCA's Pillar 1 requirements, we also undertake an Internal Capital Adequacy Assessment Process (ICAAP) at least once a year. The ICAAP results in the Internal Capital Assessment (ICA) which assesses the amount of risk-based capital resources requirement (Pillar 2) to be held by IG Group. This assessment is also subject to review by the FCA, and this was last done in November 2016.
Important information about IG Group’s capital adequacy and risk assessment and control processes can be found below in 'Additional regulatory disclosures'.
For details on the role of the Board Risk Committee and other Committees, visit Board of directors.