The Board and Main Committees

Corporate Governance Policy

Numis recognises the importance of good corporate governance and intends that best practice is adopted and applied.  The Board of Directors has agreed to apply the Corporate Governance Code for Small and Mid-Size Quoted Companies (2018), (the “QCA Code”)  having considered the principles of good governance and standards of good practice in relation to Board leadership and effectiveness, corporate culture based on ethical values and behaviours, remuneration, accountability and its relations and communication with shareholders/stakeholders. The Board supports the QCA Code’s corporate governance principles and believes they provide a mechanism that is both sufficiently robust to add real value for Numis as well as flexibility to reflect the different governance needs and abilities of a quoted business like Numis..

The Board
The Board is authorized to manage the business of the Company on behalf of the shareholders and in accordance with the Company’s Articles of Association.  This is achieved through its own decision making and by delegating responsibilities to the Board Committees and authority to manage the business to the Co-CEO's. The Board is responsible for overseeing the management of the business and for ensuring high standards of corporate governance are maintained throughout the Group.

The Board of Numis Corporation Plc is chaired by Alan Carruthers and meets a set number of times a year and at other times as necessary, to discuss a formal schedule of matters specifically reserved for its decision.  These matters routinely include:

  • The Groups strategy and associated risks;
  • Acquisitions, disposals and other material transactions;
  • Financial performance of the business and approval of annual budgets, the half year results, annual report and accounts and dividends;
  • Appointments to and removal from the Board and Committees of the Board;
  • Risk management strategy and risk appetite;
  • Remuneration strategy;
  • Actual or potential conflicts of interest relating to any Director; and
  • Changes relating to the Group’s capital structure or the Company’s status as an AIM listed 

Board Effectiveness
The Chairman conducts an annual assessment of the effectiveness of the Board and its Committees through an internal questionnaire completed by each Director followed up by one-to-one discussions with each Director.  The questionnaire covers a number of areas including Board composition, meeting structure, strategic oversight, risk management, succession planning, information content and format and, finally, performance of the Board Committees. The outcomes and principal findings are reported to the Board for consideration.

The performance of the Chief Executive Officers is appraised annually by the Chairman.  The performance of the remaining Executive Directors is appraised annually by the Chief Executive Officers.

Chairman and Chief Executive Officers
The Chairman is Alan Carruthers and he is responsible for leading the Board, ensuring its effectiveness, steering its agenda, promoting a healthy culture of challenge and debate together with monitoring and evaluating the performance of the Chief Executive Officers.

The Co-CEO's are Alex Ham and Ross Mitchinson who are responsible for the executive management of the Group and its business on a day-to-day basis.  This includes making recommendations to the Board in respect of strategy.

Balance and Independence
The Board is comprised of a balance of executive and non-executive directors, including independent non-executive directors.  This balance is designed to ensure that no one individual or small group of individuals can dominate the Board’s decision making.

Senior Independent Director
The Board has determined that the formal appointment of a senior independent Director is not necessary given the current structure and composition of the Board. Furthermore, given the size of the Company, the shareholdings in the Company that the current Board members hold and the active dialogue with institutional shareholders that takes place throughout the year, the Board is of the view that an appointment of a senior independent Director would not currently provide any further benefit in assisting with communication with shareholders.        

Committees of the Board

Audit and Risk Committee
The Audit and Risk Committee comprises the non-executive Directors and meets at least four times each year. Internal and external audit team representation is invited to attend every meeting of the Committee.  Other members of the Board, and the Head of Legal, Compliance and Risk may also attend by invitation as may the chairman of the Board.

The Audit and Risk Committee is responsible for the overall risk framework, internal control environment and financial reporting of the Company and the Group.  It receives reports from the Group’s management relating to the Group’s risk exposures and mitigating controls as well as detailed findings arising from internal and external audit reviews. 

The committee reports to the Board on the Group’s full and half year results, having examined the accounting policies on which they are based and ensured compliance with relevant accounting standards.  In addition, it reviews the scope of internal and external audit, their effectiveness, independence and objectivity taking into account relevant regulatory and professional requirements.

The committee has direct and unrestricted access to the internal and external audit function. 

The committee is also responsible for :

  • Monitoring the content and integrity of financial reporting;
  • Reviewing the appropriateness of accounting judgments;
  • Reviewing the Group’s risk policies and control frame work;
  • Reviewing the Group’s regulatory reporting procedures and relationship with regulators;
  • Review and recommendation to the Board the Groups risk appetite;
  • Review and approval of financial and other risk limits and adherence thereto; and
  • Reviewing and challenging the Group’s  Internal Capital Adequacy Assessment Process and  Individual Liquidity Adequacy Assessment

Remuneration Committee
The Remuneration Committee comprises the non-executive Directors and meets at least twice each year and at other times as necessary.  Other members of the Board and the Head of Human Resources may attend by invitation.  Its primary responsibility is to review salary levels, discretionary variable remuneration and the terms and conditions of service of the Executive Directors. The Remuneration Committee also reviews the compensation decisions made in respect of all other senior executives and those members of staff determined to be Code Staff under the FCA’s Remuneration Code regulations.

Finally, the Committee is responsible for determining the overall Remuneration Policy applied to the Group and its subsidiaries, including the quantum of variable remuneration and the method of delivery taking into account relevant regulatory and corporate governance developments.

The Remuneration Committee is authorized to seek any information it requires in order to perform its duties and obtain external legal or other professional advice that it considers necessary form time to time. 

Nominations Committee
The Nominations Committee comprises the non-executive Directors. Other members of the Board and the Head of Human Resources may attend by invitation.  The committee considers appointments to the Board and meets as necessary.  The committee is responsible for identifying and nominating candidates, for making recommendations on Board composition and for considering succession planning requirements.

Executive Operational Committees

Main Trading Subsidiary Board
The board of the main trading subsidiary, Numis Securities Limited, chaired by Alex Ham and Ross Mitchinson, deals with the implementation of business strategy and day-to-day operational matters. It meets monthly and receives information with respect to the financial performance of the Group together with departmental reports, risk information and other relevant items.

Risk Oversight Committee
The Risk Oversight Committee, chaired by the Group’s Head of Legal, Compliance and Risk, meets quarterly to consider and assess all significant risk exposures faced by the Group. The Committees remit encompasses both financial and non-financial risks and the methodology applied in order to identify, measure and report their impact. One of the key responsibilities of the committee is to manage the overall method and format of risk reporting into the Audit and Risk Committee and the Board.

Financial Risk Committee
The Financial Risk Committee, chaired by the Group’s Head of Legal, Compliance and Risk, meets fortnightly (or more frequently as it determines necessary) to discuss and manage the market, credit, liquidity and related operational risks of the Group, including amongst other financial risks the market risk of the Group’s trading book and investment portfolio. The Financial Risk Committee makes recommendations to the Audit and Risk Committee on Risk Policy which sets various limits at individual stock and overall trading book level as well as being responsible for the review and approval of counterparty limits.

New Business Committee
The New Business Committee, chaired by the Group’s Head of Corporate Broking and Advisory, is responsible for exercising senior management oversight across all issues in relation to Numis entering into new corporate client relationships, underlying transactions on behalf of corporate clients and reviewing or terminating relationships with corporate clients. It has responsibility for assessing the impact on Numis of all such matters and in doing so gives due consideration to the reputational, regulatory, execution and commercial risks attached.

Risk Committee
In addition to the New Business Committee, further approval is required by the Risk Committee prior to the launch of a fund raising, issue of a public document which contains Numis’ name or in the case of a transaction giving rise to significant unusual concerns of significant financial or reputational risk to the firm.


Internal Control
The Board is ultimately responsible for maintaining the Group’s risk framework and system of internal control and for reviewing its effectiveness. The system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives, as such it can provide only reasonable but not absolute assurance against material misstatement or loss.

The Group’s system of internal control has been actively managed throughout the year. The Group has a number of committees with formal terms of reference and a Compliance department responsible for the Group’s adherence to the rules of the Financial Conduct Authority and other relevant regulators.

In addition, the Group has a fully independent, outsourced Internal Audit function reporting to the Audit and Risk Committee in order to provide further assurances over the adequacy and effectiveness of the systems of internal control throughout the business and ensure that the Group’s approach to continuous improvement is maintained.