Kernow Asset Management – Important Information
1. Privacy Policy
This privacy policy explains how Kernow Asset Management (“Kernow”) may use any personal information we collect about you or from you. Kernow will collect and use personal data on the basis that it is in its legitimate interests to do so, as an example to keep records of transactions and to continue providing service to its clients.
Kernow will collect information via our account application process and throughout our relationship with you, in order to comply with regulations. Additionally, for the purposes of ensuring our contract with you is maintained. The provision of your personal data is required to enter into a contract with us, however the provision of information for marketing purposes is voluntary.
Examples of personal data we may hold include:
– Name and contact details
– General financial information including risk tolerance and objectives (to enable us to ensure suitability and complete due diligence)
– ID verification documents
Kernow may record and monitor phone calls and web-based conversations made to or by us and store email data to comply with our regulatory obligations. Third party electronic verification may be used by Kernow to comply with our Know Your Client (KYC)/Anti Money Laundering (AML) requirements. The timeframe personal data is held for may vary subject to legal and regulatory obligations.
If you are not currently a client of Kernow, information gathered shall be retained for five years from the date of our last correspondence with you. If you are currently or have been a client of Kernow, Kernow shall retain much of your information for five years further to the closure of your account, unless regulatory requirements dictate otherwise. Recordings of telephone and web-based conversations shall be retained for five years from the date they took place.
If Kernow is asked by you to remove your details from marketing lists, we may retain personal details on an “opt-out” list to ensure that no further marketing action is taken. To fulfil our contract with you as a client of Kernow, we may share information with third parties, examples of which are detailed below:
– IT providers and services providers in order maintain the provision of our services.
– Appointed auditors, accountants, lawyers and other professional advisers. (Only to the extent that they require access to the information to provide advice).
– ID verification and fraud prevention agencies and other organisations that allow us to complete the relevant regulatory checks.
– Providers of investments or services we recommend, including providers of pensions, offshore bonds, onshore bonds, trusts, investment platforms, discretionary management services, custodians, insurance products or other such products or services. (We may also at times be required to share information with the auditors appointed by the providers of such products or services).
– The Financial Conduct Authority, the Information Commissioner’s Office, or any relevant regulatory authority where they are entitled to require disclosure.
– If required to do so to meet applicable law, a Court Order or market rules and codes of practice applicable to the circumstances at the time.
– Relevant authorities to investigate or prevent fraud or activities believed to be illegal or otherwise in breach of applicable law.
– If tax regulations require us to collect information about tax residency, then in certain circumstances (including if we do not receive a valid self-certification from you), we may be obliged to share information about your account with the relevant tax authority, who may in turn pass this on to tax authorities based in other jurisdictions.
Transfer of data outside of the European Economic Area (EEA)
Kernow will not lend or sell your information to third parties without your permission. Your personal information may need to be shared with our service providers and this may involve transferring it to countries outside the European Economic Area (EEA). Where this is required, Kernow will ensure that this in accordance with current data protection legislation by only transferring your data to jurisdictions where there is a European Commission adequacy decision in place. Where this is not the case, Kernow will use model clauses, approved by the European Commission, obliging them to protect personal data in accordance with GDPR.
Marketing
Kernow markets certain products and services to Sophisticated Investors only (or where we have a reasonable expectation that they are). This means there are minimum wealth and financial sector experience requirements in place. In the UK, these come under the FCA definition of a Profesional Investor.
Kernow may send you information about our products or services by email or by post, which may be of interest to you. If you consent to receive marketing, you may still opt out at any future date. Kernow may also use your name and address to send invitations to events, or to introduce you to other Kernow products or services which we may consider are of interest to you. You have a right at any time to stop us contacting you for marketing purposes. If you no longer wish to be contacted, please email us at edward@kernowam.com or write to us using the address at the end of this notice.
Your Rights
You have several legal rights in relation to personal data that Kernow hold about you, these may include:
– The right to obtain information regarding how we process your personal data and access to the personal data we retain about you.
– The right to request we rectify personal data if inaccurate or incomplete.
– The right to request we erase or restrict the processing of personal data in certain circumstances. (Unless we are legally obliged to retain information).
– The right to complain to the Information Commissioners Office (ICO) if you feel any of your rights have been infringed by Kernow.
More details in relation to your rights in respect of the data we hold relating to you can be found on the Information Commissioner’s website and our Data Protection Policy.
Application of these rights may vary according to the legal basis used to process your data. In certain circumstances we are required to retain copies of information we hold about you due to other regulations. In this instance we will not be able to erase or modify the data.
If you have any concerns about our use of your personal information, please contact the Head of Compliance for Kernow using the contact details at the end of this notice. You can also contact the ICO in its capacity as Kernow’s supervisory body.
If you are unsure about the legitimacy of any communication perceived as coming from Kernow please contact the Head of Compliance for Kernow immediately using the contact details at the end of this notice. For the avoidance of doubt, Kernow does not hold client money and we will never ask you to transfer money to our bank account.
Kernow will endeavour to keep your information accurate, however if at any time after providing information it becomes out of date, then please notify us directly and we shall remove, amend or update the information within a reasonable time frame, in accordance with legislative requirements.
Internet communication, which includes email, is not secure. The protection of data by encryption is possible provided that the encryption method used remains current and the correct procedure for encryption and decryption is followed at all times.
Kernow cannot accept any responsibility for unauthorised access by a third party or for loss, theft or modification of data while it is being sent to us by email. For security purposes we may monitor emails received or issued by us.
Kernow will regularly review our privacy policy.
We reserve the right to update this privacy notice at any time and may provide details to you if there are any substantial changes made.
Contacting Us
Should you have any questions about our privacy policy or the information we hold about you please contact us:
Kernow Asset Management Limited
51 St Mary’s Road, Tonbridge, Kent, TN9 2LE.
edward@kernowam.com
Edward Hugo, Head of Compliance
2. Data Protection Policy
Your privacy is very important to us. This policy is provided by Kernow Asset Management Limited (“Kernow”, “we”, “us” “the Firm”) and sets out our policies with respect to the collection, sharing and use of personal information (Personal Data), as well as your rights with respect to such Personal Data. We are responsible for ensuring that we use your Personal Data in compliance with EU General Data Protection Regulation (“GDPR”).
All service providers appointed by Kernow will process Personal Data in accordance with our instructions and Kernow will act as the Data Controller of such data.
This policy applies to you if:
– You receive advisory or discretionary services from Kernow
– If you have requested to receive information about Kernow or have signed up to any of our mailing lists
– If you have given your Personal Data to Kernow for any other business purposes
Kernow will regularly review our Data Protection Policy. We reserve the right to update this notice at any time and may provide details to you if there are any substantial changes made.
How We Collect Information About You
The categories of Personal Data that we may collect will depend upon the nature of our relationship with you and the purpose for which information is being collected. We may collect personal data about you through various ways including:
– Information provided directly to us by you, or another person on your behalf, by e-mail or post, in person, in an application form or in other documents (as part of an application process or at other times).
This may include your name and residential address (including, where relevant proof of name, address and email address) or other contact details, photographs, signature, copies of identification documents, bank account details, nationality and country of domicile, date of birth, gender, occupational history, job title, assets, net worth, income and other financial information, source of funds details, your investment history, credit history, criminal and administrative offences, tax residency and tax identification information or number.
– Information that we obtain, collect or generate in relation to any transactions between you and us.
This might include information relating to your investment in a financial product or professional service provided by Kernow, including recording and monitoring of telephone conversations and electronic communications with you as described in section 9.
– In some circumstances, we may receive personal information about you from other sources including third parties, such as service providers or trading counterparties, regulatory or law enforcement agencies, credit reference agencies and agencies conducting background checks. Personal information may also be obtained from publicly accessible sources of information, such as public databases or websites, industry associations, social media and online professional networks, your advisers, brokers or intermediaries.
– When you visit our website, cookies are used to collect information about the services that you use, and how you use them. Cookies are essentially a small amount of data which is transferred to and sometimes updated on your computer or other devices by our web servers. For more information on the cookies used by Kernow please see our Cookie Policy.
Why We Collect Information About You
We may collect and use your personal information for the purposes of administering the relationship between us, monitoring and analysing our activities and complying with applicable legal or regulatory requirements.
This may include general business administration, including communicating with you, where necessary communicating with service providers on your behalf, risk monitoring and administration of IT systems.
Legal Basis to Collect and Process Personal Data
We will use one of the permitted grounds under the applicable law to process your information. Such grounds include instances where you have given your consent and cases where your consent is not required under applicable law or regulation, such as where we are required to comply with a legal or regulatory obligation, or where we or a third party determine that it is necessary for our legitimate interests to collect and use your personal information.
The legitimate interests to collect your personal information may include any of the purposes identified in section 2 above and any other purpose where we or a third party have determined that you have a reasonable expectation for us or a third party to collect or use your personal information for such purpose.
What are the Consequences for Failing to Provide your Personal Information?
Kernow is subject to legal and regulatory obligations that may require us to collect and store your personal information, such as the requirements to comply with the applicable law on prevention of financial crime, tax and regulatory reporting, or the rules on recording and monitoring of communications (as described below).
We may also need to collect and use your personal information for the purposes of entering into, or performance of, a contractual arrangement between us.
Kernow will endeavour to keep your information accurate, however if at any time after providing information it becomes out of date, then please notify us directly and we shall remove, amend or update the information within a reasonable time frame, in accordance with legislative requirements.
A refusal to provide us with personal information may, depending on the purpose for which your personal information is required, have various consequences such as us being unable to communicate with you, the termination of any service or other contractual arrangement between us, or, where we have a reasonable suspicion of illegal activity, we may be required to make a report to regulatory or enforcement agencies.
Disclosure of your Personal Data to Third Parties
We may (to the extent relevant to the purpose for which we collect your information), share your Personal Data with third parties, including:
– Any affiliates or other entities that are part of our group.
– Any person to whom we have a right or obligation to disclose personal data, or where we determine that disclosure is necessary to protect or defend our rights or property, including with courts of law, tax authorities, governmental, regulatory or law enforcement agencies or any other competent authority as by law or upon request.
– Service providers and professional advisers such as accountants, payroll administrators, insurance and employee benefits providers and legal advisers.
– Credit reference agencies and other third parties conducting background checks in the context of employment or client, counterparty, or investment due diligence.
– Any person as directed by you.
– Any person to whom we transfer any of our rights or obligations under any agreement, or in connection with a sale, joint venture, merger or consolidation of our business or other transfer of our assets, whether voluntarily or by operation of law, or who is otherwise deemed to be our successor or transferee.
These entities will process your Personal Data in accordance with our instructions and will themselves be responsible for their use of your Personal Data under GDPR.
Transfers of Personal Information to Countries Outside of the EEA
Your Personal Data may, and only where necessary, be transferred to and stored by entities outside the European Economic Area (the “EEA”) such as service providers to a Kernow entity, fund administrators, or tax and regulatory authorities. This may include countries that do not have the same level of data protection as that afforded by the EU General Data Protection Regulation and other data protection rules applicable to us (collectively, Data Protection Law).
In these circumstances, we take steps to ensure that the recipient agrees to keep your information confidential and that it is held securely in accordance with the requirements of Data Protection Law, such as by requesting appropriate contractual undertakings in our legal agreements with service providers.
Retention Period and Protection of Your Data
We will generally keep personal information about you for as long as necessary in relation to the purpose for which it was collected, or for such longer period if required under applicable law or necessary for the purposes of our other legitimate interests.
The applicable retention period will depend on various factors, such as any legal obligation to which we or our service providers are subject, as well as on whether you decide to exercise your right to request the deletion of your information from our systems. As a minimum, information about you will be retained for the entire duration of any business relationship we may have with you, and for a minimum period of five years after the termination of any such relationship.
We will, from time to time, review the purpose for which we have collected information about you and decide whether to retain it, update it, or securely delete it, if the information is no longer required.
Your Rights
You have certain rights under Data Protection Law in respect of the personal data we hold about you and which you may exercise. These rights may be subject to statutory restrictions, where they are applicable. These rights include the following:
– To request access to your information and to obtain information regarding the processing of your personal data.
– To request rectification of inaccurate or incomplete Personal Data.
– To request the erasure of your information (a “right to be forgotten”). Please note that there may be circumstances where you ask us to remove or erase your Personal Data but we may still be legally required to retain it.
– To object to and the right to request that we restrict the processing of your Personal Data in certain circumstances. Again, there may be circumstances where you object to, or ask us to restrict our processing of your Personal Data but we will remain legally required to continue processing your Personal Data or may even have to refuse that request.
– Where relevant, to request the portability of your information in a structured, commonly used and machine-readable format and the right to request that we transmit that data to a third party where this is technically feasible.
– Where you have given consent to the processing of your data, to withdraw your consent.
– To lodge a complaint with the data protection regulator (details of which are provided below) if you think that any of your rights have been infringed by us.
You can exercise your rights by contacting us using the details set out in section 10 below. You can find out more information about your rights by contacting an EU data regulator such as the UK’s Information Commissioner’s Office, or by searching their website at www.ico.org.uk.
Recording and Monitoring of Communications
We may record and monitor telephone and web-based conversations with you for the purposes of:
– Ascertaining the details of instructions given, the terms on which any transaction was executed or any other relevant circumstances.
– Ensuring compliance with our regulatory obligations.
– Detecting and preventing the commission of financial crime.
Copies of recordings will be stored for a period of five years, or such longer other period as we may determine from time to time.
Contacting Us
If you have any questions relating to your data or how it is collected or processed, please address them using the contact details below.
Kernow Asset Management Limited
51 St Mary’s Road, Tonbridge, Kent, TN9 2LE.
edward@kernowam.com
Edward Hugo, Head of Compliance
3. Best Execution & Order Handling Policy
Execution Policy
In conjunction with our Terms of Business, the purpose of this policy is to demonstrate how Kernow Asset Management (“Kernow”) seeks to provide best execution for clients as required by the Markets in Financial Instruments Directive 2014/65/EU (MiFID II) and the Financial Conduct Authority’s Conduct of Business Sourcebook.
Best execution is the requirement to take all sufficient steps to obtain the best possible result when executing transactions on a client’s behalf. Best execution considers price, speed, likelihood of execution and settlement, costs, size and nature of the transaction or any other consideration relevant to the execution. Some of these factors will have a higher priority than others and the relative importance may alter when appropriate. Precedence will vary since certain financial instruments trade within differing conditions and alter according to the order size and available liquidity. Kernow generally considers price, likelihood of execution and settlement and overall cost to be of foremost importance but will factor in all these components when executing a trade.
Kernow will treat each trade with equal care and in accordance with this Execution Policy and the Order Handling Policy set out below.
To ensure execution is best, Kernow uses a third-party data tool (Refinitiv Eikon) and the London Stock Exchange to monitor execution trade prices. Generally speaking, the firm will trade at “the touch”, inside the quoted spread via its broker Interactive Brokers. Occasionally, we may use other trading venues if the liquidity is elsewhere, for example, if a company is conducting a placing at a discounted price.
Exceptions and outliers are initially reviewed at the time of trade and then by the head of compliance on a periodic basis. Monitoring and reviewing in this manner allows Kernow to identify any deficiencies and if any are found, corrective action can then be taken, if required. Kernow will review execution arrangements and our policy at least annually and whenever a material change occurs that might impact our ability to provide execution to the desired standards.
On a periodic basis and at least annually, Kernow will update details and execution quality of the top five venues employed per asset class and disclose this data to interested parties on request via our website.
This Execution Policy applies to times in the normal course of business. When necessary or in times of distressed and abnormal markets, Kernow reserves the right to vary any aspect of the Execution Policy without notice. Kernow also reserves the right to aggregate like client orders when appropriate to do so.
Order Handling Policy
This Order Handling Policy is designed to outline how Kernow treats orders after the Chief Investment Officer decides to initiate a trade. For clarification purposes, Kernow only trades UK equities.
Kernow requires the use of brokers or agents to access markets. As such we will ensure a best execution obligation is in place and that periodic reviews occur to measure and monitor execution quality. Kernow will not discriminate against execution venues other than when access is restricted or not readily available or compatible with our OMS. The most appropriate venue will be selected based on the relative features of the trade.
Definitions and Details
– MiFID II: Directive 2014/65/EU of the European Parliament and the Council on Markets in Financial Instruments and any implementing directives and regulations.
– Trading Venues: Financial instrument exchanges that are categorised as a Regulated Market (RM).
– Execution Venue: Trading venues plus market makers or other liquidity providers or entities that perform similar functions for trading in a third country.
– Regulated Market (RM): A Regulated Market is a multi-lateral system that facilitates the bringing together of multiple market counterparties where buying and selling financial securities occurs and results in a binding contract. Examples include the primary global exchanges such as The London Stock Exchange, Deutsche Boerse Xetra, The Hong Kong Stock Exchange and the New York Stock Exchange.
– Order Management System (OMS): An Order Management System is an electronic system developed to execute securities orders in an efficient and cost-effective manner. Brokers and dealers use these when trading various types of securities.
– Treating Customers Fairly (TCF): Treating Customers Fairly is a regulatory and supervisory approach designed to ensure that regulated financial firms deliver specific and clearly articulated fair outcomes for consumers of financial services.
Useful Contacts
Additional regulatory information can be found under the FCA website and the ESMA website.
4. Complaints Policy
At KAM we are always committed to providing you with the best possible service. Should you feel that any aspect of our service has not met your expectations, please let us know. We take complaints about our work, staff or level of service very seriously. No matter how minor they are, they are an opportunity for us to identify improvements in our systems and services. KAM is authorised and regulated by the Financial Conduct Authority and is subject to the jurisdiction of the Financial Ombudsman Service (FOS).
Our Complaints Procedure
Please contact our Compliance Officer with details of your complaint either by letter or email.
The contact details are as follows:
The Compliance Officer
Edward Hugo
51 St Mary’s Road, Tonbridge, Kent, United Kingdom, TN9 2LE
edward@kernowam.com
Where possible please provide a clear, detailed description of what your complaint is about copies of any letters or emails relating to your complaint details of how you would like us to communicate with you in respect of your complaint, i.e. via email or post.
Next Steps
If we cannot resolve your complaint straight away, a written acknowledgement will be sent to you within five working days, summarising our understanding of your complaint and giving the name or job title of the person dealing with it.
Following a full investigation, a final response will be sent to you within four weeks of receiving your complaint or, if we have been unable to finalise our investigations, you will receive a holding response explaining why we have been unable to finalise your complaint and a date indicating when we expect to make further contact.
The Final Response
Within eight weeks of receiving your complaint, we are obliged to either: make a final response informing you of our conclusions and if your complaint is upheld we may offer redress or compensation; OR send you a notification that explains why we are not in a position to make a final response, giving you a reason for the delay and indicating when we will be in a position to make a final response.
What to do if you are not satisfied
If you are unhappy with the final response, or any delays in responding, you have the option of referring your complaint to the financial ombudsman.
www.financial-ombudsman.org.uk
0800 023 4567
Exchange Tower
Harbour
Exchange
London
E14 9SR
5. MIFIDPRU 8 Disclosure
Our MIFIDPRU 8 disclosure can be found here
6. Slavery and Human Trafficking Statement
Our Slavery and Human Trafficking Statement is available here
7. SFDR Sustainability Disclosures
Our SFDR Sustainability Disclosures are available here
8. Proxy Voting Policy
Our Proxy Voting Policy can be found here
9. SRD II Disclosure
Kernow Management LLP (“Kernow”) is making this statement in Compliance with Rule 2.2B.5R of the FCA’s Conduct of Business Sourcebook (“COBS”).
COBS requires every FCA-authorised asset manager that invests in listed equities to:
(1) develop and publicly disclose on its website, a copy of its engagement policy which includes the content specified in the amended EU Shareholder Rights Directive (Directive 2007/36/EC); and
(2) publicly disclose on an annual basis how its engagement policy has been implemented, including a general description of its voting behaviour, an explanation of its most significant votes and details of its use of the services of proxy advisors,
or, in either case, to publicly disclose a clear and reasoned explanation of why it has chosen not to comply with those requirements.
Kernow has considered carefully whether it wishes to adopt an engagement policy and to make the disclosures described above and has, for the time being, decided not to do so. As regards Kernow’s investments that are focused on equities, Kernow generally does not vote proxies. Upon the exceptional specific request of an individual portfolio manager, the Firm’s compliance department, in consultation with senior management, may consider granting permission to vote proxies, if it determines that the vote is in the best interest of investors.
Therefore, while Kernow supports the general principles of shareholder engagement, it does not at this time (for the reasons set out above) consider it appropriate to adopt an engagement policy or make the relevant public disclosures. Kernow will keep its position under review and will update this section of its website accordingly if there is a change in its approach.
10. Remuneration Policy
Our Remuneration Policy can be found here
11. Conflicts of Interest Policy
Our Conflicts of Interest Policy can be found here
12. FRC UK Stewardship Code
Under Rule 2.2.3R of the FCA’s Conduct of Business Sourcebook, Kernow Asset Management Limited (the “Firm”) is required to include on this website a disclosure about the nature of its commitment to the UK Financial Reporting Council’s Stewardship Code (the “Code”) or, where it does not commit to the Code, its alternative investment strategy. The Code is a voluntary code and sets out a number of principles relating to engagement by investors with UK equity issuers. Investors that commit to the Code can either comply with it in full or choose not to comply with aspects of the Code, in which case they are required to explain their non-compliance.
The Firm pursues a long short equity strategy that involves it investing in UK equities. The Code is therefore relevant to some aspects of the Firm’s trading. While the Firm generally supports the objectives that underlie the Code, the Firm has chosen not to commit to the Code. The Firm has a consistent investment strategy and approach to engagement with company management. This approach is described in the Firm’s Investment Philosophy, which is available to professional investors on request. Consequently the Firm does not consider it appropriate to commit to any particular voluntary code of practice relating to any individual jurisdiction.