Close Brothers Treasury | Frequently Asked Questions

Frequently Asked Questions

Who are Close Brothers?

Close Brothers is a specialist financial services group which makes loans, trades securities and provides advice and investment management solutions to a wide range of clients. Close Brothers was established in 1878 and today employs over 2,500 people, principally in the UK. Close Brothers Group plc is listed on the London Stock Exchange and is a member of the FTSE 250.

Are you regulated?

Close Brothers Treasury is a trading style of Close Brothers Limited ('CBL'), a subsidiary of Close Brothers Group plc.

Close Brothers Limited is authorised and regulated by the Financial Services Authority, firm reference number 124750.

Are you profitable?

At our last audited year-end, 31st July 2011, we recorded £131m adjusted operating profit before tax.

Our available funds from facilities, customer deposits and our own cash totalled over £5.4bn; well ahead of our customer loan book of £3.4bn.

What is your attitude to risk?

We have taken a prudent approach to risk in all our activities for many years.

Our businesses generate a mix of types of income and do not rely on one profit centre or sector. The vast majority of our lending is on a secured basis.

Additionally, our loan book is relatively short term in duration with an average maturity of 13 months.

The group is soundly funded and well capitalised and the individual businesses within it are well positioned to take advantage of future growth opportunities.

How do you fund your loan book?

Funding comes from diversified sources including committed facilities from other banks and a range of short and long dated corporate and retail deposits.

The group does not hold sovereign debt issued by Greece, Ireland, Italy, Portugal or Spain.

Do you have exposures to emerging markets?

We do not have exposure to emerging markets.

Derivatives are only used as hedging instruments to minimise the impact of interest rate, foreign currency or equity movements connected to funding of the customer loan book.

Does Close Brothers Limited have good credit ratings?

Yes, we have a short-term rating of F1 and a long-term rating of A from Fitch Ratings Ltd.

Short-term ratings answer the question "How safe is my money placed with this bank for periods up to one year?".

F1 is defined by Fitch as "Highest credit quality. Indicates the strongest capacity for timely repayment of financial commitments".

We are also rated A2/P1 by Moody's.

Will my money be covered by the Financial Services Compensation Scheme?

Close Brothers Limited ('CBL'), is a member of the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.

CBL is a member of the Financial Services Compensation Scheme ('FSCS') which protects up to £85,000 of an eligibile depositor's funds held with CBL. The FSCS limit relates to the total funds held by a depositor with CBL, including their share of any joint account and not to each separate account.

For further information about the scheme (including the amounts covered and eligibility to claim) please refer to the FSCS website www.FSCS.org.uk or call 0800 678 1100

How do I pay money in?

You can send money to us either electronically or by cheque. Your initial deposit must come from your nominated clearing bank account.

CHEQUES - Sent to us by post
Cheques will earn interest from the second business day after the cheque is received. The interest rate earned on your deposit will also be set on the day the cheque clears.
Cheques should be payable to Close Brothers Limited, drawn on your clearing bank account and sent with a covering letter to Close Brothers Treasury, 10 Crown Place, London EC2A 4FT.