REG - Legal & General Grp - L&G Half-year Report 2017 Part 1 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 3
09/08/2017 07:06
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in May 2018. As a predominantly UK and US focused business, a potential loss by the UK financial services sector of EU regulatory pass-porting rights has limited direct impact, however, we are monitoring potential implications on market infrastructure and
ensuring appropriate contingency plans are established. Within the UK the FCA published its final report on the Asset Management Market Study in June 2017 and continues with its thematic review activities across the sector to ensure the fair treatment of
customers. We remain supportive of such regulation where it ensures trust and confidence and is a positive force on business, and whilst we believe we have appropriate frameworks in place to develop outcomes that meet the needs of all stakeholders, we are
exposed to the inherent risk that thematic reviews of historic industry practices lead to unanticipated additional costs and we cannot completely eliminate the risk that controls may fail, resulting in sanction against the group.
New entrants may disrupt the landscape of the markets in which we operate.As has been seen in other business sectors, it is possible that alternative digitally enabled providers of financial service products emerge with lower cost business models or innovative service propositions and capital structures disrupting the current competitive landscape. There is already strong competition in all our markets, and although we have had considerable past success at building scale to offer low cost products, we recognise that markets remain attractive to new entrants. We are also cognisant of the potential for
entry by scale overseas competitors who may have lower return on capital requirements and be unconstrained by Solvency II. We continue to execute a strategy that has digital technologies at its heart, with digital platforms an integral part of our
protection, auto-enrolled pensions and individual retirement businesses, ensuring focus on customer engagement and the digital experience.
A material failure in our business processes or IT security may result in unanticipated financial loss or reputation damage.We have constructed our framework of internal controls to minimise the risk of unanticipated financial loss or damage to our reputation. However, no system of internal control can completely eliminate the risk of error, financial loss, fraudulent actions or reputational damage. We are also inherently exposed to the risk that third parties may seek to disrupt our online business operations, steal customer data or perpetrate acts of fraud using digital media. Our plans for growth and the digitalisation of our businesses, together with the regulatory change agenda, inherently increase the profile of operational risks across our businesses. We continue to invest in our system capabilities and business processes
to ensure that we meet the expectations of our customers; comply with regulatory, legal and financial reporting requirements; and mitigate the risks of loss or reputational damage from operational risk events and external cyber threats.
ENQUIRIES
Investors:
Laura Doyle Head of Investor Relations
020 3124 2088
Sujee Rajah Investor Relations Manager
020 3124 2047
Media:
Graeme Wilson Tulchan Communications
020 7353 4200
Sheebani Chothani Tulchan Communications
020 7353 4200
Notes
A copy of this announcement can be found in "Results", under the "Financial
information" section of our shareholder website at
http://www.legalandgeneralgroup.com/investors/results2017.html.
A presentation to analysts and fund managers will take place at 9.30am UK time
today at One Coleman Street, London, EC2R 5AA. There will be a live webcast of
the presentation which can be accessed at
http://www.legalandgeneralgroup.com/investors/video.html A replay will be
available on this website later today.
There will be a live, listen only, teleconference link to the presentation.
Details below:
PARTICIPANT DIAL-IN NUMBERS
LOCATION YOU ARE DIALLING IN FROM NUMBER YOU SHOULD DIAL
UNITED KINGDOM 020 3059 8125
UNITED STATES (TOLL FREE) 1 855 287 9927
ALL OTHER LOCATIONS +44 20 3059 8125
2017 Financial Calendar Date
Ex-dividend date (interim dividend) 17th August 2017
Record date 18th August 2017
Last day for DRIP elections 1st September 2017
Payment date of 2017 interim dividend 21st September 2017
DEFINITIONS
Definitions are included in the Glossary on pages 101 to 105 of this release.
FORWARD LOOKING STATEMENTS
This announcement may contain certain forward-looking statements relating to
Legal & General, its plans and its current goals and expectations relating to
future financial condition, performance and results. By their nature,
forward-looking statements involve uncertainty because they relate to future
events and circumstances which are beyond Legal & General's control,
including, among others, UK domestic and global economic and business
conditions, market related risks such as fluctuations in interest rates and
exchange rates, the policies and actions of regulatory and Governmental
authorities, the impact of competition, the timing impact of these events and
other uncertainties of future acquisition or combinations within relevant
industries. As a result, Legal & General's actual future condition,
performance and results may differ materially from the plans, goals and
expectations set out in these forward-looking statements and persons reading
this announcement should not place reliance on forward-looking statements.
These forward-looking statements are made only as at the date on which such
statements are made and Legal & General Group Plc does not undertake to update
forward-looking statements contained in this announcement or any other
forward-looking statement it may make.
GOING CONCERN STATEMENT
The Group's business activities, together with the factors likely to affect
its future development, performance and position in the current economic
climate are set out in this Interim Management Report. The financial position
of the Group, its cash flows, liquidity position and borrowing facilities are
described in the Group Results. Principal risks and uncertainties are detailed
on pages 18 to 20. In addition, the financial statements include, amongst
other things, notes on the Group's objectives, policies and process for
managing its capital, its financial risk management objectives, details of its
financial instruments and hedging activities, and its exposures to credit and
liquidity risk.
The Group manages and monitors its capital with various stresses built in in
order to understand the expected impact of market downturns. These stresses do
not give rise to any material uncertainties over the ability of the Group to
continue as a going concern and therefore, based upon the available
information, the directors consider that the Group has the plans and resources
to manage its business risks successfully as it has a diverse range of
business and remains financially strong.
Having reassessed the principal risks, the directors considered it appropriate
to adopt the going concern basis of accounting in preparing the interim
financial information.
Director's responsibility statement
We confirm to the best of our knowledge that:
i. The consolidated interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the European
Union;
ii. The interim management report includes a fair review of the information
required by DTR 4.2.7, namely an indication of important events that have
occurred during the first six months of the financial year and their impact on
the consolidated interim financial statements, as well as a description of the
principal risks and uncertainties faced by the company and the undertakings
included in the consolidation taken as a whole for the remaining six months of
the financial year;
iii. The interim management report includes, as required by DTR 4.2.8, a fair
review of material related party transactions that have taken place in the
first six months of the financial year and any material changes in the related
party transactions described in the last Annual Report and Accounts; and
iv. The directors of Legal & General Group Plc are listed in the Legal &
General Group Plc Annual Report and Accounts for 31 December 2016, with the
exception of Mark Gregory who resigned as Chief Financial Officer on 9 March
2017 and Richard Meddings and Rudy Markham who both resigned as non-executive
directors on 25 May 2017. Stuart Jeffrey Davies joined the Board as Chief
Financial Officer on 9 March 2017, Kerrigan Procter joined the Board as Chief
Executive Officer, Legal & General Retirement on 9 March 2017 and Toby Strauss
joined the Board as non-executive director on 1 January 2017. A list of
current directors is maintained on the Legal & General Group Plc website:
legalandgeneralgroup.com.
By order of the Board
Nigel Wilson Stuart Jeffrey Davies
Group Chief Executive Group Chief Financial
Officer
8 August 2017 8 August 2017
NOTES
This information is provided by RNS
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