REG - Legal & General Grp - L&G Half Year Results 2016 Part 1 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 3
09/08/2016 07:05
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and the UK Government legislates otherwise, EU derived legislation will remain in force. In negotiating an exit from the EU, there is also the
risk that proposals have unintended consequences for the operation of the UK financial services sector. With regard to existing UK regulation, alongside the PRA ensuring the effective operation of Solvency II and an on-going requirement upon Legal &
General to ensure compliance with the new regulatory framework, the FCA continues to focus on its approach to consumer regulation, and there remain challenges in ensuring that regulatory interpretation of rules is proportionate and cost effective and align
with businesses that are becoming increasingly digital. The FCA programme of thematic reviews of industry practices may also lead to additional business remediation costs, and we cannot completely eliminate the risk that historic accepted practices may be
reappraised by regulators, resulting in sanction against the Group. We remain vigilant to the impacts of future legislative and regulatory change, internally preparing our businesses for known factors, and externally seeking to engage with government and
regulatory bodies in the UK and Europe so as to develop outcomes that meet the needs of all stakeholders.
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. We are executing a digital strategy, using platforms that allow for growth and high scale. We continue to enhance our online capabilities for auto-enrolment, investment platforms and individual retirement products ensuring focus on customer engagement and
the digital experience. We recognise there is potential for entry into our markets by scale overseas competitors who may have lower return on capital requirements and be unconstrained by Solvency II.
A material failure in our business processes 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. Our plans for growth 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. We recognise however, that residual risk will always remain and have designed our risk
governance framework to ensure that when adverse events occur we can deploy appropriate responses.
The financial services sector is increasingly becoming a target of 'cyber crime'. As we and our business partners increasingly digitalise our businesses, we are 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. A significant cyber event could result in reputational damage and financial loss. The financial services sector remains a target for those who seek to exploit perceived vulnerabilities in IT systems. Potential threats continue to evolve but include denial of service attacks, network intrusions to steal data for the furtherance of
financial crime, and the electronic diversion of funds. We are focused on maintaining a robust and secure IT environment. Working with our business partners, we seek to ensure the security of our systems with proactive responses to emerging threats.
However, the evolving nature of cyber threats means that residual risks will always remain.
ENQUIRIES
Investors:
Laura Doyle Head of Investor Relations
020 3124 2088
Sujee Rajah Investor Relations Manager
020 3124 2047
Media:
Richard King Head of Group Corporate Communications
020 3122 095
Doug Campbell 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/results.cfm.
A presentation to analysts and fund managers will take place at 10.00am 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/results2016.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
2016 Financial Calendar Date
Ex-dividend date 18th August 2016
Record date 19th August 2016
Payment date of 2016 interim dividend 22nd September 2016
DEFINITIONS
Definitions are included in the Glossary.
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, including
the additional market uncertainty caused by the UK decision to exit the EU,
are detailed above. In addition, the financial statements include, amongst
other things, notes on the Group's objectives, polices 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.
In the period leading up the EU referendum and the days subsequent there has
been significant market uncertainty and volatility. The Group manages and
monitors its capital with various stresses built in 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 2015, with the
exception of John Stewart who retired as non-executive director and chair on 1
June 2016 and Olaf Swantee who retired as non-executive director on 26 May
2016. Lesley Knox joined the Board as non-executive director on 1 June 2016
and Philip Broadley joined the Board as non-executive director on 8 July 2016.
A list of current directors is maintained on the Legal & General Group Plc
website: legalandgeneralgroup.com.
By order of the Board
Nigel Wilson Mark Gregory
Group Chief Executive Group Chief Financial
Officer
8 August 2016 8 August 2016
This information is provided by RNS
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