Remuneration Policy Statement

Castlebay Remuneration Policy Statement

The firm is subject to the MIFIDPRU Remuneration Code. This section provides further information on our remuneration policy for Castlebay Investment Partners LLP (FCA No. 624445) and Castlebay Financial Management (trading name of Castlebay IP LLP).  Castlebay is responsible for investment management and financial advice activities.

Should you wish to discuss aspects of our Remuneration Policy Statement (RPS), please contact David MacNeil (Partner) for more information on:
Tel: 0141 2127930 or email: davidmacneil@castlebayinvestments.com .

The RPS is in respect of the financial year ending 30 April 2023.

 

General Information on variable remuneration schemes

Castlebay operates on a gender neutral basis and we do not discriminate on the basis of gender when determining the remuneration of all team members.  

 

Link Between Pay & Performance

Remuneration paid at Castlebay is split between salaries and annual discretionary bonuses for non-partners of the firm based on their (non-risk taking) performance during the financial year.  The Partners participate in profit share, based on the profitability of the partnership on an ongoing basis.

All remuneration paid at Castlebay is predicated on the long-term performance of the assets under the management of the firm.  Investment management and financial advice revenues are based on a percentage charge on the value of the amount invested.  We believe this approach encourages a long-term approach to providing sound financial advice and managing money.  All members of the Castlebay team are invested alongside their fellow investors for the long term, closely aligning the interests of all parties.  

All investments are managed according to our Quality value investment philosophy and set within agreed investment parameters both within the Castlebay fund and segregated private client portfolios.  These investment parameters are monitored at Board level and by the fund Authorised Corporate Director (ACD), Valu Trac to ensure there is no deviation from the agreed approach or excessive risk taking by the Investment Managers (Partners).

 

Business strategy

We aim to continue developing meaningful relationships with existing and future like minded investors, aligning objectives and long term interests for Castlebay and our fellow investors.  We believe in the importance of Responsible Investment and are signatories of the United Nations Principles of Responsible Investment (UN PRI). We intend to become signatories of the UK Stewardship code in the near future.

The genesis of Castlebay was to manage the partners capital alongside their clients’ ensuring a close long-term alignment of best interests.  Our purpose is to provide security through compounding: returns, knowledge and trust.  As a team we have also agreed on three non-negotiable behaviours: Honesty & integrity, Doing the basics really well and a Growth mindset.  

 

Castlebay Financial Management provides independent financial advice and portfolio management to a small number of private clients.  

 

Avoiding conflicts of interest

Castlebay was established as a Limited Liability Partnership.  The business is owned by the four partners to manage their own capital alongside their fellow investors, ensuring an alignment of long term interests.  Our independent structure allows us to invest and advise fellow investors for the long term, keeping conflicts of interest to a minimum.  We recognise that from time to time conflicts can arise and our conflicts of interest policy and register outline potential conflicts and how we would react if these occurred.

The non-partner team members are paid fixed salaries and a discretionary bonus based on their and the firm’s financial performance each year. Partners draw profit share based on the financial performance of the firm. They are also invested alongside their fellow investors aligning long term interests with all parties.

As business owners, the Partners are focused on ensuring that Castlebay endures for the long term which requires prudent management of the business as well as the investments.

 

Decision Making / Remuneration Committee

Castlebay does not have a Remuneration Committee. The Partners are responsible for our remuneration policy including:
    • Determining the framework and policy for remuneration and ensuring it does not encourage undue risk taking.
    • Agreeing any major changes in remuneration structures.
    • Reviewing the terms and conditions of any new incentive schemes and in particular, considering the appropriate targets for any performance related remuneration schemes.
    • Considering and recommending the remuneration policy for the senior employees taking into account the appropriate mix of salary, discretionary bonus and share based remuneration.
    • In determining remuneration arrangements, the Partners will give due regard to best practice and any relevant legal or regulatory requirements including the MIFIDPRU Remuneration Code.

The Partners review the RPS annually to ensure it remains relevant to Castlebay and our business activities with the last review signed off on 14th August 2023 board meeting with no material changes to the policy suggested or agreed.

Remuneration and capital
In assessing any variable remuneration payments to those with fixed salaries, the partners consider the minimum capital required at Castlebay, the financial performance of the firm and the individual’s own performance during the year. Variable remuneration is entirely discretionary and subject to the partners agreement.