Tullett Prebon plc Annual Report 2010 25. Financial instruments The following analysis should be read in conjunction with the information on risk management included in the Business Review on pages 15 to 19. (a) Capital risk management The Group’s policy is to maintain a capital base and funding structure that maintains creditor, regulator and market confidence and provides flexibility for business development whilst also optimising returns to shareholders. The capital structure of the Group consists of debt, as set out in Note 21, cash and cash equivalents, other current financial assets and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in Notes 26 and 27. The Group has an investment firm consolidation waiver under which it is required to monitor its compliance with a financial holding company test which takes into account the Company’s shareholders’ funds and the aggregated credit risk, market risk and fixed overhead requirements of the Group. A number of the Company’s subsidiaries are individually regulated and are required to maintain capital that is appropriate to the risks entailed in their businesses according to definitions that vary according to each jurisdiction. (b) Categorisation of financial assets and liabilities Financial assets 2010 Availablefor-sale assets £m Loans and receivables £m Total £m Other financial assets (non-current) Other financial assets (current) Cash and cash equivalents Trade receivables Settlement balances 4.1 4.5 – – – 8.6 4.8 1.5 – – – 6.3 – 31.1 390.1 79.8 4,037.9 4,538.9 – 28.6 366.1 73.8 5,638.0 6,106.5 4.1 35.6 390.1 79.8 4,037.9 4,547.5 4.8 30.1 366.1 73.8 5,638.0 6,112.8 2009 69 SHAREHOLDER INFORMATION FINANCIAL STATEMENTS Other financial assets (non-current) Other financial assets (current) Cash and cash equivalents Trade receivables Settlement balances GOVERNANCE CHAIRMAN’S STATEMENT & BUSINESS REVIEW
