These AKG Financial Strength Assessment Reports cover selected companies operating in the International Platform Rating Sector.
In the UK, financial advisers are required to consider the financial strength of organisations such as international platform operators that they might use. Others, including those advisers in other jurisdictions, also need information on which to assess international platform operations to meet regulatory and/or best practice responsibilities.
AKG International Platform Financial Strength Reports are designed to meet the information needs of advisers. The reports seek to cover the primary international platform service providers operating in the UK intermediary market.
AKG’s focus and approach has remained consistent over the years since it commenced assessment and rating support for the market. However, coverage, format and presentation has rightly evolved over this period, in line with the needs and expectations of assessment and rating users in the market. And AKG considers further changes on a continual basis.
In 2017 AKG made specific, significant format improvements to the Financial Strength assessment reports for the benefit of users. The reports being a primary mechanism for the distribution and explanation of AKG assessments and ratings.
In summary these improvements:
• Take account of new statutory reporting information from insurance companies, under Solvency II, where appropriate
• Align report sections to better reflect the most important aspects considered in assessment and rating; including a specific background section in the full participatory report for ‘Parental & Group’ context and then drilling down on distinct, ‘strategic’, ‘operational’ and ‘financial’ areas at the entity level, at which ratings continue to be given.
• Give greater prominence to key assessment comments, improving ‘at a glance’ readability and better communicating reasons for specific ratings
• Update the supporting ratings (the non-financial strength ratings) to specifically indicate assessment for ‘Business Performance’
• Enhance identification of the reports with the sectors covered (including with the use of specific colours), for further clarity and to emphasise AKG’s comparative sector approach.
Two different styles of report are published:
Each report collates relevant information from a range of sources such as a company’s regulatory returns, its report & accounts and material provided by the companies themselves, and incorporates expert independent assessment. For Participatory report companies, the process is augmented by regular meetings and communications with AKG.
For some international platform operators which are assessed and rated by AKG no report is produced. This is due to a low level of market demand for the additional supporting details delivered by means of a report. However, the same methodology is used in the production of ratings for such companies as is used for those assessed on a public information basis and which have a non-participatory report issued.
Ratings for international platform operator companies are contained in the AKG Rating Portal together with some background supporting information and these ratings form part of the wider rating population delivered through leading third party selection systems.
AKG Financial Strength Assessment Reports within the international platform sector can be purchased online for immediate PDF delivery at £23.50+VAT for each report.
Alternatively, you can contact AKG.
Defining the extent and boundaries of the platform market or what organisations can be deemed to be platform operators can be difficult and regulatory bodies acknowledge that activities differ among platform models and that the core function of a platform service may evolve over time.
Following various policy statements the FSA (now FCA) introduced a definition of a ‘platform service’ as a service which:
Given increasing commonality of regulatory requirements, best practice and advisory business models, this definition can also be broadly applied in the wider context of (the) international advisory environment(s).
Each report is updated at least once a year, following extensive assessment of the latest available statutory financial data, together with other financial and supporting information and, in the case of Participatory report assessments, further interrogative elements.
However, the underlying AKG assessment process undertakes ongoing monitoring and review of assessments and ratings throughout the year. This means that whilst always taking a ‘long term view’ of financial strength and adding depth and richness of data through the annual revision process, the assessments, ratings and their reports are part of a constant, dynamic process and can be reissued if required at any time.
AKG has attempted to obtain as much detailed information (particularly of a financial nature) as possible about each of the companies assessed in this series of reports. However, the depth of information available to AKG varies from one company to another, for the following reasons:
AKG's aim is to publish comparable information, presented in a consistent manner, for each company. Where this has not been possible, due to the information not being forthcoming from the company concerned, blank tables are shown. AKG's approach to rating companies which do not supply relevant information is naturally much more cautious than for those that do.
A detailed explanation of AKG's methodology underlying the determination of the ratings published in its series of International Platform Financial Strength Assessment Reports can be found here.